Crypto Firms Push Lawmakers to Safeguard Developers in Market Structure Bill

More than 100 crypto organizations have asked the U.S. lawmakers to legally protect software developers in the upcoming market structure bill. The Congress is currently working on creating comprehensive digital asset regulations. The organizations have warned the lawmakers that if software developers are not protected in the upcoming legislation, they will withdraw their support for the bill.

Over 100 Crypto Firms Ask to Protect Developers

The appeal was organized by the DeFi Education Fund (DEF) in partnership with the Blockchain Association, the Digital Chamber, Stand with Crypto, and industry players including Coinbase, Paxos, and Uniswap Labs. It was sent to the leaders of the Senate Banking Committee and the Senate Agriculture Committee. These committees are expected to play central roles in shaping crypto legislation this fall.

“In the largest crypto advocacy coalition in history, over 110 organizations, builders, and investors came together with DEF to ask Congressional leaders to protect software developers and non-custodial service providers. This issue unites the crypto industry,” said DEF executive director Amanda Tuminelli.

The debate comes as lawmakers step up efforts to regulate the fast-growing digital asset sector. The House recently passed the Digital Asset Market Clarity Act, while Senate Banking Committee Republican Chair Tim Scott released a draft of a broader market structure proposal. Scott has set a self-imposed September 30 deadline for committee action, raising the stakes for ongoing negotiations. Ultimately, both chambers will need to reconcile their versions into final legislation.

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Crypto stakeholders emphasized that self-custody and peer-to-peer transactions must remain legally protected. Their letter stated: “These protections must make explicit that no individual or entity is subject to regulation solely for engaging in activities that are core to creating, developing, publishing, and maintaining blockchain networks, nor for enabling users to access such networks via software interfaces while maintaining custody of their own funds.”

The push follows comments last week from a senior Justice Department official, who clarified that “writing code” is not a crime, an important signal to the industry after years of uncertainty over the liability of developers. Advocates say codifying this principle in legislation is vital to ensure innovation is not stifled by fear of prosecution.

The call for developer protections comes amid broader clashes between the crypto sector and traditional finance. Banking associations are lobbying Congress to revise a stablecoin law signed last month, citing concerns about interest payments and state-level oversight. Meanwhile, the Securities Industry and Financial Markets Association has pressed the SEC to block digital asset firms from offering tokenized equities through exemptions, pushing instead for a stricter regulatory framework.

As lawmakers return to Washington next month, the crypto industry is signaling it is prepared to mobilize in force, but only if developer protections are guaranteed. The outcome could determine how the U.S. balances innovation with oversight in one of the world’s most contested financial frontiers.