Crypto Code Creators Get a Break: New Bill Says They Aren't Money Movers
Key Provisions and Implications
The Bill's Core Objective
Two senators have introduced the Blockchain Regulatory Certainty Act of 2026, a bill that could redefine how crypto software developers are treated under the law. The bill states that developers who create and distribute blockchain software should not be classified as money transmitters if they do not control other people's funds.
Why This Matters
Currently, there is significant legal ambiguity surrounding whether developers of non-custodial crypto tools can be held liable for money transmission. This bill aims to resolve this by establishing that developers who do not control, move, or seize users' funds should not be treated as money transmitters.
Key Definitions
The bill is concise but includes critical definitions:
- Developer or Provider: Individuals or entities who create and distribute blockchain software.
- Distributed Ledger Service: A service that operates on a decentralized ledger without custody of user funds.
Legal and Regulatory Impact
- Clarifies Liability: The bill seeks to draw a clear line between software development and funds custody.
- Protects Developers: Prevents prosecutors from arguing that developers of privacy tools or DeFi platforms are acting as money transmitters.
- Encourages Compliance Design: Even if the bill fails, it may force regulators to engage in a more precise conversation about compliance.
The Broader Context
- Early Crypto Argument: Software is neutral, and users are responsible for their actions.
- Modern Regulatory Pushback: Tools can be designed to facilitate abuse, and profit, governance, and operational involvement can turn neutral code into a managed service.
Challenges Ahead
- Legislative Process: The bill still needs to pass through Congress, and its future is uncertain.
- Gray Areas: The real world is messy—wallets can be self-custodial but default to hosted routing, and decentralized protocols can have small groups with significant control.
- Regulatory Focus: The next phase of crypto regulation will depend on who controls the levers that move value and whether Congress can distinguish between tools, services, and the gray areas in between.
Final Thought
If passed, the bill will clarify that writing code is not the same as moving money, a crucial distinction for the future of crypto development.
