On March 23, Congressman Tom Emmer and Darren Soto introduced a bipartisan bill called the Blockchain Regulatory Certainty Act.
The bill aims to provide more clarity for the crypto industry, which has struggled with regulations in the past. Emmer, who co-chairs the Congressional Blockchain Caucus alongside Soto, explained that crypto and blockchain technology do not easily fit into traditional regulatory frameworks.
One of the main goals of Emmer’s bill is to establish a “safe harbor” for certain entities in the blockchain space. Specifically, the bill proposes that only entities that custody consumer funds should be considered money transmitters. This means that miners, validators, and crypto wallet software providers should not have to apply for licensing or be subject to regulatory requirements since they do not have direct custody of consumers’ crypto.
The bill also aims to exempt certain blockchain developers and service providers from stringent licensing and regulatory reporting requirements that are placed on money transmitters. This is intended to give non-controlling entities legal protection from regulations imposed on entities that do control consumer funds, like exchanges.
The Blockchain Regulatory Certainty Act was first introduced in 2018 but failed to gain traction in the house due to a lack of interest following the 2017 market crash. However, with the resurgence of interest in the blockchain space and the end of the bear market on the horizon, politicians and regulators are now scrambling to establish rules.
Emmer’s bill could provide some much-needed clarity and protection for those working in the blockchain industry who are not directly involved in consumer custody.