Update (Jan. 13, 2026, 07.58 a.m. UTC): This article was updated to clarify the legal status of Tornado Cash developers referenced in the story.
US Senators Cynthia Lummis and Ron Wyden have introduced standalone legislation to clarify that blockchain developers and service providers who don’t directly handle user funds are not considered money transmitters solely for writing software or maintaining networks.
The Blockchain Regulatory Certainty Act (BRCA), introduced by Lummis and Wyden on Monday, aims to clarify that writing software or maintaining networks doesn’t trigger federal or state money-transfer requirements.
There have been mounting concerns among crypto developers about being held criminally liable for the way people choose to use their software.
vLast year, Tornado Cash developers Roman Storm and Alexey Pertsev faced criminal cases over allegations that the mixing protocol operated as an unlicensed money-transmitting business.
Lummis said in a statement that the bill aims to provide developers with the clarity needed to “build the future of digital finance without fear of prosecution for activities that pose no money laundering risk,” as regulatory uncertainty under the current law has “driven innovation offshore and subjected them to conflicting state regulations.”
“This designation makes no sense when they never touch, control, or have access to user funds, and unnecessarily limits innovation,” Lummis said, adding that it’s time to stop treating developers as banks simply for writing code.
Source: Cynthia LummisCrypto market structure bill has similar protections
Similar protections are included in the crypto market structure bill, which is headed for a markup with the Senate Banking Committee on Thursday.
Provisions in a draft bill aren’t guaranteed, and they can be amended, watered down, or stripped during markup before it’s voted to become law. Some policymakers have previously warned that overly broad exemptions could complicate enforcement against illicit finance, while supporters argue the bill preserves existing anti-money-laundering authori
The other panel that needs to approve the market structure effort, the Senate Agriculture Committee, has delayed its hearing until the last week of January, according to a statement from Chairman John Boozman.
Related: Crypto reps fly to US Capitol this week to address market structure bill
Industry gives tick of approval
Several groups in the crypto industry have already voiced approval for the BRCA.
Crypto lobby group the DeFi Education Fund said in an X post on Monday that the bill “provides critical protections for software developers of non-custodial, decentralized technologies.”
Non-profit crypto advocacy organization the Blockchain Association said, “Clear rules are essential for innovation to thrive in the US,” and that it’s “critical that the Blockchain Regulatory Certainty Act remains in market structure legislation.”
Meanwhile, Alexander Grieve, the vice president of government affairs for investment firm Paradigm, said the BRCA is “crucial legislation to support US blockchain development.”
Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026
Source: https://cointelegraph.com/news/blockchain-developer-protections-brca-senate-bill?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
