The DeFi Education Fund (DEF) has called on the US Senate Banking Committee to incorporate a technology-neutral stance within the proposed Responsible Financial Innovation Act of 2025, stressing the need for the legislation to safeguard cryptocurrency developers and the rights of users to self-custody their assets.
The Committee is actively soliciting feedback on the draft bill, which aims to foster innovation within the $141 billion DeFi sector while addressing critical concerns around consumer protection and financial stability.
In its advocacy, the DEF argued that current guidance from the Financial Crimes Enforcement Network (FinCEN) requires updating. It warned that without tech-neutral provisions, the regulatory landscape could become fragmented and risk unintended consequences, potentially stifling competition.
Significant critiques emerged from other stakeholders, notably A16z Crypto. The prominent venture firm contended that elements of the draft legislation might undermine investor protections traditionally afforded by securities laws. Instead, A16z Crypto advocated for establishing a distinct statutory framework categorizing these assets as ‘digital commodities’.
The DEF’s position strongly emphasized that upholding self-custody rights is paramount. It argued this is essential to preserving the core DeFi principles of decentralization and direct user empowerment that underpin the sector.
Following the receipt of critical feedback focusing on developer protections and investor safeguards, the Senate Banking Committee is anticipated to revise the Responsible Financial Innovation Act before advancing it further through the legislative process.