A recent letter from the DeFi Education Fund, supported by 112 organizations, urges U.S. policymakers to ensure nationwide protections for software developers and non-custodial service providers within upcoming market structure legislation. Addressed to key senators overseeing the SEC and CFTC, the letter highlights the decline of open-source software developers in the U.S., attributing this to regulatory uncertainty. The letter emphasizes the need for legislation that distinguishes between decentralized networks and intermediated finance while protecting the right to self-custody and peer-to-peer transactions. Developers should not be misclassified under securities and commodities laws. The current legislative landscape aims to create an environment akin to early internet protections, fostering innovation in finance and digital infrastructure. However, challenges remain, notably in overcoming political opposition, particularly from figures like Senator Elizabeth Warren. Advocates stress the necessity of explicit protections to stimulate growth and innovation in the crypto industry.

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