Senate Lobbying by Cryptocurrency Companies for Programmer Safeguards
U.S. Senate Urged to Protect Crypto Developers in Upcoming Bill
A coalition of over 110 crypto companies, advocacy groups, and investors, coordinated by the DeFi Education Fund, has urged the U.S. Senate to introduce protective measures for developers in the Digital Asset Market Structure Act. The coalition, which includes heavyweights such as Coinbase, Kraken, Ripple, a16z, and Uniswap Labs, is pushing for clear definitions for tokens and market structure, as outlined in the bipartisan CLARITY Act.
The coalition's letter, delivered on August 27 to the Senate Banking and Agriculture Committees, underscores the importance of preserving open-source innovation and safeguarding non-custodial service providers, including decentralized exchanges, peer-to-peer tools, and wallet developers. The coalition stresses that misclassifying software creators as intermediaries would harm decentralized development and potentially drive talent and capital overseas.
Key lawmakers, like Senator Cynthia Lummis, aim to deliver a final version of the bill by year-end or early 2026. The Senate Banking Committee has recently released a discussion draft and requested stakeholder feedback. The Agriculture Committee is expected to release its CFTC-related draft soon.
The coalition warns that without clarity on developer status, the industry cannot support the bill. They cite data showing a downward trend in U.S. open-source blockchain developer share due to regulatory uncertainty nationwide. The absence of protections, they argue, would introduce legal risks and drive developers overseas.
The coalition suggests that developer protections could pave the way for the growth of crypto casinos. Safeguarding peer-to-peer tools would allow crypto casino users to self-custody funds while playing. These experiences might offer provably fair games, novel token incentives, and enhanced transparency. Success in the U.S. crypto casino industry could be sparked by such protections, allowing developers and entrepreneurs to build decentralized gaming experiences.
The inclusion of robust developer protections could lead to the flourishing of innovation, including in the domain of crypto casinos. This could transform the U.S. into a hub for regulated yet innovative crypto casinos, strengthening domestic leadership in blockchain gaming. The coalition's ultimatum emphasizes the importance of immediate action by lawmakers to preserve the U.S.'s edge in crypto development.
The coalition also highlights that the protection of developers would not only benefit the crypto industry but also attract talent and capital, potentially reversing emigration trends caused by legal uncertainty in the crypto industry. The letter asserts strong support for open-source innovation and the potential for it to birth a vibrant crypto casinos ecosystem under clear rules. The article does not contain a list of the best crypto casinos in this paragraph.
