DC Crypto Coalitions Unite, Call On Congress To Shield Blockchain Developers In Market Structure Bill

• Eight crypto policy organizations have jointly issued a statement to Congress, urging lawmakers to protect the interests of blockchain developers and infrastructure providers in the cryptocurrency market structure bill, known as the CLARITY Act.
• The crypto coalitions ask for the inclusion of the Blockchain Regulatory Certainty Act in the CLARITY Act.
• The House Committee on Financial Services has scheduled a markup for the CLARITY Act for June 10.

Eight digital asset policy groups in D.C. have collectively written to the US Congress, advocating for the protection of the interests of blockchain developers and infrastructure providers in the market structure bill. The advocacy groups want the inclusion of the Blockchain Regulatory Certainty Act (BRCA), which protects the interests in the CLARITY Act.

Blockchain Groups Unite for Developers 

The blockchain policy advocates, including Paradigm, DeFi Education Fund, Blockchain  Association, Bitcoin Policy Institute, Solana Policy Institute, Crypto Council for Innovation, Coin Center, and Solana Policy Institute, have called for an amendment of the market structure bill in a way that protects players in the blockchain ecosystem that do not custody customers’ funds.

“As much-needed digital asset regulation develops in the United States, it is critically important to remember that developers creating peer-to-peer, non-custodial software and the infrastructure providers who enable decentralized networks have little in common with traditional financial institutions and should not be treated as such.”

According to the advocates, the BRCA captures their expectations by ensuring that there are no compulsory money transmitter registration requirements for software developers and other blockchain service providers that do not “control or custody customer funds.”

BRCA Inclusion in the CLARITY Act Will Protect Innovation

The Blockchain Regulatory Certainty Act (H.R. 1747), introduced in the House in March 2023 by Rep. Tom Emmer, seeks to shield certain non-controlling blockchain developers and service providers from licensing and registration requirements.

The legislation passed the House Financial Services Committee in 2024 with some amendments, however, there have been subsequent actions on the bill by either the House or the Senate. 

According to Crypto Journalist Eleanor Terret, a policy lead from one of the groups said, “It’s critically important that we don’t treat open-source developers like traditional financial institutions” and that the BRCA provides the necessary safeguard and “protects innovation.”

The amendment to the Clarity Act was originally introduced by GOP Majority Whip Tom Emmer, with bipartisan support from Rep. Ritchie Torres, and is widely considered an essential regulatory guardrail for builders in the DeFi ecosystem.

The House Financial Committee has scheduled a markup for the CLARITY Act for Tuesday morning next week. It is during this session that the House will debate the bill’s provisions, suggest and vote on amendments, and determine whether or not the legislation makes it to the full House for consideration.

Since this year, US lawmakers have emphasized stablecoin and market structure legislation, which they believe are foundational regulatory strides that will help consolidate the country’s dominance in the global digital economy.

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