Bill Summary
The "Blockchain Regulatory Certainty Act of 2026" aims to provide clarity regarding the status of non-controlling developers and providers of distributed ledger services (such as blockchain technology) in relation to existing money transmission laws in the United States.
Key points of the legislation include:
1. **Definitions**: It defines key terms such as "developer or provider," "digital asset," "distributed ledger," "distributed ledger service," and "non-controlling developer or provider." A non-controlling developer is one that does not have the authority to independently initiate or control transactions involving digital assets without third-party approval.
2. **Legal Treatment**: The Act stipulates that non-controlling developers or providers will not be classified as money transmitting businesses under current federal laws. This means they will not be subject to the same registration and regulatory burdens that apply to businesses involved in money transmission based on their activities related to creating or maintaining distributed ledger technology.
3. **Exemptions from Registration**: The Act exempts these developers from registration requirements that would typically apply to money transmitters if their activities are limited to software development, customer custody solutions, or infrastructure support for distributed ledgers.
4. **Limitations**: The legislation clarifies that it does not affect other classifications or regulatory obligations under federal or state laws, particularly those related to anti-money laundering, and does not alter intellectual property laws or state enforcement capabilities.
In summary, this legislation is designed to foster innovation in the blockchain space by reducing regulatory burdens on certain developers and providers, while maintaining necessary compliance with broader financial regulations.
Possible Impacts
Here are three examples of how the Blockchain Regulatory Certainty Act of 2026 could affect people:
1. **Reduced Regulatory Burden for Developers**: Non-controlling developers or providers of distributed ledger services would not be classified as money transmitters, meaning they wouldn't have to comply with stringent registration and regulatory requirements typically imposed on money transmission businesses. This could encourage more innovation and development in the blockchain space, as developers might find it easier and less costly to create and maintain software and services related to digital assets. As a result, end users may benefit from a greater variety of blockchain applications and services.
2. **Increased Clarity on Legal Responsibilities**: The act clarifies the definitions and treatment of non-controlling developers, helping to delineate their legal responsibilities. This could reduce legal ambiguities that currently exist in the blockchain and digital asset space. For individuals and businesses relying on these technologies, this clarity can provide greater confidence when using distributed ledger services, knowing that the developers behind these services are not subject to the same regulations as traditional money transmitters.
3. **Potential for Enhanced Consumer Protection**: Although the act exempts non-controlling developers from certain money transmission laws, it also explicitly states that it does not limit the applicability of existing laws related to anti-money laundering or counter-terrorism financing. This means that consumers can still expect certain protections against fraud and illegal activities when using digital assets. By ensuring that developers cannot bypass important financial regulations entirely, the act may help maintain a balance between fostering innovation and protecting consumers.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3611 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 3611
To clarify the treatment of certain non-controlling developers or
providers of distributed ledger services involved in digital assets
with respect to money transmission laws, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 12, 2026
Ms. Lummis (for herself and Mr. Wyden) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To clarify the treatment of certain non-controlling developers or
providers of distributed ledger services involved in digital assets
with respect to money transmission laws, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Blockchain Regulatory Certainty Act
of 2026''.
SEC. 2. TREATMENT OF CERTAIN NON-CONTROLLING DEVELOPERS WITH RESPECT TO
MONEY TRANSMISSION LAWS.
(a) Definitions.--In this section:
(1) Developer or provider.--The term ``developer or
provider'' means any person or business that creates or
publishes software to facilitate the creation of, or provide
maintenance to, a distributed ledger, or a service associated
with a distributed ledger.
(2) Digital asset.--The term ``digital asset'' means any
digital representation of value which is recorded on a
cryptographically secured distributed ledger.
(3) Distributed ledger.--The term ``distributed ledger''
means technology in which data is shared across a network
that--
(A) creates a public digital ledger of verified
transactions or information among network participants;
and
(B) uses cryptography to link the data to maintain
the integrity of the public ledger and execute other
functions.
(4) Distributed ledger service.--The term ``distributed
ledger service'' means any information, transaction, or
computing service or system that provides or enables access to
a distributed ledger system by multiple users, including a
service or system that enables users to send, receive,
exchange, or store digital assets described by distributed
ledger systems.
(5) Non-controlling developer or provider.--The term ``non-
controlling developer or provider'' means a developer or
provider of a distributed ledger service that, in the regular
course of operations, does not have the legal right or the
unilateral and independent ability to control, initiate upon
demand, or effectuate transactions involving digital assets to
which users are entitled, without the approval, consent, or
direction of any other third party.
(b) Treatment.--Notwithstanding any other provision of law, a non-
controlling developer or provider--
(1) shall not be treated as--
(A) a money transmitting business, as defined in
section 5330 of title 31, United States Code, and the
regulations promulgated under that section; or
(B) engaged in money transmitting, as defined in
section 1960 of title 18, United States Code, as
amended by this Act; and
(2) on or after the date of enactment of this Act, shall
not be otherwise subject to any registration requirement that
is substantially similar to a requirement (as in effect on the
day before the date of enactment of this Act) that applies to
an entity described in subparagraph (A) or (B) of paragraph
(1), solely on the basis of--
(A) creating or publishing software to facilitate
the creation of, or providing maintenance services to,
a distributed ledger or a service associated with a
distributed ledger;
(B) providing hardware or software to facilitate a
customer's own custody or safekeeping of the digital
assets of the customer; or
(C) providing infrastructure support to maintain a
distributed ledger service.
(c) Rules of Construction.--Nothing in this section may be
construed--
(1) to affect whether a developer or provider of a
blockchain service is otherwise subject to classification or
treatment as a money transmitter, or as engaged in money
transmitting, under applicable Federal or State law, including
laws relating to anti-money laundering or countering the
financing of terrorism, based on conduct outside the scope of
subsection (b);
(2) to affect whether a developer or provider is otherwise
subject to classification or treatment as a financial
institution under subchapter II of chapter 53 of title 31,
United States Code, this Act, any amendment made by this Act,
or any Act enacted after the date of enactment of this Act;
(3) to limit or expand any law pertaining to intellectual
property;
(4) to prevent any State from enforcing any State law that
is consistent with this section; or
(5) to create a cause of action or impose liability under
any State or local law that is inconsistent with this section.
<all>