The DeFi Education Fund (DEF), a group that represents major players in decentralized finance (DeFi), has shared its concerns with the US Senate Banking Committee after reviewing a new draft of the Responsible Financial Innovation Act (RFA) of 2025.
In an August 1 letter signed by members such as Uniswap
They noted that developers building open-source crypto tools should not be treated like financial service providers or middlemen. DEF also emphasized that the right of individuals to manage their own digital assets, known as self-custody, should be protected.
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The letter stressed that rules aimed at stopping illegal activity should not block new ideas in DeFi. DEF warned that laws made for traditional finance should not be applied to systems that do not involve third parties.
DEF also asked lawmakers to update FinCEN guidelines so that tools built without control over users’ funds are not treated like financial institutions.
The group said:
The rulemaking should reflect that technology that solely consists of non-custodial, non-controlling software shall not be regulated as a financial institution or financial intermediary.
Additionally, DEF argued that companies in traditional finance might use state-level enforcement to target DeFi developers, not to protect users, but to remove competition. The group stated that federal law should take priority over state rules to create protections for everyone working in the industry.
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