Crypto industry receives protection with new Blockchain Regulatory Bill

by Arthur · March 23, 2023

Member of the US House of Representatives and Majority Whip Tom Emmer recently introduced a new bill to provide regulatory clarity for the blockchain and cryptocurrency industry. The bill is called the Blockchain Regulatory Act (BCRA).

According to Emmer, the purpose of this bill is to establish legal clarity for blockchain developers and service providers that do not hold or manage consumer funds. The bill proposes that these entities should not be considered money transmitters subject to “strict” regulations.

In addition, BCRA is a bipartisan bill led by Representative Darren Soto of Florida, supported by members of both political parties. This support increases the chances of the bill passing through Congress.

How will the crypto industry benefit from this bill?

Majority Whip Tom Emmer argues that traditional regulatory frameworks are not easily applicable to the rapidly evolving blockchain and crypto sector. Emmer believes that federal regulators and lawmakers have used “statutory definitions” that do not apply to the crypto ecosystem.

Emmers’ BCRA proposes a more “sensible regulatory” environment for the crypto industry, blockchain developers and service providers. By clarifying these matters, the bill could help promote innovation in the industry while reducing “unnecessary regulatory burdens.”

Rep. Tom Emmer promotes his bipartisan bill. Source: Tom Emmer on Twitter.

Jerry Brito, CEO of the Coin Center, a non-profit research and advocacy center focused on crypto and blockchain technology, argues that effective cryptocurrency policy requires regulatory frameworks that are “tailored” to the specific activities that pose risks that need to be mitigated. .

Brito believes that the Blockchain Regulatory Certainty Act confirms that non-custodial blockchain activities such as mining or providing wallet software should not be subject to the same regulations as custodial cryptocurrency exchanges. Brito argues that legal clarity should be provided and reinforce the understanding already established in the crypto industry.

By recognizing the differences between custodial and non-custodial activities, the bill could provide more targeted and appropriate regulatory oversight for the cryptocurrency industry. This can help promote innovation while reducing risks and protecting consumers.

Legal clarity for the crypto industry

The bipartisan bill introduced by the “Crypto King” of Congress could help simplify the complex state-by-state money transfer regulatory process that currently applies to the industry.

This can reduce regulatory burdens and costs for non-custodial blockchain entities while promoting innovation. Moreover, the legal activity offered by the BCRA can help establish the necessary trust required to prevent non-custodial blockchain developers or service providers from seeking a simpler regulatory environment outside the jurisdiction of the US regulatory watchdogs.

Overall, the bipartisan Blockchain Regulatory Certainty Act promoted by Tom Emmer and supported by both political parties could increase investor confidence, reduce regulatory uncertainty, improve consumer protection, and increase adoption in the cryptocurrency industry.

However, for these benefits to become a reality, the bill must be passed by a majority vote in Congress, which would be a significant victory for the industry.