Wyden backs blockchain developer protections bill

• Senator Ron Wyden has urged Senate leaders to keep blockchain developer protections in the proposed Clarity Act.
• The provision would clarify that non-custodial blockchain software developers are not classified as money transmitters.
• The measure remains a key point of debate as lawmakers negotiate broader cryptocurrency market structure legislation.

Senator Ron Wyden has urged Senate leaders to retain the Blockchain Regulatory Certainty Act (BRCA) in the proposed Clarity Act, arguing the measure would provide legal certainty for non-custodial blockchain software developers.

Wyden sent a letter to Senate Majority Leader John Thune and Senate Democratic Leader Charles Schumer as lawmakers continued negotiating the cryptocurrency market structure bill, with BRCA remaining one of its most contested provisions.

“Smart policy will empower law enforcement to do its job and facilitate innovation at the same time,” Wyden wrote in the letter.

Wyden said the proposal would clarify that non-custodial developers are not money transmitters while preserving enforcement powers against developers involved in transferring or using funds linked to illicit activity.

The proposal has support from many cryptocurrency industry participants, while some law enforcement groups and religious organisations have argued it could weaken anti-money laundering safeguards, and because the announcement concerns pending legislation rather than a listed company, there was no share price reaction.

The BRCA was introduced earlier this year by Senator Cynthia Lummis, with Wyden serving as its only co-sponsor, before being incorporated into the broader Clarity Act.

Lawmakers are also debating additional ethics provisions related to public officials' cryptocurrency interests as Congress works to advance the legislation before its August recess.