Senator Ron Wyden isn’t letting the CLARITY Act move forward without developer protections. He’s sent a letter to Senate leaders urging them to keep the Blockchain Regulatory Certainty Act (BRCA) inside the bill.
Wyden wrote that developers who make and release software that lets people manage their own digital assets — where the developer doesn’t control those assets — shouldn’t be treated as money transmitters just for writing code. Pretty clear stance.
The BRCA has its opponents. Law enforcement groups and a coalition of Catholic organizations argued last month it could create oversight gaps. But crypto advocates push back: non-custodial developers can’t touch user funds. Calling them financial intermediaries doesn’t fit.
Wyden’s letter frames it as a competitiveness issue. Treating devs as money transmitters “punishes technological innovation” when the US needs to stay globally competitive, he says. The BRCA reflects existing FinCEN guidance and gives legal certainty for open-source builders.
The timeline’s tight. Senate leaders want the bill passed this month, but Congress takes a monthlong August recess. Galaxy Digital recently cut its passage odds to 50%. There are also hold-ups around ethics provisions after President Trump disclosed $1.4 billion from his crypto interests last year.
“Smart policy will empower law enforcement to do its job and facilitate innovation at the same time,” Wyden wrote. Whether the Senate agrees is the question nobody’s answered yet.
