Senator Wyden Urges Retention of BRCA Safeguards in Clarity Act

• Senator Ron Wyden, a Democrat, urged Senate leaders to retain the Blockchain Regulatory Certainty Act (BRCA) within the Clarity Act.
• He emphasized that safe harbor protections for decentralized, non‑custodial software developers are essential to sustaining U.S. financial innovation.

Among the contentious elements of the Digital Asset Market Clarity Act is its safe harbor provision for open‑source software developers. Recently, Senator Ron Wyden of Oregon wrote to Senate Majority Leader John Thune and Minority Leader Charles Schumer, urging them to preserve Section 604 of the bill, known as the Blockchain Regulatory Certainty Act (BRCA).

Software Developer Protections Under the BRCA Section of the CLARITY Act

The BRCA is a bipartisan initiative designed to shield decentralized, non‑custodial blockchain developers from liability merely for writing code. Wyden argued that codifying this provision would grant legal certainty to developers driving technological innovation in the United States.

Section 604 of the Clarity Act also bars regulators from classifying non‑custodial software developers as money transmitters under the Bank Secrecy Act (BSA). Wyden stated that the clause “provides a commonsense clarification that the BSA and the criminal code must be viewed in tandem.”

The Oregon Democrat explained that legislation should not treat developers who create or publish software enabling digital asset management as money transmitters, as this would “punish technological innovation” and conflict with guidance from the Financial Crimes Enforcement Network (FinCEN).

AML and CFT Provisions

Wyden stressed the need for the bill to include “robust Anti‑Money Laundering (AML) and Countering the Financing of Terrorism (CFT) guardrails,” to deter illicit use of digital assets. He rejected criticisms that the BRCA would weaken these protections, asserting that Section 604 “unifies FinCEN and Department of Justice (DOJ) policy,” directing resources toward criminal actors rather than neutral developers.

He further noted that the BRCA contains clear rules that penalize non‑custodial developers who facilitate illicit fund transfers, while preventing regulators from automatically branding such developers as financial intermediaries.

“Smart policy will empower law enforcement to do its job and facilitate innovation at the same time,” Wyden said. “As the Senate continues its consideration of the CLARITY Act, I urge you to include the Blockchain Regulatory Certainty Act in any legislative package.”

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