Reps. Emmer and Torres reintroduce bill to clarify rules for non-custodial crypto service providers

Republican Rep. Tom Emmer and Democratic Rep. Ritchie Torres reintroduced a bill to clarify that non-custodial crypto platforms — and the developers that build them — are not money transmitters or operators of an “unlicensed money services business." The move quickly garnered support from industry advocates as lawmakers forge ahead to pass legislation. 

The bill, called the Blockchain Regulatory Certainty Act, would give more regulatory confidence to miners, validators and wallet providers who don't custody customers' funds, according to a statement released on Wednesday. 

"If we want to keep the next generation of builders in the United States, this kind of legal clarity is essential," Torres said in a statement. "We cannot afford to let outdated or misapplied regulations drive American talent and technology overseas. With this bill, we protect innovation, uphold civil liberties, and strengthen our global competitiveness in the 21st-century economy."

Emmer and Torres paired up to create the Congressional Crypto Caucus earlier this year with a goal to "defend open, permissionless, and private innovation" in the U.S. The reintroduction of the Blockchain Regulatory Certainty Act, which was first put out in 2018, comes amid vigorous debate in Washington on how to go about regulating digital assets. So far, lawmakers have moved to advance bills to regulate stablecoins, but those have yet to get votes in the full Senate or House before going to President Donald Trump's desk. Work is also underway on legislation regulate the crypto industry at large. 

The Blockchain Regulatory Certainty Act garnered support from key players in the crypto industry on Wednesday. 

"Recent misapplication of licensing laws has substantially chilled the development of privacy and freedom enhancing tech in the US," said Peter Van Valkenburgh, executive director of Coin Center. "Avoiding surprise prosecutions, creating legal clarity, and encouraging free speech and software development are not partisan issues; they are core American values, and the BRCA codifies them." 

Blockchain Association interim CEO Sarah Milby said the bill would help bolster the U.S. as a leader globally in crypto. 

"This important legislation affirms that innovators building and maintaining decentralized, non-custodial blockchain protocols should not be unfairly treated as financial intermediaries," Milby said in a statement.