The Crypto Lobby Group Defi Education Fund called the US Senate Banking Committee to re-imagine how it planned to organize the decentralized financial industry after reviewing the recently published discussion discussion on a major crypto market structure bill.
The response, signed on behalf of members of the Defi Education Fund (DEF) including A16Z Crypto, Uniswap Labs, and Paradigm, said by Responsible Financial Innovation Act of 2025 (RFA) The bill should be made in a more tech-neutral way, that crypto developers should be protected from “inappropriate regulations intended for mediators,” and self-custody rights for all Americans are “important.”
The law should “address the forbidden financial but not fair to burden the defi innovation,” it added Friday Letter Talked with the Senate Banking Committee Chairman Tim Scott and Senator Cynthia Lummis, Bill Hagerty, and Katie Britt.
The Senate Banking Committee accepted the comment
The Banking Committee requested comment on the discussion draft to help ensure it was formed to Digital Asset Market Clarity Act of 2025 To promote the change to the $ 141 billion defi industry without compromising consumer protections or financial stability.
Protecting cryptoes is a top priority
The DEF also asked lawmakers to update Fincen’s guidance to the light of Tornado Cash Developer Storm of Rome.
“The decision should reflect that technology that only consists of non-custodial, uncontrolled software should not be regulated as a financial or financial mediator institution.”
Related: Ethoro to Tokenize 100 Most Popular US stock in Ethereum
The crypto lobby group also called for the federal preemption of state laws to ensure the same protection for crypto developers nationwide.
“Well-resourced traditional financial institutions can take advantage of fragment regulatory regulations by funding or encouraging actions that implement levels against defi developers-not to protect consumers, but to avoid competition,” the DeF said in dispute that the federal law should conclude that the federal law should conclude that the state regulated.
A16Z crypto has made one’s own submission
The A16Z crypto, the firm’s crypto arm dedicated to the venture capital firm A16Z, also submitted a separate response to the Senate banking committee on Thursday.
A16z’s main criticism of the Crypto draft bill is the risk that disrupts investor protections by creating harmful loopholes – especially by its treatment of “ten owners.”
The firm argues that re -defining these possessions without major changes is not compatible with existing US security law, especially the Howey Test. It warns that the proposal may allow the insider to take advantage of the exceptions and dispose of the public tokens without regulatory administration.
A16Z instead promotes a “digital commodity” model with clear decentralization requirements.
Magazine: Robinhood’s tokenized stocks provoked a legal hornet’s nest
