A group coordinated by the DeFi Education Fund sent a letter to the Senate urging against misclassifying developers under outdated laws.
Warning About Regulation
In a letter sent Wednesday to the Senate Banking and Agriculture Committees, there is an emphasis on the need to protect developers from being misclassified under outdated laws. "Without such protections, we cannot support a market structure bill," the letter warns.
Concerns Over Losing Ground
Advocates argue that unclear regulation is already pushing developers overseas. Data from Electric Capital shows that the U.S. share of open-source blockchain developers has dropped from 25% in 2021 to 18% in 2025. The coalition stated that nationwide protections are needed to avoid a 'patchwork' of state laws and ensure U.S. competitiveness in global crypto innovation.
Legislation Timeline
Senator Cynthia Lummis recently confirmed that a digital asset market structure bill is expected to reach President Donald Trump's desk before year-end. The proposal, which will clarify the roles of the SEC and CFTC in overseeing crypto markets, is scheduled to advance through the Senate Banking Committee in September and the Agriculture Committee in October.
If lawmakers adopt the industry's recommendations, the U.S. could see its first comprehensive digital asset framework in place by Thanksgiving, which many believe will be crucial for the nation's leadership in financial innovation.
