Urgent: Crypto Lobby Fights for Software Developer Protection in New Regulation

Are you following the latest developments in US crypto regulation? A significant move is underway as the crypto lobby ramps up efforts to safeguard a crucial part of the ecosystem: software developers. These groups are pushing for essential protections to be embedded within proposed legislation aimed at clarifying the rules for digital assets.
Why the Crypto Lobby is Prioritizing Software Developers
Several leading US crypto advocacy organizations have united to address a key concern in the ongoing debate around crypto regulation. Their focus is on ensuring that creators of non-custodial software and providers of decentralized network infrastructure are not mistakenly classified as money transmitters. This classification, typically applied to financial institutions handling customer funds, could impose burdensome and inappropriate requirements on developers who build peer-to-peer tools but don’t hold user assets.
On June 5, a joint statement was released by prominent groups including the DeFi Education Fund, Coin Center, the Solana Policy Institute, The Digital Chamber, Blockchain Association, Crypto Council for Innovation, and the Bitcoin Policy Institute. They collectively urged lawmakers to attach a specific protective bill to broader crypto market structure legislation.
Pushing for the Blockchain Regulatory Certainty Act
The core of the lobby’s request is the inclusion of the Blockchain Regulatory Certainty Act (BRCA) within the proposed Digital Asset Market Clarity (CLARITY) Act of 2025. The BRCA, recently reintroduced by Representatives Tom Emmer and Ritchie Torres, specifically aims to exempt developers of non-custodial crypto platforms from being treated as money transmitters.
The groups argue that individuals creating decentralized, non-custodial software operate fundamentally differently from traditional financial entities. Applying the same regulations would stifle innovation and mischaracterize their role in the ecosystem. Neeraj Agrawal, Coin Center’s communications director, highlighted that beyond developer protection, the groups are also vigilant against the potential addition of unconstitutional surveillance requirements to crypto bills.
Understanding the CLARITY Act and Broader Crypto Regulation
The CLARITY Act, introduced in late May, is a significant piece of proposed legislation. Its primary goal is to redefine and clarify the regulatory roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) concerning digital assets. This aims to provide much-needed certainty in a regulatory landscape often criticized for its lack of clarity and reliance on enforcement actions.
The push to include the Blockchain Regulatory Certainty Act within the CLARITY Act demonstrates the crypto industry’s strategic approach: combine developer protection with broader market structure clarity. This move is seen as essential for fostering innovation while establishing clear rules of the road.
Recent shifts in US policy signals suggest a potential change in approach towards crypto regulation. SEC chair Paul Atkins recently indicated a move away from regulation solely through enforcement towards more engagement with the industry before enacting legislation. The upcoming Senate decision on Brian Quintenz, President Trump’s pick to lead the CFTC, is also being closely watched, especially given his disclosed crypto holdings.
What Does This Mean for Software Developers?
If successful, the inclusion of the Blockchain Regulatory Certainty Act could provide significant legal certainty for software developers working on decentralized applications and protocols. It would explicitly state that their activities, when not involving custody of user funds, do not fall under money transmission laws designed for custodial financial services. This protection is seen as vital for the continued development of decentralized technologies without undue legal risk.
However, the legislative process is complex, and the outcome is not guaranteed. The crypto lobby will need to continue engaging with lawmakers to educate them on the distinctions between different types of crypto participants and the importance of tailored regulation.
Conclusion: A Critical Juncture for Crypto Regulation
The unified effort by the crypto lobby to secure protections for software developers is a critical development in the ongoing evolution of US crypto regulation. By advocating for the inclusion of the Blockchain Regulatory Certainty Act within the broader CLARITY Act, these groups are working to ensure that future regulations support, rather than hinder, innovation in the decentralized space. The coming months will be crucial in determining whether lawmakers heed these calls and provide the necessary legal certainty for developers building the future of crypto.