Senators Unveil Bill Aimed at Shielding Bitcoin Developers from Money-Transmitter Rules

Senate lawmakers introduced a bill this week intended to clarify how money transmission laws apply to blockchain developers and infrastructure providers. The measure, led by Sens. Cynthia Lummis and Ron Wyden, would offer protections for developers who do not control user funds. Supporters say it would reduce legal uncertainty and promote innovation.

Backers describe the proposal as the Blockchain Regulatory Certainty Act of 2026. It would create a specific exemption for developers and service providers who build, update or maintain distributed ledger systems without taking control of digital assets. Lawmakers argue that, under current law, such activity could be construed as money transmission, potentially exposing technical contributors to licensing requirements or enforcement actions.

Sen. Lummis, a Republican from Wyoming, said the bill aims to let creative work proceed without fear of prosecution. Meanwhile, Sen. Wyden, a Democrat from Oregon and ranking member of the Senate Finance Committee, said bipartisan support reflects the need for clearer rules. Together, they framed the bill as an update to outdated interpretations of existing statutes.

What the Bill Would Change

Under current federal and many state frameworks, entities that “transmit” value must meet money-transmitter standards. Those include licensing, reporting and compliance obligations. Critics say ambiguity in definitions can sweep in developers who never take custody of assets.

The new bill would specify that non-controlling developers and providers are not money transmitters solely because they write code, run nodes, provide debugging assistance or publish network upgrades. It would also ease regulatory burdens on infrastructure firms that support decentralized networks but do not handle customer funds.

House members introduced a nearly identical version in 2025, H.R. 3533, which passed out of committee. That earlier bill drew input from industry groups and legal experts who argued that clear safe harbors would benefit enterprise and open-source projects alike.

Supporters in both chambers say timely guidance is necessary as digital assets gain broader use in finance and commerce. They also point to enforcement actions and licensing delays that lawyers say have chilled participation by developers.

Next Steps in Congress

The bill currently awaits referral to a Senate committee. Lawmakers must then hold hearings and draft text before a floor vote. If the Senate passes the measure, the House would need to approve it again, potentially as part of broader tech or financial legislation.

Advocates are watching closely. They contend that any clarity provided by the bill could shape how regulators approach decentralized technologies for years.