Report: Senators Pitch Bill To Lock In Protections For Crypto Developers
The Blockchain Regulatory Certainty Act aims to clarify that writing software and maintaining networks don’t trigger federal or state money-transfer requirements.
US Senators Cynthia Lummis and Ron Wyden have introduced standalone legislation to ensure that blockchain developers and service providers who don’t directly handle user funds are exempt from money transmitter regulations.
The Blockchain Regulatory Certainty Act (BRCA), introduced by Lummis and Wyden on Monday, aims to clarify that writing software or maintaining networks doesn’t trigger federal or state money-transfer requirements.
There have been mounting concerns among crypto developers about being held criminally liable for the way people choose to use their software.
Last year, Tornado Cash co-founders Roman Storm and Alexey Pertsev were found guilty of operating an unlicensed money-transmitting business in connection with the mixing protocol.
Lummis said in a statement that the bill aims to provide developers with the clarity needed to “build the future of digital finance without fear of prosecution for activities that pose no money laundering risk,” as regulatory uncertainty under the current law has “driven innovation offshore and subjected them to conflicting state regulations.”
“This designation makes no sense when they never touch, control, or have access to user funds, and unnecessarily limits innovation,” Lummis said, adding that it's time to stop treating developers as banks simply for writing code.
Similar protections are included in the crypto market structure bill, which is headed for a markup with the Senate Banking Committee on Thursday.
Provisions in a draft bill aren’t guaranteed, and they can be amended, watered down, or stripped during markup before it's voted to become law.
The other panel that needs to approve the market structure effort, the Senate Agriculture Committee, has delayed its hearing until the last week of January, according to a statement from Chairman John Boozman.
Source: CoinTelegraph
