Senator Ron Wyden Urges Senate to Keep Blockchain Developer Protections in Clarity Act

Highlights:

• Ron Wyden urged Senate leaders to keep Section 604 protections for non-custodial blockchain developers in the bill.
• He said developers should not face money transmitter rules when they do not control user funds.
• Wyden said strong AML rules can still target criminals without punishing neutral blockchain software builders.

U.S. Senator Ron Wyden has urged Senate leaders to protect non-custodial blockchain developers in the Digital Asset Market Clarity Act. In a July 7 letter, Wyden asked Senate Majority Leader John Thune and Democratic Leader Charles Schumer to keep Section 604 in the bill. This section is known as the Blockchain Regulatory Certainty Act (BRCA). FOX Business journalist Eleanor Terrett shared the letter in an X post on Wednesday.

Wyden said the section would give legal clarity to developers who build blockchain tools but do not control user funds. He said these developers should not be treated as money transmitters just because they create or publish software.

🚨NEW: Senator @RonWyden (D-OR) is asking Senate leaders to preserve the Blockchain Regulatory Certainty Act, as passed by the Senate Banking Committee, in any version of the Clarity Act brought to the floor.

It comes amid uncertainty over whether certain key law enforcement… pic.twitter.com/ABLSJ1KlJm

— Eleanor Terrett (@EleanorTerrett) July 8, 2026

Wyden Backs Clear Rules for Non-Custodial Blockchain Developers

The letter focuses on a key concern in the crypto industry: whether open-source and non-custodial developers should face financial rules when they do not control customer funds. Wyden said Section 604 would provide “critical safeguards” for these developers while still allowing authorities to target criminals.

According to Wyden, software developers who build tools that allow people to manage their own digital assets should not automatically be treated as financial intermediaries. “To treat them as such punishes technological innovation,” Wyden wrote. He said this approach would put the United States at a global competitive disadvantage at a time when the country needs to stay ahead in strategically important technology sectors.

Wyden also said the provision follows existing guidance from the Financial Crimes Enforcement Network. He said it also aligns with emerging case law. In his view, adding it to the Clarity Act would give open-source and non-custodial developers more confidence to keep building in the United States.

AML Rules Would Still Apply to Bad Actors

Wyden also addressed criticism that the Blockchain Regulatory Certainty Act could weaken anti-money-laundering and counter-terrorism-financing rules. He rejected that view and said digital asset legislation must include strong AML and CFT guardrails.

However, he said enforcement should focus on criminals, unlicensed money-transmitting businesses, and other bad actors, rather than on developers of neutral software. Wyden said the provision would help bring FinCEN and Department of Justice policy into closer alignment.

The senator also pointed to an important exception in the language. Non-custodial developers would not be protected if they are found to be transferring or using funds connected to illegal activity. Wyden said that approach would allow bad actors to be held accountable while avoiding unfair treatment of neutral software developers.

Wyden said lawmakers can support innovation and law enforcement at the same time. He urged Senate leaders to include the Blockchain Regulatory Certainty Act in any final bill. “Smart policy will empower law enforcement to do its job and facilitate innovation at the same time,” Wyden wrote.