A broad coalition of crypto builders, investors and advocates is calling for clear federal rules from two Senate committees to protect software creators and non-mandatory service providers working on blockchain networks.
According to the letter, 115 groups signed an appeal to the Senate and Agriculture Committee on Banks, and they clarified one request. Without explicit protection, we do not support market structure laws.
Seek federal protection
The signatories want to make it clear to lawmakers that writing, publishing, or maintaining open source blockchain software is not the same as running a bank or exchange.
The report reveals concerns that developers could be treated as financial intermediaries, even if the developer never holds a user fund.
The letter asks Congress to protect developers from being prosecuted or misclassified under laws such as 18 USC §1960.
Also, federal law preempts conflicting state rules, requiring businesses and contributors not juggle 50 different legal standards.
The bill was praised, but not enough
According to the coalition, drafting both chambers already includes two measures that move in the right direction. This is the Blockchain Regulations Certification Act and the Keep Your Coins Act.
However, the group claims that these drafts are lacking in some points, and a clearer and more powerful language is needed. Based on reports from signatories, protection must be explicit and national, and must be partial or unopened to various state interpretations. Without that clarity, the letter warns, developers may choose to work elsewhere.
Developer loss and human resources flying
The group cites data showing a slide of shares for US-based open source developers, ranging from 25% in 2021 to 18% in 2025.
Reversing that decline is central to making America the main hub for blockchain work, according to a recent report by the President’s Working Group on Digital Assets.
Signers say these figures show how regulatory uncertainty can change where people live and where the code is built.
Image: Ten Mile Square
Legal clarity as a business need
The Union argues that clear rules are also practical business needs. If the legal boundary between building software and operating financial services is blurred, businesses and contributors face the possibility of legal exposure.
This creates costs for startups and volunteers. If a developer faces the risk of civil or criminal proceedings due to daily open source work, the project could be slowed or stopped.
The letter asks Congress to clearly state that by creating an interface or tool that allows people to independently support their funds, this is not an activity that should in itself trigger the rules of money exchanges.
Bipartisan support and next steps
Signatories pointed to past bipartisan moves to protect developers. They pointed out that when 294 people in Congress were passed, they supported a clear law and showed widespread support for basic safeguards.
Based on the letter, the group hopes the Senate will now strengthen these protections and do so in a way that covers all states uniformly.
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