DeFi Advocates Urge Senate to Adopt New Regulatory Framework

On August 2, 2025, the DeFi Education Fund, backed by major crypto firms, urged the US Senate Banking Committee to create a dedicated regulatory framework for DeFi.

This proposal aims to clarify regulatory distinctions for decentralized finance, potentially impacting key tokens like ETH and UNI in the evolving US legislative landscape.

DeFi Leaders Push for Distinct Regulatory Framework

A coalition led by DEF aims to influence US crypto policy with a robust proposal. Group members include Andreessen Horowitz’s a16z Crypto, Jito Labs, Jump Crypto, and others pushing for a distinct DeFi framework under the pending 2025 RFIA. These organizations advocate for separating developers from intermediaries and maintaining technical neutrality.

Regulatory suggestions highlight distinctions between DeFi and conventional intermediaries, proposing standards to evaluate protocol decentralization. Lawmakers are encouraged to maintain innovation drivers, as this will ensure systemic safety alongside growth potential. The US Senate’s legislative strategy draws similarly from foundations laid by the CLARITY Act.

“Establishing a clear regulatory framework is essential for the long-term success and sustainability of decentralized finance protocols.” — Hayden Adams, CEO, Uniswap Labs

Potential Impact on Key Crypto Sectors

Did you know? The DEF submission mirrors initiatives from 2022’s Senate crypto draft, which triggered few sustained price impacts despite initial enthusiasm, showing regulatory efforts often lead protocol expectations without immediate market movement.

As reported by CoinMarketCap, Ethereum (ETH) currently holds a price of $3,511.19 with a substantial market cap of 423,834,658,245. On a circulation of 120,709,809 ETH, it experiences a notable market dominance of 11.46%, alongside a 24-hour trading volume shift of 30.14%.

Potential outcomes analyzed by Coincu could indicate minimal short-term effects; however, longer-term possibilities involve substantive shifts in US DeFi adoption and governance protocols, contingent on legislative direction. The proposal’s emphasis on innovation and developer protection sets a precedent for fostering favorable regulation globally.