Senator Wyden Pushes to Preserve BRCA in CLARITY Act

As the passage of the US CLARITY Act in 2026 is still facing uncertainty, major figures are urging the Senate to move the bill forward. As lawmakers continue to debate the crypto bill, Senator Ron Wyden is pushing to retain key provisions that protect crypto developers.

On Wednesday, Wyden wrote a letter to Senate leaders, highlighting the importance of preserving the Blockchain Regulatory Certainty Act (BRCA). He argued that developers of non-custodial software should not be treated as money transmitters.

Senator Wyden pushes to keep the CLARITY Act’s BRCA intact

Senator Ron Wyden has expressed his strong support for the CLARITY Act, asking lawmakers to retain the Blockchain Regulatory Certainty Act (BRCA). In a letter written to Senate Majority Leader John Thune and Senate Democratic Leader Charles Schumer, Wyden has urged Congress to keep Section 604, which protects crypto developers, unchanged in the final version of the market structure bill.

Notably, the BRCA asserts that the developers behind non-custodial blockchain software should not be considered as money transmitters. It was introduced by Senators Ron Wyden and Cynthia Lummis earlier this year. While the provision was incorporated into the CLARITY Act, Wyden is the only Democratic co-sponsor now.

Why is BRCA important?

According to Wyden, the BRCA would provide developers sufficient legal support and certainty. The provision allows law enforcement agencies to focus more on individuals and entities that move or control customer funds. He also argued that the clause follows existing guidance from the US Department of Justice and the Financial Crimes Enforcement Network (FinCEN).

Further, Wyden clarified that the proposal would not protect illegal players. As per the legislation, developers who move funds tied to illegal activities will be identified. What the bill intends to do is to ensure that developers are not treated as financial intermediaries, as they have no control over user funds.

The Senate is divided over crypto developer protection

While major figures like Wyden and Lummis support developer protection, there are still negotiations going on in the Senate regarding the legislation. Earlier this year, Senator Lummis stated that the provision would provide protection for DeFi and non-custodial software developers. She added that the lawmakers are still working to add more safeguards to further strengthen protection.

The US Department of Justice has also supported this provision. They stated that developers who are not involved in illegal activities should not be held liable. The crypto industry is also enthusiastic about the CLARITY Act’s current form, as it is expected to foster innovation.

However, a group of enforcement agencies has raised concerns about the legislation, as reported by CoinCodex. They believe that the crypto bill could hinder investigation, making it challenging for them to tackle or limit crypto crime.

CFTC Chair calls for immediate passage of the CLARITY Act

Besides Wyden, CFTC Chair Michael Selig is also pushing the Senate to pass the CLARITY Act as soon as possible. During an interview, he highlighted the need for clear crypto regulations, which he believes will be brought by the market structure bill.

Selig further shed light on the rapid growth of prediction markets. He stated that the introduction of clear rules could help the CFTC oversee the sector more effectively.