Coinbase, Uniswap, and 100+ Crypto Entities Advocate for Nationwide Developer Protections in U.S. Senate Market Bill

Crypto Industry Unites to Demand Legal Protections for Developers

Over 100 cryptocurrency organisations have jointly urged U.S. Senate leaders to safeguard software developers amid ongoing debates over digital asset regulation.

The coalition, coordinated by the DeFi Education Fund, is pressing for clear legal protections for developers, particularly those supporting self-custody and peer-to-peer transactions, warning that without such measures, a market structure bill cannot gain their support.

Why Developers Are at the Centre of Regulatory Debate

The push comes as lawmakers craft legislation aimed at regulating the cryptocurrency sector.

Industry groups argue that without explicit protections, developers could face criminal or civil liability simply for building and maintaining blockchain networks.

The coalition wrote,

“These protections must make explicit that no individual or entity is subject to regulation solely for engaging in activities that are core to creating, developing, publishing, and maintaining blockchain networks, nor for enabling users to access such networks via software interfaces while maintaining custody of their own funds.”

Recent enforcement actions have intensified these concerns.

Earlier this year, Roman Storm, the developer behind Tornado Cash, was convicted under U.S. code 1960 for facilitating transactions linked to criminal activity.

While the Justice Department later indicated it would not pursue charges against developers of truly decentralised software, the industry remains cautious and seeks permanent legal clarity.

Which Organisations Are Leading the Call

The coalition includes over 110 crypto firms, investors, and advocacy groups.

Signatories range from major exchanges and investment firms, including Coinbase, Grayscale, Kraken, Paradigm, Solana Labs, and Uniswap Labs, to influential tech lobby groups like the Chamber of Progress.

The letter also has backing from the Bitcoin Policy Institute, Blockchain Association, and the Digital Chamber.

Amanda Tuminelli, executive director of the DeFi Education Fund, said,

“The largest crypto advocacy coalition in history, over 110 organisations, builders, and investors came together with DEF to ask Congressional leaders to protect software developers and non-custodial service providers in federal market structure legislation. This issue unites the crypto industry.”

How Current Legislation Addresses Developer Protections

The House recently passed the Digital Asset Market Clarity Act, incorporating language from prior legislation, such as the Blockchain Regulatory Certainty Act and the Keep Your Coins Act, to protect developers of non-custodial software.

However, the coalition argues that Senate drafts must go further to prevent criminal liability and preempt conflicting state laws.

A source familiar with the letter said part of the motivation was concern that some Senate Democrats might introduce provisions criminalising software developers for publishing programs that could be used in money laundering or sanctions evasion.

According to the source,

“Preventing developers from facing such criminal liability is an issue that fully unites the industry.

Public Blockchains Compared to Neutral Infrastructure

Industry leaders stress that software developers operate infrastructure akin to roads or the internet, rather than acting as intermediaries controlling user funds.

Miller Whitehouse-Levine, CEO of the Solana Policy Institute, stated:

“The U.S. doesn’t criminalise the engineers who build our highways when someone uses them to commit a crime. Congress must apply that same principle to digital infrastructure and include comprehensive protections for developers and non-custodial service providers in any market structure legislation.”

The Stakes for Innovation and the U.S. Crypto Market

The coalition warns that overly broad regulations risk stifling innovation, driving talent abroad, and slowing the growth of open-source development in the United States.

According to the letter, the share of U.S.-based open-source developers dropped from 25% in 2021 to 18% in 2025, largely due to regulatory uncertainty.

Source: X

Senate committees, particularly the Banking and Agriculture Committees, are expected to play a crucial role in shaping the final legislation.

Senate Banking Committee Chair Tim Scott emphasised the need for a framework that fosters innovation, protects consumers, and provides clear rules for all participants.

Will Congress Protect Software Developers or Tighten Regulation

The industry’s appeal signals a rare moment of unity, with more than a hundred crypto firms and advocacy groups speaking with one voice.

They are calling for comprehensive, nationwide protections to ensure that digital asset legislation does not unintentionally target developers who build and maintain open-source blockchain networks, leaving the Senate with a critical decision as it drafts the next version of the market structure bill.