This bill clarifies that certain developers and providers of blockchain technology are not subject to federal money transmission laws and their associated registration requirements. Specifically, it exempts "non-controlling developers or providers" — those who create or maintain blockchain software but cannot unilaterally control or initiate transactions on behalf of users without third-party approval — from being classified as money transmitting businesses under federal law. The bill applies to developers providing software maintenance, custody tools, or infrastructure support for distributed ledger systems. However, the exemption is narrow: it does not protect developers from other financial regulations, anti-money laundering laws, or state-level requirements, and it does not apply to developers who actually control user transactions or operate outside the specified scope. The legislation takes effect upon enactment and allows states to enforce consistent state laws.
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