Over 100 Crypto Firms Demand Key Fixes in Market Structure Bill to Protect Developers

Highlights:

• Several crypto companies are urging the protection of developers in the market structure bill.
• Developers are requiring exemptions from regulation when releasing open-source code.
• The bill should protect non-custodial platforms against financial liability.

A group of more than 110 crypto companies, investors, and advocacy organizations sent Congress a strong message this week. They are demanding that developer interests be given proper protections, without which they would not vote to support the new market structure bill.

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This development follows efforts by lawmakers in both the House and Senate to create a unified set of rules on how to regulate digital assets. There is, however, increasing concern over how the developers are being treated in the current version of the bill. Prominent companies, such as Coinbase, Kraken, Ripple, and Uniswap Labs, co-signed the letter. The initiative was organized by the DeFi Education Fund, alongside other key advocacy groups like the Blockchain Association and Digital Chamber.

Today, a coalition of 100+ signatories join DEF in sending a letter to Congress.

Software developer protections are a non-negotiable in digital asset market structure legislation. This critical issue unites us — crypto and tech builders, investors, and advocates. pic.twitter.com/fi1zcErtWy

— DeFi Education Fund (@fund_defi) August 27, 2025

Push to Refine the Market Structure Bill Grows Stronger

The crypto coalition pushes federal safeguards on software developers and non-custodial service providers. They caution that, in the absence of these, innovation may move to other countries. Moreover, they insist that blockchain developers should not be exposed to legal challenges simply by publishing or maintaining blockchain software. The letter argues that the definition of a developer as a financial intermediary may jeopardize the premise of decentralized finance.

Their letter stated:

“Create strong, nationwide protection of software developers and non-custodian services. As a result of absence of such safeguards, we cannot approve a market structure bill.”

The group also pointed out that the U.S. contribution to the open-source development is decreasing. According to a recent federal report, it slipped to 18% by 2025 as compared to 25% in 2021. This decline can be attributed to the continued regulatory turmoil.

Additionally, the letter advocates the enforcement of specific safeguards to encourage self-custody and peer-to-peer transactions. It states that developers must not be prosecuted on the sole basis that they have enabled this kind of use via software tools.

Legal Pressure Mounts Following Tornado Cash Case

This push in the industry has been catalyzed by the recent lawsuits against open-source developers. Developers worry that they will be prosecuted for developing software that may fall into the wrong hands. The letter compares public blockchains to infrastructure such as roads or the internet and emphasizes their neutrality. It requests clarification that code creators, who have no control over user funds, are not liable for the usage of their tool.

Additionally, the advocates of crypto cheered the House with regard to the enactment of the CLARity Act. That bill provides protections to peer-to-peer transactions and decentralized platforms. However, the coalition believes that such efforts need to be increased by the Senate in its version of the market structure bill. They also would like to see the final draft of the Senate avoid the creation of contradictory state laws. The proposal should contain a preemption language to have federal consistency in all jurisdictions.

Crypto Industry Stands United as Senate Decision Nears

Senator Cynthia Lummis recently stated that the Senate intends to pass the final market structure bill to President Trump before the end of the year. She plans to push it through the Senate Banking Committee by September and the Agriculture Committee by October.

BULLISH:

🇺🇸 SENATOR LUMMIS SAYS THE CRYPTO MARKET STRUCTURE BILL WILL BE ON TRUMP’S DESK BEFORE 2025 THANKSGIVING! pic.twitter.com/pyZU5C1Zok

— Coinvo (@ByCoinvo) August 21, 2025

As the traditional finance communities urge their revision, crypto enthusiasts press lawmakers even further. They urge developers who do not control and store user assets to be treated as intermediaries by federal law.

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