Congressman Tom Emmer (R-IN) and Ritchie Torres (NY-15) are making strides in the world of cryptocurrency regulation with the reintroduction of the Blockchain Regulatory Certainty Act (BRCA). This legislation aims to provide clarity for crypto service providers by ensuring they are not classified as money transmitters.
In a press release on May 22, the lawmakers highlighted that the BRCA would specifically exempt non-custody digital asset providers such as wallet providers, miners, and validators from being labeled as money transmitters. This distinction is crucial as it allows these key players in the crypto sector to operate without the burden of additional regulatory requirements.
Emmer, who originally introduced the BRCA back in 2018, emphasized that the legislation strikes a balance between regulatory clarity and necessary government oversight. By clearly defining which entities fall under the money transmitter classification, the BRCA aims to prevent the exodus of crypto innovation to offshore jurisdictions.
Representative Torres echoed Emmer’s sentiments, stating that the United States should be a hub for responsible innovation rather than a place where developers are stifled by outdated regulations. The bipartisan nature of the BRCA reflects a concerted effort to create a conducive environment for digital asset development.
Support for the BRCA extends beyond the halls of Congress, with prominent figures in the crypto policy space endorsing the legislation. Blockchain Association Interim CEO Sarah Milby, The Digital Chamber CEO Cody Carbone, and Crypto Council for Innovation President and CEO Ji Hun Kim have all voiced their support for the BRCA.
Carbone emphasized that blockchain developers, miners, and validators are builders rather than financial institutions, and as such, should not be subject to stringent money transmitter regulations. He urged Congress to swiftly pass the BRCA to provide these entities with the freedom to innovate and create within the United States.
With the support of industry leaders and bipartisan backing from lawmakers, the BRCA represents a significant step towards creating a regulatory framework that fosters innovation while ensuring consumer protection. The reemergence of this legislation signals a renewed focus on clarifying the regulatory landscape for the burgeoning crypto industry.