The US crypto regulation is taking shape as Senators Cynthia Lummis (R-WY) and Ron Wyden (D-OR) have introduced new bipartisan legislation. The new bill, the Blockchain Regulatory Certainty Act, intends to clarify a long-standing gray area around crypto developer liability.
New Crypto Regulation to Shield Developers from Bank-Style Regulations
According to the latest reports, two US senators from opposing parties are advancing the US crypto regulation with a novel law that supports software developers. Senators Cynthia Lummis and Ron Wyden clarify that crypto developers should not be regulated as banks or money transmitters under.
Over the years, blockchain developers and financial intermediaries were considered similar under the federal laws. With the bipartisan Blockchain Regulatory Certainty Act, the senators intend to bring a distinction between these two roles.
Senator Lummis states that considering blockchain or crypto developers as money transmitters “makes no sense when they never touch, control, or have access to user funds.” She added,
This development comes amid the uncertainty surrounding the much-anticipated CLARITY Act. While the Senators were expected to vote on the market structure bill this week, the latest reports suggest that the markup meeting has been further delayed.
No Money Transmission Rules for Crypto Developers
Significantly, the new crypto regulation aims at distinguishing between developers and money transmitters. The senators posit that the developers who never handle or control user funds could not be classified under the laws of money transmitters. Money transmitter laws should be applicable only to entities such as banks or payment processors.
Thus, the latest bipartisan legislation brings clarity to who falls within the boundaries of money transmission laws. Senator Wyden noted,
It is worth noting that the Blockchain Regulatory Certainty Act comes as part of Congress’s wider efforts to establish a clear crypto regulation framework in the country. While both Lummis and Wyden are part of the Senate Banking Committee, they are tasked with drafting comprehensive legislation for multiple crypto areas.
The digital asset community is providing its full support for the crypto regulation. They believe that the bill brings a clear separation between software development and user fund control, the distinction between which was previously blurred. Mehow Pospieszalski, CEO of American Fortress, commented, “This is long overdue progress. Writers of self-custody code should never be treated as banks or exchanges since we don’t control the funds.”
Source: https://coingape.com/us-crypto-regulation-senators-target-gray-area-in-developer-liability/
