Bipartisan legislation introduced to protect non-custodial blockchain developers.
Safe harbor exempts software creators without user fund control from money transmitter licensing.
Addresses regulatory uncertainty impacting DeFi and open-source projects.
Standalone bill signals priority amid broader crypto market structure talks.
U.S. Senators Cynthia Lummis (R-WY) and Ron Wyden (D-OR) introduced the Blockchain Regulatory Certainty Act on January 12, establishing clear federal exemptions for blockchain developers and service providers who do not custody or control users’ digital assets.
The BRCA creates a safe harbor from money transmitter registration and licensing requirements under the Bank Secrecy Act for non-controlling developers — those lacking the unilateral ability to initiate or effectuate transactions involving consumer funds.
Protected activities outlined in the bill include publishing open-source software for distributed ledgers, maintaining blockchain networks, providing infrastructure support, and offering hardware or software for self-custody solutions.
“Blockchain developers who have simply written code and maintain open-source infrastructure have lived under threat of being classified as money transmitters for far too long,” said Senator Lummis. “This designation makes no sense when they never touch, control, or have access to user funds, and unnecessarily limits innovation.”
Senator Wyden added that forcing code writers to follow rules designed for exchanges or brokers is “technologically illiterate and a recipe for violating Americans’ privacy and free speech rights.”
The standalone introduction underscores bipartisan commitment to developer protections as the Senate Banking Committee prepares to mark up a comprehensive digital asset market structure bill. Similar language is expected to appear in the broader legislation, reflecting ongoing negotiations around decentralized finance treatment and regulatory clarity.
Industry groups welcomed the move, viewing it as essential to retaining blockchain innovation in the U.S. amid concerns that ambiguous rules have pushed development overseas.
While passage of the standalone BRCA remains uncertain, its provisions address long-standing calls for distinguishing between software creation and financial intermediation.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
The post Lummis and Wyden Introduce Bill to Exempt Non-Custodial Blockchain Developers from Money Transmitter Rules appeared first on Cryptopress.