Member of the US House of Representatives and Majority Whip Tom Emmer has 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 who do not hold or manage consumer funds. The bill proposes that these entities should not be considered money transmitters subject to “stringent” regulation.
Additionally, the BCRA is a bipartisan bill co-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 been using “statutory definitions” that are not applicable to the crypto ecosystem.
Emmer’s 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.”
Jerry Brito, the Executive Director of 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 present risks that need to be mitigated.
Brito believes that the Blockchain Regulatory Certainty Act affirms that non-custodial blockchain activities like mining or providing wallet software should not be subject to the same regulations as custodial cryptocurrency exchanges. Brito claims that it should be provided legal clarity 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 could help promote innovation while also mitigating risks and protecting consumers.
Legal Clarity For The Crypto IndustryThe bipartisan bill promoted by the “Crypto King” of Congress could help to simplify the complex state-by-state money transmission regulatory process that currently applies to the industry.
This could reduce regulatory burdens and costs for noncustodial blockchain entities while promoting innovation. Moreover, the legal activity provided by the BCRA could help to 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.
Overall, The bipartisan Blockchain Regulatory Certainty 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.
However, for these benefits to become a reality, the bill would need to pass by a majority of votes in Congress, which would be a significant victory for the industry.
Featured image from Unsplash, chart from TradingView.com