US Senators Introduce Bill to Protect Blockchain Developers From Money Transmitter Rules

A new bipartisan bill introduced in the US Senate seeks to provide long-awaited regulatory clarity for blockchain developers by formally excluding certain crypto activities from money transmitter requirements at both the federal and state levels.

The Blockchain Regulatory Certainty Act (BRCA), introduced by Senators Cynthia Lummis and Ron Wyden, is designed to ensure that writing software, publishing open-source code, or maintaining decentralized networks does not automatically trigger money transmission laws. The bill targets growing concerns among developers who fear criminal liability for how third parties use their technology.

Lummis said in X post;

Recent legal actions have intensified anxiety across the crypto sector. Developers argue that being treated like financial institutions despite never handling user funds discourages innovation and pushes talent offshore. Supporters of the bill say current interpretations of the law create inconsistent state-level requirements and unnecessary legal exposure for software builders.

Similar language protecting non-custodial developers appears in the wider crypto market structure bill currently moving through the Senate. However, lawmakers note that provisions in broader legislation can be changed or removed during committee markups, which is why sponsors view the BRCA as a critical standalone safeguard.

DeFi Education Fund, said in an X post on Monday ;

Crypto advocacy groups and investment firms have welcomed the proposal, arguing that clear legal boundaries are essential for innovation to remain in the United States. As regulatory debates continue, the BRCA is shaping up to be a key reference point in defining how software development fits within US financial law.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.