Sponsors (6)
Creates a federal safe harbor protecting blockchain developers and service providers from being treated as money transmitters or similar registrable/licensable entities unless they exercise control over users' digital assets.
The bill increases legal certainty and lowers compliance risk for blockchain developers and firms to encourage innovation, but does so by narrowing some federal and local oversight—potentially reducing consumer protections and creating enforcement gaps for financial crime prevention.
Blockchain developers and startups face reduced legal risk because the bill shields providers from being treated as money-transmitters unless they exercise unilateral control over users' assets.
Industry participants gain clearer, statutory definitions of key terms (developer, service, control, digital asset), improving regulatory certainty for product design and compliance.
States retain the ability to enforce laws that align with the federal safe harbor, allowing continued state-level consumer protections where state rules are consistent with the federal standard.
Consumers and users could lose protections and avenues for recourse because many provider activities are exempted from money‑transmitter and licensing rules.
Banks and regulated financial firms may face enforcement gaps for anti‑money‑laundering and counter‑terrorist financing (AML/CFT) if certain blockchain services fall outside money‑transmitter rules, complicating national security compliance.
State and local regulators could be blocked from enforcing local consumer‑protection laws that are inconsistent with the federal safe harbor, weakening local oversight.
Based on analysis of 2 sections of legislative text.
Official title: To provide a safe harbor from licensing and registration for certain non-controlling blockchain developers and providers of blockchain services.
Introduced May 21, 2025 by Thomas Earl Emmer · Last progress May 21, 2025
Creates a federal safe harbor that shields blockchain developers and providers of blockchain services from being treated as money transmitters, financial institutions, or other licensable/registrable entities under federal or state law — and from related liability — unless the developer or provider exercises regular, business‑like control over users' digital assets. Defines key terms (e.g., "blockchain developer," "blockchain service," "control," and "digital asset") and preserves existing intellectual property law while allowing state laws that are consistent with the safe harbor to be enforced.