Crypto Lobby Group Defi Education Fund called on the Banque Committee of the American Senate to rethink how it plans to regulate the decentralized finance industry after examining its discussion project recently published on a key bill on the structure of the cryptographic market.
The answer, signed on behalf of the members of the DEFI Education Fund (DEF), in particular A16Z Crypto, UNISWAP Labs and ParadigM, said that the bill responsible for financial innovation of 2025 (FRG) should be developed in a more technological neutral manner, that the developers of cryptocurrency should be protected against “inappropriate regulations intended for intermediaries” self -rights for all ”
The legislation must “treat illegal finance but not unfairly innovative innovation”, he added in the Friday letter addressed to the president of the Senatorial Banking Committee Tim Scott and the Senators Cynthia Lummis, Bill Hagerty and Katie Britt.
The Senate banks committee praised the comments
The banking committee asked for comments on the discussion project to ensure that it is based on the law on the clarity of the digital asset market of 2025 to promote innovation in the DEFI industry of $ 141 billion without compromising consumer protection or financial stability.
Protect Crypto developers an absolute priority
The DEF also asked the legislators to update the advice of Fincen in the light of the developer of Tornado Cash Roman Storm.
“The regulations should reflect that the technology that consists only of non -guardian and non -controlling software will not be regulated as a financial or financial intermediary.”
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The crypto lobby group has also called for federal pre -emption of states laws in order to guarantee coherent protections for cryptographic developers nationally.
“Traditional well -resourcited financial institutions can exploit the fragmented regulatory landscape by funding or encouraging measures to apply the State Act against DEFI promoters – not to protect consumers, but to stifle competition,” said DEF by arguing that federal law should pre -empt conflictual state regulations.
A16z Crypto made his own submission
A16Z Crypto, the cryptographic branch of the venture capital company focused on A16Z technology, also submitted a separate response to the Senate banks committee on Thursday.
The main criticism of A16Z of the Crypto bill is that it risks undermining investors’ protections by creating dangerous gaps – in particular thanks to its treatment of “auxiliary assets”.
The cabinet argues that the redefinition of these assets without major changes is incompatible with the securities law of the existing United States, in particular the Howey test. He warns that the proposal could allow initiates to exploit exemptions and pour tokens to the public without regulatory supervision.
A16Z rather advocates a model of “digital goods” with clear decentralization requirements.
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