Bipartisan Push for Regulatory Clarity Faces Opposition as Trump’s Memecoin Draws Scrutiny
U.S. Representative Tom Emmer has reintroduced the Blockchain Regulatory Certainty Act in Congress, a bipartisan effort aimed at clarifying the legal status of digital asset developers and service providers that do not custody consumer funds.
In a May 21 announcement, Emmer, a Republican from Minnesota, confirmed that Democratic Representative Ritchie Torres will co-lead the legislation — a rare moment of cross-party cooperation amid growing tension around crypto regulation.
“The Blockchain Regulatory Certainty Act reflects a thoughtful, bipartisan effort to get digital asset policy right,” Torres said.
“We’ve returned with a smarter, sharper framework that protects innovation without compromising oversight.”
The bill aims to ensure that developers and decentralized protocols that don’t hold user funds are not subject to money transmitter laws, a long-standing concern for crypto projects and Web3 developers.
Backing From Major Crypto Advocacy Groups
The renewed legislation has garnered support from major crypto policy organizations, including:
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Crypto Council for Innovation
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Solana Policy Institute
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Digital Chamber
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Coin Center
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DeFi Education Fund
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Blockchain Association
These organizations praised the bill’s potential to provide regulatory certainty for non-custodial technologies, a crucial step in fostering innovation in the U.S. blockchain ecosystem.
Still, it remains unclear whether Emmer and Torres have secured enough bipartisan support to ensure the bill’s passage through the House of Representatives.
Political Pushback Amid Trump’s Expanding Crypto Footprint
The bill’s reintroduction comes at a politically charged moment, with some Democratic lawmakers moving to stall crypto legislation over concerns about President Donald Trump’s crypto ventures.
Trump’s TRUMP memecoin, and his family’s ties to World Liberty Financial, have raised conflict-of-interest concerns. Most recently, the president announced plans to host a private dinner on May 22 for the top 220 holders of his memecoin — a move that some view as an ethical gray area.
Representative Maxine Waters and other Democrats have signaled that they will oppose further crypto legislation unless Republican lawmakers address Trump’s direct and indirect financial interests in the crypto sector.
A Divided Congress on Crypto
Despite the partisan divide, Representatives Emmer and Torres have remained key voices in the Congressional Crypto Caucus, advocating for a balanced and innovation-friendly regulatory framework.
Torres, a vocal crypto advocate since entering Congress in 2021, has pushed for clearer guardrails that promote U.S. leadership in blockchain without compromising investor protection.
“While some members are focused on politics, we’re focused on policy,” Emmer said in a previous statement regarding crypto legislation.
Today, @RepRitchie and I introduced the Blockchain Regulatory Certainty Act to protect blockchain developers and service providers that never custody consumer funds from unjust government prosecution. pic.twitter.com/nCbpHcpf1Y
— Tom Emmer (@GOPMajorityWhip) May 21, 2025
Final Thoughts: Reform in Limbo
The Blockchain Regulatory Certainty Act represents a genuine bipartisan attempt to address legal uncertainty facing crypto developers. But the broader momentum for crypto policy reform is now entangled in political controversy tied to President Trump’s growing crypto profile.
Whether the bill can survive the legislative process will likely depend on whether lawmakers can separate regulation from political optics — and whether future hearings address ethical questions around memecoins and presidential influence.
As crypto continues to embed itself deeper into U.S. political and economic debates, bipartisan cooperation may prove increasingly difficult — but also increasingly necessary.
