A coalition of cryptocurrency advocacy groups is urging U.S. lawmakers to incorporate protections for software developers and infrastructure providers into upcoming digital asset legislation. This push comes as the industry seeks clearer regulatory guidelines and a safe harbor for those building decentralized technologies.

On June 5, 2025, several prominent crypto policy organizations, including the DeFi Education Fund, Coin Center, Solana Policy Institute, The Digital Chamber, Blockchain Association, Crypto Council for Innovation, Bitcoin Policy Institute, and Paradigm, issued a joint statement advocating for the inclusion of the Blockchain Regulatory Certainty Act (BRCA) in market structure legislation. The BRCA, which was reintroduced by Representatives Tom Emmer and Ritchie Torres, aims to clarify that non-custodial crypto platforms and their developers should not be treated as money transmitters or operators of an "unlicensed money services business."

The core argument behind this lobbying effort is that developers dealing with decentralized finance (DeFi) and those creating peer-to-peer, non-custodial software have fundamentally different roles than traditional financial institutions. Therefore, they should not be subject to the same regulatory framework. The crypto groups emphasize that developers who build open-source software without controlling customer funds should not be required to adhere to regulations designed for businesses that hold customer assets.

The BRCA seeks to address a key concern within the crypto industry: the potential misapplication of financial regulations to blockchain service providers that do not engage in money transmission. This would prevent developers and service providers from being unfairly categorized as "money transmitting businesses," a classification that carries extensive compliance obligations.

In the House, the Digital Asset Market Clarity Act, also known as the CLARITY Act, is being considered. This bill aims to establish a clear regulatory framework for crypto, in part by designating the roles of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in regulating digital assets. It also includes requirements for digital asset firms to provide disclosures to customers and segregate customer funds from their own. The crypto lobby is pushing for the BRCA to be incorporated into the CLARITY Act.

The industry's lobbying efforts have seen a dramatic increase in recent years. Heightened regulatory scrutiny and legal battles have driven the need to influence legislation and create a more favorable regulatory environment for digital assets.

The push for developer protections reflects a broader effort within the crypto industry to establish clear, standardized regulations. This clarity is considered crucial for fostering innovation and ensuring that the U.S. remains a leader in the crypto space. Without it, there is concern that digital asset technology and talent may be pushed overseas.