Wyden Pushes for Developer Protections in CLARITY Act Amid Regulatory Clashes

U.S. Senator Ron Wyden has urged Senate leaders to keep provisions protecting blockchain developers in the CLARITY Act, a bill that aims to regulate the cryptocurrency market.

The provision, known as Section 604 or the Blockchain Regulatory Certainty Act (BRCA), would exclude non-custodial developers from being treated as money transmitters and provide them with legal protection.

Wyden argued that innovation and law enforcement can be achieved together, citing existing policy direction at the U.S. Justice Department and the Financial Crimes Enforcement Network (FinCEN) under the Treasury Department.

However, investigators and civic groups have expressed concerns that the developer safe harbour is too broad and could protect developers who help move illicit funds.

The cryptocurrency industry generally supports BRCA, arguing that innovation can stay in the United States only if developers can build software without fear of legal liability.