Bipartisan Bill Would Exempt Crypto Developers from Money Transmitter Rules
Senators Cynthia Lummis and Ron Wyden unveiled legislation on Jan. 12, 2026, that would shield crypto software developers from money transmitter rules so long as they do not take custody of users’ funds. The bill targets a long-standing friction point: how to treat code creators and platform engineers whose products enable value transfer without holding assets themselves. By narrowing the scope of money transmitter statutes, the sponsors say the change would reduce legal uncertainty for wallets, custodial-agnostic services, and smart contract developers.
If enacted, the measure could ease compliance burdens and lower barriers for startups and open-source projects, encouraging innovation while still leaving anti-money-laundering and consumer-protection tools intact. Bipartisan backing increases its chances of moving through Congress, but details about thresholds, enforcement and interaction with existing financial laws will determine how much practical relief developers actually receive.