Crypto lobby wants software dev protections added to crypto bill

The landscape of cryptocurrency regulation in the United States is evolving, with significant movements from various lobbying groups advocating for the protection of software developers and infrastructure providers. Recently, the largest crypto lobbying organizations, including the DeFi Education Fund and Coin Center, banded together to urge lawmakers to enhance a crypto regulatory bill to ensure that software developers are safeguarded under the proposed legislation.

On June 5, these groups issued a joint statement asking legislators to incorporate the Blockchain Regulatory Certainty Act (BRCA) into the broader Digital Asset Market Clarity (CLARITY) Act of 2025. Their goal is to exempt developers of non-custodial crypto platforms from being classified as money transmitters, which would alleviate unnecessary regulatory burdens on creators of decentralized financial technologies.

The CLARITY Act, introduced in late May, aims to define the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) concerning digital assets. Representatives Tom Emmer and Ritchie Torres have been vocal in their support for the BRCA, reintroducing it in tandem with the push for clarity in digital asset regulation. The lobbying groups emphasized the distinctiveness of software developers in the crypto space, stating, “It is critically important to remember that developers creating peer-to-peer, non-custodial software and the infrastructure providers who enable decentralized networks have little in common with traditional financial institutions and should not be treated as such.”

Coin Center’s communications director, Neeraj Agrawal, highlighted additional concerns surrounding potential constitutional issues. He noted that the group is vigilant against the risk of unconstitutional surveillance requirements being introduced into crypto legislation, which could compromise user privacy and the decentralization philosophy inherent in cryptocurrency.

The urgency of this lobbying effort is reinforced by the prior week’s demand for swift congressional action on a stablecoin-regulating bill, aiming to enact regulations without prolonged debate. The crypto lobby believes that delays could lead to stifling regulations that may hinder innovation in the industry.

As US policymakers shift their approach to crypto, it’s important to consider the broader context of these changes. Under the Trump administration, regulatory bodies took a more aggressive stance towards cryptocurrency, primarily using enforcement actions to manage the burgeoning market. However, recent comments from SEC Chair Paul Atkins indicate a significant policy shift. On June 3, Atkins announced that the SEC’s approach would no longer focus solely on enforcement, advocating instead for proactive engagement with industry stakeholders as regulations are developed.

This development signals an important pivot towards collaboration rather than confrontation in the regulatory landscape. The upcoming Senate decision on the appointment of Brian Quintenz, a nominee with known ties to the crypto industry, could further influence this trend. Quintenz’s disclosed assets, reportedly valued at $3.4 million—partly in cryptocurrencies—spark anticipation regarding the direction in which the CFTC may head under his leadership.

In summary, the joint efforts of prominent crypto lobbying groups to secure protections for software developers reflect a crucial moment in the regulatory evolution of the cryptocurrency industry. Their call for inclusion of the Blockchain Regulatory Certainty Act within the Digital Asset Market Clarity Act seeks to ensure that innovation is not hampered by misguiding regulatory classifications. As dialogue around crypto regulation shifts to a more collaborative tone, vigilant oversight is essential to preserve the foundational principles of decentralization and privacy that embody the ethos of digital currencies. The implications of these legislative actions will likely ripple through the industry, influencing not just the regulatory landscape but also the very fabric of innovation in the crypto space for years to come.

This essential dialogue continues as the crypto community and regulatory bodies navigate a path toward a balanced framework. The outcome of these lobbying efforts and the evolving regulatory stance will undoubtedly play a pivotal role in shaping the future of cryptocurrency in the United States. Awareness and involvement in these discussions can empower stakeholders—developers, investors, and users—to help mold a regulatory environment that fosters growth and innovation while ensuring compliance and consumer protection. As this conversation unfolds, staying informed and engaged will be vital for all involved in the dynamic world of digital assets.

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