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A new advocacy organization has launched a national advertising campaign opposing the inclusion of decentralized finance (DeFi) in future cryptocurrency legislation.
The effort intensifies the lobbying battle just days before a crucial vote of the Senate on the project of the structure of the cryptocurrency market.
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Investors for Transparency attack DeFi while hiding donors
The group, which called itself Investors for Transparency, began airing ads during prime-time programs on Fox News.
The ads urged viewers to lobby senators to exclude DeFi from Favorable regulatory framework expected in Draft market structure law The profit margin is expected to be raised by the Banking Committee of the Senate on January 16.
The campaign sparked an immediate backlash from cryptocurrency industry leaders and pro-crypto lawmakers. They argue that the group represents Traditional financial interests seek to suppress competition.
US Representative Warren Davidson criticized the campaign as a defensive measure by entrenched institutions to maintain the status quo.
“Decentralized Finance (DeFi) scares the major financial institutions and the surveillance state. With DeFi you can cut intermediaries, cut costs, protect privacy… In short, DeFi helps to defend the freedom that they want to kill.” He said.
It should be noted that the participants of the sector also pointed out the irony of the name of the defense group.
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While its website states a mission to build a “golden age of sustainable financial innovation” based on trust and integrity, the organization does not disclose its funding sources or leadership team.
“A group called ‘Investors for Transparency’ is making public announcements + lobbying to eliminate DVI, the most transparent financial system on Earth. Ironically, but not surprisingly, their website does not disclose who funds them.” He said Hayden Adams, founder of the decentralized financial protocol Uniswap.
At the same time, these arguments highlight a central tension in the proposed legislation. It focuses on how to apply financial rules based on software protocols that operate without central intermediaries.
While the bill aims to create a coherent framework for the exchange, holding and classification of digital assets, Decentralized finance has been a point of contention.
Regulators argue that the sector needs close supervision to prevent money laundering, while developers argue that enforcing banking compliance with the code is technically impossible.
Senate Banking Committee Chairman Tim Scott, who is overseeing the legislation, said The new rules aim to strike a balance between innovation and safety.
Scott noted that the framework is designed to give entrepreneurs the confidence to build in America while making it “difficult for criminals and foreign adversaries to exploit the technology.”
Industry experts expect the committee to release the final text on the DeFi provisions shortly before its vote.
