U.S. lawmakers have filed the ‘Blockchain Regulatory Certainty Act’ (BRCA) that offers legal protection for blockchain developers and other “non-custodial” actors such as node operators, miners, and validators. The bill effectively locks in protection for developers by asserting that they are not “money transmitters” and do not come under the purview of regulatory federal and state laws meant for bankers and payment processors.
The bill was introduced by Cynthia Lummis and Ron Wyden, urging protection for developers. Lummis has previously remarked that “Wallet software is no more to blame for illicit finance than a highway is responsible for a bank robber’s getaway car,” emphasizing the need for legislative renovations.
Who Is Protected—And Who Isn’t
The ‘Blockchain Regulatory Certainty Act’ protects software developers who write and publish code for blockchain. This includes open-source wallets and DeFi front-ends. The idea is that “Code is not custody” and subjecting developers to legal trouble is “criminalizing innovation.” The bill seeks to exclude devs who do not have any control over the funds and user keys from the “money transmitter” category.
Senator Wyden has been vocal about how the existing laws are inadequate to address the complexities of the evolving digital landscape. He champions the government’s efforts to “fully enforce the law against individuals who use digital assets to launder money or evade taxes,” but is concerned about a flawed interpretation of the law that “would treat software developers as criminals for merely writing and publishing code used by others.”
Thus, the bill is a codified version of consistent efforts to protect the innovators and technological enablers that span across coders, miners, validators, RPC nodes, relayers, indexers, and infrastructure providers, who are positioned to have “no custody” over the funds.
Who Is Not Protected
Anyone who actually holds and has control over the user’s digital assets is still under the purview of regulatory laws that apply to banks and money processing entities. This includes custodial wallet providers, OTC desks, centralized crypto exchanges, and crypto transaction intermediaries.
How This Bill Fits Into Wider US Crypto Reforms
The standalone bill belongs to a wider digital asset legislation that is now under the consideration of the Senate committee. The GENIUS Act, introduced in February 2025 to regulate stablecoins, was passed by the Senate in June and signed by the president in July, and became the first crypto-specific federal law in U.S. history.
If the ‘Blockchain Regulatory Certainty Act’ is passed by the Senate, the law will further strengthen the country’s crypto-specific legal framework. Yet, BCRA lacks the bipartisan urgency that stablecoin regulation had, and hence might follow a different trajectory. For example, the Senate might assimilate it into the broader Digital Asset Market Clarity Act of 2025 (CLARITY) framework.
Inside the CLARITY Act of 2025
The CLARITY Act, or the Digital Asset Market Clarity Act of 2025, is a cornerstone legislation that aims to bring clarity to U.S crypto rules and spells out who has regulatory authority over different digital asset categories. The act paves the way for a significant power shift from the SEC to the CFTC in crypto trading. The Act is still in the Senate Committee markup stage and will lead to a greater revamp of the U.S. crypto legislation if passed.
