The crypto industry in the United States just sent a loud and clear message to lawmakers. A coalition of 112 major crypto companies and organizations — including well-known names like Ripple, Coinbase, and Kraken — has asked the US Senate to protect software developers and non-custodial service providers in the upcoming Market Structure Bill.
Their warning is simple: if developers are not protected, the US could lose its edge in the global race for crypto innovation.
What Is the Market Structure Bill?
For years, the US crypto industry has been stuck in a battle between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This tug-of-war created regulatory uncertainty, leaving many developers unsure if their work would be treated like traditional financial services.
The Market Structure Bill is meant to fix this problem by creating a clear, nationwide framework for crypto regulation. However, without specific protections, industry leaders fear the bill could unintentionally harm the very people building the technology — developers and decentralized service providers.
What the Coalition Wants
In their letter (submitted on August 27, 2025), the crypto firms asked lawmakers to ensure the bill includes:
- Legal protection for open-source developers so they are not unfairly treated as financial middlemen.
- Exemptions for non-custodial service providers, who help users access blockchains but don’t control their funds.
- Support for open-source innovation, recognizing its key role in growing the digital asset economy.
“As new digital asset laws develop in the US, it is critical that open-source developers are protected,” the coalition wrote.
Why This Matters: Decline in US Developers
The group highlighted a worrying trend: the share of open-source blockchain developers in the US has dropped from 25% in 2021 to only 18% in 2025. Many talented builders are moving overseas to countries with clearer, friendlier regulations.
Without changes, the letter warns, the US will continue to lose ground.
National Attention on Crypto
This demand lines up with the current administration’s goals. President Donald Trump’s Working Group on Digital Assets has said that bringing blockchain innovation back to the US is central to making America the “crypto capital of the world.”
Congress now faces growing pressure to pass a bill that encourages growth without overregulation. Previous efforts, like the CLARITY Act, showed that both political parties can agree on supporting innovation.
The Risk if Nothing Changes
If the Senate ignores these calls, experts say the US could see:
- More developers leaving for Europe, Asia, and other crypto-friendly regions.
- Slower innovation in blockchain and decentralized finance.
- A loss of America’s influence in shaping the future of digital assets.
The coalition ended with a strong statement:
“To build a safe and confident environment for innovators, the final Market Structure Bill must include protections for blockchain developers and non-custodial providers.”
Key Takeaways for Beginners
- 112 crypto companies (like Ripple and Coinbase) signed a letter to the Senate.
- They want developer protections in the new Market Structure Bill.
- The US share of blockchain developers has already fallen from 25% (2021) to 18% (2025).
- Without action, the US risks losing its leadership in crypto innovation.
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