The coalition demands non-custodial service protections to prevent innovation stifling. Legislative markup sessions will determine the industry's future.
A coalition of 115 organizations representing crypto builders, investors, and advocates has issued a formal appeal to the U.S. Senate Banking and Agriculture Committees. The letter, released on August 27, 2025, by the DeFi Education Fund, serves as a direct intervention in the legislative process as the Senate prepares to deliberate on comprehensive crypto market structure bills. The group is specifically demanding that any forthcoming regulatory framework includes explicit protections for software developers and providers of non-custodial services.
The core of the coalition's argument rests on the distinction between centralized intermediaries and decentralized software protocols. By targeting the Senate Banking and Agriculture Committees, the group aims to influence the specific language regarding registration requirements and liability for entities that do not hold user assets. The industry participants argue that applying traditional financial oversight models to non-custodial software could inadvertently stifle innovation and effectively criminalize the development of open-source code. This push is part of a broader effort to ensure that federal law distinguishes between custodial exchanges and the underlying infrastructure that powers the crypto market analysis.
The scale of this coalition represents a significant attempt to consolidate industry influence before a full Senate vote. With 115 signatories, the group is attempting to counter concerns from lawmakers who have previously pushed for broader oversight of all blockchain-based activities. The letter highlights the tension between the desire for regulatory clarity and the need to preserve the permissionless nature of decentralized finance. As the crypto industry coalition presses Senate for unified market structure legislation, the focus remains on whether these specific protections for developers will be incorporated into the final bill text.
Regulatory uncertainty remains a primary variable for technology-adjacent assets. Within our current coverage, Unity Software Inc. (U stock page) holds an Alpha Score of 43/100, while ON Semiconductor Corporation (ON stock page) sits at 45/100, both reflecting mixed sentiment in the broader tech sector. Agilent Technologies, Inc. (A stock page) maintains a moderate Alpha Score of 55/100. These scores reflect the ongoing volatility in sectors sensitive to shifting federal oversight and capital allocation trends.
The next concrete marker for this legislative effort will be the release of the revised draft text from the Senate committees. Market participants are monitoring these committee sessions to see if the requested exemptions for non-custodial service providers are included in the markup phase. The absence of such language would likely trigger a shift in development strategy for many firms currently operating within the U.S. jurisdiction, potentially accelerating the migration of engineering talent to regions with more established software-specific protections.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.