A group of over 110 crypto entities is urging US lawmakers to protect software developers in upcoming market structure legislation.
More than 110 crypto entities, including major firms and advocacy groups, are calling on lawmakers to ensure software developers are protected in upcoming crypto legislation.
The DeFi Education Fund (DEF), along with the Blockchain Association, the Chamber of Digital Commerce, and major firms including Coinbase, Hedera HBAR $0.24 24h volatility: 1.2% Market cap: $10.15 B Vol. 24h: $239.16 M , and Uniswap Labs, has called on Congress to shield developers and non-custodial service providers from regulatory liability.
Hedera has signed the @fund_defi's coalition letter urging Congress to protect developers and non-custodial service providers in market structure legislation. 100+ crypto leaders are united: Blockchain deserves nationwide protections.
🔗 Read the letter: https://t.co/GzKk0pNxXU pic.twitter.com/hsc9mUvodw
— Hedera (@hedera) August 27, 2025
The group sent a letter on August 27 to Senate Banking Committee and Senate Agriculture Committee leaders, both of which play key roles in shaping crypto regulation.
The stakeholders stressed they could not support a final market structure bill without these safeguards.
They also requested protection for self-custody and peer-to-peer transactions, arguing that users and developers should not be regulated simply for creating or using blockchain software.
Lawmakers Working on Crypto Regulations
The appeal comes as lawmakers in Washington debate how best to regulate the crypto sector. The House recently passed the Digital Asset Market Clarity Act.
On the other hand, Senate Banking Committee Republican Chair Tim Scott circulated a draft of a larger crypto market structure bill with a September 30 deadline for committee action. Any final framework will require compromise between the two chambers.
Meanwhile, traditional finance groups, including leading banking associations, are pressing for revisions to the newly signed stablecoin law. They are also urging regulators to restrict tokenized equity offerings by crypto firms.
Spotlight on Tornado Cash Developers
The debate over protecting developers has gained urgency following the prosecution of Tornado Cash developers. Alexey Pertsev, one of its developers, faced legal action in the Netherlands.
Another co-developer, Roman Storm, was convicted by a federal jury in Manhattan early in August on a single count of conspiracy to operate an unlicensed money-transmitting business. This is an offense punishable by up to five years in prison.
Storm’s legal team quickly announced plans to file a motion to dismiss the remaining conviction.
Industry voices say their treatment underscores the risk of criminalizing software development. Meanwhile, the Department of Justice recently shifted its position on how developers should be treated, with a senior official stating recently that “writing code” is not a crime.
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