Senators Introduce Bill to Protect Blockchain Developers from Money Transmitter Rules

Senators Ron Wyden and Cynthia Lummis have introduced a bipartisan version of the Blockchain Regulatory Certainty Act (BRCA) aimed at providing clarity for blockchain developers and infrastructure providers regarding their classification under federal law.

Key Points of the New Crypto Bill

The BRCA ensures that developers who do not control user funds are not classified as money transmitters, removing unnecessary regulatory burdens.
This classification aims to promote innovation by preventing developers from being treated like banks merely for writing code.
The bill establishes clear federal standards to exempt certain blockchain activities from money transmitter regulations.
"Non-controlling developer or provider" is defined as an entity involved in distributed ledger technology without unilateral transaction authority.
Protected activities include software development for distributed ledgers, blockchain network maintenance, customer self-custody solutions, and infrastructure support.
The bill allows states to enforce laws consistent with federal regulations but restricts them from imposing money transmitter requirements on the specified protected activities.

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The legislation addresses regulatory ambiguities that have hindered innovation and driven projects offshore due to inconsistent state regulations.