U.S. Senators Cynthia Lummis and Ron Wyden have introduced standalone legislation aimed at protecting blockchain developers and service providers who do not directly handle user funds from being classified as money transmitters.
The proposed Blockchain Regulatory Certainty Act (BRCA), introduced Monday, seeks to clarify that activities such as writing software or maintaining blockchain networks do not trigger federal or state money-transmission requirements.
The bill comes amid growing concern among crypto developers about potential criminal liability for how third parties use their software. Those concerns intensified last year after Tornado Cash co-founders Roman Storm and Alexey Pertsev were convicted of operating an unlicensed money-transmitting business in connection with the privacy-focused mixing protocol.
In a statement, Lummis said the legislation is intended to give developers the regulatory certainty needed to “build the future of digital finance without fear of prosecution for activities that pose no money-laundering risk.” She added that ambiguity in existing laws has pushed innovation offshore and exposed developers to conflicting state regulations.
“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.”
“This designation makes no sense when they never touch, control, or have access to user funds, and unnecessarily limits innovation,” Lummis said, adding that it’s time to stop treating developers as banks simply for writing code.
Similar protections are also included in the broader crypto market structure bill, which is scheduled for a markup before the Senate Banking Committee on Thursday.
However, provisions in draft legislation are not guaranteed to survive the markup process, as they may be amended, diluted, or removed entirely before a bill advances toward a final vote. In addition, the Senate Agriculture Committee — the other panel required to sign off on the market structure legislation — has postponed its hearing until the final week of January, according to a statement from Chairman John Boozman.
Industry support
Several crypto industry groups have already expressed support for the Blockchain Regulatory Certainty Act. The DeFi Education Fund, a prominent crypto lobbying organization, said in a post on X on Monday that the bill “provides critical protections for software developers of non-custodial, decentralized technologies.”
“The BRCA must be included in market structure legislation, and we encourage all Congressional leaders to join Senators Lummis and Wyden in prioritizing clarity and protections for software developers building our financial future.”
The Blockchain Association, a nonprofit crypto advocacy group, said that “clear rules are essential for innovation to thrive in the U.S.” and stressed that it is “critical that the Blockchain Regulatory Certainty Act remains part of the market structure legislation.”
Meanwhile, Alexander Grieve, vice president of government affairs at investment firm Paradigm, described the BRCA as “crucial legislation to support U.S. blockchain development.”
