US Lawmaker Pushes Crypto Developer Protections as Senate Weighs CLARITY Act
U.S. Senator Ron Wyden (D-OR) has urged Senate leaders to retain Section 604 of the Digital Asset Market Clarity Act (CLARITY Act), which would protect non-custodial blockchain developers from being automatically classified as money transmitters.
In a July 8 letter to Senate Majority Leader John Thune and Minority Leader Chuck Schumer, Wyden argued that developers who publish software allowing users to manage their own digital assets—without taking control of those assets—should not face money transmitter regulations solely because they create or publish software.
“I write to urge you to ensure that any version of the Digital Asset Market Clarity Act that is brought to the Senate floor preserves Section 604 of the bill as passed out of the Senate Banking, Housing, and Urban Affairs Committee,” Wyden wrote.
The provision has drawn support from crypto policy advocates. Peter Van Valkenburgh, executive director of Coin Center, praised Wyden as “one of the great champions of a free and open Internet,” while the DeFi Education Fund thanked the senator for his continued advocacy.
However, Alex Thorn, head of firmwide research at Galaxy Digital, cautioned that backing developer protections does not necessarily mean Wyden will vote for the full CLARITY Act. Thorn noted Wyden’s previous no votes on related crypto legislation, suggesting his stance on this specific provision does not guarantee support for the broader bill.
Wyden’s letter emphasized that the provision would not protect developers involved in illicit activity and would help direct enforcement resources toward criminals, not neutral software developers. He urged Senate leaders to include the Blockchain Regulatory Certainty Act in any legislative package.
Whether Section 604 remains in the final Senate version of the CLARITY Act has yet to be determined. Wyden’s position on developer protections is explicit, but his vote on the broader legislation remains an open question.