DeFi Education Fund lobbies Congress to protect developers from regulatory crackdowns

The DeFi Education Fund has gathered 100 signatories for a letter to the US Senate seeking guarantees and protections for blockchain developers to avoid prosecution and regulatory crackdowns. 

The DeFi Education Fund collected 100 signatures for its latest letter to the US Senate. The voluntary body of blockchain projects and investors aims to popularize innovation, while also calling for favorable and detailed regulations.

The fund continues to speak on behalf of over 100 organizations in the crypto space. 

The signatories include some of the biggest funds and decentralized hubs, DEXs, aggregators, and lending platforms, which have become staples for both retail and large-scale users. 

The DeFi Education Fund aims for clarity on developers and non-custodian partners, ahead of an eventual bill regulating DeFi. The fund seeks a resolution from the US Congress to “provide robust, nationwide protections for software developers and non-custodial service providers in market structure legislation. Without such protections, we cannot support a market structure bill.”

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. 

Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.