Crypto Industry Urges Senate to Safeguard Developers in Market Structure Bill
On August 27, an influential group of 112 crypto entities sent a powerful message to the Senate Banking and Agriculture committees. Their backing of the market structure bill hinges on strong protections for software developers.
The coalition, featuring heavyweights like Coinbase, Kraken, and a16z, warns legislators that without these safeguards, they won’t support the legislation. The DeFi Education Fund coordinated the letter, making it clear that developer protections are non-negotiable.
why do developers need such protections? Forcing them into regulations meant for banks or brokers isn’t practical. It also misclassifies their role, potentially stalling innovation. Alarmingly, the U.S.’s share of open-source developers has dropped from 25% in 2021 to just 18% in 2025 due to uncertain rules.
This urgency is heightened by recent legal events. The conviction of Tornado cash developer Roman Storm on various financial charges alarmed the industry. His case showed that developers could face liability for how others misuse their open-source tech, despite not controlling it.
To foster innovation, the industry wants lawmakers to shield people who merely create or maintain blockchain code from undue scrutiny. They also seek a federal override of conflicting state laws and clarify that developers aren’t money transmitters under specific statutes.
developers are crucial for crypto growth. Ensuring their safety paves the way for continued innovation without fear of prosecution.
