Senator Ron Wyden, a Democrat from Oregon, sent an official letter to Senate leaders John Thune and Chuck Schumer demanding that the provisions of the Blockchain Regulatory Certainty Act (BRCA) be retained in the final version of the digital assets bill, the Clarity Act. Wyden, who co-authored the BRCA with Republican Cynthia Lummis, emphasizes that this section (Section 604) has already been approved by the Senate Banking Committee and is critically important for the entire ecosystem.
Why Section 604 is a Point of Contention
The key norm of the BRCA, included in the Clarity Act, clearly distinguishes the status of non-custodial software developers: they are not recognized as money transmitters if they merely create or publish code. According to Wyden, this is a "sensible clarification" that synchronizes the application of the Bank Secrecy Act and the U.S. Criminal Code. Furthermore, the senator argues that this provision will allow Congress to legislatively codify existing federal policy, unifying the approaches of FinCEN and the Department of Justice. This will direct law enforcement resources toward combating truly dangerous violators, rather than prosecuting neutral developers.
"Any legislative initiative on the structure of the digital asset market must include effective measures to combat money laundering and terrorist financing (AML/CFT), but this should not come at the expense of developers. Critics of the BRCA mistakenly claim the opposite," states the letter, published by journalist Eleanor Terrett.
Controversial Amendment: Law Enforcement Position Not Yet Determined
Section 604 remains one of the most contentious in the Clarity Act, alongside the lack of norms on ethics and conflict of interest prevention. Support for this wording from law enforcement agencies has not yet been determined. The Major County Sheriffs of America took a neutral position after consultations with the administration regarding Section 604.
However, at the beginning of the month, the National Organization of Black Law Enforcement Executives (NOBLE) officially supported the bill, becoming the first major law enforcement body to back it. This is an important signal, but far from final.
Approval of the bill will require support from Democrats—specifically, Senators Catherine Cortez Masto and Mark Warner—to overcome the 60-vote threshold. The situation remains tense: opposition may weaken after the Senate returns from recess, but for now, the suspense continues.
Expert Opinion: The success of the Clarity Act directly depends on whether Congress can find a balance between protecting innovation and meeting regulatory requirements. The BRCA represents precisely the compromise that allows developers to work without fear of criminal prosecution, without weakening the fight against financial crimes. If Democrats support Wyden, we will see significant progress in regulating the U.S. crypto industry.