Tom Emmer introduces Bill to protect blockchain developers
Republican Congressman Tom Emmer has introduced more crypto-related legislation – this time to help blockchain developers from unreasonable financial reporting requirements.
The new bill could help correct controversial language in the Biden administration’s late 2021 infrastructure bill that could theoretically label a portion of blockchain\network participants as “digital asset brokers.”
Clearing the Air on Crypto Reporting
Divided over Twitter on Thursday, Emmer’s law seeks to provide a “safe harbor” for blockchain developers and blockchain service providers that do not directly control the private keys to access users’ assets.
The Blockchain Regulatory Certainty Act states that such parties shall not be treated as money transmitters or financial institutions, nor subject to registration and licensing requirements unless they are directly involved in the storage of cryptoassets.
“If you don’t have consumer funds, you are *not* a money transmitter,” Emmer argued. “The Blockchain Regulatory Certainty Act provides this necessary certainty for miners, validators, wallet software providers and the entire blockchain ecosystem.”
In November 2021, Biden’s infrastructure bill included an article imposing information reporting requirements for “digital asset brokers”. Critics of the bill contested that the term “broker” was broad enough to theoretically apply to miners, strikers and even developers – for whom it would be impossible to meet such requirements.
A consortium of crypto-supporting politicians tried to revise the language of the bill before it passed, but to no avail. As such, proponents of Emmer’s new bill believe it will provide some of the necessary clarity needed to prevent the crypto industry from fleeing overseas.
“For too long, federal regulators and policymakers have bogged down the blockchain ecosystem in statutory definitions that just don’t make sense,” Emmer said.
Regulatory Battle for Crypto
Definitions are a tricky subject for crypto in the US – especially when deciding which digital assets are “securities” under federal securities laws.
Securities and Exchange Commission Chairman Gary Gensler has long argued that virtually all cryptocurrencies are securities, with Bitcoin being the only exception as a crypto commodity. Meanwhile, The Commodities and Futures Trading Commission believes there are far more crypto goods than that – including Ether and Tether (USDT).
The agency is now preparing for case America’s largest crypto exchange for listing certain security tokens, which Coinbase competition does not qualify as such.
It is also reportedly targeting the exchange for its betting service, as it already did with rival exchange Kraken last month.
“The truth is that today there is no clear rulebook from the SEC on crypto, and attempts to engage with the SEC are met with silence or enforcement actions,” tired Coinbase’s legal director on Wednesday.
