US Senator urges keeping developer protections in CLARITY Act

U.S. Senator Ron Wyden, a Democrat, has urged Senate leadership to ensure that a provision protecting blockchain developers remains in the final version of the CLARITY Act. In a letter to Senate Majority Whip John Thune and Senate Majority Leader Chuck Schumer, Wyden requested that Section 604, the Blockchain Regulatory Certainty Act (BRCA), be included in any future amendments to the CLARITY bill. The BRCA, originally a separate bill now integrated into the CLARITY Act, aims to establish a legal safe harbor ensuring that developers of non-custodial blockchain software are not treated as money transmitters. The bill was introduced earlier this year by Republican Senator Cynthia Lummis, with Wyden as the sole Democratic co-sponsor. Wyden stressed that sound policy allows for both law enforcement and innovation, and that the BRCA must be included as the bill is debated. The cryptocurrency industry supports the provision, arguing it provides legal clarity for developers and helps prevent blockchain development from moving overseas. However, some law enforcement agencies have voiced opposition, concerned that it could weaken safeguards needed to combat human trafficking and investigate crimes.