Crypto Firms Urge Senate to Protect Blockchain Developers
An alliance of 112 crypto firms—including Coinbase, Kraken, Uniswap Labs, Ripple and a16z—has urged the US Senate Banking and Agriculture Committees to include clear federal protections for blockchain developers and non-custodial service providers in the upcoming digital asset market structure bill. The coalition warns that current crypto regulation misclassifies developers who build tools without holding customer funds as financial intermediaries, risking innovation and talent flight overseas. Citing Electric Capital data, they note the US share of open-source blockchain developers fell from 25% in 2021 to 18% in 2025 amid regulatory uncertainty. Robust crypto regulation and developer protections would prevent a patchwork of state laws and build on bipartisan momentum from the CLARITY Act. Sponsors aim to pass committee stages by September/October and send the bill to the President by year-end.
Bullish
This push for clear crypto regulation and federal developer protections is likely bullish for the digital asset market. In the short term, the coalition’s call underscores growing regulatory focus and may introduce volatility as traders price in potential legislative changes. However, in the long term, establishing robust crypto regulation frameworks and a national framework for blockchain developers and non-custodial services can reduce compliance risks, foster innovation, and attract and retain developer talent in the US. Clear guidelines are expected to boost confidence in DeFi platforms and facilitate broader institutional participation, supporting sustained market growth.