A coalition of key crypto policy organizations is urging the U.S. Senate to safeguard developer rights in upcoming market structure bills by supporting the Blockchain Regulatory Certainty Act.
This advocacy could significantly impact U.S.-based developers and DeFi markets by providing legal clarity, potentially spurring innovation and investment within domestic crypto infrastructures.
A coalition of crypto policy groups is actively urging the U.S. Senate to implement strong developer protections. They seek support for the Blockchain Regulatory Certainty Act, which differentiates developers from traditional financial entities, as outlined in the proposed Fit for the 21st Century Act of 2023.
The effort involves major organizations including the DeFi Education Fund, Coin Center, and Solana Policy Institute. They emphasize not treating open-source developers as traditional financial institutions, aiming for legislative clarity and necessary protections. As stated by Miller Whitehouse-Levine, CEO of DeFi Education Fund, “The legislation would effectively ban DeFi development in the United States by mandating centralization.” – source
Developer Protections Set to Boost US Crypto Growth
The coalition’s advocacy could significantly influence funding and investor confidence by reducing legal risks. While ETH, BTC, and altcoins are currently unaffected, potential growth in U.S.-based protocol development is anticipated following regulation updates, as discussed in the industry’s reaction to proposed new crypto legislation.
Historical trends suggest improved developer rights correlate with increased network activity and liquidity. The coalition underscores the importance of distinguishing between software development and financial intermediation to foster innovation-friendly policies.
2021 Infrastructure Bill: A Benchmark for Developer Rights
Previously, the 2021 Infrastructure Bill provided clarity by excluding blockchain developers from broad tax provisions. This led to temporarily heightened developer activity within the U.S., as seen with post-compromise market dynamics.
Experts highlight current regulatory uncertainty as a hindrance to domestic crypto development. Proper legal frameworks are likely to enhance innovation and attract investment. Market stability would improve with more predictable legislative outcomes.
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