Eight leading organizations involved in shaping cryptocurrency policy in the US have called on Congress to add the Blockchain Regulatory Certainty Act (BRCA) to the Digital Asset Market Clarity Act (CLARITY), which regulates the digital asset market.
This is reported by Finway
Key Difference Between DeFi Developers and Financial Institutions
The main goal of the initiative is to clearly distinguish decentralized finance (DeFi) developers and blockchain infrastructure providers from traditional financial institutions. Industry representatives emphasize that open-source developers and those who do not hold customer funds should not be subject to the same regulatory requirements as banks or other financial organizations.
Among the signatories of the appeal are the DeFi Education Fund, Coin Center, Solana Policy Institute, The Digital Chamber, Blockchain Association, Crypto Council for Innovation, Bitcoin Policy Institute, and Paradigm. In a joint statement, these organizations stressed:
“We are united in our commitment to protect the software developers who are creating the financial future,” the joint statement reads.
Industry experts argue that applying standard financial regulations to DeFi developers is inappropriate and could stifle innovation in the cryptocurrency space. Their position is that favorable conditions must be created for innovation to thrive without imposing irrelevant requirements on developers.
BRCA — A Guarantee of Transparent Regulation for DeFi Developers
The BRCA amendment, which has bipartisan support in Congress thanks to the efforts of Republican leader Tom Emmer and Democrat Richie Torres, is seen as a key step in providing political protection for developers in the DeFi sector. It stipulates that software developers and blockchain service providers who do not have direct access to user funds will not be required to register as “money transmitters.”
“BRCA acknowledges this reality and ensures that when software developers or blockchain service providers do not control customer funds, they are not subject to unreasonable registration requirements,” the statement reads.
Industry organizations have urged the House of Representatives to include the BRCA amendment in the CLARITY bill, which is scheduled for consideration next week. Their goal is to create a transparent and fair regulatory environment that allows innovations in decentralized finance to develop without artificial constraints.
It is worth noting that the Senate recently supported the bill “Guiding and Establishing National Innovation for U.S. Stablecoins,” which also indicates the growing attention of Congress to the development of digital assets in the US.