The Blockchain Regulatory Certainty Act was introduced last week as a bipartisan act of legislation. The bill seeks to clarify and affirm that blockchain developers and service providers do not custody consumer funds, a realm that is currently opaque. This is the 4th time that Emmer has submitted legislation tackling this issue.
Introduced by Congressman and Majority Whip Tom Emmer, the bill was “co-led” by Darren Soto of Florida, thus providing the legislation some bipartisan shine. Emmer, a long-time proponent of Fintech innovation, is a Republican, and Soto a Democrat.
Representatives Emmer and Soto serve as co-Chairs of the Congressional Blockchain Caucus.
Emmer issued a statement on the legislation, explaining that crypto and blockchain do not easily slot into existing regulatory frameworks.
“For too long, federal regulators and lawmakers have jammed the blockchain ecosystem into statutory definitions that just do not make sense. It should be simple: If you don’t custody consumer funds, you aren’t a money transmitter. My bill provides that necessary confirmation for the blockchain community,” Emmer said.
The Congressman added that the longer they delay greater regulatory clarity increases the risk that the tech will move overseas – something that is already taking place.
“This bill will help America remain a technological leader in the crypto space,” said Emmer.
Soto said that custody is very important, describing himself as a “proud supporter of Representative Tom Emmer’s bill” as it is moving in the right direction in clarifying innovation.
Blockchain Association CEO Kristin Smith said they are proud to support the legislation, which “goes a long way in ensuring the U.S. remains at the forefront of crypto innovation.”
Vocal support for the bill also came from the Crypto Council, the Digital Chamber of Congress, and others.
In brief, the language of the bill clarifies the existing state-by-state money transmission regulatory process by outlining that blockchain entities that never custody consumer funds are not money transmitters. This will impact non-custodial entities that provide tech but do not hold funds.
