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- DEF confronts Senate draft threatening DeFi innovation and developers’ rights
- Industry giants unite behind DEF’s push for regulatory clarity
- New DeFi legislation faces resistance over control and custody issues
The DeFi Education Fund (DEF) has resisted the Senate Banking Committee’s proposed digital asset regulations, submitting a bold response that defends decentralized finance and its developers. The move follows the release of the discussion draft of the Responsible Financial Innovation Act (RFIA) of 2025, which aims to establish a regulatory framework for digital assets in the United States.
In its reaction, DEF aims to save the essence of decentralized finance and question points of the draft that might pose a danger to innovation and protections for developers. Several major firms, including a16z Crypto, Jump Crypto, Jito Labs, Paradigm, Solana Policy Institute, Uniswap Labs, Uniswap Foundation, Variant Fund, and Multicoin Capital, strengthen EF’s position.
According to DEF, regulators should not favor the technology they oversee. DEF cautions that applying legacy financial rules, designed for financial intermediaries, to DeFi protocols would stifle innovation. It warns that regulators wrongly assume decentralized networks should operate under the same standards as traditional intermediaries.
The submission also opposes legislators’ efforts to define what it considers to be control over a decentralized protocol. Vague definitions may make developers subject to legal risk, as they are not able to access and handle user funds.
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DEF Pushes Congress to Enshrine Self-Custody and Developer Safeguards
DEF has outlined a detailed list of principles for lawmakers to consider. It calls for strong legal protections for non-custodial software developers.
The group also demands clear rights for Americans to self-custody their digital assets. DEF urges Congress to include language from the Keep Your Coins Act. It also supports adopting the Blockchain Regulatory Certainty Act to protect developers and users.
DEF also makes it clear that while illicit finance must be addressed, regulations must not create undue burdens on DeFi builders. The group insists that privacy, security, and innovation must not be sacrificed in the name of enforcement.
The organization concludes its response by urging lawmakers to take a proactive and future-ready approach. DEF maintains that a fair, balanced framework will ensure the United States remains a global leader in decentralized finance innovation.
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