A group of 112 crypto companies, investors, and industry associations has urged the US Senate to include clear protections for software developers and non-custodial service providers in upcoming digital asset market structure legislation.
In a letter sent Wednesday to the Senate Banking and Agriculture Committees, the DeFi Education Fund and its partners stressed that the crypto sector is “speaking with one voice,” calling on lawmakers to avoid classifying developers and non-custodial actors as financial intermediaries under outdated regulatory frameworks.
The coalition wrote: “Market structure legislation must provide strong, nationwide protections for software developers and non-custodial service providers. Without these protections, we cannot support such a bill.”
Major industry players signed the letter, including Coinbase, Kraken, Ripple, a16z, Uniswap Labs, as well as leading advocacy groups like the Blockchain Association and the Chamber of Digital Commerce.
US Facing Developer Flight
Advocates warned that without legal safeguards, the US risks driving innovation overseas. Citing data from Electric Capital, the letter noted that the US share of open-source blockchain developers fell from 25% in 2021 to just 18% in 2025, a decline largely linked to regulatory uncertainty.
“To build an environment where American innovators can safely develop financial infrastructure, federal protections for blockchain developers and non-custodial service providers must be part of the final bill,” the coalition emphasized. They added that such provisions are vital to prevent fragmented state-by-state rules and to reinforce bipartisan efforts such as the CLARITY Act, which recently passed with strong support.
Path to Trump’s Desk
Senator Cynthia Lummis recently stated that a digital asset market structure bill is expected to reach President Donald Trump’s desk before the end of 2025. She noted the legislation will first move through the Senate Banking Committee by September, then the Agriculture Committee by October, with the aim of passing it ahead of Thanksgiving.
The bill will define how the SEC and CFTC divide oversight of the crypto sector, a long-debated issue that could shape the future of digital asset regulation in the US.
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