According to Politico, a cryptocurrency bill pushed by U.S. Senate Banking Committee Chair Tim Scott is facing a clash of interests between law enforcement agencies and the crypto industry. The controversy centers on the bill's protection clause for "non-custodial software developers," which states that developers who do not control customer funds do not need to register as money transmitters or comply with anti-money laundering regulations. The National Sheriffs' Association and the National District Attorneys Association (NDAA), among other organizations, have pressured legislators through letters, arguing that this clause could create regulatory loopholes and weaken law enforcement's ability to track financial crimes. Industry groups, represented by the DeFi Education Fund, and Senator Cynthia Lummis, insist that coding is protected by the Constitution and that developers who have never controlled funds should not be considered money transmitters.

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