Over 100 Crypto Firms Demand Senate Action to Protect Developer Rights

Crypto industry unites in unprecedented push for legislative clarity.

The Collective Stand

More than a hundred blockchain companies just fired a warning shot across Capitol Hill—they're done waiting for regulatory ambiguity to resolve itself. These firms span exchanges, DeFi protocols, and infrastructure builders, all demanding concrete protections for developers who write code in this rapidly evolving space.

Why It Matters

Without clear rights, innovation flees—or gets sued into oblivion. Developers currently operate in a legal gray zone where writing open-source software could potentially expose them to massive liability. That chilling effect doesn't just slow down tech progress; it hands advantage to overseas markets where rules are clearer (or more cleverly ignored).

The Bottom Line

This isn't just another lobbying letter—it's a coordinated industry move timed to pressure lawmakers before session ends. Because nothing motivates politicians like a hundred well-funded entities threatening to fund opponents. Meanwhile, traditional finance giants watch from the sidelines, probably wondering how they can charge a custody fee on developer anxiety.

TLDR

• 112 crypto companies urge Senate to include protections for software developers in market bill.

• Industry advocates warn of losing open-source developers without clear federal protections.

• Crypto firms insist market bill should protect non-custodial services and blockchain developers.

• Bipartisan support for the CLARITY Act shows promise for broader crypto protections.

A coalition of 112 crypto companies, investors, and advocacy groups is calling on the U.S. Senate to protect software developers and non-custodial service providers in the upcoming market structure bill. The groups have voiced concerns over the potential misclassification of developers under outdated financial rules. These protections are seen as vital to ensure that developers and non-custodial service providers are not subject to unnecessary regulation.

The letter, which was sent to the Senate Banking and Agriculture Committees, emphasizes the need for robust protections for these groups to foster innovation in the crypto space. Without these safeguards, the signatories warned, they would not be able to support the market structure bill. Key signatories include major crypto firms such as Coinbase, Kraken, and Ripple, along with organizations like a16z and Uniswap Labs.

Call for Clear Protections for Developers

The coalition is focused on ensuring that developers and non-custodial service providers are not wrongly classified as intermediaries. The letter calls for explicit protections within the market structure bill, particularly for those who build, publish, and maintain blockchain networks. It also urges lawmakers to safeguard the ability for individuals to access these networks and maintain control of their funds.

As the U.S. crypto market faces regulatory uncertainty, the stakeholders argue that clear protections are crucial for maintaining the country’s leadership in open-source blockchain development.

They point to data from Electric Capital that shows the U.S. share of open-source blockchain developers has dropped from 25% in 2021 to 18% in 2025, largely due to regulatory concerns. This trend has raised alarms, as it suggests that developers might MOVE to more crypto-friendly jurisdictions.

Protecting Non-Custodial Services and Blockchain Innovation

The letter also highlights the need to protect non-custodial services, which play a vital role in decentralized finance (DeFi) and the broader crypto ecosystem. Non-custodial services, such as decentralized exchanges and wallet providers, allow users to maintain control over their assets, a key principle of the blockchain industry.

The coalition insists that these services must not be overregulated, as doing so could stifle innovation and prevent the U.S. from maintaining its competitive edge in the global crypto market.

“Protecting software developers and non-custodial service providers is not just a matter of policy; it’s a matter of ensuring that the U.S. remains a leader in the future of blockchain and decentralized technology,” said Amanda Tuminelli, Executive Director of the DeFi Education Fund. The letter stresses that without these protections, the crypto industry will face further uncertainty and may lose valuable talent to other regions.

Bipartisan Support for the CLARITY Act Shows Hope

The letter from the 112 crypto firms comes as the Senate continues to work on the digital asset market structure bill. Last month, Senator Cynthia Lummis stated that the bill is expected to reach President Donald Trump’s desk by the end of the year. The bill aims to provide a clear framework for how the SEC and CFTC should oversee crypto markets, and it has seen bipartisan support, particularly for elements of the CLARITY Act.

The CLARITY Act, which passed with overwhelming support, is seen as a crucial step toward ensuring clear regulations for digital assets. The crypto industry hopes that this bipartisan support will translate into favorable protections for developers in the final market structure bill. Advocates argue that these protections are necessary to allow for continued growth and innovation within the industry.

As the Senate continues to deliberate on the bill, the inclusion of these protections will likely remain a key issue for the crypto industry.