Congressman Reintroduces Bipartisan Blockchain Regulatory Certainty Act to Redefine Money Transmitters

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Legal & Regulation

Congressman Reintroduces Bipartisan Blockchain Regulatory Certainty Act to Redefine Money Transmitters

The redesigned bill aims to provide a “safe harbor” for developers and blockchain services providers in the wake of the infrastructure bill discussion.

U.S. Representatives Tom Emmer (R-Minn.) and Darren Soto (D-Fla.) reintroduced the bipartisan Blockchain Regulatory Certainty Act to clarify crypto investors by clarifying that non-custodial crypto service providers are not money transmitters.

This redesign aims to remedy the concerning proposed guidance from Financial Action Task Force (FATF) that threatens to stifle blockchain innovation in the US and send it overseas.

This year, the FATF issued draft guidance to expand the definition of virtual asset service provider (VASP) to include the developers or operators of a DeFi platform even if they have no interaction with users.

As such, with this reintroduced Act, Congressman Emmer wants to remove developers and service providers like miners from having to register as money transmitters because they never custody consumer funds.

“Blockchain service providers need clear rules of the road to be able to develop and invest in the United States.”

“It’s imperative that we provide the framework for this technology to thrive, without being limited by outdated rules and overregulation.”

Tom Emmer (R-Minn.)

Last month, Emmer also reintroduced a separate bill called the Securities Clarity Act, that instead of treating crypto assets as securities, would treat them as commodities.

The Blockchain Regulatory Certainty Act basically aims to provide a “safe harbor” from all the licensing and registration for developers and certain blockchain services providers, reads the bill.

“The re-introduction of the Blockchain Regulatory Certainty Act is extremely timely in the wake of the cryptocurrency and infrastructure bill discussion that recently took place.”

Darren Soto (D-Fla.)

This bill is endorsed by the Coin Center, the Blockchain Association, and the Chamber of Digital Commerce.

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