Defx Insights

  • BRCA Bill Alert: Critical Bitcoin Privacy Protection Act Needs Support

    A crucial piece of legislation aimed at protecting Bitcoin and cryptocurrency innovation is gaining momentum, as the Blockchain Regulatory Certainty Act (BRCA) returns to Congress with bipartisan support. This landmark bill could determine the future of cryptocurrency privacy and scalability in the United States.

    The BRCA, reintroduced by Representatives Tom Emmer (R-MN) and Ritchie Torres (D-NY) on May 21, 2025, provides essential protections for non-custodial cryptocurrency service providers. This legislation comes at a critical time, as recent debates around Bitcoin custody and regulatory oversight have highlighted the need for clear guidelines.

    Key Provisions of the BRCA

    • Safe harbor protections for non-controlling blockchain developers
    • Exemption from money transmitter classifications for non-custodial services
    • Protection for Lightning Network nodes and infrastructure providers
    • Clear guidelines for privacy-focused development

    Why This Matters for Bitcoin’s Future

    The implications of this legislation extend far beyond simple regulatory compliance. Without these protections, critical Bitcoin scaling solutions and privacy innovations could face significant legal hurdles.

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    Current Legal Challenges

    The urgency of this legislation is highlighted by ongoing legal cases against developers of Samourai Wallet and Tornado Cash, who face charges despite never having control over user funds.

    How to Support the BRCA

    1. Visit SaveOurWallets.org
    2. Enter your ZIP code to find your representatives
    3. Contact your officials using the provided templates
    4. Share the initiative on social media

    FAQ

    Q: How does this affect Bitcoin users?
    A: The BRCA would protect your right to use non-custodial wallets and privacy-preserving tools without additional regulatory burden.

    Q: What happens if the bill doesn’t pass?
    A: Bitcoin scaling solutions and privacy tools could face increased regulatory scrutiny and potential restrictions.

    Q: When will the bill be voted on?
    A: While no specific date has been set, supporters are pushing for consideration in the current congressional session.

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