- Over 100 crypto signatories have unitedly written to the US Congress, asking for some necessary protections for developers and service providers in the Market Structure legislation.
- The group highlighted the need for these comprehensive protections if the US must remain the global crypto leader.
More than 100 signatories from the crypto industry have united with the Defi Education Fund to urge the US Congress to provide vital protections for developers and non-custodial service providers in the crypto space. The letter emphasized the importance of incorporating these safeguards into the Digital Asset Market Structure legislation, particularly in maintaining America’s leadership in blockchain innovation.
No Crypto Support for Market Structure Bill Without Listed Protections
The coalition reiterated its commitment to safeguarding the interests of software developers and non-custodial service providers advancing financial technology in the nation, while calling for an inclusive market structure bill that caters to these industry players.
“We, the undersigned organizations—112 crypto builders, investors, and advocates—speak to Congress with one voice: provide robust, nationwide protections for software developers and non-custodial service providers in market structure legislation.”
Furthermore, they said they “cannot support a market structure bill” without such protections. The letter pushes for the “historical protections” given to open source developers to be codified into legislation for the benefit of software developers and non-custodial service providers, who will then not be cornered into impractical regulatory standards that are typically for traditional finance.
The coalition also attributed America’s leadership in building cutting-edge technology over the past 50 years to its open-handed approach to software development.
“For that leadership to continue into the digital financial age, and for the United States to become the “crypto capital of the world,” said the letter, ‘market structure legislation must treat blockchain technology as neutral infrastructure and include comprehensive protections for the developers building it and the non-custodial service providers enabling users to access it.”
The crypto coalition noted that without legislation, the US will continue to lose its ground in software development to other jurisdictions due to regulatory uncertainty. To bolster its position, the letter quoted a report by Electric Capital, which revealed that the total share of open-source software developers in the US declined from 25% in 2021 to 18% in 2025, mostly due to the regulatory uncertainty around software development.
The regulatory push also intertwines with the President’s Working Group Report on Digital Assets, which stated that reversing the decline of blockchain development is pivotal to making the US the crypto capital of the world.
Coalition Calls For Explicit Federal Protections Against Selective Regulation
Summarily, the letter asks Congress to ensure that the final version of the market structure bill includes “explicit federal protections for blockchain infrastructure developers and non-custodial service providers.” Only then can innovators across the US “confidently and safely” build financial infrastructure.
Accordingly, the coalition demands that no individuals or entities engaged in building and maintaining blockchain networks should be subject to regulation primarily for such activities, nor for helping users access such networks through software while they have self-custody of their funds.
Following a hearing in July, the US Senate Committee released the discussion draft of the Digital Asset Market Clarity Act. The bill is expected to pass before the year runs out, but might be stalled by Republicans and Democrats trying to reach compromises on its content.
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