DeFi Education Fund Ramps Up Lobbying Push to Shield Developers from Regulatory Crackdowns
Washington's crypto clash heats up as DeFi advocates make their move.
DEFENDING THE BUILDERS
The DeFi Education Fund launches aggressive congressional outreach, arguing developers shouldn't bear liability for how others use their open-source code. Their lobbying push comes amid increasing regulatory scrutiny across decentralized protocols.
They're framing it as innovation protection versus regulatory overreach—because nothing says 'financial revolution' like hiring K Street lobbyists.
The fund's team meets with lawmakers daily, pushing for clear safe harbors that would let builders create without fearing legal repercussions for third-party actions.
This isn't just theoretical—recent enforcement actions have developers nervous about writing code that regulators might later deem problematic.
THE REGULATORY MINEFIELD
Without legislative clarity, they argue, U.S. innovation will move offshore to friendlier jurisdictions. Because when has complicated compliance ever stopped determined crypto developers?
The outcome could determine whether the next generation of financial infrastructure gets built in America or elsewhere. Place your bets now.
The DeFi Education Fund runs campaigns for adoption and favorable regulation
In the latest letter, the DeFi Education Fund addressed the Senate Committee on Banking and the Committee on Agriculture. Cryptopolitan has previously reported on the DeFi Education Fund’s efforts to secure favorable regulations for developers. The chief argument remains the drive to retain an innovation edge, with no limitations on products.
Recently, the DeFi Education Fund also called for clear guidance on DeFi activity, aiming for a transparent path to launching compliant products. The new call arrives as DeFi is returning to levels not seen since 2022, with more growth and liquidity expected in the coming months.
DeFi hinges on software, but platforms like Uniswap have been previously targeted for offering a code-based trading venue. DeFi can almost trivially generate tokens and stablecoin liquidity, but worries have been raised about the need for regulatory authorization. In the meantime, the fund calls for regulators to make sure developers are not affected.
In February 2025, the US Securities and Exchange Commission dismissed a lawsuit based on the Dealer Rule, opening the door to crypto innovation. Despite this, authorities have targeted various elements of on-chain interactions, including the TornadoCash mixer.
DeFi aims to retain protections for open-source software
The DeFi Education Fund pointed to existing practices and protections for open-source software, aiming to secure a similar guarantee for on-chain apps and processes. The signatories aimed to secure the status of the United States as “the crypto capital of the world,” requesting no limits on software development.
The end goal for DeFi legislation WOULD be to treat blockchain technology as neutral infrastructure, not as a path to prosecuting developers.
As of August 2025, the US House and Senate have accepted the drafts of the Blockchain Regulatory Certainty Act and the Keep Your Coins Act. The bills cover the differences between traditional finance with middleman roles and decentralized networks.
Previously, signatories have called for Congress to remain neutral in terms of technical terminology, in order not to favor certain design choices and apps, allowing free innovation among DeFi platforms.
The new DeFi legislation would also protect American users and make them free to use self-custody, P2P transactions, swaps, and more. The current lobbying also aims to achieve a unified framework, instead of relying on state-based rules.
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