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DeFi Education Fund urges Senate to strengthen crypto dev protections in draft bill

2025-08-02 01:49:58

Main Idea

The DeFi Education Fund and a16z Crypto have submitted feedback to the US Senate Banking Committee, advocating for a tech-neutral approach in the Responsible Financial Innovation Act of 2025 and updated FinCEN guidance to protect crypto developers and promote innovation in the DeFi industry.

Key Points

1. The DeFi Education Fund (DEF) urged the Senate Banking Committee to review its discussion draft on the Responsible Financial Innovation Act of 2025 (RFA) to ensure it is tech-neutral and promotes innovation in the $141 billion DeFi industry.

2. DEF members, including a16z Crypto, Uniswap Labs, and Paradigm, emphasized the need for consistent protections for crypto developers nationwide, arguing that current guidance could stifle competition.

3. DEF called for updated FinCEN guidance to align with the evolving DeFi landscape and ensure regulatory clarity.

4. a16z Crypto separately criticized the draft bill for potentially undermining existing US securities law, particularly the Howey test, and advocated for a 'digital commodity' model with clear regulatory oversight.

5. The Senate Banking Committee welcomed feedback to refine the Digital Asset Market Clarity Act of 2025, aiming to balance innovation and consumer protection in the DeFi sector.

Description

DeFi Education Fund called on the Senate Banking Committee to frame a key crypto market bill in a more tech-neutral way and strengthen crypto developer protections in a recent letter.

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