U.S. crypto companies announce support for BRCA inclusion

Eight US-based crypto firms have voiced support for blockchain regulatory clarity in the U.S. CLARITY Act.

Eight major crypto policy organizations and firms have voiced strong support for the inclusion of the Blockchain Regulatory Certainty Act in the updated version of the CLARITY Act, a U.S. legislative proposal focused on digital asset market structure. 

The move signals growing consensus in the blockchain industry around creating clear regulatory distinctions between custodial financial institutions and non-custodial software developers.

In a joint statement issued June 5, entities including Coin Center, the DeFi Education Fund, Solana Policy Institute, Uniswap Labs, Jump, Paradigm, and others endorsed the BRCA’s provisions.

Non-custodial exemptions

The companies argue that developers of peer-to-peer, non-custodial blockchain technologies should not be classified as money transmitters under current financial regulations, as they do not handle or control customer funds.

The BRCA, originally introduced by Representatives Tom Emmer and Ritchie Torres, draws upon a 2019 advisory from the Financial Crimes Enforcement Network, which clarified that developers who merely write code or provide infrastructure without accessing user funds should not be subject to money transmission laws. 

By incorporating this logic into statutory law, the updated CLARITY Act seeks to remove longstanding legal ambiguity that many developers say hinders innovation.

Supporters of the BRCA maintain that this legal clarity is necessary to foster innovation in decentralized finance and other blockchain-based systems, while still allowing regulators to supervise custodial entities that manage users’ assets. 

The updated bill is seen as striking a careful balance, encouraging domestic blockchain development without weakening consumer safeguards.

The joint statement also thanked Chairmen French Hill and Bryan Steil, Majority Whip Tom Emmer, and Representative Ritchie Torres for their roles in crafting and advancing the legislation.