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Wyden Sides With Crypto in BRCA Fight That Could Derail Clarity Act
Sen. Ron Wyden urged Senate leaders to keep the Blockchain Regulatory Certainty Act in the Clarity Act, facing opposition from law enforcement and anti-trafficking groups.
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Sen. Ron Wyden this week urged Senate leaders to keep a contested provision in the Clarity Act that would exempt non-custodial crypto developers from money transmitter rules. The Oregon Democrat sent a letter to Majority Leader John Thune and Democratic Leader Charles Schumer arguing that the Blockchain Regulatory Certainty Act, or BRCA, should stay in the package.
The BRCA started as a standalone bill from Sen. Cynthia Lummis, R-Wyo. Wyden is its only cosponsor. The measure says developers who do not hold or control customer funds should not count as money transmitters, a classification that triggers licensing and compliance requirements. It was later folded into the Clarity Act, the broader crypto market structure bill, and has become one of the biggest unresolved pieces of the legislation.
“Smart policy will empower law enforcement to do its job and facilitate innovation at the same time,” Wyden wrote in the letter, which was seen 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.”
Not everyone agrees. Two separate coalitions sent letters in June raising concerns about the developer safe harbor. The first came from groups representing more than 70,000 prosecutors, sheriffs, and police officers, including the National District Attorneys Association and the International Association of Chiefs of Police. It went to Acting Attorney General Todd Blanche and White House crypto adviser Patrick Witt. The letter warned that broad exemptions could shield people who help move illicit money.
“Regulatory certainty should not come at the expense of accountability, transparency, victim protection, or public safety,” the law enforcement groups wrote. They added that other parts of the Clarity Act could weaken anti-money-laundering safeguards.
The second letter came from the Alliance to End Human Trafficking, a network of Catholic sisters and advocates. It went directly to Thune and Schumer. The alliance tied Section 604 to trafficking and money-laundering risks.