U.S. Senators Propose Clarity for Blockchain Developers in New Regulatory Bill
Two U.S. senators have introduced the Blockchain Regulatory Certainty Act of 2026, aiming to shield non-custodial software developers from being classified as money transmitters. The bill addresses growing legal ambiguities that have left blockchain builders vulnerable to aggressive prosecutions and inconsistent state licensing regimes.
The proposal explicitly exempts developers and infrastructure providers who lack control over user funds. Senators Cynthia Lummis and RON Wyden previously warned Attorney General Merrick Garland that current interpretations of money-transmission laws risk criminalizing open-source crypto software development.
This legislative move comes as privacy protocols like Zcash face existential regulatory threats, with the SEC potentially holding developers personally liable for their code. The crypto industry has long argued that decentralized tools require distinct legal treatment from financial service providers.