A coalition of 112 crypto organizations, including major firms like Coinbase and a16z, has appealed to the Senate to secure protections for software developers and non-custodial service providers in digital asset regulatory legislation. The letter, sent to bipartisan Senate Banking and Agriculture Committees, highlights concerns that developers are at risk of being wrongly classified as money transmitters under federal law, which could suppress open-source innovation. It cites a decline in U.S. open-source software developers from 25% in 2021 to 18% in 2025 due to regulatory uncertainty. The coalition supports recent draft proposals like the Blockchain Regulatory Certainty Act and Keep Your Coins Act but urges for clearer regulations to prevent a fragmented state-by-state approach, warning that a lack of federal protections might force blockchain development overseas. They reference prior bipartisan initiatives like the CLARITY Act and emphasize the need for protections to maintain U.S. leadership in financial technology.

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