In a dramatic show of unity, the crypto industry’s top lobbyists have issued a stern warning to the U.S. Senate: safeguard software developers from undue legal exposure, or face the loss of industry support for a pivotal market structure bill. This ultimatum, delivered in a letter to the Senate’s Banking and Agriculture committees last Wednesday, underscores the high-stakes battle over the future of digital asset regulation in the United States.
A United Front
The letter, endorsed by an impressive roster of over 100 crypto businesses and lobbying groups—including heavyweights like Coinbase, Kraken, Ripple, a16z, and Uniswap Labs—marks a rare moment of consensus in a notoriously fragmented industry. This coalition, described as the largest crypto advocacy effort in history, aims to influence the Senate’s approach as lawmakers resume work following their August recess.
The core demand? Robust, nationwide protections for software developers and non-custodial service providers. “Without such protections, we cannot support a market structure bill,” the coalition declared, emphasizing the need to preserve the freedoms traditionally afforded to open-source software development.
The Stakes Are High
The Senate is currently evaluating a version of the Digital Asset Market Clarity Act, which has already cleared the House of Representatives. This legislation is viewed by many as a cornerstone for U.S. crypto regulation, with Senator Tim Scott, chairman of the Senate Banking Committee, committing to finalizing the work by the end of September. This follows a pattern of regulatory advancements, as seen in the CFTC’s second ‘Crypto Sprint’ aimed at advancing the White House’s push for clearer crypto guidelines.
For Amanda Tuminelli, executive director of the DeFi Education Fund, the stakes couldn’t be higher. “No group is more important to this country’s digital financial future than the software developers building it,” she stated, highlighting the critical role these developers play in the ecosystem.
Yet, the path to legislative clarity is fraught with challenges. Concerns are mounting that Senator Mark Warner, vice chairman of the Senate Select Committee on Intelligence, may seek to impose legal liabilities on crypto software creators, complicating the industry’s push for protective measures.
A Changing Political Landscape
The crypto sector’s newfound political clout cannot be underestimated. Once dismissed as a fringe movement, these companies have transformed into a formidable force, amassing over $140 million for next year’s congressional elections through their PAC, Fairshake, and its affiliates. This financial might has facilitated unprecedented progress, including the bipartisan passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act earlier this year.
However, the market structure bill presents a unique challenge. The industry is wary of potential legal entanglements, especially in light of recent federal prosecutions of high-profile developers, such as the Tornado Cash case. While a senior Department of Justice official recently assured that prosecutors won’t target developers who aren’t willfully engaging in money laundering, only new legislation can provide lasting assurance. This concern echoes discussions held by Kraken with the SEC’s crypto task force regarding tokenization and regulatory clarity.
What’s Next?
As the Senate gears up to finalize its stance, the crypto industry is watching closely. Will lawmakers heed the call for developer protections, or will they push forward with a bill that risks stifling innovation? This pivotal moment raises questions about the balance between regulation and growth in the digital finance sector.
The outcome of this legislative tussle could define the trajectory of U.S. crypto policy for years to come. As the debate unfolds, all eyes will be on the Senate—its decisions could either solidify the U.S. as a leader in digital innovation or drive the industry to seek friendlier shores.
Source
This article is based on: Unified Crypto Lobbyists: Protect Software Developers, Senate, or We’re Out
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
