Sen. Ron Wyden Urges Senate Leaders to Keep Safe Harbor for Non-Custodial Developers in Clarity Act

U.S. Democratic Senator Ron Wyden has urged bipartisan Senate leaders to retain Section 604, known as the Blockchain Regulatory Certainty Act, in the Clarity Act, according to The Block. According to ChainCatcher, the provision would create a safe harbor for non-custodial developers by clarifying they are not money transmitters, a position that has drawn broad support from parts of the crypto industry. Wyden argued in his letter that the language would align U.S. Department of Justice and Financial Crimes Enforcement Network policy and help focus enforcement resources on illegal money transmission businesses. He also said the safe harbor would not apply if a non-custodial developer is found to transfer or use funds tied to illegal activity. Law enforcement agencies and Catholic leaders have warned the provision could weaken efforts to combat human trafficking and hinder investigations. The dispute over Section 604 remains one of the main unresolved issues as the Clarity Act advances, alongside a separate ethics provision. Wyden noted that the legislative window is narrowing ahead of the Senate’s August recess.