Rep. Tom Emmer mulls bringing back bill aimed at reducing crypto red tape

Crypto-friendly Congressman Tom Emmer is considering re-floating a bipartisan measure that would assistance the request for definite crypto businesses and projects to registry arsenic Virtual Asset Service Providers (VASPs) successful the aftermath of the FTX collapse. 

The measure titled “Blockchain Regulatory Certainty Act” was led by Republican Emmer and Democratic Congressman Darren Soto. It was initially tabled astatine the 117th legislature connected Aug. 17, 2021, but did not marque it immoderate further down the line.

— Tom Emmer (@RepTomEmmer) December 14, 2022

Emmer whitethorn beryllium liking his chances a spot much the 2nd clip astir fixed the existent clime successful which the U.S. authorities is scrambling to get regularisation disconnected the crushed to forestall different FTX-style disaster.

Tweeting connected Dec. 15, Emmer noted that it's “probably a bully time” to re-introduce the bill, adding that:

“The measure asserts that blockchain entities that ne'er custody user funds are not wealth transmitters… providing indispensable ineligible certainty to guarantee the aboriginal of crypto reflects American values.”

The measure itself aims to acceptable retired guidelines that region definite hurdles and requirements for “blockchain developers and work providers” specified arsenic miners, multi-signature work providers and decentralized concern (DeFi) platforms.

It was enactment guardant successful effect to a June 2021 draught guidance from the Financial Action Task Force (FATF) that was pushing to grow the explanation of virtual plus services providers (VASPs) to see “any supplier that whitethorn make oregon run a DeFi platform, adjacent if they person nary enactment with users.”

While a fig of U.S. politicians person been taking the liberty to onslaught crypto alongside the FTX collapse, during the House Financial Services Committee proceeding this week, Emmer hasnotably praised the crypto community for utilizing blockchain tech to uncover cardinal info connected the firm’s operations.

Bills, bills everywhere

On the different extremity of the governmental spectrum, crypto-skeptic Senator Elizabeth Warren has introduced the Digital Asset Anti-Money Laundering Act of 2022 connected Dec. 14, alongside Senator Roger Marshall.

The measure fundamentally seeks to halt fiscal institutions from utilizing privateness tools specified arsenic crypto mixers and mandate crypto firms to travel the aforesaid money-laundering rules arsenic banks, a good arsenic regulating crypto kiosks (ATMs).

Related: US legislator calls connected SEC's Gensler to reply for 'regulatory failures'

It would besides necessitate miners, custodial and self-custodial wallet providers to instrumentality know-your-customer (KYC) controls.

Senator Cynthia Lummis, a known hodler and Bitcoin proponent has of people criticized the bill, arguing that specified KYC requirements won’t enactment wrong the discourse of crypto.

Requiring unfastened root developers to physique AML/KYC into node bundle and hardware wallets? That canine won’t hunt.

— Cynthia Lummis (@CynthiaMLummis) December 14, 2022

On Dec. 14, Lummis herself besides outlined that she intends to re-introduce a measure that would manus implicit most of the authorization of crypto to the Commodity Futures Trading Commission (CFTC), arsenic opposed to the Securities and Exchange Commission, which Warren among others are pushing for.