DeFi Education Fund Urges Senate to Consider Tech-Neutral Approach in Ethereum Regulation Draft

Key Points

1. The Senate Banking Committee is seeking input on its Responsible Financial Innovation Act of 2025 to balance innovation in the $141 billion DeFi sector with consumer protection and financial stability.

2. The DeFi Education Fund argues that current FinCEN guidance needs updating to avoid fragmented enforcement that could stifle competition.

3. A16z Crypto criticized the draft bill for potentially weakening investor protections under securities law, advocating instead for a 'digital commodity' framework.

4. The Act underscores the importance of preserving self-custody rights to maintain the DeFi ethos of decentralization and user empowerment.

5. Following feedback from stakeholders, the Senate Banking Committee is expected to revise the bill to address concerns about developer protections and investor safeguards.