In a bold move to safeguard the burgeoning crypto industry, Coin Center, a prominent crypto policy advocacy group, has penned a letter to the U.S. Senate Banking Committee urging the advancement of the Blockchain Regulatory Certainty Act (BRCA). The BRCA, reintroduced by Senators Cynthia Lummis and Ron Wyden, aims to shield well-intentioned crypto developers from prosecution under federal money transmitter laws, a critical step in fostering innovation in the blockchain space.
Protecting Developers from Unjust Prosecution
The BRCA, first introduced by Representative Tom Emmer in 2018, has been updated to clarify that software developers and infrastructure providers who do not control user funds are not considered money transmitters. Coin Center’s policy director, Jason Somensatto, emphasized in his letter that blockchain innovation cannot flourish when developers face constant legal threats. “This is the same type of activity conducted every day by internet service providers, cloud hosting services, router manufacturers, browser developers, and email providers,” Somensatto noted. “We do not threaten those actors with prison when a criminal uses the internet, sends an email, routes traffic, or uploads files. The same principle must apply to blockchain developers.”
Recent Convictions Highlight the Need for BRCA
The urgency of the BRCA is underscored by the recent high-profile convictions of crypto developers. Tornado Cash developer Roman Storm, and Samourai Wallet founders Keonne Rodriguez and Will Lonergan Hill, were all convicted of conspiracy to operate an unlicensed money-transmitting business. Rodriguez and Lonergan Hill received prison sentences of five and four years, respectively, while Storm awaits his sentencing. These cases have sent shockwaves through the crypto community, highlighting the precarious legal landscape developers face.
The Broader Implications of Legal Uncertainty
The Senate Banking Committee is currently reviewing the latest draft of the BRCA. If the bill is not advanced or its provisions are weakened, it could lead to significant legal uncertainty, potentially driving developers away from the U.S. and stifling innovation. “Removing or even weakening provisions of the BRCA would lead to legal uncertainty for crypto developers, potentially deterring well-intended developers from operating in the U.S. and pushing them offshore,” Somensatto warned.
Looking Forward: The Future of Crypto Regulation
The push for the BRCA is part of a broader effort to establish a clear and supportive regulatory framework for the crypto industry. Coin Center and other advocates argue that protecting developers is crucial for the next generation of blockchain innovators. “The BRCA ensures that the next Satoshi Nakamoto, Vitalik Buterin, or Hayden Adams is able to develop the very systems that a market structure bill is designed to promote and protect,” Somensatto stated. As the Senate continues to deliberate, the crypto community watches closely, hoping for a legislative outcome that fosters growth and innovation while ensuring responsible development.
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