Catenaa, Sunday, January 18, 2026- Senators Cynthia Lummis, a Republican, and Ron Wyden, a Democrat, introduced the Blockchain Regulatory Certainty Act to clarify that software developers who do not control users’ funds are not considered money transmitters.
The move comes as Congress works to advance a broader digital asset bill.
The legislation would establish clear exemptions for developers and service providers from money transmission laws, distinguishing them from exchanges or brokers.
Lawmakers argue that applying traditional regulatory rules to developers could infringe on privacy and free speech rights.
The bill is expected to be incorporated into the Senate Banking Committee’s crypto market structure legislation, which is under rapid development.
The committee plans hearings this week to amend and vote on the broader regulatory framework. The full text of the market structure bill is anticipated to be released early this week.
Negotiations over the legislation include treatment of stablecoin yields, protections for self-custody, and addressing conflicts of interest in family crypto ventures, including those linked to former President Donald Trump.
Decentralized finance has emerged as a major focus in discussions between lawmakers, the crypto industry, and financial regulators.
Advocacy groups, including the DeFi Education Fund, emphasized the importance of including the Lummis-Wyden protections in the final legislation.
They called on Congressional leaders to ensure clear legal guidance for developers building infrastructure for digital finance.
Senators Lummis and Wyden propose a bill shielding crypto developers from money transmitter rules, aiming to secure legal clarity in upcoming broader digital asset legislation.
