Over 100 Crypto Companies Join Forces To Protect DeFi In Market Structure Bill

[Redator]

115 crypto companies, investors, and organizations have come together to urge the US Senate to incorporate explicit protections for open-source software developers and non-custodial service providers in upcoming market structure legislation. 

This coalition, spearheaded by the DeFi Education Fund, includes high-profile supporters such as Coinbase, a16z crypto, and Ripple, all emphasizing the need for regulatory clarity that fosters innovation rather than stifling it.

Historic Letter From Crypto Leaders

The letter, signed by 115 key players in the crypto ecosystem, underscores a collective commitment to preserving the rights of those who build the digital financial landscape. It states:

We speak to Congress with one voice: provide robust, nationwide protections for software developers and non-custodial service providers in market structure legislation. Without such protections, we cannot support a market structure bill.

The signatories highlight the historical advantages the US has enjoyed in software development, which have led the nation to the forefront of technological innovation over the past five decades. 

They argue that to maintain this leadership in the digital financial era, legislation must recognize the crypto market’s blockchain technology as neutral infrastructure. 

Furthermore, they assert it should ensure that crypto developers and service providers are not subjected to outdated regulatory frameworks designed for traditional finance.

Calls For Legislative Protections

The letter also points to troubling statistics: the share of open-source software developers in the US has declined from 25% in 2021 to a projected 18% in 2025. This drop is largely attributed to the uncertainties surrounding regulatory frameworks for software development. 

As noted in a recent report from the President’s Working Group on Digital Assets, reversing this trend is essential for making America the “crypto capital of the world.”

While the House and Senate have included provisions like the Blockchain Regulatory Certainty Act and the Keep Your Coins Act in their drafts, which aim to distinguish between intermediated finance and decentralized networks, the letter emphasizes that more clarity is needed. 

They believe that the proposed legislation must ensure that crypto developers are not misclassified as money transmitters and that they can engage in their activities without facing regulatory penalties.

The call for comprehensive federal protections is framed as a bipartisan issue, with a history of support for open-source software crossing party lines. 

Past legislation, such as the CLARITY Act, received overwhelming backing, indicating a strong consensus on the need to protect developers and non-custodial service providers. The current coalition aims to build on this momentum and push for enhancements in the legislative protections for developers.

Featured image from DALL-E, chart from TradingView.com