Lummis, Wyden Introduce Bipartisan Legislation to Protect Blockchain Developers from Money Transmitter Requirements

January 12, 2026

Washington, D.C.- U.S. Senator Cynthia Lummis (R-WY), Senate Banking Digital Assets Subcommittee Chair, joined U.S. Senator Ron Wyden (D-OR) in introducing the Blockchain Regulatory Certainty Act, bipartisan legislation that clarifies that software developers and infrastructure providers who do not control user funds are not money transmitters under federal law.

"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," said Lummis. "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."

"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," said Wyden. "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."

BACKGROUND:

The Blockchain Regulatory Certainty Act establishes clear federal standards for when blockchain developers and service providers are exempt from money transmitter regulations. Under current law, many developers face regulatory uncertainty that has driven innovation offshore and subjected them to conflicting state regulations.

This bill:

• Exempts non-controlling developers and providers from federal money transfer requirements, ensuring those who create software, maintain distributed ledgers, or provide infrastructure support are not classified as money transmitters solely for these activities.

• Clearly defines "non-controlling developer or provider" as any person or business that develops or maintains distributed ledger technology but does not have the legal right or unilateral ability to control, initiate, or effectuate transactions involving users' digital assets without third-party approval.

• Clarifies protected activities including creating or publishing software for distributed ledgers, providing maintenance services to blockchain networks, offering hardware or software for customer self-custody solutions, and providing infrastructure support to maintain distributed ledger services.

• Maintains state authority to enforce state laws consistent with federal standards while preventing states from imposing money transmitter requirements on developers engaging solely in the protected activities outlined in the bill.

Bill text can be found here.

In 2024, Senators Lummis and Wyden sent a letter to U.S. Attorney General Merrick Garland raising significant concerns that the U.S. Department of Justice diverged from the clear, logically sound, and well-established definition of "money transmission" established by the Treasury Department's Financial Crimes Enforcement Network.

A copy of the letter can be found here.