Bill Summary
The "Blockchain Regulatory Certainty Act" aims to provide regulatory clarity and protections for non-controlling blockchain developers and service providers. Specifically, it establishes a safe harbor that exempts these entities from being categorized as money transmitters or financial institutions under federal and state laws, thus avoiding the need for licensing or registration.
Key provisions include:
1. **Definition of Non-Controlling**: Developers or providers who do not have control over the digital assets that users can access through their services are protected. Control is defined as having the unilateral ability to initiate transactions involving digital assets.
2. **Intellectual Property and State Law**: The act clarifies that it does not affect existing intellectual property laws and allows states to enforce their own laws as long as they are consistent with the federal provisions.
3. **Definitions**: It defines terms such as "blockchain developer," "blockchain network," "blockchain service," "control," and "digital asset" to provide a clear understanding of the scope and applicability of the law.
Overall, this legislation seeks to foster innovation in the blockchain space by reducing regulatory burdens on developers and service providers who do not have direct control over digital assets.
Possible Impacts
The "Blockchain Regulatory Certainty Act" could affect people in several ways:
1. **Encouragement of Innovation**: By providing a safe harbor for non-controlling blockchain developers and service providers, the legislation may encourage more individuals and startups to enter the blockchain space. This could lead to increased innovation, as developers can create and experiment with new blockchain applications without the burdens of licensing and registration. As a result, consumers may benefit from a wider range of blockchain-based services and products, enhancing their access to digital assets.
2. **Reduced Legal Risks**: The act delineates clear protections for developers and providers who do not have control over digital assets, significantly reducing the risk of being classified as money transmitters or financial institutions. This clarity can lead to a safer environment for those involved in blockchain development, allowing them to operate without fear of unintentional legal repercussions. Consequently, this may encourage more individuals to utilize blockchain technology, knowing that they are operating within a defined legal framework.
3. **Impact on Consumer Protections and Liability**: While the legislation provides protections for developers, it may also limit consumers’ recourse in certain situations. If a blockchain developer or service provider is not held liable for unlicensed or unregistered conduct, consumers who face issues such as fraud or security breaches might find it challenging to seek compensation or legal remedies. This could lead to potential risks for users, as they may have less protection when engaging with blockchain services that fall under this safe harbor provision.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3533 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 3533
To provide a safe harbor from licensing and registration for certain
non-controlling blockchain developers and providers of blockchain
services.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 21, 2025
Mr. Emmer (for himself and Mr. Torres of New York) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To provide a safe harbor from licensing and registration for certain
non-controlling blockchain developers and providers of blockchain
services.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Blockchain Regulatory Certainty
Act''.
SEC. 2. SAFE HARBOR FOR NON-CONTROLLING BLOCKCHAIN DEVELOPERS AND
PROVIDERS OF BLOCKCHAIN SERVICES.
(a) Protection for Non-Controlling Blockchain Services and Software
Developers.--No blockchain developer or provider of a blockchain
service shall be treated as a money transmitter or as engaging in
``money transmitting'' (as defined under any State or Federal law), a
financial institution (as defined under section 5312 of title 31,
United States Code), any other State or Federal legal designation
requiring licensing or registration, or triggering liability for
unlicensed or unregistered conduct, unless the developer or provider
has, in the regular course of business, control over digital assets to
which a user is entitled under the blockchain service or the software
created, maintained, or disseminated by the blockchain developer or
provider.
(b) Effect on Other Laws.--
(1) Intellectual property law.--Nothing in this section
shall be construed to limit or expand any law pertaining to
intellectual property.
(2) State law.--Nothing in this section shall be construed
to prevent any State from enforcing any State law that is
consistent with this section. No cause of action may be brought
and no liability may be imposed under any State or local law
that is inconsistent with this section.
(c) Definitions.--As used in this section:
(1) Blockchain developer.--The term ``blockchain
developer'' means any person or business that creates,
maintains, or disseminates software facilitating the creation
or maintenance of a blockchain network or a blockchain service.
(2) Blockchain network.--The term ``blockchain network''
means any system of networked computers that cooperates to
reach consensus over the state of a computer program and allows
users to participate in the consensus-making process without
the need to license proprietary software or obtain permission
from any other user. The term ``blockchain network'' includes,
specifically, a public network of computers that cooperates to
reach consensus over the state of a distributed ledger
describing transactions in a digital asset.
(3) Blockchain service.--The term ``blockchain service''
means any information, transaction, or computing service or
system that provides or enables access to a blockchain network
by multiple users, including specifically a service or system
that enables users to send, receive, exchange, or store digital
assets described by blockchain networks.
(4) Control.--The term ``control'' means the unilateral and
independent legal right, authority, or ability to obtain upon
demand data sufficient to initiate transactions spending an
amount of digital assets, without requiring the approval,
consent, or direction of any other third party.
(5) Digital asset.--The term ``digital asset'' means any
form of intangible personal property that can be exclusively
possessed and transferred person to person without necessary
reliance on an intermediary.
<all>