- Ron Wyden called on Senate leaders to preserve BRCA protections for non-custodial blockchain developers in the CLARITY Act.
- Wyden said the proposal clarifies developers are not money transmitters if they do not control customer assets.
- The senator argued BRCA preserves law enforcement powers while providing greater legal certainty for blockchain developers.
Sen. Ron Wyden urged Senate leaders to keep the Blockchain Regulatory Certainty Act (BRCA) in any version of the Clarity Act brought to the Senate floor. Wyden sent the request to Senate Majority Leader John Thune and Senate Democratic Leader Chuck Schumer as lawmakers continue discussions over the bill, while questions remain about support from law enforcement groups and several Democratic senators.
Wyden Defends BRCA Language
In his letter, Wyden said Section 604, known as the Blockchain Regulatory Certainty Act, would preserve legal protections for non-custodial blockchain developers. According to Wyden, the provision would codify existing federal policy by clarifying that software developers should not become money transmitters simply for publishing software.
He said the protection applies only when developers do not control customer assets. Therefore, developers creating non-custodial tools would receive greater legal certainty under the proposal.
Wyden added that the language aligns the Bank Secrecy Act with the criminal code while reflecting existing guidance from the Financial Crimes Enforcement Network.
Debate Continues Over Senate Bill
The request comes as uncertainty remains over whether some law enforcement organizations will support the BRCA language.
According to the information provided, lawmakers are also weighing whether revisions could help secure votes from Democratic senators, including Catherine Cortez Masto and Mark Warner.
Wyden argued that removing the provision could affect software developers building decentralized finance applications in the United States. He also noted that he introduced the standalone BRCA legislation alongside Senator Cynthia Lummis as the Democratic co-sponsor.
Letter Stresses Law Enforcement Powers
Wyden said the proposal would not weaken anti-money laundering or counter-terrorism financing requirements. Instead, he wrote that the measure would preserve the authority of the Department of Justice and FinCEN to investigate criminal activity.
He also pointed to an exception within the proposal. According to Wyden, developers who transfer or use funds connected to illegal activity would not receive protection.
The senator said the approach would allow investigators to focus resources on unlicensed money-transmitting businesses and other criminal actors. He closed the letter by urging Thune and Schumer to retain the Blockchain Regulatory Certainty Act in any Senate version of the Clarity Act.
