A new wave is hitting the U.S. Senate – this time aimed at protecting the beating heart of technological innovation: crypto software developers. A bipartisan duo, Senator Cynthia Lummis (R) and Senator Ron Wyden (D), has introduced a bill that could finally clarify that programmers who don’t control users’ funds should not be treated like banks or money transmitters.
Code Is Not a Crime
Currently, regulation is murky. Some legal interpretations suggest that even just writing code for cryptocurrencies could fall under the same rules as money transmitters – entities that manage money on behalf of others. But this puts developers in legal uncertainty, even if they have no control over user funds whatsoever.
“It’s a fundamental misunderstanding of the technology,” Senator Wyden stated. “Such regulation could harm not only Americans’ privacy, but also their freedom of speech.” And that’s exactly what the new Blockchain Regulatory Certainty Act (BRCA) is aiming to change.
What Does the Bill Say?
Simply put: if a developer never touches other people’s funds, they should not be classified as a money transmitter. This straightforward yet powerful definition could have major implications across the crypto industry.
“We’re drawing a clear line between coders and custodians,” said Senator Lummis. “We want to foster innovation, not stifle it.”
The key factor is who truly controls the money. Open-source developers typically don’t — unlike banks, exchanges, or payment processors.
A Piece of a Bigger Puzzle
This bill isn’t a standalone effort. It’s part of a broader push by Congress to establish a unified regulatory framework for crypto. Lawmakers are currently tackling a wide range of critical questions:
🔹 Rules for stablecoins
🔹 Oversight of decentralized finance (DeFi)
🔹 Consumer protections
🔹 Potential conflicts of interest related to the Trump family’s crypto ventures
The Senate Banking Committee — of which both Lummis and Wyden are members — is working on a comprehensive crypto bill that would bring structure and clarity to the space. The BRCA could be a key building block in that process.
Why It Matters
If developers lose clarity on what they can and cannot do, innovation stalls. As the digital economy grows at an explosive pace, laws must evolve – not hold back progress.
The BRCA could be the shield that protects those coding the future, as well as the users relying on decentralized tools free from intermediaries.
What’s Next?
The senators hope the bill gains enough bipartisan support to become part of the final regulatory package. Developers and crypto communities are already urging lawmakers: Join the effort and help create fair rules for the digital future.
If America wants to remain a global tech leader, it needs not only visionaries, but also laws that understand the difference between writing code and handling money
#CryptoRegulation ,
#CynthiaLummis ,
#Web3Security ,
#decentralization ,
#CryptoNews Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“