Senators Propose Bill to Protect Blockchain Developers’ Rights

Senators Cynthia Lummis and Ron Wyden introduced the “Blockchain Regulatory Certainty Act” to clarify the legal status of software developers in the cryptocurrency sector, potentially easing regulatory burdens.

This bill seeks to protect innovation while ensuring developers aren’t wrongfully classified as money transferors, impacting blockchain initiatives and privacy rights.

Senators Lummis and Wyden Target Money Transmitter Misclassification

The proposed bill by Senators Lummis and Wyden explicitly distinguishes blockchain developers from money transmitters, offering clarity on regulatory expectations. By focusing on those not controlling user funds, the bill aims to protect developers from undue financial regulation and bolster innovation within the cryptocurrency industry.

Key implications include clearer guidelines for developers who maintain open-source infrastructure without handling user funds. The bill aligns with a similar legislative initiative, H.R.3533, from the House of Representatives.

“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. This bill gives our developers the clarity they need to build the future of digital finance without fear of prosecution for activities that pose no money laundering risk. It’s time to stop treating software developers like banks simply because they write code.” — U.S. Senator Cynthia Lummis

Blockchain Innovation Could Flourish with Legislative Support: Analysis

Did you know? Senators Lummis and Wyden previously collaborated on a letter challenging the Department of Justice’s definition of money transmission, indicating long-standing efforts to safeguard innovators from burdensome regulations.

Bitcoin (BTC) is valued at $91,272.86, with a market cap of $1.82 trillion and a 24-hour trading volume of $41.01 billion, according to CoinMarketCap. BTC’s price saw a slight increase of 0.62% in the past day, while experiencing a 2.44% decline over the past week.

The Coincu research team highlights that the proposed bill could steer the regulatory landscape toward accommodating technological innovation while ensuring market safety. Historical trends show that supportive legislation could encourage a robust digital finance sector.