A group of 112 institutions from the crypto sector, coordinated by the DeFi Education Fund, has sent a letter to the United States Congress to obtain explicit protections for blockchain developers and non-custodial providers.
The context is not coincidental: the share of open-source developers based in the USA is progressively decreasing. According to the Developer Report by Electric Capital (latest available data, 2024) – which indicates a reduction from 25% in 2021 to about 18% in 2024 – the trend fuels the fear of a talent and project exodus to markets with clearer regulations.
According to the data collected by our editorial team on official statements and policy requests sent to institutions in the first half of 2025, the pressure for specific protections for developers and non-custodial providers has increased significantly.
Industry analysts and some legal consultants contacted indicate that without clear technical definitions, companies tend to reduce open-source activities or relocate sensitive parts of the development.
The coalition includes entities such as a16z Crypto, Coinbase, Kraken, and Galaxy Digital, along with associations, startups, and funds.
In summary, the aim is to prevent those who write or publish open-source code, or provide non-custodial tools, from being equated with traditional financial intermediaries, with regulatory burdens not suited to decentralized infrastructures.
An interesting aspect is that the request does not seek indiscriminate exemptions, but rather technical definitions consistent with the functioning of the protocols.
In brief
In the USA, there is an increase in litigation, with criminal and civil proceedings involving developers and platforms linked to privacy tools and decentralized protocols.
Among the most discussed cases are mixers like Tornado Cash and Bitcoin Fog, which have fueled fears of extensive interpretations of technical liability.
It should be noted that a clear federal framework could reduce uncertainty for those developing decentralized infrastructures and applications, without hindering efforts to combat abuses.
The coalition calls for strengthening protections for developers by addressing the so-called CLARITY Act – currently under review by Congress with debates and amendment proposals throughout 2025 – with amendments that define roles and responsibilities in the decentralized ecosystem. In this context, it is requested to:
What the CLARITY Act Provides (in summary)
The bill aims to clarify the regulatory frameworks for entities active on decentralized networks, distinguishing between those who provide technical infrastructure and those who actually operate as intermediaries. The coalition’s proposal seeks to better specify these distinctions and to introduce stronger protections for developers and non-custodial providers.
According to Electric Capital, the share of crypto developers based in the USA is decreasing, with repercussions on multiple levels:
Trend developer USA: estimated quota declining according to the Developer Report by Electric Capital (2024 data).
Without clear rules, the American sector risks losing ground in research, investments, and technological adoption. Companies might consider relocating abroad; some startups, for prudence, would reduce open-source projects based in the United States.
This would result in higher legal costs and a more cautious approach to innovation, impacting skilled employment and the security of digital infrastructures.
The letter was sent in June 2025 in anticipation of the discussion of the upcoming bill concerning the digital market and infrastructure in Congress.
In the coming months, potential amendments could incorporate the key points: precise definitions, liability limits, and a uniform federal framework. In this context, the balance between user protection and the freedom to build decentralized software represents the decisive step.
