US Senators Cynthia Lummis and Ron Wyden have introduced legislation aimed at protecting blockchain developers from money transmitter regulations.
The proposed Blockchain Regulatory Certainty Act seeks to clarify that writing software or maintaining networks does not constitute money transmission.
The bill targets concerns that developers could face criminal liability for how third parties use their open-source code.
The proposal follows recent convictions of Tornado Cash co-founders over operating an unlicensed money-transmitting business.
Lummis said the bill would allow developers to build digital finance tools without fear of prosecution for activities posing no money laundering risk.
Blockchain developers who have simply written code and maintain open-source infrastructure have lived under threat for far too long.
Cynthia Lummis said.
Similar protections are included in a broader crypto market structure bill currently under review in the Senate.
Industry groups including the DeFi Education Fund and the Blockchain Association have publicly backed the proposal.
Advocacy groups said the bill would provide critical clarity for non-custodial and decentralised technology developers.
Lawmakers said the legislation is intended to keep innovation in the United States rather than driving it offshore.