US Legislators Unveil Independent Bill to Safeguard Blockchain Developers Before Comprehensive Crypto Legislation

U.S. Senator Cynthia Lummis has put forward a standalone bill designed to safeguard non-custodial blockchain developers from being categorized as money transmitters, as the Senate gears up to reveal the much-anticipated draft of its extensive crypto market structure legislation prior to an important markup this week.

This bipartisan initiative, co-sponsored by Senator Ron Wyden, revitalizes the Blockchain Regulatory Certainty Act, clarifying that software developers, miners, validators, and infrastructure providers who do not manage user funds or possess private keys should be exempt from federal money transmission regulations. The bill underscores the notion that “code is not custody,” restricting regulatory accountability to entities that actually manage customer assets.

After months of diligent effort, we have bipartisan text prepared for Thursday’s markup. I call upon my Democrat colleagues: let’s not step back from our advancements. The Digital Asset Market Clarity Act will deliver the clarity necessary to sustain innovation in the U.S. & safeguard consumers. Let’s get this done! pic.twitter.com/fuu5CIQa8X

— Senator Cynthia Lummis (@SenLummis) January 13, 2026

Standalone Bill Emphasizes Developer Protections

This initiative arises amid vigorous last-minute discussions regarding the Senate’s all-encompassing Digital Asset Market Clarity Act, which is anticipated to be finalized and released as soon as Tuesday, with a Senate Banking Committee markup scheduled for Thursday. While previous drafts of the market structure bill featured similar protections for developers, such language has been a source of dispute during negotiations.

“It’s time to cease treating software developers as banks merely because they create code,” Lummis remarked, highlighting the increasing worry that recent enforcement actions could criminalize open-source software development.

Industry proponents suggest that the standalone bill aims to illustrate bipartisan backing for non-custodial developers, even as uncertainty looms regarding whether this provision will remain intact in the larger market structure package. The Blockchain Regulatory Certainty Act initially emerged in the House before being integrated into Senate discussions, and the new Senate version reflects that earlier House language.

Stablecoin Yield Limitations May Benefit Banks

The most recent leaked draft of the Clarity Act (page 189) contains regulations that prevent companies from offering interest solely on stablecoin balances. Users may still receive rewards, but only through specific actions, such as trading, staking, providing liquidity or collateral, or engaging in governance. Crypto journalist Eleanor Terrett pointed out that banks may have gained an advantage in discussions regarding stablecoin yields. Senators have 48 hours to propose amendments, leaving the status of the rules uncertain for Thursday’s markup.

NEW: Yield update: Banks may have triumphed in this round on stablecoin yield. The latest draft (page 189) states that companies cannot provide interest simply for holding balances. You can earn rewards, but only if they are linked to account openings or activities like making transactions, staking,… https://t.co/Df3u3Ar3cM

— Eleanor Terrett (@EleanorTerrett) January 13, 2026

The Senate Banking Committee is scheduled to examine the finalized draft on Thursday, while the Senate Agriculture Committee has postponed its markup to the end of the month to allow additional time for bipartisan agreement. The results could influence U.S. crypto regulation and the DeFi landscape for years ahead.

Bitcoin remained steady around $92,000 following these developments, while the wider crypto markets displayed minimal immediate response. Analysts indicate that the outcome of Thursday’s markup could have enduring effects on DeFi innovation and institutional involvement in U.S. crypto markets.

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