Tom Emmer, a member of the U.S. House of Representatives, addressed the recent slowdown in Washington’s cryptocurrency regulation agenda during CoinDesk’s The Policy Protocol webcast. Emmer emphasized that the bipartisan Clarity Act initiative in the Senate is still gaining momentum for crypto legislation. In particular, the bill’s 15-9 vote in the Senate Banking Committee, advancing it to the next stage, demonstrated that the legislation is not only supported by Republicans but is also seeing active involvement from Democrats.
The Clarity Act and the quest for legal certainty
Emmer highlighted that the House of Representatives has been working on comprehensive crypto market structure regulations for years. The CLARITY bill, which has been revisited multiple times, is now on its fifth or sixth version. One of its primary goals is to precisely define whether digital assets are securities, commodities, or cash-like instruments, and to designate which regulatory body will have authority over each category.
He indicated that if the bill passes Congress, the final decision would be delivered to then-President Donald Trump to sign into law.
The Blockchain Regulatory Certainty Act debate
Emmer discussed the importance of the Blockchain Regulatory Certainty Act (BRCA), which aims to exempt software developers who do not directly hold customer assets—that is, those not functioning as custodians—from money transmitter licensing requirements.
Some law enforcement officials, however, have expressed concerns that BRCA could weaken oversight and investigative processes. Emmer dismissed these objections as “misleading,” claiming they distract from the core issue. He argued it is not appropriate to subject developers who do not hold customer funds to money transmission regulations. Additionally, he pointed out that varied rules across states create uncertainty for blockchain developers and hinder innovation.
Mini glossary: The Blockchain Regulatory Certainty Act (BRCA) is a U.S. bill aimed at exempting blockchain-based software developers who do not hold user assets from financial regulations such as money transmission requirements. The goal is to support innovation and address regulatory uncertainty.
On this topic, Emmer’s statements stood out:
Including software developers who do not hold customer assets within money transfer regulations stifles innovation. Inconsistent interpretation of these rules among the states is slowing the industry’s growth.
The need for clear regulations and industry expectations
Emmer stressed the necessity for clear legal guidelines to prevent the U.S. crypto ecosystem from falling behind globally. He noted that businesses want to innovate in America but need to know what “the rules of the game” are. Emmer also criticized the approach of Gary Gensler, the current SEC Chair under President Biden.
The Clarity Act is designed to clarify which assets fall under the jurisdiction of the SEC and which fall under the Commodity Futures Trading Commission (CFTC). Proponents argue that this clarity would allow crypto firms to operate more confidently within the U.S. legal framework.
Bipartisan dynamics and future policy debates
Emmer sees debates around the Clarity Act transcending party lines, noting significant agreement between Republicans and Democrats. Nevertheless, some senators are believed to be leveraging the bill as a bargaining chip for unrelated policy objectives. Industry participants, for their part, reportedly focus more on lawmakers’ stance on the legislation itself rather than party affiliations.
Emmer underlined that crypto assets and financial technology will become an integral part of the 21st-century financial system.
Regulators’ authority and consumer protection
Ongoing discussions in Congress concern the extent of authority to be granted to regulatory agencies such as the SEC and CFTC. Legal expert Renato Mariotti has raised the possibility that the new framework might require additional staff and resources for the CFTC. Emmer, meanwhile, said he favors a “light-touch regulatory” approach and less authority for federal agencies.
Congress prioritizes consumer protection and fraud prevention, and Emmer argued that digital asset transactions can actually be more transparent than those based on cash.
