In a pivotal move for the cryptocurrency sector, US Senators Cynthia Lummis and Ron Wyden have introduced a standalone bill designed to protect blockchain developers and non-custodial infrastructure providers from being classified as money transmitters solely based on their coding activities. Officially titled the Blockchain Regulatory Certainty Act, this legislation seeks to delineate the responsibilities of developers in regards to user funds.
Protecting Non-Custodial Developers
The proposed bill aims to establish a safe harbor for developers who lack control over user funds, shifting liability away from mere code creation to actual custody or control of assets. This pivotal change means that node operators, protocol maintainers, and many open-source coders may avoid burdensome money-transmitter regulations, provided they do not hold or direct users’ tokens.
Writing code is not the same as controlling money and developers who build blockchain infrastructure without touching user funds shouldn’t be treated like banks. @RonWyden and I are ensuring that won’t happen. pic.twitter.com/9zIgh07e0b
— Senator Cynthia Lummis (@SenLummis) January 12, 2026
The Industry’s Call for Clarification
Months of lobbying from exchanges, developer groups, and advocacy coalitions have underscored the urgent need for such legislation. Advocates voiced concerns that without precise language in regulations, developers could face licensing and enforcement challenges that would deter innovation in the US. Initial discussions around a similar safe-harbor measure emerged in the House last May and have gained traction since.
While Congress has pivoted to address broader regulatory issues, including stablecoin and yield rules, the introduction of this standalone bill may expedite the protection for developers towards quicker legislative action.
As lawmakers consider these important issues, many anticipate that this bill could provide clarity and bolster the US crypto development sector, particularly as political discussions continue to evolve.
What the Community is Saying
Reactions from various protocol teams and legal experts have largely been positive, emphasizing the necessity for clarity to minimize legal uncertainty for projects that do not engage in fund custody. However, caution has also been voiced regarding the need for precise definitions to prevent potential loopholes, ensuring that the safe harbor effectively protects developers without enabling bad actors.
This legislative iteration occurs amidst ongoing uncertainties surrounding cryptocurrency regulations in the US. The dynamic lobbying efforts from major crypto entities reflect a growing influence in Washington D.C., particularly as the regulatory landscape continues to shape the future of this burgeoning industry.
In a rapidly evolving political environment, the importance of decisive actions from Congress to provide regulatory clarity for the cryptocurrency industry cannot be overstated. The path forward remains to be seen, but for developers, this bill represents a crucial step toward an innovative future free from undue regulatory constraints.
