Over 100 Crypto Firms Unite to Shield DeFi in Market Structure Bill
A powerful coalition of 115 crypto companies, investors, and organizations is urging the US Senate to prioritize the protection of open-source developers and non-custodial service providers within the upcoming market structure legislation. This significant move, spearheaded by the DeFi Education Fund, includes prominent players like Coinbase, a16z crypto, and Ripple, all united in their call for regulatory clarity that fosters innovation.
A Historic Plea for DeFi Protection
In a landmark letter, these 115 key players in the crypto ecosystem collectively voice their concerns and demands. Their unified message to Congress is clear: implement robust, nationwide protections for software developers and non-custodial service providers within the market structure bill. The letter unequivocally states that without these safeguards, their support for the bill is impossible.
Safeguarding American Technological Leadership
The signatories emphasize America’s historical dominance in software development and its role in driving technological innovation for the past five decades. To maintain this leadership in the digital financial age, they argue that the legislation must recognize blockchain technology as neutral infrastructure and avoid applying outdated financial regulations to the crypto industry. They highlight the concerning decline in the number of US-based open-source developers, falling from 25% in 2021 to a projected 18% in 2025 – a trend directly linked to regulatory uncertainty.
Addressing the Need for Clarity
While the House and Senate have included provisions like the Blockchain Regulatory Certainty Act and the Keep Your Coins Act, aiming to differentiate between traditional and decentralized finance, the coalition stresses the need for greater clarity. The letter calls for explicit protections to prevent the misclassification of crypto developers as money transmitters and to ensure they can operate without facing undue regulatory penalties.
A Bipartisan Push for Developer Protections
The coalition frames this initiative as a bipartisan concern, emphasizing the historical cross-party support for open-source software. They point to the widespread support for past legislation, such as the CLARITY Act, as evidence of a strong consensus on the need to protect developers and non-custodial service providers. This unified front aims to build upon this momentum and secure robust legislative protections for the future of decentralized finance.