New proposal from 'Crypto King of Congress' could restore investor confidence

Crypto King of Congress, Tom Emmer, has proposed a new bill to provide regulatory clarity for the blockchain and crypto industry. The bill, christened ‘Blockchain Regulatory Act (BCRA), will “establish legal clarity for blockchain developers and service providers who do not hold or manage consumer funds.” Emmer is a member of the US House of Representatives and Majority Whip.

The bill proposes that entities that do not hold or manage consumer funds should not be considered money transmitters subject to tight regulation. The BCRA is a bipartisan bill co-led by Representative Darren Soto of Florida, supported by members of both political parties. Notably, this support increases the chances of the bill passing through Congress.

What the new bill could do for the crypto industry

Emmer’s proposal argues that traditional regulatory frameworks are not easily applicable to the rapidly-evolving blockchain and crypto sector. In his opinion, the federal regulators and lawmakers follow “statutory definitions” that are not applicable to the crypto ecosystem. 

Accordingly, the proposed BCRA calls for a more “sensible regulatory” environment for the crypto industry, blockchain developers, and service providers. The Majority Whip believes clarifying these matters could help promote innovation in the industry while reducing “unnecessary regulatory burdens.” 

The “Crypto King” of Congress proposed the bipartisan bill to simplify the complex state-by-state money transmission regulatory process that currently applies to the cryptocurrency industry. If approved, it could reduce regulatory burdens and costs for non-custodial blockchain entities.  

The legal activity provided by the BCRA could help inspire the necessary confidence requisite for preventing non-custodial blockchain developers or service providers from seeking a more straightforward regulatory environment outside US regulatory watchdogs’ jurisdictions. 

The bill, promoted by Tom Emmer and backed by both political parties can increase investor confidence amid prevailing FUD, reduce regulatory uncertainty, enhance consumer protection, and boost adoption in the cryptocurrency industry.

Notably, for these benefits to actualize, the bill would need majority approval when Congress puts it to the vote. Such an outcome will be a significant victory for the cryptocurrency industry.