A group of blockchain developers is pushing back against proposed market structure legislation, arguing that infrastructure builders shouldn’t be lumped in with traditional financial players. The debate is heating up as lawmakers consider new rules that could reshape how crypto projects operate.
At the heart of the issue is whether blockchain developers—those building the underlying tech—should be treated the same as brokers, exchanges, or other financial middlemen. The group, which includes some big names in the space, says forcing them into the same regulatory box would stifle innovation. “We’re not trading assets or handling customer funds,” one developer told reporters. “We’re building the roads, not driving the cars.”
The legislation in question aims to bring more oversight to crypto markets, which have been plagued by scams, hacks, and volatility. But critics say the broad language could unintentionally sweep up developers who aren’t directly involved in trading or custody. That could mean extra compliance costs, legal headaches, and even projects shutting down before they get off the ground.
Supporters of the bill argue that clear rules are necessary to protect investors and prevent another FTX-style collapse. “If you’re part of the ecosystem, you should play by the same rules,” said a policy advisor familiar with the discussions. But the blockchain group fires back, saying that treating infrastructure like finance could slow down progress in a space that’s still finding its footing.
This isn’t the first time crypto has butted heads with regulators. The SEC has been cracking down on exchanges and token projects, but infrastructure has mostly flown under the radar—until now. If the exemption doesn’t go through, developers might have to register as financial entities, which could mean audits, reporting requirements, and a whole lot of red tape.
Some industry watchers think a compromise is possible. Maybe a separate category for infrastructure builders, with lighter rules that still keep bad actors in check. Others worry that any new regulations could push development overseas, where rules are looser.
For now, the debate is still playing out behind closed doors. But with crypto becoming a bigger part of the financial world, this fight could set the tone for how the industry grows—or gets held back. One thing’s clear: the people building the tech don’t want to be treated like the people using it. And if lawmakers don’t listen, the next big blockchain breakthrough might never happen.
Comments (No)