Bipartisan Senate Bill Seeks Clarity on Crypto Developer Liability Under Federal Law
Senators Cynthia Lummis and Ron Wyden have reintroduced the Blockchain Regulatory Certainty Act, a bipartisan bill to clarify that blockchain developers and infrastructure providers who do not control user funds should not be classified as money transmitters under federal law. The bill aims to distinguish between non-custodial software developers—those who write or maintain blockchain code without the ability to move user assets—and financial intermediaries. Lummis and Wyden argue that treating developers like financial institutions is inappropriate and threatens privacy and free speech. This legislative effort responds to recent enforcement actions against privacy-focused and self-custodial software, such as the Tornado Cash and Samourai Wallet cases, which have raised developer liability concerns. The bill seeks to provide legal certainty for open-source developers, shifting accountability to entities that actually control funds, and is seen by industry figures as a necessary step to prevent undue liability on non-custodial software writers amid ongoing regulatory debates.
