US Lawmakers Introduce Standalone Bill to Protect Blockchain Developers

U.S. Senator Cynthia Lummis has introduced a bipartisan bill aimed at shielding non-custodial blockchain developers from being classified as money transmitters. The Blockchain Regulatory Certainty Act, co-sponsored by Senator RON Wyden, explicitly states that software developers, miners, and validators who do not control user funds should not be subject to federal money transmission regulations. The bill underscores the principle that "code is not custody," limiting liability to entities that actually hold customer assets.

The MOVE comes as the Senate prepares to unveil its broader Digital Asset Market Clarity Act, which seeks to provide regulatory clarity for the crypto industry while protecting consumers. Senator Lummis emphasized the importance of maintaining progress in crypto legislation to foster innovation in the U.S. The standalone bill is seen as a critical step in defining the boundaries of regulatory oversight for blockchain infrastructure providers.