US Lawmakers Rush Standalone Bill to Shield Blockchain Developers—Preempting Sweeping Crypto Legislation
Washington just threw a lifeline to the builders. A new standalone bill aims to carve out legal protections for blockchain developers before broader—and potentially more restrictive—crypto regulations land.
Why the hurry?
Legislators are moving fast to insulate the coders and architects from liability for how their decentralized networks are used. The goal? Prevent innovation from fleeing U.S. shores. It's a preemptive strike, acknowledging that the coming comprehensive crypto framework could take years to finalize and might stifle core development.
What's in the shield?
The bill focuses on core protocol development. Think of it as legal armor for the engineers writing the base-layer code, separating their work from the actions of bad actors who might use the resulting networks. No more fear of lawsuits just for building public, permissionless infrastructure.
A strategic decoupling
This move cleverly decouples two contentious issues: protecting foundational technology versus regulating its financial applications. By securing the developer front first, lawmakers hope to ease tensions with the tech community and create a more stable environment for building—even as the fights over trading, tokens, and exchanges rage on.
The bottom line? It's a rare moment of clarity in the crypto policy fog. Protect the innovators, and you might just keep the next wave of technological value creation on home soil. Of course, Wall Street veterans might cynically note it's easier to write laws protecting code than to actually understand it—but for once, the timing might just be right.
Standalone Bill Highlights Developer Protections
The MOVE comes amid intense last-minute negotiations over the Senate’s comprehensive Digital Asset Market Clarity Act, expected to be finalized and made public as early as Tuesday, with a Senate Banking Committee markup scheduled for Thursday. While earlier drafts of the market structure bill included similar developer protections, that language has remained a point of contention during negotiations.
“It’s time to stop treating software developers like banks simply because they write code,” Lummis said, emphasizing growing concern that recent enforcement actions risk criminalizing open-source software development.
Industry advocates note that the standalone bill is intended to demonstrate bipartisan support for protecting non-custodial developers, even as uncertainty remains over whether the provision will survive in the broader market structure package. The Blockchain Regulatory Certainty Act initially originated in the House before being incorporated into Senate discussions, and the new Senate version mirrors that earlier House language.
Stablecoin Yield Restrictions May Favor Banks
The latest leaked draft of the Clarity Act (page 189) includes provisions restricting companies from paying interest solely on stablecoin balances. Users may still earn rewards, but only by taking specific actions, such as trading, staking, providing liquidity or collateral, or participating in governance. Crypto journalist Eleanor Terrett noted that banks may have gained the upper hand in negotiations on stablecoin yields. Senators have 48 hours to submit amendments, leaving it unclear whether the rules will remain unchanged in Thursday’s markup.
NEW: Yield update: Banks may have won this round on stablecoin yield. The latest draft (page 189) says companies cannot pay interest just for holding balances. You can earn rewards, but only if they’re tied to opening an account or activity like making transactions, staking,… https://t.co/Df3u3Ar3cM
The Senate Banking Committee is set to review the finalized draft Thursday, while the Senate Agriculture Committee has delayed its markup to the end of the month to allow more time for bipartisan compromise. The outcome could shape U.S. crypto regulation and the DeFi ecosystem for years to come.
Bitcoin traded flat NEAR $92,000 following the developments, while broader crypto markets showed little immediate reaction. Analysts say the outcome of Thursday’s markup could have lasting implications for DeFi innovation and institutional participation in U.S. crypto markets.
