Crypto foyer group DeFi Education Fund has known as on the US Senate Banking Committee to rethink the way it plans to manage the decentralized finance trade after reviewing its not too long ago revealed dialogue draft on a key crypto market-structure invoice.
The response, signed on behalf of DeFi Education Fund (DEF) members together with a16z Crypto, Uniswap Labs, and Paradigm, stated the Responsible Financial Innovation Act of 2025 (RFA) invoice must be crafted in a extra tech-neutral method, that crypto builders must be shielded from “inappropriate regulation meant for intermediaries,” and that self-custody rights for all Americans are “important.”
Legislation ought to “handle illicit finance however not unfairly burden DeFi innovation,” it added within the Friday letter addressed to Senate Banking Committee Chairman Tim Scott and Senators Cynthia Lummis, Bill Hagerty, and Katie Britt.
Senate Banking Committee welcomed the suggestions
The banking committee requested suggestions on the dialogue draft to assist guarantee it builds on the Digital Asset Market Clarity Act of 2025 to advertise innovation within the $141 billion DeFi trade with out compromising shopper protections or monetary stability.
Protecting crypto devs a prime precedence
The DEF additionally requested lawmakers to replace FinCEN steerage in mild of Tornado Cash developer Roman Storm.
“The rulemaking ought to replicate that know-how that solely consists of non-custodial, non-controlling software program shall not be regulated as a monetary establishment or monetary middleman.”
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The crypto foyer group additionally known as for federal preemption of state legal guidelines to make sure constant protections for crypto builders nationwide.
“Well-resourced conventional monetary establishments could exploit the fragmented regulatory panorama by funding or encouraging state-level enforcement actions towards DeFi builders — to not defend shoppers, however to stifle competitors,” the DEF stated in arguing that federal regulation ought to preempt conflicting state laws.
A16z Crypto made its personal submission
A16z Crypto, the crypto arm of tech-focused enterprise capital agency a16z, additionally submitted a separate response to the Senate Banking Committee on Thursday.
A16z’s essential criticism of the draft crypto invoice is that it dangers undermining investor protections by creating harmful loopholes — particularly by means of its therapy of “ancillary property.”
The agency argues that redefining these property with out main modifications is incompatible with current US securities regulation, significantly the Howey take a look at. It warns that the proposal may permit insiders to take advantage of exemptions and dump tokens on the general public with out regulatory oversight.
A16z as an alternative advocates for a “digital commodity” mannequin with clear decentralization necessities.
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