- Senator Ron Wyden urges Senate leaders to preserve the Blockchain Regulatory Certainty Act within the CLARITY Act.
- The BRCA protects non-custodial crypto developers from being treated as money transmitters.
- Opposition from law enforcement and Catholic groups argues the provision could create gaps in illicit activity oversight.
- Wyden emphasizes the need for the US to remain competitive by supporting developer innovation.
- The Senate faces a tight timeline to pass the bill before the August recess and midterm elections.
US Democratic Senator Ron Wyden has urged Senate leaders to ensure crypto developer protections remain in the market structure legislation lawmakers aim to pass before the midterm elections. In a letter shared by Eleanor Terrett, Wyden asked Senate Minority Leader John Thune and Majority Leader Charles Schumer to preserve the Blockchain Regulatory Certainty Act (BRCA) within the CLARITY Act.
“Developers who make and release software that allows people to manage their own digital assets — and, critically, where the developer does not control user assets — should not be treated as money transmitters solely because they create or publish software,” Wyden wrote.
The letter follows opposition from law enforcement organizations and a coalition of Catholic groups, who argued last month that the BRCA could create gaps in oversight of illicit activity. Meanwhile, crypto groups have urged the Senate to keep the section intact, arguing non-custodial developers cannot control user funds and should not be treated as financial intermediaries.
Wyden argued that treating developers as money transmitters “punishes technological innovation and advancement” at a time when the United States must remain globally competitive. He added that the BRCA reflects guidance from the Financial Crimes Enforcement Network and provides legal certainty for open-source and non-custodial projects.
“Smart policy will empower law enforcement to do its job and facilitate innovation at the same time,” Wyden wrote. Senate leaders are pushing for the bill to be passed this month, but negotiations over other provisions are ongoing.
However, the timeline is tightening as Congress will take a monthlong recess in August. Galaxy Digital recently cut its odds of the CLARITY Act becoming law this year to 50%, citing the Senate running out of time before the recess.
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