Crypto Group Pushes Senate for Developer Protection Rules

Crypto Group Pushes Senate to Shield Developers From Outdated Laws

Written by Aaron S.,

Editor-In-Chief

Last Updated: August 28, 2025

Key Takeaways

112 crypto firms and advocacy groups urged the Senate to protect developers who build blockchain tools without holding customer funds;
The coalition wants developers and non-custodial service providers excluded from financial intermediary rules in the upcoming bill;
Industry leaders said that unclear regulations risk pushing innovation overseas, as US blockchain developer share fell from 25% to 18% by 2025.

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A large group of crypto companies and organizations is asking the US Senate to create clear rules that protect people building blockchain software and tools that do not hold customer funds.

This group, made up of 112 businesses, investors, and advocacy organizations, sent a letter to the Senate committees in charge of banking and agriculture.

Their request is to ensure that software developers and providers of non-custodial services are not treated like financial intermediaries. The letter was written with help from the DeFi Education Fund and other partners.

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Well-known names, including Coinbase $2.87B , Kraken $514.26M , Uniswap UNI $9.98 Labs, Ripple, and a16z, signed the letter.

They want federal lawmakers to include protections in the upcoming market structure bill that separate developers and non-custodial service providers from traditional financial institutions.

Supporters of the letter warned that unclear or outdated rules could drive innovation out of the country. They pointed to research from Electric Capital, which shows that the US had 25% of all open-source blockchain developers in 2021. By 2025, that number dropped to 18%.

The coalition emphasized that people creating open-source tools or offering services that do not take control of customer funds should not be viewed as brokers or exchanges.

Another concern raised in the letter was the risk of different rules across states. If there is no nationwide approach, each state could create its own version of the law.

The group stated that federal protections would reduce this issue and support consistent development.

On August 26, a group of international regulators and exchange associations urged the US Securities and Exchange Commission (SEC) to clarify its position on tokenized stocks. What did they say? Read the full story.