Proposed US Legislation Seeks to Exempt Blockchain Developers and Non-Custodial Services from Money Transmitter Laws
Great news for the blockchain and cryptocurrency communities! U.S. Congressman Tom Emmer has introduced the Blockchain Regulatory Certainty Act (BRCA), a bipartisan bill co-led by Representative Darren Soto, to provide much-needed clarity for developers and non-custodial service providers in the crypto space.
The bill affirms that blockchain developers and service providers who don’t hold or control consumer funds should not be considered money transmitters, and therefore should not be subject to the same level of regulation as custodial cryptocurrency exchanges. This is a major step forward in recognizing the unique nature of blockchain technology and its role in the digital economy.
Rep. Emmer explains that the bill is essential to ensure that policymakers aren’t jamming the blockchain ecosystem into statutory definitions that just don’t make sense. The bill provides the necessary confirmation that if you don’t hold or control consumer funds, you aren’t a money transmitter.
The longer we delay providing this commonsense clarification, the greater the risk that transformative technology will be driven overseas, depriving domestic users and investors. By passing this bill, America can remain a technological leader in the crypto space.
The Blockchain Regulatory Certainty Act reinforces the established understanding that non-custodial services, such as mining or providing wallet software, should not be regulated in the same way as running a custodial cryptocurrency exchange. This is an important step in ensuring that regulations are specifically calibrated for the activities that present risks that should be mitigated.
Overall, the introduction of the Blockchain Regulatory Certainty Act is a positive development for the blockchain and cryptocurrency communities. It provides much-needed clarity and recognition of the unique nature of this transformative technology, and helps America remain a leader in the digital economy.