115 DeFi, Crypto Firms Issue Ultimatum to Senate: Shield Developers or Kill Market Bill

DeFi's heavy hitters draw line in digital sand—protect builders or watch legislation crumble.

The Standoff

A coalition of 115 cryptocurrency and decentralized finance companies just delivered a blunt message to Capitol Hill: back off developers or forget about regulatory cooperation. The group's unified stance turns up the heat on lawmakers attempting to craft market structure legislation that could reshape the entire digital asset landscape.

Developer Shield Demanded

Their core demand? Absolute protection for coders and protocol creators from enforcement actions targeting the platforms they build. They argue that punishing developers for how others use open-source technology stifles innovation and drives talent overseas—leaving the U.S. eating crypto-dust.

Legislation in Jeopardy

Without these safeguards, the companies warn they'll withdraw support entirely—potentially sinking years of bipartisan negotiation efforts. The move represents the industry's most coordinated pushback against regulatory overreach yet, signaling they won't play ball if the rules threaten the very engineers building the game.

Wall Street's watching—probably wondering how these crypto rebels managed to organize faster than their compliance departments can schedule a meeting about organizing.

Call For Federal Protections

The signers want lawmakers to make it clear that writing, publishing, or maintaining open-source blockchain software is not the same as running a bank or exchange.

Reports have disclosed concerns that developers could be treated as financial intermediaries even when they never hold user funds.

The letter asks Congress to shield developers from being prosecuted or misclassified under laws such as 18 U.S.C. § 1960.

It also asks that any federal law preempt conflicting state rules so companies and contributors are not left juggling 50 different legal standards.

Bills Praised But Not Enough

According to the coalition, drafts in both chambers already include two measures that MOVE in the right direction: the Blockchain Regulatory Certainty Act and the Keep Your Coins Act.

But the groups argue those drafts fall short on some points and need clearer, stronger language. Based on reports from the signers, the protections must be explicit and nationwide, not partial or open to varying state interpretations. Without that clarity, the letter warns, developers may choose to work elsewhere.

The group cited data showing a slide in the share of open-source developers based in the US, from 25% in 2021 to 18% in 2025.

According to a recent report by the President’s Working Group on Digital Assets, reversing that decline is central to making America a leading hub for blockchain work.

The signers say those numbers show how regulatory uncertainty can change where people live and where code is built.

The coalition argues that clear rules are also a practical business need. When the legal line between building software and operating financial services blurs, companies and contributors face possible legal exposure.

That creates a cost for startups and volunteers alike. If developers face the risk of civil or criminal action for routine open-source work, projects can slow or stop.

The letter asks Congress to state plainly that creating interfaces or tools that let people self-custody their funds is not, by itself, an activity that should trigger money-transmitter rules.

Signers pointed to past bipartisan moves to protect developers. They noted that 294 members of Congress supported the CLARITY Act when it passed, signaling broad backing for basic safeguards.

Based on the letter, the groups want the Senate to strengthen those protections now, and to do so in a way that covers all states uniformly.

Featured image from Unsplash, chart from TradingView