Crypto advocacy groups are intensifying their efforts to ensure that upcoming digital asset legislation in the United States includes crucial protections for software developers and infrastructure providers. A coalition of eight prominent organizations is pushing for the integration of the Blockchain Regulatory Certainty Act (BRCA) into broader market structure bills, aiming to prevent non-custodial developers from being misclassified as traditional financial institutions.
Crypto Groups Unite for Developer Protections
Eight leading crypto policy organizations have issued a joint statement urging Congress to incorporate the Blockchain Regulatory Certainty Act (BRCA) into the forthcoming market structure legislation. This move is seen as vital for safeguarding developers and infrastructure providers within the cryptocurrency and decentralized finance (DeFi) sectors.
Key takeaways:
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The coalition includes the DeFi Education Fund, Coin Center, Solana Policy Institute, Digital Chamber, Blockchain Association, Crypto Council for Innovation, Bitcoin Policy Institute, and Paradigm.
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Their primary goal is to ensure that software developers who do not hold or control customer funds are not subjected to the same stringent regulations as traditional financial institutions.
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The groups emphasize that open-source developers building non-custodial software should not be burdened with business regulations designed for entities managing customer assets.
Bipartisan Support for BRCA
The Blockchain Regulatory Certainty Act, initially introduced by Rep. Tom Emmer and now co-sponsored by Rep. Ritchie Torres, enjoys bipartisan support. The act aims to address a significant industry concern: the misapplication of financial regulations to blockchain service providers who do not engage in money transmission.
This legislation would prevent developers and service providers from being wrongly categorized as "money transmitting businesses," thereby alleviating substantial compliance burdens. Proponents argue that the BRCA is essential for fostering innovation and providing regulatory certainty, ensuring the United States remains a leader in blockchain technology and DeFi.
Broader Regulatory Landscape
Beyond the BRCA, other legislative efforts are underway to clarify digital asset regulation. The Digital Asset Market Clarity Act, for instance, seeks to define the roles of the SEC and CFTC in regulating digital assets, establish rules for client fund separation, and enhance investor awareness of risks. While the Market Structure Bill has garnered significant industry support, it has also faced scrutiny, with some lawmakers expressing concerns about its motivations.
As discussions continue, the crypto industry remains focused on achieving a regulatory framework that supports innovation while providing clear guidelines for all participants.
Sources
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Eight Crypto Groups Lobby to Add Blockchain Regulatory Certainty Act to Market Structure Bill, CoinGape.
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Trump ETF Filing, Developer Protections, and Circle NYSE Debut, Analytics Insight.
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Crypto lobby wants software dev protections added to crypto bill — TradingView News, TradingView.
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