What happened?
Eight major organizations in the crypto policy space, including the Blockchain Association and the Crypto Council for Innovation, have united to support the Blockchain Regulatory Certainty Act (BRCA). They signed a joint statement urging Congress to include the BRCA in upcoming crypto market structure legislation. This act aims to protect developers of non-custodial peer-to-peer software protocols from being regulated as traditional financial institutions.
Who does this affect?
This development primarily affects blockchain software developers and entities involved in creating decentralized networks. By advocating for the BRCA, these organizations aim to safeguard developers from unfair regulatory practices that equate them with money-transmitting services. It also impacts U.S. lawmakers and regulators who are currently shaping the country’s digital asset policy framework.
Why does this matter?
The outcome of incorporating the BRCA into market legislation could significantly influence the regulatory environment for digital assets in the United States. Protecting developers from stringent regulations may encourage innovation and growth within the blockchain and crypto sectors. The decision may also set a precedent for how decentralized technologies are treated under U.S. law, potentially affecting market dynamics and future investments.