The legislation was introduced by a U.S. lawmaker, named the Blockchain Regulatory Certainty Act. It is necessary to make sure that non-custodial providers of crypto services and developers are not seen as money transmitters. They should not be subjected to the same regulatory regime as custodial crypto exchanges. “The longer we wait to offer this sensible clarification, the greater the risk that this transformative technology moves overseas, depriving domestic users and investors,” the legislator warned.
Blockchain Regulatory Certainty Act Unveiled
U.S. Congressman Tom Emmer (R-MN), the majority whip of the U.S. House of Representatives, announced this on Thursday. He has also presented the Blockchain Regulatory Certainty Act (BRCA), “which verifies that blockchain developers and service providers that do not hold customer funds are not money transmitters.” This bipartisan bill is co-led by Representative Darren Soto (D-FL). It is the first time a bill of this kind has been proposed since 2018.
“Crypto and blockchain technology, by nature, does not easily fit into the frameworks policymakers have considered when crafting regulations in the past. For too long, federal regulators and lawmakers have jammed the blockchain ecosystem into legal definitions that don’t make any sense,” Rep. Emmer explained, elaborating:
It ought to be simple: If you don’t guard consumer funds, you are not a money transmitter. This bill provides the confirmation that the blockchain community needs.
“The longer we delay providing this commonsense clarification, the greater risk that this transformative technology is driven overseas, depriving domestic users and investors. This bill will help America remain a technological leader in the crypto space,” the House Majority Whip Emmer and Soto also serve as co-chairs of the Congressional Blockchain Caucus.
Jerry Brito, executive director of Coin Center, a nonprofit that focuses on policy issues related to cryptocurrency, commented: “Sound cryptocurrency policy requires calibrating regulations specifically for the activities that present risks that should be mitigated.” He continued:
The Blockchain Regulatory Certainty Act would make it clear in the law that non-custodial services such as mining or providing wallet software should not be regulated in the same way as running a custodial crypto exchange.
What do you think of Rep. Tom Emmer’s Blockchain Regulatory Certainty Act? Let us know what you think in the comments below.
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