The Crypto Lobby Group Defi Education Fund has called on the U.S. Senate Banking Committee to reconsider its plans to regulate the decentralized financial industry after considering a recently published draft discussion on major crypto market structure bills.
The response, signed on behalf of Defi Education Fund (DEF) members, including A16Z Crypto, UnisWap Labs and paradigm, said the Responsible Financial Innovation Act (RFA) bill of 2025 should be created in a more technical and central way.
The law “means illegal finances, but not unfairly burdensome, but we need to deal with unfairly burdensome innovation,” added in a letter Friday to Chairman Tim Scott and Senators Cynthia Ramis, Bill Hagerty and Katie Brittt.
Senate Banking Committee welcomed feedback
The Banking Committee requested feedback on the discussion draft and ensured that it would promote $141 billion in Defi industry innovation under the Digital Asset Market Clarity Act of 2025 without compromising consumer protection or financial stability.
Securing cryptography develops top priority
DEF also asked lawmakers to update Finsen’s guidance in light of tornado cash developer Roman Storm.
“The rulemaking must reflect that technologies made up of non-obligatory, uncontrolled software must not be regulated as financial institutions or financial intermediaries.”
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The Crypto Lobby Group also called for the federal government to preempt state laws to ensure consistent protections for crypto developers across the country.
“Funded traditional financial institutions may misuse fragmented regulatory environments by funding or encouraging national-level enforcement measures against debt developers to curb competition rather than protecting consumers,” the DEF said, arguing that federal law should preempt conflicting state regulations.
A16Z Crypto has submitted its own
A16Z Crypto, the crypto division of tech-centric venture capital firm A16Z, also submitted a separate response to the Senate Banking Committee on Thursday.
The main criticism of the A16Z crypto bill is that it risks eroding investors’ protection by creating dangerous loopholes, particularly through the treatment of “additional assets.”
The company argues that redefine these assets without major changes is incompatible with existing U.S. securities laws, particularly Howie Tests. The proposal warns that insiders can misuse the exemption and throw away the token to the public without regulatory oversight.
Instead, the A16Z advocates a “digital commodity” model with clear decentralization requirements.
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