Bill Clarifies That Developers Who Don’t Custody Funds Aren’t Money Transmitters Industry groups support the Blockchain Regulatory Certainty Act (BRCA) to help the U. S. maintain leadership in blockchain innovation. However, the bill faces challenges amid political disagreements and concerns surrounding cryptocurrency. Reintroduced in Congress, the BRCA aims to protect digital asset developers through a bipartisan effort led by Representatives Tom Emmer and Ritchie Torres, members of the Congressional Crypto Caucus. The legislation explicitly states that developers who do not handle customer funds are not classified as money transmitters. The BRCA seeks to establish clear regulatory boundaries for blockchain developers by distinguishing those who facilitate transactions from those who do not. This differentiation is intended to enable developers to concentrate on innovation without unnecessary regulatory burdens. Protecting Blockchain Developers To prevent additional regulations, the bill separates developers from money transmitters, meaning those creating blockchain technology without managing financial transactions won’t be subject to strict money transmission laws. This distinction is critical to fostering innovation in the U. S. digital asset sector. Representative Emmer warned that without prompt legislative action, there is a real risk that blockchain development will move overseas.

“The longer we delay this commonsense clarification, the greater the risk that this transformative technology is pushed overseas, ” he emphasized. Proponents argue that the BRCA will safeguard American innovators and uphold the U. S. ’s position as a global leader in blockchain technology. Bipartisan and Industry Support The BRCA has garnered support from prominent industry groups such as the Blockchain Association and the Crypto Council for Innovation, who see it as vital to creating a stable framework for digital asset expansion. Nevertheless, its prospects remain uncertain due to ongoing political divisions. Under the BRCA, developers who do not custody consumer funds would not be considered money transmitters, reducing regulatory hurdles, notably for open-source developers. Despite this backing, the bill faces opposition in Washington. Some Democratic lawmakers have expressed concerns about other cryptocurrency-related legislation, while former President Trump’s connections to the crypto space and involvement with the TRUMP memecoin have sparked additional scrutiny among legislators. Crypto Regulation Intensifies in the U. S. Other legislative efforts addressing crypto regulation are also underway. The GENIUS Act, focusing on stablecoin regulation, has passed an initial cloture vote, and the STABLE Act, which governs stablecoin usage, continues to progress through Congress. While federal consensus remains elusive, several states are taking independent steps to regulate cryptocurrency. For instance, Texas’ state Senate recently approved a bill to establish a Bitcoin reserve. The BRCA is part of broader attempts to clarify cryptocurrency regulations. With bipartisan backing and support from major industry players, the bill has the potential to shape the future regulatory landscape for blockchain technology in the United States.