Protect Developers or No Deal on Market Bill

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A broad coalition of crypto builders, investors and advocates has asked two Senate committees for clear federal rules to protect software creators and non-custodial service providers working on blockchain networks.

According to the letter, 115 groups signed the appeal to the Senate Committee on Banking and the Committee on Agriculture, and they made one demand plain: without explicit protections, they will not back market structure legislation.

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.

Developer Loss And Talent Flight

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.

Image: Ten Mile Square

Legal Clarity As A Business Need

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.

Bipartisan Support And Next Steps

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

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