Lummis, Wyden File Bill to Protect Bitcoin Coders From Money Transmitter Rules

Senator Cynthia Lummis (R‑WY) and Senator Ron Wyden (D‑OR) introduced the Blockchain Regulatory Certainty Act on January 12, aiming to protect open‑source developers from being treated as money transmitters under federal law. The bill clarifies that coders, node operators, and infrastructure providers who don’t custody user funds aren’t financial intermediaries.

The move addresses a long‑standing fear in the Bitcoin and DeFi communities: that publishing wallet software or maintaining blockchain infrastructure could trigger licensing requirements. Lummis, often called the “Bitcoin Senator,” said developers have lived under the threat of prosecution for too long. Wyden’s co‑sponsorship gives the measure bipartisan weight, a rare alignment in crypto policy debates.

Industry groups like the Blockchain Association have pressed for this kind of clarity, warning that uncertainty discourages U.S. talent from contributing to open‑source projects. A concrete example came in 2023 when developers behind Tornado Cash faced legal action despite not controlling user funds. That case became a rallying cry for advocates demanding legislative protection.

The timing is deliberate. The Senate Banking Committee is scheduled to mark up broader crypto market structure legislation on January 15. By introducing a standalone bill days before, Lummis and Wyden are signaling that developer protections shouldn’t get lost in the larger regulatory fight between the SEC and CFTC.

Critics argue the exemption could weaken oversight of decentralized finance, pointing to risks of illicit finance. Supporters counter that the bill doesn’t shield bad actors—it simply ensures that writing code isn’t treated as running a money services business. For Bitcoin developers, the distinction is more than legal semantics. It’s the difference between building freely and facing prosecution.