- Cynthia Lummis and Ron Wyden introduced the Blockchain Regulatory Certainty Act (BRCA) to exempt noncustodial blockchain developers from money-transmitter rules.
- The bill clarifies that writing code or maintaining networks does not trigger federal or state money-transfer requirements.
- The push follows legal concern after the Tornado Cash co-founders were convicted last year of operating an unlicensed money-transmitting business.
- Similar protections appear in a larger crypto market structure bill now facing Senate markup, but provisions could change.
- Industry groups including the DeFi Education Fund and the Blockchain Association publicly backed the BRCA and urged lawmakers to include it in market-structure legislation.
Cynthia Lummis and Ron Wyden introduced the Blockchain Regulatory Certainty Act (BRCA) on Monday to make clear that developers and service providers who do not control user funds are not money transmitters, according to the bill text linked on the Senate site. The measure says writing software or maintaining decentralized networks should not trigger federal or state money-transfer requirements, aiming to reduce legal uncertainty that some lawmakers say pushes innovation offshore. See the bill text here.
The effort follows concerns among developers after the Tornado Cash co-founders, Roman Storm and Alexey Pertsev, were found guilty last year of operating an unlicensed money-transmitting business. Sponsors say the BRCA would protect builders who never touch or control user funds.
In a statement, Cynthia Lummis said the bill gives developers clarity to “build the future of digital finance without fear of prosecution for activities that pose no money laundering risk,” and argued that treating coders like banks hurts innovation; the full statement is available here. Lummis also shared related remarks on social media on X.
Similar developer protections appear in a broader crypto market-structure bill heading to Senate Banking Committee markup this week, though draft provisions can be amended. The Senate Agriculture Committee delayed its hearing to the last week of January, according to a statement from John Boozman here.
Industry groups backed the BRCA publicly. The DeFi Education Fund said the bill “provides critical protections for software developers of non-custodial, decentralized technologies” and urged lawmakers to include it in market structure legislation on X. The Blockchain Association called clear rules “essential for innovation” and urged the BRCA remain part of market-structure talks on X. Alexander Grieve of Paradigm described the BRCA as “crucial legislation to support US blockchain development” on X.
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