Crypto Policy Groups Urge Congress to Merge Blockchain Regulatory Acts

Eight prominent crypto policy organizations in Washington, D.C. have issued a joint statement urging Congress to include the Blockchain Regulatory Certainty Act (BRCA) in the upcoming Digital Asset Market Clarity (CLARITY) Act. The coalition comprises the DeFi Education Fund, Coin Center, Solana Policy Institute, Digital Chamber, Blockchain Association, Crypto Council for Innovation, Bitcoin Policy Institute, and Paradigm. These organizations emphasize the importance of the BRCA in protecting open-source developers and infrastructure providers who do not hold customer funds, thereby providing legal clarity for non-custodial participants in the blockchain ecosystem.

On May 21, Representatives Tom Emmer and Ritchie Torres reintroduced the BRCA to the US House of Representatives. This bipartisan legislation aims to establish a safe harbor for non-custodial blockchain participants, including developers, miners, validators, and wallet providers. The CLARITY Act, introduced by House Financial Services Committee Chairman French Hill on May 29, seeks to provide a comprehensive regulatory framework for cryptocurrencies and digital assets. It outlines the regulatory responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) for digital assets, proposes a provisional registration regime for crypto intermediaries, and includes provisions for decentralized finance (DeFi).

The crypto industry advocates for the inclusion of the BRCA in the CLARITY Act, believing it would provide much-needed legal certainty for non-custodial blockchain participants. This move is seen as encouraging innovation while maintaining appropriate supervision. The joint statement reflects broader industry concerns about excessive regulation, which could hinder the growth of DeFi, a sector that relies on peer-to-peer software. The House is expected to hold hearings on the CLARITY Act in the coming weeks, with the inclusion of the BRCA being a key point of discussion.

The push to merge the BRCA and CLARITY Acts is part of a broader effort to create a more cohesive and effective regulatory environment for the crypto industry. By combining these two bills, Congress can address the current regulatory uncertainty that has hindered the growth of the crypto sector. This would make it easier for businesses to operate and for investors to participate with confidence, fostering innovation and growth in the sector. The proposed merger is seen as a significant step towards creating a more stable and predictable regulatory landscape for the crypto industry, reducing legal risks associated with crypto investments and operations, and attracting more institutional investors.

The crypto policy organizations involved in this effort represent a wide range of interests within the crypto community, including blockchain developers, crypto exchanges, and investment firms. Their united front underscores the importance of regulatory certainty for the industry's future. The merger of these two bills would not only benefit the industry but also protect consumers and investors by preventing fraudulent activities and ensuring that digital assets are used responsibly. This would enhance the overall trust and credibility of the crypto market, making it more attractive to a broader range of participants.

In summary, the joint effort by these eight leading crypto policy organizations to merge the BRCA and CLARITY Acts represents a strategic move to address the regulatory challenges facing the crypto industry. By advocating for a comprehensive regulatory framework, these organizations aim to create an environment that supports innovation, protects investors, and fosters the growth of the crypto sector. The success of this initiative could have far-reaching implications for the future of digital assets and blockchain technology.