U.S. Senator Cynthia Lummis (R-WY), who chairs the Senate Banking Digital Assets Subcommittee, and Senator Ron Wyden (D-OR) have introduced the Blockchain Regulatory Certainty Act. This bipartisan bill aims to clarify that software developers and infrastructure providers who do not control user funds are not considered money transmitters under federal law.
“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 Lummis. “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.”
Wyden added, “Forcing developers who write code to follow the same rules as exchanges or brokers is technologically illiterate and a recipe for violating Americans’ privacy and free speech rights. I’m all for regulating digital asset exchanges to make sure people pay the taxes they owe. Senator Lummis and I are sending the message that while the government can regulate digital assets, it shouldn’t tell developers what code they’re allowed to write.”
The proposed legislation sets clear federal standards for when blockchain developers and service providers are exempt from money transmitter regulations. Currently, many developers face uncertainty about their regulatory status, which has led some innovation efforts to move outside the United States due to conflicting state requirements.
The bill would exempt non-controlling developers and providers from federal money transfer rules if they do not have legal rights or unilateral ability to control users’ digital assets transactions without third-party approval. It also defines protected activities such as creating or publishing distributed ledger software, providing maintenance services for blockchain networks, offering customer self-custody solutions, and supporting distributed ledger infrastructure.
States would still be able to enforce their own laws consistent with these federal standards but could not impose additional money transmitter requirements on those engaged solely in protected activities described by the bill.
In 2024, Senators Lummis and Wyden sent a letter to U.S. Attorney General Merrick Garland expressing concerns that the Department of Justice had diverged from definitions established by the Treasury Department’s Financial Crimes Enforcement Network regarding “money transmission.”
Senator Cynthia Lummis is Wyoming’s first female representative in the U.S. Senate. She previously served in both chambers of Wyoming’s legislature, was state treasurer, represented Wyoming in the U.S. House of Representatives, co-founded a congressional caucus, authored legislation on national forest trail maintenance, and supports community service along with family ranching traditions according to her official website.
