Blockchain Regulatory Certainty Act

The Blockchain Regulatory Certainty Act would create a safe harbor from licensing and registration requirements for certain non-controlling blockchain developers and providers of blockchain services. Under the bill, these developers and services would not be treated as money transmitters, financial institutions, or subject to general licensing simply for providing a blockchain network or service, unless they have control over digital assets that a user can access through the service. The safe harbor is designed to encourage innovation by reducing regulatory burdens on developers who do not have unilateral control over user assets, while preserving regulation for actors that do exercise such control. The bill also preserves existing intellectual property law and allows states to enforce laws that are consistent with the act, with no liability created under conflicting State or local law. Key definitions underpinning the safe harbor include blockchain developer, blockchain network, blockchain service, control, and digital asset. “Control” is defined as the unilateral legal right to obtain data sufficient to initiate transactions spending digital assets without needing third-party approval. A non-controlling developer or service that lacks this control would thus be protected from licensing and registration requirements under federal and state regimes.