The DeFi Education Fund (DEF), a group that represents major players in decentralized finance (DeFi), has shared its concerns with the US Senate Banking Committee after reviewing a new draft of the Responsible Financial Innovation Act (RFA) of 2025.
In an August 1 letter signed by members such as Uniswap
$9.31
Labs, a16z Crypto, and Paradigm, the group called for the bill to be more neutral when it comes to technology.
They noted that developers building open-source crypto tools should not be treated like financial service providers or middlemen. DEF also emphasized that the right of individuals to manage their own digital assets, known as self-custody, should be protected.
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The letter stressed that rules aimed at stopping illegal activity should not block new ideas in DeFi. DEF warned that laws made for traditional finance should not be applied to systems that do not involve third parties.
DEF also asked lawmakers to update FinCEN guidelines so that tools built without control over users’ funds are not treated like financial institutions.
The group said:
The rulemaking should reflect that technology that solely consists of non-custodial, non-controlling software shall not be regulated as a financial institution or financial intermediary.
Additionally, DEF argued that companies in traditional finance might use state-level enforcement to target DeFi developers, not to protect users, but to remove competition. The group stated that federal law should take priority over state rules to create protections for everyone working in the industry.
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Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
