- Senators introduce bill for developer liability exemption.
- Impacts US blockchain innovation policies.
- Seeks to protect non-custodial technology.
Senators Cynthia Lummis and Ron Wyden unveiled the Blockchain Regulatory Certainty Act in the US Senate, aiming to exempt non-custodial blockchain developers from money transmitter regulations as of January 13, 2026.
The bipartisan proposal seeks to foster innovation by providing regulatory clarity, addressing past legal ambiguities impacting developers in privacy-focused and non-custodial DeFi sectors.
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US Senators Ron Wyden and Cynthia Lummis introduced the Blockchain Regulatory Certainty Act. This new proposal aims to exempt non-custodial blockchain developers from existing money transmitter regulations, encouraging further innovation in the US market. Lummis-Wyden bipartisan bill protects blockchain developers.
The bill addresses issues faced by developers who do not control user funds. Wyden and Lummis believe this regulation unnecessarily hampers innovation. Their action could foster a more conducive environment for growth in tech development.
The proposed exemption could significantly influence blockchain-related industries. Developers who write open-source code but do not engage in financial transactions may now pursue their projects without regulatory concerns. Crypto Briefing – Latest cryptocurrency news and analysis
If enacted, the legislation could reshape how blockchain developers operate within the US. It underscores the shift towards recognizing the unique nature of blockchain technology and its development needs by differentiating it from traditional financial activities.
Financial institutions and governments could see substantial shifts if developers embrace these new policies. The legislation might encourage other jurisdictions to adopt similar views on non-custodial development and regulation.
Historical cases like Tornado Cash underscore issues developers face under current laws. With US federal guidance aligning with the bill, such exemptions could reduce barriers for blockchain innovation, potentially leading to more domestic technological advances.
“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.” – Senator Cynthia Lummis, Chair, Senate Banking Digital Assets Subcommittee
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