Reps. Emmer and Soto reintroduce Blockchain Regulatory Certainty Act

U.S. Rep. Tom Emmer reintroduced a bill to clarify that crypto entities such as miners and validators that do not custody customer funds would not fall under the definition of money transmitters.  

The Minnesota Republican, along with Rep. Darren Soto, D-Fla., reintroduced the Blockchain Regulatory Certainty Act on Thursday. Emmer first introduced the bill in 2018. The four-page bill aims to clarify “overburdensome” state money transmission rules by affirming that some crypto entities that don’t custody consumer funds are not money transmitters.

States control money transmission licensing, requiring companies that help people move assets with financial value to register in each state they operate in. The bill would seek to help certain parts of the crypto ecosystem circumvent that requirement. 

“This legal certainty would help establish the necessary confidence required to keep noncustodial blockchain developers or service providers, including miners, validators, and wallet providers, from seeking more straightforward regulatory environments overseas,” Emmer’s office said in a statement.  

The bill has the support of crypto advocates in Washington. 

“This bipartisan legislation will help to protect American innovation by ensuring that developers are not subject to an unnecessary and inappropriate compliance burden that would significantly impede their ability to do their day-to-day jobs,” Sheila Warren, CEO of the Crypto Council for Innovation, said in a statement.  

The bill goes “a long way in ensuring the U.S. remains at the forefront of crypto innovation," Blockchain Association CEO Kristin Smith, said in a statement.