Sens. Cynthia Lummis and Ron Wyden introduced the Blockchain Regulatory Certainty Act on Monday, a bill that would clarify that software developers and service providers who do not control users’ funds are not considered money transmitters.
The proposal mirrors House efforts to define when non-custodial providers are exempt from money transmitting laws.
What the bill would do
The measure is designed to set “guardrails” for when developers and service providers fall outside money transmitter requirements, according to The Block’s report.
Wyden said in a statement:
“Forcing developers who write code to follow the same rules as exchanges or brokers is technologically illiterate and a recipe for violating Americans’ privacy and free speech rights.”
How it fits into broader legislation
A person familiar with the matter told The Block the Senate bill is likely to be included in the current version of the Senate Banking Committee’s market structure legislation.
The Banking Committee, where both Wyden and Lummis are members, is moving toward a hearing on Thursday to amend and vote on sweeping legislation to regulate the digital asset industry.
Text of the broader bill is expected to be released early this week.
Negotiations and industry pressure
Senators, the banking sector, and industry participants have been negotiating issues including how to treat stablecoin yield and concerns tied to President Donald Trump’s conflicts of interest related to family bitcoin ventures, the report said.
Timeline on other hearings
The Senate Agriculture Committee had also been slated to hold a Thursday hearing to mark up its broader market structure bill, but that hearing has been delayed to later this month, according to Punchbowl News.
