Over 110 Crypto Entities Call for Developer Protections in Legislation
Over 110 crypto entities, including organizations like the DeFi Education Fund and major firms such as Coinbase and Uniswap Labs, are urging U.S. lawmakers to protect software developers in upcoming crypto legislation. They have requested that Congress shield developers and non-custodial service providers from regulatory liability.
The coalition sent a letter on August 27 to key Senate committees involved in shaping crypto regulation, emphasizing that they cannot support any market structure bill without these protections. Key demands include:
- Protection for self-custody and peer-to-peer transactions
- Exemption from regulation for creating or using blockchain software
This appeal coincides with ongoing debates in Washington regarding crypto regulations, including the recent passage of the Digital Asset Market Clarity Act by the House. The Senate is also working on a larger crypto market structure bill, with a deadline set for September 30.
The urgency for developer protections has increased following the prosecution of Tornado Cash developers, highlighting the risks associated with software development in this space. One developer faced legal action in the Netherlands, while another was recently convicted in the U.S. for operating an unlicensed money-transmitting business.
Industry responses indicate concerns about criminalizing software development; however, the Department of Justice has recently clarified that writing code is not inherently a crime.