1inch joins an initiative calling for clear DeFi rules

Over 100 industry leaders, including 1inch, signed a letter to the US Senate calling for protection of software developers and non-custodial service providers.

The central message of the open letter, which 1inch, together with over 100 other companies, signed and sent to the US Senate Committees on Banking and Agriculture, is that DeFi needs clear rules. Without them, innovation slows, developers hesitate and entire industries risk leaving the United States behind.

“Protocol security starts with clarity for people who build them,” says Orest Gavryliak, 1inch’s Chief Legal Officer. “That’s why 1inch stands with 110+ industry leaders calling for developer protections in US market structure legislation.”

“DeFi needs clear rules, not chilling risks,” he concludes.

United in commitment

“We are united in our commitment to protecting the software developers and non-custodial service providers building our digital financial future,” reads the letter. “Provide robust, nationwide protections for software developers and non-custodial service providers in market structure legislation. Without such protections, we cannot support a market structure bill.”

What’s at stake?

DeFi is no longer a fringe experiment. It’s a fast-growing global ecosystem with billions in value locked and rising institutional attention. But in the US, regulatory uncertainty is pushing developers away. “The total share of open-source software developers in the United States dropped from 25% in 2021 to 18% in 2025,” the letter’s signatories underscored.

If that trend continues, the US could lose its place as a leader in financial technology - just as the President’s Working Group warned: “Reversing the decline of blockchain development in the United States is central to the goal of making America the crypto capital of the world.”

Why this letter matters

The signatories - 112 builders, investors, and advocates including 1inch, Coinbase, Solana Foundation, Uniswap Labs and many others - are speaking with one voice. Together, we stress that DeFi innovators must not be treated like traditional custodial intermediaries.

“Legislation should not regulate developers differently based on the type of software they create when they are not acting as intermediaries and don’t have control or custody of user assets,” states the letter.

That distinction is essential. Open-source developers and non-custodial service providers build the infrastructure that makes decentralized networks possible. Without clear federal protections, the US risks creating a patchwork of conflicting state rules that stifles progress and drives innovation abroad.

What comes next

The letter welcomes the fact that both chambers of Congress have included measures like the Blockchain Regulatory Certainty Act and Keep Your Coins Act in draft legislation, which safeguard self-custody and peer-to-peer transactions. But we urge lawmakers to go further, ensuring nationwide clarity and protection for builders so they can innovate with confidence.

Stay tuned for more news from 1inch!