112 Crypto Companies Demand Senate Protect Blockchain Developers

Industry Coalition Calls for Developer Protections in Market Structure Bill

A powerful coalition of 112 cryptocurrency companies, investors, and advocacy groups has delivered a critical message to the US Senate: protect software developers and non-custodial service providers in upcoming market structure legislation, or lose their support entirely.

The coalition letter, sent Wednesday to the Senate Banking and Agriculture Committees, represents an unprecedented show of unity from the crypto industry. Major players including Coinbase, Kraken, Ripple, a16z, and Uniswap Labs joined forces with nearly every significant US crypto lobbying organization to demand comprehensive protections.

United Industry Voice Against Regulatory Overreach

The DeFi Education Fund, which authored the coalition letter alongside its partners, emphasized the industry's unified stance. The letter explicitly states that without robust nationwide protections for software developers and non-custodial service providers, the coalition "cannot support a market structure bill."

This coordinated effort signals the crypto industry's determination to prevent developers and non-custodial actors from being incorrectly classified as intermediaries under outdated financial regulations. The coalition includes representation from the Blockchain Association to the Digital Chamber, demonstrating broad industry consensus.

US Losing Ground in Global Blockchain Development Race

The coalition's concerns are backed by concerning data trends. According to Electric Capital research cited in the letter, the United States' share of open-source blockchain developers has declined significantly from 25% in 2021 to just 18% in 2025. This dramatic drop is primarily attributed to regulatory uncertainty plaguing the American crypto landscape.

The industry warns that without proper protections, America risks losing its competitive edge in blockchain innovation to more crypto-friendly jurisdictions. The coalition argues that explicit federal protections are essential to create an environment where American innovators can confidently build financial infrastructure.

Building on Bipartisan Congressional Support

The crypto coalition referenced recent bipartisan support for developer protections, particularly highlighting the CLARITY Act's overwhelming passage through the House. This legislation demonstrated that protecting blockchain developers enjoys broad political support across party lines.

The industry emphasized that comprehensive market structure legislation must include explicit federal protections to prevent innovation exodus, avoid conflicting state-level regulations, and maintain America's technological leadership in the blockchain sector.

Senate Timeline for Crypto Market Structure Bill

Senator Cynthia Lummis recently provided a roadmap for the digital asset market structure legislation, stating it will reach President Donald Trump's desk "before the end of the year." The ambitious timeline includes advancement through the Senate Banking Committee by September and the Senate Agriculture Committee by October.

This legislation will fundamentally reshape how the SEC and CFTC regulate cryptocurrency markets. Senator Lummis suggested the bill could arrive ahead of Thanksgiving, making the current push for developer protections particularly time-sensitive.

Industry Stakes High as Deadline Approaches

The coalition's letter represents more than regulatory advocacy – it's a strategic ultimatum. By threatening to withdraw support for market structure legislation without developer protections, the crypto industry is leveraging its unified voice to influence critical policy decisions.

The outcome of this legislative push will determine whether the United States maintains its position as a global leader in blockchain innovation or cedes ground to international competitors with clearer regulatory frameworks.

Critical Moment for US Crypto Policy

As the Senate prepares to craft comprehensive crypto market structure legislation, the industry's message is clear: protecting developers isn't optional – it's essential. The coalition's letter represents a pivotal moment where regulatory certainty and innovation protection will determine America's role in the future of digital finance.

The crypto industry's unified stance demonstrates the critical importance of developer protections in maintaining America's technological competitiveness and preventing the continued exodus of blockchain talent to more regulatory-friendly jurisdictions.

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