Amendment to HR 3633 – exemption for non-controlling blockchain developers, eliminating the requirement to register as a money transmitter when developing or publishing blockchain software.
Why Amendment H001072 to HR 3633 Is So Important and What Other Changes It Introduces
In a broader context, this introduces key changes to the Digital Asset Market Structure Clarity Act, expanding the list of activities that don’t fall under regulations related to fund transfers or asset custody.
The core idea here is that this potentially formalizes an exemption from registration requirements, and that developing, publishing, and providing access to blockchain software would not be treated as money transmission.
However, there is a critical condition – to qualify, a person must:
- not exercise control over third-party digital assets
- administration, or processing of transactions on behalf of others
- not act as a trusted intermediary
This includes fairly specific types of activity that fall under the exemption:
- creation and publication of software for blockchain infrastructure
- provision of software interfaces, including APIs and web interfaces
- development or maintenance of software for self-custody of assets, including non-custodial wallets
- generation and management of multi-sig keys without centralized control
- automated signing, encryption, or transaction verification
To put it simply: you are a blockchain software developer, and obviously, the software will process transactions. But if you are exclusively a developer who provides that software to those who will own and operate it – then you do not fall under the rules for money transmitters. It is emphasized that the exemption applies regardless of whether the software is used commercially or distributed as open-source.
If, however, you are developing software that will ultimately become your product or that you intend to operate – then you automatically violate at least one of the above criteria. Accordingly, you would be required to register as a money transmitter and assume the associated responsibilities and reporting obligations.
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Conclusion
This is a fundamentally important development because one of the key features of blockchain solutions is the possibility of DAO-based self-governance and community-driven control. In the past, even having a strong idea in this direction would automatically impose a legal status and liability.
Now, if these amendments are adopted, you may be able to launch such a project without that burden – provided you meet all the stated criteria. The rest depends solely on correct technical implementation. If approached responsibly, many talented crypto enthusiasts and blockchain developers – relieved of what may have been their only regulatory obstacle – may potentially bring a great deal of innovation and value to the industry.
