Senate introduces bill to protect crypto developers from money transmitter rules

Republican Sen. Cynthia Lummis and Democratic Sen. Ron Wyden introduced the Blockchain Regulatory Certainty Act on Monday, aiming to clarify that software developers who do not control users’ funds are not considered money transmitters. The legislation mirrors work already done in the House and seeks to establish clear guardrails for developers and service providers.

Wyden emphasized that treating code developers like exchanges or brokers “is technologically illiterate and risks violating Americans’ privacy and free speech rights.”

The bill is expected to be included in the Senate Banking Committee’s broader crypto market structure legislation, which is moving toward hearings and a vote this week. Negotiations with the crypto industry and banking sector have addressed issues such as stablecoin yield treatment, President Donald Trump’s family crypto ventures, and the role of decentralized finance (DeFi).

The DeFi Education Fund called the BRCA “vital” and urged congressional leaders to prioritize protections for software developers and self-custody within the broader market structure bill.