Over 110 Blockchain Groups Call on US Lawmakers to Protect Non-Custodial Builders
More than 110 cryptocurrency organisations, including Coinbase, Ripple, a16z crypto, and the Uniswap Foundation, are pressing the U.S. Senate to ensure that blockchain developers and non-custodial service providers are shielded from heavy-handed regulations in upcoming digital asset legislation. The appeal, organised by the DeFi Education Fund, was sent to the Senate Banking and Agriculture Committees earlier this week.
The coalition warns that, without clear exemptions, lawmakers risk imposing regulatory frameworks intended for traditional financial custodians onto software builders who do not actually hold user funds. Such an approach, they argue, would unfairly stifle innovation and push talent out of the United States.
A key concern raised in the letter is the ongoing decline in U.S. leadership in blockchain development. Data from Electric Capital shows that America’s share of open-source blockchain developers has dropped sharply—from 25% of the global total in 2021 to just 18% in 2025—a slide attributed largely to regulatory uncertainty.
The groups argue that blockchain networks and the developers behind them should not be treated as financial intermediaries by default. Instead, regulations should distinguish between those building infrastructure and those offering custodial financial services.
The coalition acknowledged positive elements in existing legislative proposals, such as the Blockchain Regulatory Certainty Act and the Keep Your Coins Act, which safeguard self-custody rights and peer-to-peer transactions. However, they urged Congress to go further by ensuring federal preemption. Without this, they warned, developers could face a complex patchwork of state-by-state regulations that would undermine growth and create unnecessary compliance hurdles.
Importantly, the appeal stressed that protections for developers have drawn bipartisan support in Congress. The House’s recent approval of the CLARITY Act was cited as an example of lawmakers from both parties recognising the importance of maintaining a strong domestic blockchain ecosystem.
By strengthening these protections in upcoming market structure legislation, the groups say the Senate has an opportunity to secure U.S. competitiveness in blockchain innovation, prevent talent flight overseas, and give clarity to developers who form the backbone of the industry.
