A broad coalition of crypto organizations is urging the U.S. Senate to include strong protections for developers in the upcoming market structure bill for digital assets. As Congress actively discusses new regulatory frameworks, crypto advocates warn that the proposed rules must not unintentionally burden those building decentralized technologies.

Recent months have seen bipartisan momentum for crypto legislation, as both the House and Senate develop new bills to clarify oversight of digital assets. The House-passed Digital Asset Market Clarity Act of 2025 outlined roles for regulators and introduced provisional registration regimes, while the Senate Banking Committee’s “Responsible Financial Innovation Act of 2025” further expands on these with new definitions and regulatory mechanisms.

Central to the debate is the definition of which blockchain assets qualify as securities, and which are excluded. Both the House and Senate drafts agree that assets mainly used for operating blockchain protocols should not be automatically classified as securities, but use different terminology and mechanisms to provide regulatory clarity. This distinction is vital for developers who create software and infrastructure for blockchains, as securities rules carry major compliance burdens.

The Senate’s draft legislation offers a framework that aims to foster innovation by distinguishing between decentralized technologies and traditional financial instruments. It defines new categories like “ancillary assets,” establishes self-certification processes, and lays out additional areas for rulemaking. Notably, the bill also directs federal agencies to collaborate with international regulators, ensuring the U.S. remains an industry leader.

Crypto advocacy groups stress that clear guardrails are essential for protecting developers, who often lack direct control over how their code is used. They argue that subjecting open-source developers to securities laws designed for centralized issuers would stifle innovation and drive talent overseas. These groups call on the Senate to carefully consider language that shields coders from undue liability and preserves the open, permissionless nature of blockchain technology.

As the legislative process continues, feedback from industry stakeholders is being actively solicited. Lawmakers are expected to reconcile differences between the competing bills, aiming for a comprehensive solution that balances consumer protection, regulatory enforceability, and America’s edge in tech innovation. Developers, investors, and users all have a stake in the outcomes, and the coming months will be pivotal for the future of U.S. crypto regulation.