Defi Coalition Asks Congress to Implement Protections for Developers in Upcoming Legislation
The Defi Education Fund and 111 institutions sent a letter to Congress requesting explicit protections for blockchain developers in upcoming regulations. The coalition stressed that without these protections, it “cannot support a market-structure bill.”
WRITTEN BY
Sergio Goschenko
Defi Coalition Asks Congress to Implement Protections for Developers in Upcoming Legislation
112-Institution Defi Coalition Pushes Congress for Blockchain Development Protections
Institutions are taking action to ensure the future of blockchain development in the U.S. A coalition of 112 institutions, led by the Defi Education Fund, an organization that supports decentralized finance, has sent a letter to Congress dealing with the status of crypto developers and the treatment that federal courts have given to their work.
In the letter, the coalition, comprising names such as A16z Crypto, Coinbase, Digital Currency Group, Galaxy Digital, Kraken, Ripple, and many others, requests that Congress “provide robust, nationwide protections for software developers and non-custodial service providers in market structure legislation.”
“Without such protections, we cannot support a market structure bill,” the letter states, clarifying that developers and non-custodial services providers would be at risk if upcoming regulations fail to include these measures.
The coalition explains that the percentage of open-source software developed in the U.S has slipped from 25% in 2021 to 18% in 2025 due to a lack of regulatory clarity. To reverse this trend, at least regarding crypto developers, the letter states that upcoming legislation “must include explicit federal protections for blockchain infrastructure developers and non-custodial service providers.”
The letter comes as Roman Storm, one of the founders of the privacy-first platform Tornado Cash, was found guilty of conspiracy to operate an unlicensed money transmitting business. The verdict prompted a rejection of the whole crypto community and was qualified as a continuation of the Biden-era approach of “regulation by prosecution.”
Finally, the coalition proposes to “improve on the developer protections in the CLARITY Act, and deliver clear, nationwide protections that will allow developers to innovate with confidence in the United States,” securing the future and recovering the country’s leadership in the industry.
Read more: Roman Storm’s Tornado Cash Verdict: What It Means for Crypto
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