Industry Backs BRCA to Strengthen U.S. Blockchain Regulation
Eight of the major crypto firms and policy groups came together and voiced united support for adding the Blockchain Regulatory Certainty Act (BRCA) into the updated CLARITY Act, an American legislative bill that aims to bring clarity to regulations in the digital asset marketplace.
On June 5, several important organizations—Coin Center, DeFi Education Fund, Solana Policy Institute, Uniswap Labs, Jump, and Paradigm—signed on as supporters of the BRCA, deeming it essential to blockchain’s future development.
Clarifying the Role of Non-Custodial Developers
Supporters are of the opinion that non-custodial blockchain developers—individuals who create peer-to-peer protocols without handling user funds—are not money transmitters regulated under the law. Current legal ambiguity, they feel, discourages innovation and deters open-source contributions.
The BRCA is an expansion of 2019 FinCEN guidance that drew a difference between custodial financial institutions and infrastructure providers that are merely developers or code writers.
A Balanced Approach to Oversight of Crypto
By codifying the BRCA into statutory law, the CLARITY Act would make these differences official, providing developers with legal certainty while maintaining regulatory scrutiny in place for businesses that hold or manage user funds.
Supporters view the bill as a balanced legislative action that would promote blockchain development within the country without compromising consumer protection.
Legislative Leaders Recognized
The joint statement also provided thanks to legislators at the forefront of advancing the bill: Chairmen French Hill and Bryan Steil, Majority Whip Tom Emmer, and Representative Ritchie Torres.
With bipartisan backing and growing industry backing, the inclusion of the BRCA to the CLARITY Act is a potential milestone in the evolution of U.S. crypto policy.
