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