On June 9, 2025, major crypto advocacy organizations celebrated the successful inclusion of the Blockchain Regulatory Certainty Act (BRCA) into the broader digital asset market structure legislation known as the CLARITY Act. The legislation aims to provide clear regulatory frameworks to distinguish noncustodial blockchain developers from traditional financial institutions.
The BRCA, supported by prominent groups like the DeFi Education Fund, Coin Center, Solana Policy Institute, and Bitcoin Policy Institute among others, specifically exempts crypto software developers and infrastructure providers who create peer-to-peer, noncustodial technologies from being classified as financial entities under the Bank Secrecy Act. This would eliminate ambiguity that has hindered innovation by preventing unnecessary regulatory burdens on developers who do not handle customer funds.
The updated CLARITY Act, scheduled for markup by the House Financial Services Committee, offers strong safeguards while promoting regulatory certainty to bolster U.S. leadership in blockchain innovation. The act's passage is anticipated to foster growth in decentralized finance and blockchain ecosystems by providing legal clarity without compromising oversight of custodial financial institutions.
Key political figures, including Congressmen French Hill, Bryan Steil, Tom Emmer, and Ritchie Torres, are credited with championing the incorporation of BRCA language. The endorsement from eight major U.S.-based crypto policy organizations and firms underscores a growing consensus in the blockchain industry for clearer regulations differentiating custodial from noncustodial participants.