Crypto Lobbyists Demand Developer Protections in Senate Bill
Crypto lobbyists, including Coinbase, Kraken and Ripple, have united to press the U.S. Senate to safeguard software developers in its market structure bill. They warn they cannot support the legislation without clear protections for open-source development and non-custodial service providers. Over 110 firms and advocacy groups, led by the DeFi Education Fund, signed a letter to the Senate Banking and Agriculture committees ahead of renewed negotiations. The House’s Digital Asset Market Clarity Act already covers developer immunity, but lobbyists fear the Senate version may introduce new liabilities. The coalition argues that extending protections will preserve innovation and prevent developers from falling into regulatory categories meant for traditional financial intermediaries. Crypto lobbyists highlight their political influence after significant PAC funding and stress that a final law is needed for lasting legal certainty.
Neutral
This news is classified as neutral. Political negotiations over the market structure bill provide clarity but do not immediately sway prices. In the short term, traders may see modest volatility as stakeholders react to legislative updates. However, similar past events—such as the drafting of the GENIUS Act for stablecoins—showed that regulatory progress often stabilizes markets once key protections are confirmed. Over the long term, clear developer protections can foster innovation in decentralized finance and support broader adoption, which is constructively viewed by investors. Hence, while the announcement underscores the industry’s political strength, its direct impact on trading sentiment is balanced between cautious optimism and wait-and-see attitudes.