“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 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 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,” Emmer concluded.
“Custody is an incredibly important issue that needs to be considered when defining which regulations apply to who,” said Congressman Darren Soto. “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."
Emmer and Soto serve as co-Chairs of the Congressional Blockchain Caucus.
“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,” said Jerry Brito, Executive Director of Coin Center.
"Blockchain Association is proud to support the reintroduction of the Blockchain Regulatory Certainty Act. By providing commonsense regulatory guardrails, this legislation goes a long way in ensuring the U.S. remains at the forefront of crypto innovation," said Blockchain Association CEO Kristin Smith.
“Now more than ever it is vital that we institute regulatory clarity for blockchain developers and service providers in the United States,” said Perianne Boring, Founder and CEO of the Chamber of Digital Commerce. “As the recent infrastructure bill debate proved, the existing lack of clarity is a serious risk to ongoing growth and innovation in the blockchain and digital asset industry. This must be addressed and the Chamber strongly supports this bill, which will help create a more hospitable environment for innovators and encourage growth where inconsistent state and federal legislation has hampered our industry."
"We applaud the reintroduction of the Blockchain Regulatory Clarity Act. This bipartisan legislation will help to protect American innovation by ensuring that developers are not subject to an unnecessary and inappropriate compliance burden that would significantly impede their ability to do their day-to-day jobs. The development of digital assets in the United States is critical to our national and economic security, and we appreciate efforts to establish the regulatory clarity that is desperately needed," said Sheila Warren, CEO of the Crypto Council.
The bill clarifies the existing overburdensome state-by-state money transmission regulatory process by asserting that blockchain entities that never custody consumer funds are not money transmitters. This legal certainty would help establish the necessary confidence required to keep noncustodial blockchain developers or service providers, including miners, validators, and wallet providers, from seeking more straightforward regulatory environments overseas.
Emmer first introduced BCRA in 2018. Today’s introduction marks its fourth successive Emmer-led introduction.
The bill is available here.