The Blockchain Regulatory Certainty Act aims to clarify that writing software and maintaining networks do not constitute money-transfer responsibilities under federal or state laws.

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Overview

US Senators Cynthia Lummis and Ron Wyden have unveiled a new proposed legislation to safeguard blockchain developers and service providers who do not manage user funds directly. This legislation is designed to prevent them from being classified as money transmitters merely for the act of writing software or maintaining blockchain networks.

Legislative Intent

The Blockchain Regulatory Certainty Act (BRCA) seeks to provide clear legal parameters for developers, thereby allowing them to innovate without the fear of being prosecuted under existing, ambiguous laws. Lummis emphasized that the bill is crucial for fostering growth in digital finance, ensuring that developers can operate without the apprehension of legal repercussions.

“Blockchain developers who have simply written code and maintain open-source infrastructure have lived under the threat of being classified as money transmitters for far too long.”

— Cynthia Lummis

Lummis further noted that the current classification stifles innovation and inaccurately equates software development with banking responsibilities.

Related Legislations

The BRCA shares similarities with ongoing discussions in the Senate regarding crypto market structure. Recent feedback from industry groups highlights strong support for this legislation as essential for protecting developers in decentralized financial technologies.

Community Backing

Various organizations within the crypto community have expressed their approval of the BRCA, underscoring the need for clear regulations that support innovation and protect developers’ rights.

“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.”

This initiative signifies a significant step for digital finance and the broader blockchain ecosystem, emphasizing the importance of clear regulatory frameworks.