Sen. Ron Wyden has urged Senate leaders to preserve the Blockchain Regulatory Certainty Act language embedded in the broader Digital Asset Market Clarity Act, pushing back against efforts to strip developer protections from the landmark crypto bill.
What Ron Wyden Asked Senate Leaders To Keep In The Bill
Wyden sent a letter to Senate Majority Leader John Thune and Senate Democratic Leader Charles Schumer asking them to retain Section 604 of the Digital Asset Market Clarity Act, according to original reporting by The Block published on July 8, 2026. Section 604 contains the full text of the Blockchain Regulatory Certainty Act, a standalone bill Wyden co-introduced with Sen. Cynthia Lummis earlier this year. For related coverage, see Robinhood Launches Robinhood Chain Blockchain.
The provision has become one of the most contested parts of the broader market structure package. Wyden argued the language would align federal policy with existing DOJ and FinCEN enforcement approaches while focusing prosecution resources on actual bad actors rather than software developers. For related coverage, see Boerse Stuttgart's Seturion Adds SocGen and SG-FORGE for EU Blockchain Settlement.
The full text of Wyden’s current letter has not been located on an official Senate page, so the immediate details of his request rely on The Block’s original reporting. For related coverage, see BNB Chain Sets 1,000,000 TPS Goal in AI-Focused Push.
What The Blockchain Regulatory Certainty Act Language Would Actually Do
The Blockchain Regulatory Certainty Act was introduced on January 12, 2026 by Sens. Lummis and Wyden. The bill clarifies that software developers and infrastructure providers who do not control user funds are not money transmitters under federal law.
In practical terms, “money transmitter” classification triggers a web of federal and state licensing requirements designed for businesses that hold or move customer money. The BRCA draws a line between firms that actually custody or transfer user funds and those that simply build or maintain blockchain software and infrastructure.
The Senate Banking Committee’s May 12, 2026 section-by-section summary confirms that Section 604 exempts blockchain developers and providers from money transmitter classification while preserving criminal liability for intentional illicit transfers. Developers who knowingly facilitate unlawful conduct would still face prosecution under existing criminal statutes.
This distinction matters for projects building new blockchain infrastructure or decentralized applications. Without the BRCA, a validator operator or open-source protocol developer could theoretically face the same regulatory burden as a licensed money services business.
Why Section 604 Matters In The Bigger Crypto Regulation Debate
The fight over Section 604 reflects a deeper tension in U.S. crypto policy between enabling innovation and maintaining enforcement tools. Some law enforcement groups have argued, according to The Block’s reporting, that the BRCA could weaken anti-trafficking or illicit-finance safeguards.
Supporters counter that the provision is narrow legal clarity, not a loophole. Coin Center, a cryptocurrency policy organization, argued in a February 17, 2026 analysis that the BRCA must remain part of any market structure regime. Jason Somensatto of Coin Center wrote that existing criminal statutes remain fully available against developers who knowingly facilitate unlawful conduct.
“The BRCA does not shield bad actors. It does not create a prosecution gap.”
Jason Somensatto, Coin Center
The broader regulatory environment continues to evolve as Congress works through multiple crypto-related proposals. Separate legislative efforts around crypto ethics reform and regulatory compliance for digital assets underscore how wide-ranging the current policy debate has become.
The crypto market backdrop remains cautious as these policy battles unfold. Bitcoin was trading around $61,948 at press time, and the broader market mood reflects uncertainty.
The Fear & Greed Index stood at 22, signaling extreme fear across crypto markets.
What happens next depends on whether Senate leaders keep Section 604 intact as the Digital Asset Market Clarity Act moves through committee revisions. Wyden’s letter signals that at least one senior senator from each party views the developer protection language as non-negotiable.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
