The DeFi Training Fund (DEF), a coverage advocacy group backed by an early Uniswap grant, has referred to as on the US Senate Banking Committee to take a extra measured method to DeFi regulation.
Key Takeaways:
- DEF urges the Senate to differentiate DeFi builders from intermediaries in regulation.
- The group warns that present guidelines threat criminalizing non-custodial software program.
- DEF requires federal preemption to stop state-level assaults on DeFi innovation.
In a proper response to the draft Accountable Monetary Innovation Act of 2025 (RFIA), DEF and a coalition of prime crypto corporations outlined a framework they consider can safeguard innovation with out undermining nationwide safety or shopper protections.
The response was co-signed by a16z Crypto, Jito Labs, Leap Crypto, Paradigm, Multicoin Capital, Solana Coverage Institute, Uniswap Basis, Uniswap Labs, and Variant Fund.
DEF Requires Clear DeFi Guidelines, Developer Protections in Senate Response
The DEF’s response pushes for 4 key pillars, together with distinguishing between DeFi builders and intermediaries, defining which entities are required to register with federal authorities, setting decentralization standards, and making certain technology-neutral rulemaking.
These ideas come amid the Senate’s name for public suggestions on the RFIA, which builds on the sooner CLARITY Act.
Lawmakers say they goal to strike a stability between market progress and monetary oversight, however DEF argues {that a} nuanced understanding of decentralized programs is crucial.
One of many extra pressing points raised within the letter includes the continuing federal case in opposition to Twister Money developer Roman Storm.
DEF criticizes present FinCEN steering used within the prosecution, warning that treating non-custodial software program code as a monetary service units a harmful precedent.
“Software program that doesn’t take custody or management shouldn’t be regulated as an middleman,” DEF states, urging legislative clarification.
At present, the DeFi Training fund staff submitted a response to DeFi-related questions posed by @BankingGOP’s Digital Asset Market Construction RFI & lately printed dialogue draft of market construction laws.
We’re honored to have main DeFi builders, traders &… pic.twitter.com/ZXWleD9S7I— DeFi Training Fund (@fund_defi) August 1, 2025
The coalition additionally emphasised the necessity for federal preemption to override conflicting state legal guidelines.
Based on DEF, with out preemption, well-funded conventional monetary gamers might exploit state-level loopholes to focus on DeFi builders and suppress rising competitors.
Andreessen Horowitz Flags Gaps in Draft Crypto Invoice
On Thursday, Andreessen Horowitz (a16z) additionally urged US lawmakers to revisit and revise the draft crypto regulation invoice, warning that the present proposal might open authorized loopholes and weaken investor protections.
Whereas the draft seeks to make clear the regulatory panorama for digital property, a16z argues that the framework as written poses authorized and structural dangers, particularly across the therapy of “ancillary property.”
Ancillary property seek advice from digital tokens offered alongside funding contracts, usually with out offering patrons with fairness, dividends, or governance rights.
a16z stated utilizing this class as the muse for brand new laws “with out vital modifications” is problematic.
The agency believes this construction contradicts the Howey check, which is the longstanding authorized commonplace for figuring out whether or not an asset qualifies as a safety beneath U.S. legislation.
“Rewriting Howey,” the letter said, “would depart from settled legislation and endanger investor protections.”
As an alternative, a16z helps the CLARITY Act’s narrower definition of “digital commodities” and recommends codifying a control-based decentralization mannequin.
This might assess whether or not any celebration retains unilateral management, operational, monetary, or governance, over a blockchain system.
Based on the agency, decentralization ought to mark the purpose at which an asset transitions from a safety to a commodity.
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