Securing the Next Era of American Innovation

Just a few months ago, I was lobbying on auto policy. Now, I’m immersed in the fast-moving world of crypto as the newest member of the DEF team. Coming in as an outsider, I’ve had to climb a steep learning curve, but in doing so, I’ve seen how transformative this technology can be. What began as a crash course in crypto policy and tech has become an appreciation for how the evolution of finance, paired with true personal ownership can reshape how Americans think about opportunity, innovation, and freedom.

At the heart of America's innovation story lies a simple truth: protecting individual rights and freedoms fuels progress. Since our founding, America has thrived by championing liberty, self-reliance, and fair opportunity. These principles are not only the bedrock of democracy, they are the engine of technological and economic prosperity. When it comes to building the digital financial systems of tomorrow, safeguarding the rights of software developers and users is not just smart policy, it’s a reflection of what it means to be American.

For generations, America’s financial strength has powered our global leadership turning bold ideas into world-changing enterprises and expanding the middle class. From the rise of capital markets to the tech boom of Silicon Valley, our blend of free enterprise, investor confidence, and clear rules has made the U.S. the most dynamic economy in history. Innovation has always gone hand in hand with opportunity. Today, we face another inflection point: the next wave of digital infrastructure and wealth creation is already underway. The question is whether America will lead it or lose it.

The 2008 financial crisis was a wake-up call. Big banks enriched themselves while mismanaging customer assets and taking reckless risks. Everyday Americans paid the price: losing homes, savings, and overall faith in a financial system that too often put profits over people. For decades, Wall Street’s high barriers and gatekeepers have limited access and deepened inequality. It’s no surprise that fewer than one in ten Americans completely trust banks, according to 2025 Ipsos data.

Bitcoin emerged in response to these failures, sparking a new sector aimed at restoring financial freedom to ordinary people. Nearly one in five Americans have already used or owned crypto, a clear sign of mainstream adoption. Yet rather than modernizing the system to meet this reality, Washington keeps trying to fit new technology into frameworks written nearly a century ago.

Recognizing this gap, innovators and advocates are urging Congress to pass forward-looking market structure legislation that protects software developers and non-custodial service providers. These builders are shaping the future of digital finance, and safeguarding their ability to innovate is essential to U.S. leadership. We encourage bipartisan collaboration to carry this important work forward and keep developer protections at the center of the discussion. Open-source software safeguards have already gained traction across party lines, reflected in the CLARITY Act in the House and the bipartisan passage of the GENIUS Act. Protecting developers isn’t a partisan issue, it’s about keeping America at the forefront of innovation. But the work isn’t done, and continued attention is needed to make these protections real.

Developers aren’t just writing code, they’re shaping the future. They need clear legal protections to innovate without fear of outdated regulations. Treating them like traditional financial intermediaries risks stifling innovation or sending it abroad. Like Section 230 did for the internet, crypto needs a foundation that shields builders from misuse by bad actors while holding fraudsters fully accountable.

Market structure legislation must recognize the unique nature of decentralized networks and protect both developers and users. This is not just a technical issue; it’s a matter of democratic principle. The ability to build without fear of retroactive prosecution is central to our values. Crypto innovation expands financial access for working families and underserved communities, as more than half of Americans say they want full personal control over their money. To keep the U.S. a global hub for digital asset innovation, Congress must provide clear federal protections that prevent a patchwork of state laws and ensure developers aren’t penalized for performing essential blockchain functions. Protecting developers reflects America’s core principles of freedom, opportunity, and leadership.

In a historic show of unity, the largest coalition in the industry recently came together in a joint letter emphasizing the importance of safeguarding developers, a rare consensus that underscores the urgency of this moment. The future of blockchain, decentralized networks, and digital finance depends on decisive action today. Congress must uphold America’s values of freedom, opportunity, and self-determination by enacting protections that allow developers to innovate and thrive. Safeguarding innovation isn’t just good policy, it’s a testament to what America stands for.

This piece was authored by Talia Davis, DEF's Vice President of Government Relations