U.S. House Majority Whip Tom Emmer (R-MN) on March 23 introduced bipartisan legislation that aims to provide sound cryptocurrency policy by clarifying that non-custodial services, such as mining or providing wallet software, would not be federally regulated the same way as something like running a custodial cryptocurrency exchange.
“The longer we delay providing this common-sense clarification, the greater risk that this transformative technology is driven overseas, depriving domestic users and investors,” Rep. Emmer said. “This bill will help America remain a technological leader in the crypto space.”
Rep. Emmer sponsored the Blockchain Regulatory Certainty Act, H.R. 1747, with original cosponsor U.S. Rep. Darren Soto (D-FL). The congressmen serve as co-chairs of the Congressional Blockchain Caucus.
If enacted, H.R. 1747 would provide a safe harbor from licensing and registration for certain non-controlling blockchain developers and providers of blockchain services, according to the text of the bill.
“Crypto and blockchain technology, by nature, does not easily fit into the frameworks policymakers have considered when crafting regulations in the past. For too long, federal regulators and lawmakers have jammed the blockchain ecosystem into statutory definitions that just do not make sense,” said Rep. Emmer. “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.”
The measure is supported by Coin Center, the Blockchain Association, the Chamber of Digital Commerce, and the Crypto Council.
“Custody is an incredibly important issue that needs to be considered when defining which regulations apply to who,” said Rep. Soto. “I’m a proud supporter of Rep. Tom Emmer’s bill because it is a step in the right direction policy-wise and provides helpful regulatory clarity for innovators in the ecosystem.”
Rep. Emmer first introduced the bill in 2018, according to his staff, which said Thursday’s introduction marks the fourth successive time the congressman has introduced it.