The US House of Representatives Majority Whip Tom Emmer has recently introduced a new bill known as the Blockchain Regulatory Act (BCRA) to provide regulatory clarity for the blockchain and cryptocurrency industry.
The bill proposes that non-custodial blockchain developers and service providers who do not hold or manage consumer funds should not be considered money transmitters subject to stringent regulations.
This bipartisan bill, co-led by Representative Darren Soto of Florida, has garnered support from members of both political parties, increasing the chances of it passing through Congress.
Emmer argues that traditional regulatory frameworks are not easily applicable to the rapidly-evolving blockchain and crypto sector. He believes that federal regulators and lawmakers have been using “statutory definitions” that are not applicable to the crypto ecosystem.
By clarifying these matters, the BCRA could help promote innovation in the industry while reducing “unnecessary regulatory burdens.”
The bill recognizes the differences between custodial and non-custodial activities, providing more targeted and appropriate regulatory oversight for the cryptocurrency industry. In doing so, it could reduce regulatory burdens and costs for noncustodial blockchain entities while promoting innovation.
The legal clarity provided by the BCRA could help establish the necessary confidence required to prevent noncustodial blockchain developers or service providers from seeking a more straightforward regulatory environment out of the jurisdiction of the US regulatory watchdogs.
The bill passing by a majority of votes in Congress would be a significant victory for the industry, increasing investor confidence, reducing regulatory uncertainty, enhancing consumer protection, and boosting adoption in the cryptocurrency industry.
The Blockchain Regulatory Act promoted by Tom Emmer and supported by both political parties can increase investor confidence, reduce regulatory uncertainty, enhance consumer protection, and boost adoption in the cryptocurrency industry. It provides much-needed legal clarity and could simplify the complex state-by-state money transmission regulatory process that currently applies to the industry.