The US government has introduced a new blockchain regulatory bill that aims to provide legal clarity for developers. The bill, known as the Blockchain Regulatory Certainty Act, seeks to create a definition of blockchain technology and establish a safe harbor for developers who use it.
The bill is being introduced by Representative Tom Emmer, who is a member of the Congressional Blockchain Caucus. Emmer has been a vocal advocate for blockchain technology and has previously introduced bills to support its development.
“By their very nature, blockchain and cryptocurrency technology do not simply fit into the regulatory frameworks that have hitherto been taken into account by legislators. Too long has the blockchain ecosystem been forced into illogical statutory definitions by federal regulators and lawmakers. That should be straightforward: You are not a money transmitter if you do not have custody of consumer funds. For the blockchain community, my bill offers that crucial confirmation,” Emmer added.
He continued that the longer we put off offering this straightforward clarification, the chances of this technology harming domestic consumers and investors are getting higher. This bill will support American technological leadership in the cryptocurrency industry, Emmer said.
Congressman Darren Soto stated, “Custody is an immensely critical issue that needs to be considered when establishing which regulations apply to whom. I’m delighted to endorse Congressman Tom Emmer’s bill because it advances policy in the right direction and offers regulatory clarity that is beneficial to ecosystem innovation.”
Under the proposed legislation, blockchain technology would be defined as “a decentralized, distributed ledger that uses encryption to securely store transactions and information.” This definition would help to establish a clear legal framework for developers, who have been operating in a regulatory gray area.
How Does the US Blockchain Regulatory Bill help Developers?
One of the main benefits of the Blockchain Regulatory Certainty Act is that it would provide legal clarity for developers. By creating a definition of blockchain technology, the bill would establish a clear framework for developers to operate within. This would make it easier for developers to understand their legal obligations and ensure that they are complying with relevant regulations.
Perianne Boring, the Founder, and CEO of the Chamber of Digital Commerce, stated that regulatory certainty must be established for blockchain innovators and service providers in the United States. “As the recent discussion over the infrastructure bill showed, there is currently a fundamental lack of clarity that threatens the industry’s ability to innovate and thrive in the long run. This needs to be fixed, and the Chamber of Commerce supports this bill wholeheartedly because it will assist foster innovation and drive growth in areas where our business has been inhibited by inconsistent state and federal legislation,” he added.
The bill would also establish a safe harbor for developers who use blockchain technology. This safe harbor would protect developers from liability for certain violations of securities laws that may occur as a result of using blockchain technology.
Impact of US Blockchain Regulatory Bill on the Blockchain Industry
The Blockchain Regulatory Certainty Act would have a significant impact on the blockchain industry. By providing legal clarity for developers, the bill would help to encourage the development of new blockchain-based applications and services.
The bill would also help to establish the United States as a leader in the blockchain industry. By providing a clear legal framework for developers, the United States would be able to attract more blockchain companies and talent, which would help to drive innovation and growth in the industry.
What are the Potential Challenges of the US Blockchain Regulatory Bill?
While the Blockchain Regulatory Certainty Act has the potential to provide significant benefits for the blockchain industry, it may also face some challenges. One potential issue is that the bill may not go far enough in providing legal clarity for developers.
Some industry experts have argued that the bill’s definition of blockchain technology is too narrow and may not account for new developments in the industry. Additionally, the bill may not address all of the legal issues that developers may face when using blockchain technology.
Overall, the Blockchain Regulatory Certainty Act represents an important step forward for the blockchain industry in the United States. By providing legal clarity for developers and establishing a safe harbor, the bill would help to encourage the development of new blockchain-based applications and services.
While the bill may face some challenges, it is an important starting point for creating a clear legal framework for blockchain technology in the United States. With the support of lawmakers and industry leaders, the blockchain industry has the potential to become a major driver of innovation and growth in the United States economy.