US Senator Wyden Urges Senate to Retain Blockchain Developer Protection Provisions in Clarity Act

CoinFeed July 9 news, according to The Block, US Democratic Senator Ron Wyden wrote to Senate bipartisan leaders, calling for Section 604, the Blockchain Regulatory Certainty Act, to be retained in the Clarity Act. The provision provides a safe harbor for non-custodial developers, clarifying that they are not money transmitters, and has received broad support from the crypto industry, which believes it provides legal certainty for software developers and prevents innovation outflow. However, law enforcement agencies and Catholic leaders warned that the provision could weaken regulatory capacity to combat human trafficking and hinder investigations. Wyden rebutted in the letter, stating that the provision unifies DOJ and FinCEN policies, ensuring resources focus on illegal money transmission businesses, and stipulates that if non-custodial developers are found to transfer or use funds from illegal activities, they are not protected.