Blockchain Regulatory Certainty Act Targets Developer Protection

US Senators Propose Bill to Shield Crypto Developers

Key Points:

  • Main event focuses on non-custodial developer protection bill.
  • Protection limits unnecessary financial innovation constraints.
  • Developers avoid being classified as money transmitters.

Senators Cynthia Lummis and Ron Wyden introduced the Blockchain Regulatory Certainty Act on January 12, 2026, in the US Senate, aiming to protect blockchain developers by exempting them from being classified as money transmitters.

The bipartisan bill addresses regulatory clarity needed to shield blockchain developers from excessive financial regulations, avoiding stifled innovation. No immediate financial market shifts reported.

The Blockchain Regulatory Certainty Act targets the legal ambiguity faced by non-custodial developers. Senators Lummis and Wyden seek to rectify the classification of developers as money transmitters. This bill follows the earlier H.R.3533, proposing parallel measures.

Key figures in Congress, Lummis and Wyden, emphasized the importance of differentiating developers from financial institutions. The legislation seeks to avoid treating developers writing self-custody code as banks.

Immediate market reaction remains muted, but industry groups support the legislation, citing its potential to protect innovation. Cynthia Lummis, Senator (R-WY), remarked,

“Blockchain developers who have simply written code and maintained open-source infrastructure have lived under the 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.”

The legislation may significantly impact the landscape for Ethereum-based DeFi protocols, Bitcoin infrastructure, and Layer 1/Layer 2 projects.

Alexander Grieve noted the potential for enhanced U.S. blockchain development: “crucial legislation to support U.S. blockchain development.”

Potential outcomes of the proposed bill include increased innovation in non-custodial blockchain solutions without excessive regulatory burdens. Historical trends suggest parallels with past privacy-focused projects. The bill could catalyze further supportive global regulatory measures.

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