US Congressman Launches Blockchain Regulatory Certainty Act

It is reported that Tom Emmer, the US House of Representatives Majority Party Whip and US Representative, has introduced the Blockchain Regulatory Certainty Act to ensure that developers and non custodial service providers in the encryption field are not considered remitters and are not subject to the same level of regulation as custodial cryptocurrency exchanges.

US Congressman Launches Blockchain Regulatory Certainty Act

1. Introduction
2. Understanding Blockchain Technology
3. Cryptocurrency and its Regulation
4. Current Regulatory Framework for Cryptocurrency
5. Problems Faced by Non-Custodial Cryptocurrency Service Providers
6. The Blockchain Regulatory Certainty Act
7. Implications of the Act
8. Conclusion
9. FAQs
# Article:
In recent years, blockchain technology has been making headlines with its potential to revolutionize a range of industries, including finance, healthcare, and manufacturing. One aspect of blockchain technology that has been getting a lot of attention recently is cryptocurrency. As cryptocurrencies have become more mainstream, governments around the world have been grappling with how to regulate them.
In the United States, the regulatory framework for cryptocurrencies is in a state of flux. The Securities and Exchange Commission (SEC) treats some cryptocurrencies as securities, while the Commodity Futures Trading Commission (CFTC) considers others to be commodities. Meanwhile, the Internal Revenue Service (IRS) treats cryptocurrencies as property for tax purposes.
One issue that has arisen in the cryptocurrency industry is the regulation of non-custodial service providers. Non-custodial service providers are companies that provide services related to cryptocurrency, such as wallets and exchanges, but do not hold custody of their customers’ assets. This means they do not have control over their customers’ private keys, and therefore cannot access or transfer their customers’ funds.
Despite not being custodial, non-custodial service providers have been subject to the same level of regulation as custodial cryptocurrency exchanges. The reason for this is that the regulatory framework for cryptocurrencies was developed before the emergence of non-custodial service providers, and has not been updated to reflect their unique characteristics.
To address this issue, Tom Emmer, the US House of Representatives Majority Party Whip and US Representative, has introduced the Blockchain Regulatory Certainty Act. The Act seeks to ensure that developers and non-custodial service providers in the encryption field are not considered remitters and are not subject to the same level of regulation as custodial cryptocurrency exchanges.
Under the Act, a developer of a digital currency or blockchain network, or a provider of a non-custodial service, would not be considered a money transmitter under the Bank Secrecy Act (BSA) unless they are providing a service that is expressly covered by the BSA. This means that non-custodial service providers would be subject to a lighter touch regulatory framework than custodial cryptocurrency exchanges.
The implications of the Act are significant. By providing regulatory clarity for non-custodial service providers, the Act would make it easier for these companies to operate in the cryptocurrency industry, and could lead to increased innovation and development of new products and services.
However, some in the industry have raised concerns that the Act could create a regulatory loophole that could be exploited by bad actors. They argue that the Act would make it easier for criminals to use non-custodial service providers to launder money, as these providers would not be subject to the same level of regulation as custodial cryptocurrency exchanges.
In conclusion, the Blockchain Regulatory Certainty Act is an important piece of legislation that seeks to address a regulatory gap that has arisen in the cryptocurrency industry. By providing clarity and certainty for non-custodial service providers, the Act could help promote innovation and development in the industry. However, it is important to be mindful of the potential risks that could arise if these providers are subject to a lighter touch regulatory framework.
# FAQs:
1. What is the key problem that the Blockchain Regulatory Certainty Act seeks to address?
The Act seeks to ensure that non-custodial service providers in the cryptocurrency industry are not subject to the same level of regulation as custodial cryptocurrency exchanges.
2. What is a non-custodial service provider?
A non-custodial service provider is a company that provides services related to cryptocurrency, such as wallets and exchanges, but does not hold custody of their customers’ assets.
3. What are the potential implications of the Blockchain Regulatory Certainty Act?
The Act could make it easier for non-custodial service providers to operate in the cryptocurrency industry, and could lead to increased innovation and development of new products and services.