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Update (Jan. 13, 2026, 07.58 a.m. UTC): This article was updated to clarify the legal status of Tornado Cash developers referenced in the story.
US Senators Cynthia Lummis and Ron Wyden have introduced standalone legislation to clarify that blockchain developers and service providers who don’t directly handle user funds are not considered money transmitters solely for writing software or maintaining networks.
The Blockchain Regulatory Certainty Act (BRCA), <a href="https://www.lummis.senate.gov/wp-content/uploads/LIP26026.pdf" rel="noopener noreferrer nofollow" target="_blank">introduced</a> by Lummis and Wyden on Monday, aims to clarify that writing software or maintaining networks doesn’t trigger federal or state money-transfer requirements.
There have been mounting concerns among crypto developers about being held criminally liable for the way people choose to use their software.&nbsp;
vLast year, <a href="https://cointelegraph.com/explained/what-is-tornado-cash-and-why-did-it-get-into-trouble" rel="noopener noreferrer nofollow" target="_self">Tornado Cash developers </a>Roman Storm and Alexey Pertsev faced criminal cases over allegations that the <a href="https://cointelegraph.com/explained/what-is-a-cryptocurrency-mixer-and-how-does-it-work" rel="noopener noreferrer nofollow" target="_self">mixing protocol </a>operated as an <a href="https://cointelegraph.com/news/tornado-cash-roman-storm-found-guilty-partial-verdict" rel="noopener noreferrer nofollow" target="_self">unlicensed money-transmitting business.</a>
Lummis <a href="https://www.lummis.senate.gov/press-releases/lummis-wyden-introduce-bipartisan-legislation-to-protect-blockchain-developers-from-money-transmitter-requirements/" rel="noopener noreferrer nofollow" target="_blank">said</a> in a statement that the bill aims to provide developers with the clarity needed to “build the future of digital finance without fear of prosecution for activities that pose no money laundering risk,” as regulatory uncertainty under the current law has “driven innovation offshore and subjected them to conflicting state regulations.”
<blockquote>
 “Blockchain developers who have simply written code and maintain open-source infrastructure have lived under threat of being classified as money transmitters for far too long.”
</blockquote>
“This designation makes no sense when they never touch, control, or have access to user funds, and unnecessarily limits innovation,” Lummis said, adding that it's time to stop treating developers as banks simply for writing code.&nbsp;
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2026-01/019bb518-8f08-78ea-a9fa-b8c5b5460158.png" title="" alt="Senators pitch bill to lock in protections for crypto developers">
 <figcaption style="text-align: center;">
 Source: <a href="https://x.com/SenLummis/status/2010818468778492132" rel="noopener noreferrer nofollow" target="_blank">Cynthia Lummis</a>
 </figcaption>
</figure>
<h2 id="crypto-market-structure-bill-has-similar-protections">Crypto market structure bill has similar protections</h2>
Similar protections are included in the <a href="https://cointelegraph.com/news/clarity-act-hinges-bipartisan-support-numbers" rel="noopener noreferrer nofollow">crypto market structure bill</a>, which is headed for a markup with the Senate Banking Committee on Thursday.&nbsp;
Provisions in a draft bill aren’t guaranteed, and they can be amended, watered down, or stripped during markup before it's voted to become law. Some policymakers have previously warned that overly broad exemptions could complicate enforcement against illicit finance, while supporters argue the bill preserves existing anti-money-laundering authori
The other panel that needs to approve the market structure effort, the Senate Agriculture Committee, has delayed its hearing until the last week of January, <a href="https://www.agriculture.senate.gov/newsroom/rep/press/release/chairman-boozman-cites-progress-in-bipartisan-talks-on-crypto-market-structure-legislation-postpones-markup" rel="noopener noreferrer nofollow" target="_blank">according</a> to a statement from Chairman John Boozman.
Related: <a href="https://cointelegraph.com/news/crypto-companies-dc-market-structure-bill" rel="noopener noreferrer nofollow">Crypto reps fly to US Capitol this week to address market structure bill</a>
<h2 id="industry-gives-tick-of-approval">Industry gives tick of approval</h2>
Several groups in the crypto industry have already voiced approval for the BRCA.&nbsp;
Crypto lobby group the DeFi Education Fund <a href="https://x.com/fund_defi/status/2010824966019674537" rel="noopener noreferrer nofollow" target="_blank">said</a> in an X post on Monday that the bill “provides critical protections for software developers of non-custodial, decentralized technologies.”
<blockquote>
 “The BRCA must be included in market structure legislation, and we encourage all Congressional leaders to join Senators Lummis and Wyden in prioritizing clarity and protections for software developers building our financial future.”
</blockquote>
Non-profit crypto advocacy organization the Blockchain Association <a href="https://x.com/BlockchainAssn/status/2010842772706574670" rel="noopener noreferrer nofollow" target="_blank">said</a>, “Clear rules are essential for innovation to thrive in the US,” and that it’s “critical that the Blockchain Regulatory Certainty Act remains in market structure legislation.”
Meanwhile, Alexander Grieve, the vice president of government affairs for investment firm Paradigm, <a href="https://x.com/AlexanderGrieve/status/2010833024988971045" rel="noopener noreferrer nofollow" target="_blank">said</a> the BRCA is “crucial legislation to support US blockchain development.”
Magazine: <a href="https://cointelegraph.com/magazine/how-crypto-laws-changed-2025-further-2026/" rel="noopener noreferrer nofollow">How crypto laws changed in 2025 — and how they’ll change in 2026</a>

Senators pitch bill to lock in protections for crypto developers

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