US Senators Move to Shield Crypto Developers From Bank-Style Regulation
US Senators Cynthia Lummis and Ron Wyden have just thrown their hat in the ring with the introduction of the Blockchain Regulatory...
Quick overview
- US Senators Cynthia Lummis and Ron Wyden have introduced the Blockchain Regulatory Certainty Act (BRCA), a bipartisan bill aimed at clarifying cryptocurrency regulation for developers.
- The BRCA seeks to exempt developers who do not handle customer funds from bank-like regulations, distinguishing between software creation and financial custody.
- Senator Wyden emphasizes that current regulations are outdated and misclassifying developers could hinder innovation and privacy.
- The bill is part of broader discussions on crypto market reforms, aiming to provide regulatory clarity that fosters blockchain innovation in the US.
US Senators Cynthia Lummis and Ron Wyden have just thrown their hat in the ring with the introduction of the Blockchain Regulatory Certainty Act (BRCA) – a bipartisan bill aimed at clearing up just how the feds plan to regulate cryptocurrency developers under US law. This is all about making sure the coders who write and maintain open-source code aren’t treated like banks or money transmitters – simply because their software doesn’t actually handle customer cash.
Right now, gaps in existing regulations are pushing developers into the same financial compliance frameworks big banks use. Lawmakers behind the bill say this creates all sorts of uncertainty for developers who are basically just writing and maintaining open-source code. They want to draw a clear line between those who manage money and those who write software.
Drawing a Clear Line Between Software and Custody
The core of the BRCA is pretty simple: writing code is not the same as holding onto people’s cash. Under this proposed framework, developers who never actually take possession of users’ funds are exempt from money transmitter rules. At the same time, entities that do handle assets are still subject to the same financial regulations.
🇺🇸 ICYMI: Sen. Cynthia Lummis and Sen. Ron Wyden introduce a bipartisan push to protect crypto developers, clarifying that writing open-source code ≠ controlling money.
The bill aims to stop treating blockchain builders like banks when they don’t touch user funds. pic.twitter.com/5Iv4nzDca6
— The Crypto Times (@CryptoTimes_io) January 13, 2026
Senator Wyden has been critical of current approaches, calling them technologically outdated and warning that misclassifying developers could undermine innovation, privacy, and free expression. Supporters of the bill reckon clearer definitions would free up regulators to focus on actual financial intermediaries, rather than getting hung up on software creators.
Key features of the bill include :
- Exempting developers who don’t hold people’s funds from bank-style regulation
- Clarifying who is really responsible when it comes to managing cash
- Making sure that we get consumer protection without stifling innovation
Why Regulatory Clarity is Really Important for Crypto Innovation
The bill is arriving just as lawmakers are weighing in on broader crypto market reforms – including stablecoin oversight, new rules for decentralized finance, and dealing with conflicts of interest across digital asset platforms. Industry advocates reckon treating developers like financial institutions could slow down the development of new tools, especially in decentralized and open-source ecosystems.
By reducing the uncertainty around all this, the BRCA aims to give developers enough confidence to build infrastructure without worrying about unintended compliance risks. Supporters say this clarity is essential for keeping blockchain innovation on a level playing field within the US.
How This Fits into the Bigger Picture on Crypto Legislation
The Blockchain Regulatory Certainty Act is expected to be rolled up into a bigger crypto market structure package that the Senate Banking Committee is currently reviewing. There are still hearings underway as lawmakers try to strike a balance between innovation, investor protection, and regulatory oversight.
If it gets adopted, the BRCA will mark a step toward clearer rules that separate software development from financial activity – an issue that many see as really crucial to the future of the digital asset economy.
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