The Defi Education Fund, A16Z Crypto, Uniswap Labs and Paradiman are supported by big names, sent a letter to Senate leaders on August 2, 2025. The responsible for 2025 is called the Financial Innovation Act.
The letter goes to Tim Scott and other prominent senators, chairman of the Senate Baning Committee. This tells them to treat traditional financial companies differently Crypto Devilopers. The group says the current flow bill may hurt innovation
What does Defee Education Fund want
The Crypto Lobby Group made some main requirements. First, they want clear rules to separate DEFI Devilopers from centralized middlemen like banks. Second, they need better definitions to register with the government. Third, they want to decide if a protocol is correct decentralized. Fourth, they are asking for technology-plate rules.
Funds also want to overridge the rules of the federal law. They work that large traditional banks can use various state laws to attack DEFI developers. The group wrote, “Well-revived traditional financial financial institutions can take advantage of the fragmented regulatory scenario by funding or attaching state-level enforcement operations against DEFI developers, nor to promote conservation consumers, to promote competition,” the group wrote.
Source: @fund_defi
The letter emphasizes that Americans should have the right to control their digital assets. This means that people can catch their crypto without going through the bank or other company.
New Senate Bill
The Senate Banking Committee released its discussion on 22 July 2025. It is working on other crypto bills that are working.
What is the difference from the Senate’s point of view that the House of Representatives earned. The House gave the Commodity Futures Trading Commission the most control over digital assets. But the Senate wants a mixed system. The Securities and Exchange Commission will handle some parts, which CFTC manages others.
A major change in the Senate Bill is a new category called “auxiliary property”. These digital tokens will automatically be counted as securities under the current law. This makes it easier to legally operate for doubles crypto projects.
Developer protection concerns
The Defee Education Fund is specifically mentioned in the case of Roman Storm, a developer who works on tornado cash. Storm faced criminal allegations for its work on the privacy-centered crypto tool. Fund wants the update rules that make it clear that when a justice writing code vs. is running a financial business.
The group said, “The rule should reflect the technique that includes completely non-custodial, non-controlled software, will not be regulated as a finance institute or finance intermediate.”
This crypto connects with broad functions in the world. Many developers fear that they may face legal trouble justice for writing software. The Defi Education Fund wants the Congress to protect the manufacturer of decentralized equipment, but the don user cannot control the fund.
Industry response and timeline
A16Z Crypto gave its own reaction to the Senate Committee. Current Bill Counts work that create dangerous flaws that investors hurt protection. The venture capital firm wants separate rules that focus on wheel networks, they are tucked dysented.
The Crypto industry has advocated big money this year. Companies spent about $ 7 million in the second quarter of 2025, trying to influence MPs. The coinbase alone spent closely $ 1 million on advocacy efforts.
Senator Tim Scott says that the lawmakers want to finish the crypto law by September 30, 2025.
Both the House and the Senate need to agree on the first crypto rules to President Trump. Different conversations are coming.
Extensive regulatory reference
This Senate bill is part of a large push to regulate crypto in the US. Earlier this year, Congress passed the Genius Act, which made rules for stablecoins. The House also approved the Clarification Act, when the Senate has voted on it.
The Trump administration has promised to be more friends for Crypto than previous governments. This has encouraged the industry to emphasize for strange rules that control the Republican Congress.
The new Senate bill also focuses a lot on preventing Alecal finish activation. This makes groups working with law enforcement and intelligence agencies to study how criminals use digital assets. The goal is to stop bad actors who still allow innovation.
what happens next
The Senate Banking Committee will review all the reactions received in August. He will then write the final version of the bill for a committee vote. If it processes there, it goes to the full Senate to see.
Both supporters and critics agree that Crypto needs better rules. The question is that the Congress can protect consciences and prevent Ilegal activity and balance innovation. The letter of Defee Education Fund shows that the industry wants a voice in writing those rules.
The prefix will affect millions of Americans who use crypto and hunded of companies that manufacture blockchain techniques. With billions of dollars at stake, the press is on MPs to correct it.