Democratic Sen. Ron Wyden is urging Senate leaders to ensure a contested provision protecting blockchain software developers remains in a sweeping cryptocurrency market structure bill as negotiations over the legislation continue.
In a letter sent this week to Senate Majority Leader John Thune and Senate Democratic Leader Charles Schumer, Wyden called on leadership to preserve Section 604, known as the Blockchain Regulatory Certainty Act (BRCA), in future versions of the broader Clarity Act.
BRCA is a standalone bill that has been incorporated into the Clarity Act and has emerged as a key point of contention as lawmakers try to pass broader crypto legislation. The provision creates a safe harbor for non-custodial developers, clarifying that they are not money transmitters. Sen. Cynthia Lummis, R-Wyo., introduced the bill earlier this year, with Wyden as the only cosponsor.
"Smart policy will empower law enforcement to do its job and facilitate innovation at the same time," Wyden said in the letter obtained by The Block. "As the Senate continues its consideration of the Clarity Act, I urge you to include the Blockchain Regulatory Certainty Act in any legislative package."
That section has support from much of the crypto industry, who say it provides much-needed legal certainty for software developers and helps prevent innovation from moving offshore. Meanwhile, some law enforcement groups, and even Catholic leaders, have warned that it could weaken safeguards to combat human trafficking and could hinder investigations.
