A coalition of 112 crypto firms, investors, and advocacy groups is urging the U.S. Senate to safeguard software developers and non-custodial service providers in upcoming digital asset legislation.
The group, coordinated by the DeFi Education Fund, sent a letter Wednesday to the Senate Banking and Agriculture Committees, stressing that developers should not be misclassified as financial intermediaries under outdated laws. “Without such protections, we cannot support a market structure bill,” the letter warned.
Signatories include Coinbase, Kraken, Ripple, Uniswap Labs, a16z, and nearly every major U.S. lobbying organization, from the Blockchain Association to the Chamber of Digital Commerce.
Advocates argue that unclear regulation is already driving developers overseas. Data from Electric Capital shows the U.S. share of open-source blockchain developers has slipped from 25% in 2021 to 18% in 2025. The coalition said nationwide protections are needed to prevent a “patchwork” of state laws and to ensure the U.S. remains competitive in global crypto innovation.
They pointed to bipartisan momentum behind the CLARITY Act, which passed the House this summer, as proof that Congress can agree on key safeguards.
Senator Cynthia Lummis recently confirmed that a digital asset market structure bill is expected to reach President Donald Trump’s desk before year-end. The proposal, which will clarify the roles of the SEC and CFTC in overseeing crypto markets, is slated to advance through the Senate Banking Committee in September and the Agriculture Committee in October.
If lawmakers adopt the industry’s recommendations, the U.S. could see its first comprehensive digital asset framework in place by Thanksgiving — a move that many say will determine whether the country leads or lags in the next wave of financial innovation.
