U.S. Senator Cynthia Lummis of Wyoming and Senator Ron Wyden of Oregon have introduced the Blockchain Regulatory Certainty Act, a bipartisan bill designed to clarify federal regulations for blockchain developers and infrastructure providers. The legislation aims to ensure that those who develop software or maintain distributed ledger technology, but do not control user funds, are not classified as money transmitters under federal law.
Senator Lummis stated, “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.”
Senator 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 establishes clear standards at the federal level regarding when blockchain service providers are exempt from money transmitter regulations. Under current law, some developers face uncertainty over their regulatory status—a situation that has led some innovation efforts overseas due to conflicting state requirements.
Key provisions in the bill include an exemption from federal money transfer requirements for non-controlling software creators and service providers. It defines “non-controlling developer or provider” as someone who develops or maintains distributed ledger technology but does not have authority over users’ digital asset transactions without third-party approval.
The act also outlines protected activities such as creating or publishing distributed ledger software, providing maintenance services on blockchain networks, offering self-custody hardware or software solutions for customers, and supporting infrastructure necessary for distributed ledgers.
While maintaining state authority over laws consistent with these new standards, the legislation would prevent states from imposing their own money transmitter rules on those engaging solely in these protected activities.
In 2024, Senators Lummis and Wyden sent a letter expressing concern about how recent actions by the U.S. Department of Justice diverged from established definitions used by Treasury’s Financial Crimes Enforcement Network concerning “money transmission.”
Senator Cynthia Lummis is recognized as Wyoming’s first female U.S. senator and has previously served in various state-level roles including state treasurer and positions in both chambers of Wyoming’s legislature according to her official website. She supports community service initiatives and family ranching traditions across Wyoming communities as noted on her Senate site.
