Bill seeks to establish regulatory clarity for blockchain ecosystem

Majority Whip Tom Emmer (R-MN) and U.S. Rep. Darren Soto (D-FL), co-chairs of the Congressional Blockchain Caucus, recently introduced a bill to establish regulatory clarity for the blockchain ecosystem.

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The Blockchain Regulatory Certainty Act (BCRA) affirms blockchain developers and service providers that do not custody consumer funds are not money transmitters.

“Crypto and blockchain technology, by nature, does not easily fit into the frameworks policymakers have considered when crafting regulations in the past,” Emmer said. “For too long, federal regulators and lawmakers have jammed the blockchain ecosystem into statutory definitions that just do not make sense. It should be simple: If you don’t custody consumer funds, you aren’t a money transmitter. My bill provides that necessary confirmation for the blockchain community.”

Emmer said the longer the clarification is delayed, the greater the risk of the technology being driven overseas, depriving domestic users and investors.

“Custody is an incredibly important issue that needs to be considered when defining which regulations apply to who,” Soto said. “I’m a proud supporter of Rep. Tom Emmer’s bill because it is a step in the right direction policy-wise and provides helpful regulatory clarity for innovators in the ecosystem.”

Coin Center Executive Director Jerry Brito said sound cryptocurrency policy requires calibrating regulations specifically for the activities that present risks that should be mitigated.

“The Blockchain Regulatory Certainty Act would reinforce in law the established understanding that non-custodial services, such as mining or providing wallet software, should not be regulated in the same way as something like running a custodial cryptocurrency exchange,” Brito said.