From the US House of Representatives, Majority Whip Tom Emmer has put forth the Blockchain Regulatory Act (BCRA) – a bill aimed at providing clarity in the blockchain and cryptocurrency space.
Main Goal of the Bill
Emmer’s bill is aimed at providing legal certainty for blockchain developers and service providers who do not manage consumer funds. It proposes that such entities should not be considered money transmitters and be subject to “stringent” regulation.
This BCRA is also co-led by the representation of Darren Soto from Florida and enjoys support from two political parties. This strong bipartisan support enhances the likelihood of the bill’s passage through Congress.
The View of Emmer on this Bill
Tom Emmer, the Majority Whip of the US House of Representatives, has argued that current regulatory frameworks are not practical in the context of rapidly evolving blockchain and crypto technology. Emmer emphasizes that federal regulators and lawmakers have been utilizing “statutory definitions” that are not suited to this evolving industry.
Emmer’s BCRA presents a well-structured regulatory landscape for the cryptocurrency sector, blockchain engineers, as well as service providers.
The BRCA ensures that non-custodial activities, such as mining or wallet frameworks, are not subjected to similar regulatory rules as custodial crypto exchanges. According to Jerry Brito, Coin Center’s executive director, this act should bring about legal clarity and reiterate the understanding already existing in the crypto industry.
The Legal Crypto Frameworks Simplifies
The congressional “Crypto King”, Tom Emmer, advocating this bipartisan bill could make it easier to comply with state-by-state regulations regarding money transmissions in the industry. This could simplify the complex process currently in place.
Furthermore, the regulatory watchdogs in the US could help to form a legal structure that could lessen the regulatory requirements and costs for noncustodial blockchain entities, while also encouraging innovation. This move could offer a boost to the confidence of noncustodial blockchain framework developers and service providers in the US, and they don’t have to go outside the country to seek a simpler regulatory atmosphere.