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A consortium of 112 cryptocurrency firms, investors, and advocacy organizations has urged the US Senate to incorporate safeguards for software developers and non-custodial service providers in forthcoming market structure legislation.
In a correspondence dispatched Wednesday to the Senate Banking and Agriculture Committees, the sector spoke “in unison,” imploring legislators to ensure that developers and non-custodial entities are not improperly categorized as intermediaries under antiquated financial regulations.
“Establish comprehensive, nationwide safeguards for software developers and non-custodial service providers in market structure legislation,” the correspondence stated. “In the absence of such safeguards, we are unable to endorse a market structure bill.”
The endorsers include Coinbase, Kraken, Ripple, a16z, Uniswap Labs, and nearly every major US cryptocurrency lobbying organization, from the Blockchain Association to the Digital Chamber.
Related: Cryptocurrency bills progress following a nine-hour standstill on House floor
US risks falling behind in crypto
Crypto supporters contended that the US risks lagging in open-source development without robust safeguards. The correspondence referenced data from Electric Capital revealing that the US share of open-source blockchain developers decreased from 25% in 2021 to 18% in 2025, largely due to regulatory ambiguity.
“To foster an environment where innovators throughout America can confidently and securely construct financial infrastructure, the final draft of market structure legislation must encompass clear federal protections for blockchain infrastructure developers and non-custodial service providers,” the letter indicated.
They emphasized that such measures are crucial to prevent innovation from departing the US, circumvent conflicting state regulations, and build on the bipartisan support evident in the CLARITY Act, which passed with overwhelming support.
Related: CLARITY Act isn’t flawless, but it’s a bill the US Congress needs to pass this summer
Crypto market bill to reach Trump by year-end
Last week, Senator Cynthia Lummis stated that a digital asset market structure bill will arrive at President Donald Trump’s desk “before the year concludes,” aiming for advancement through the Senate Banking Committee by September and the Senate Agriculture Committee by October.
The legislation will dictate how the SEC and CFTC regulate cryptocurrency markets, with Lummis suggesting the bill may be presented before Thanksgiving.
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