The DeFi Education Fund (DEF), backed by an early Uniswap grant, has spearheaded a coalition of major crypto firms in urging the U.S. Senate Banking Committee to adopt a nuanced approach to DeFi regulation. In a joint response to the draft Responsible Financial Innovation Act (RFIA) of 2025, DEF and signatories including a16z Crypto, Uniswap Foundation, Solana Policy Institute, Paradigm, and Multicoin Capital outlined four critical pillars: distinguishing DeFi developers from intermediaries, clarifying federal registration requirements, establishing decentralization criteria, and enforcing technology-neutral rulemaking.
The coalition warned that current regulatory frameworks risk criminalizing non-custodial software developers, citing the ongoing prosecution of Tornado Cash developer Roman Storm as a dangerous precedent. DEF emphasized, "Software that does not take custody or control should not be regulated as an intermediary," demanding legislative clarity to safeguard innovation. The group also advocated for federal preemption to override conflicting state laws, cautioning that without it, traditional financial players could exploit state-level loopholes to suppress DeFi competition.
Parallel advocacy from DEF and seven other groups including Coin Center specifically pushed for tech-neutral regulations to exempt developers from registering as money transmitters when not handling funds. This effort, acknowledging leadership from Representatives Tom Emmer and Ritchie Torres, could significantly impact Ethereum and DeFi protocols by reducing unwarranted liabilities. a16z separately criticized the draft's "ancillary assets" classification, arguing it contradicts the Howey test and weakens investor protections, instead endorsing the CLARITY Act's decentralization-focused model.