U.S. Representative Tom Emmer (R-MN) announced on May 21, 2025, the reintroduction of the Blockchain Regulatory Certainty Act (BRCA), a bipartisan proposal designed to protect developers and service providers in digital assets who never take custody of consumer funds. Co-led by Rep. Ritchie Torres (D-NY), the bill seeks to ensure these actors are not misclassified as money transmitters under existing financial regulations. Both lawmakers serve as co-chairs of the Congressional Crypto Caucus and emphasized that the bill delivers a necessary legal framework to support innovation while maintaining effective oversight.
Core Principle: No Custody, No Money Transmission
Emmer promoted the announcement on social media platform X: “Today, Rep. Torres and I introduced the Blockchain Regulatory Certainty Act to protect blockchain developers and service providers that never custody consumer funds from unjust government prosecution.” At the Capitol, he reinforced: “If you don’t custody consumer funds, you aren’t a money transmitter. Plain and simple.” He warned that inaction could push transformative technology overseas, harming American investors and innovators. Torres added that the revised bill addresses past criticisms: “We returned with a smarter, sharper framework that protects innovation without compromising oversight.”
Industry Backing: Preventing Brain Drain
Industry organizations voiced strong approval. Peter Van Valkenburgh, executive director of Coin Center, stated: “The Blockchain Regulatory Certainty Act is the best way to protect American crypto developers and innovators from undue regulation by prosecution.” Amanda Tuminelli of the DeFi Education Fund said the bill would shield developers from being “unreasonably defined as operators of an ‘unlicensed money services business’ under the Bank Secrecy Act.” Sarah Milby of the Blockchain Association described the measure as affirming “fit-for-purpose rules.” Leaders from the Solana Policy Institute called the bill essential for building future financial infrastructure. Ji Hun Kim of the Crypto Council for Innovation stressed the bill’s national and economic significance, applauding its effort to reduce infeasible compliance burdens on non-custodial participants like miners, validators, and wallet providers.
Although the BRCA was previously rejected during a markup in an earlier Congress, supporters believe the refined version better addresses legitimate regulatory concerns. Proponents argue that protecting non-custodial developers will help prevent a brain drain and encourage open-source innovation domestically.