A broad coalition of crypto builders, investors and advocates has asked two Senate committees for clear federal rules to protect software creators and non-custodial service providers working on blockchain networks.
The signers want lawmakers to make it clear that writing, publishing, or maintaining open-source blockchain software is not the same as running a bank or exchange.
Reports have disclosed concerns that developers could be treated as financial intermediaries even when they never hold user funds.
The letter asks Congress to shield developers from being prosecuted or misclassified under laws such as 18 U.S.C. § 1960.
It also asks that any federal law preempt conflicting state rules so companies and contributors are not left juggling 50 different legal standards.
But the groups argue those drafts fall short on some points and need clearer, stronger language. Based on reports from the signers, the protections must be explicit and nationwide, not partial or open to varying state interpretations. Without that clarity, the letter warns, developers may choose to work elsewhere.
The group cited data showing a slide in the share of open-source developers based in the US, from 25% in 2021 to 18% in 2025.
The signers say those numbers show how regulatory uncertainty can change where people live and where code is built.
The coalition argues that clear rules are also a practical business need. When the legal line between building software and operating financial services blurs, companies and contributors face possible legal exposure.
That creates a cost for startups and volunteers alike. If developers face the risk of civil or criminal action for routine open-source work, projects can slow or stop.
The letter asks Congress to state plainly that creating interfaces or tools that let people self-custody their funds is not, by itself, an activity that should trigger money-transmitter rules.
Based on the letter, the groups want the Senate to strengthen those protections now, and to do so in a way that covers all states uniformly.
Featured image from Unsplash, chart from TradingView
