- Lummis and Wyden introduce a bill clarifying that developers aren’t money transmitters.
- Bill exempts developers without fund control from federal transfer rules.
- Regulatory clarity seeks to stop U.S. crypto talent from moving offshore.
A bipartisan Senate proposal aims to resolve longstanding confusion about whether writing blockchain software constitutes operating a financial services business. Senator Cynthia Lummis partnered with Senator Ron Wyden to draft the Blockchain Regulatory Certainty Act. This establishes that creating code differs fundamentally from managing customer assets.
The Wyoming Republican chairs the Senate Banking Digital Assets Subcommittee. She argued on X that building infrastructure without handling funds should not trigger bank-like oversight.
Legislative Framework Distinguishes Infrastructure From Custody
The proposal introduces specific exemptions for individuals and companies building distributed ledger systems where they do not have unilateral control over user funds. The key difference is based on whether developers possess legal authority to execute transactions independently or just provide tools others use.
Activities receiving protection cover multiple categories. Publishing software code for decentralized networks qualifies. Running validator nodes or maintaining network operations falls under the exemption. Selling hardware wallets or self-custody applications avoids triggering rules. Infrastructure services supporting ledger functionality remain outside regulatory scope.
Lummis called the current classification illogical, given developers’ lack of access to funds. Fear of prosecution has affected domestic innovation despite negligible money laundering risks, according to her statement. The bill aims to remove this effect on legitimate technical work.
States keep enforcement authority within defined limits. They may apply laws consistent with federal standards, but cannot impose money-transmission licenses on developers engaged solely in protected activities. The goal is to avoid a fragmented set of local rules that can drive projects to operate outside the country.
Regulatory confusion under existing frameworks has created years of uncertainty. Many developers faced potential state-by-state licensing battles despite never controlling user capital. The confusion drove considerable technical talent to jurisdictions with clearer guidelines.
Related: Standard Chartered Plans Institutional Crypto Brokerage for 2026
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