A cryptocurrency bill spearheaded by U.S. Senate Banking Committee Chairman Tim Scott is facing opposition from law enforcement and the crypto industry over a provision concerning non-custodial software developers. The bill proposes that developers who do not control customer funds should not be required to register as money transmitters or comply with anti-money laundering regulations. Organizations such as the National Sheriffs' Association and the National District Attorneys Association have expressed concerns, arguing that this could create regulatory loopholes and hinder the ability to track financial crimes. Conversely, industry groups like the DeFi Education Fund and Senator Cynthia Lummis argue that writing code is constitutionally protected and that developers who never control funds should not be classified as money transmitters. This debate highlights the ongoing tension between regulatory oversight and innovation in the cryptocurrency sector.