Crypto: More Than 100 Firms Urge Senate to Move Market Structure Bill

A coalition of more than 100 cryptocurrency companies and industry groups sent a letter to Senate committee leaders on August 27, 2025, urging lawmakers to advance market structure legislation that provides regulatory clarity and legal protections for developers and non‑custodial services.

The letter, coordinated by industry advocates, called for a clear division of oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), explicit protections so open‑source developers are not treated as intermediaries, simplified disclosure requirements, and federal preemption of conflicting state rules. Reports indicate the signatory list exceeded 100 organizations (variously reported as 112–114).

Industry leaders argue that vague statutory definitions risk misclassifying routine software development or non‑custodial tooling as regulated financial intermediation, potentially chilling U.S. innovation and driving talent offshore. The debate over definitions and enforcement scope is central to whether the final bill will protect builders while maintaining investor safeguards.

From a market perspective, uncertainty about the bill’s language has influenced institutional planning and could cause short‑term volatility; conversely, a durable, coherent statute that clarifies regulatory roles and preempts conflicting state measures would likely boost on‑shore investment and operational certainty for exchanges, custodians, and DeFi infrastructure providers.

Policy analysts say the Senate faces a difficult reconciliation between competing drafts in the Banking and Agriculture committees, and that the precise wording on ‘intermediary’ and custody will determine which actors bear compliance obligations. If the Senate adopts language aligned with industry protections, the path to implementation and broader market integration could accelerate; if not, litigation and regulatory enforcement may continue to shape the market for years.