Pinned Tweet
We (@fund_defi) submitted a letter in response to the SEC’s RFI asking for thoughts on "exchanges" and crypto ATSs. TL;DR: don't misclassify DeFi technology and devs that aren't actually performing "exchange" functions.
We urge the Commission to:
1️⃣ Adopt a functional test for an exchange "facility” so only those actually performing exchange functions are in scope, and not disintermediated software, AMMs, smart contracts, or developers.
2️⃣ Avoid an overly broad reading of a “group of persons" constituting an "exchange." Where there’s no shared intent or control over exchange functions, developers/entities shouldn’t be treated as an exchange just because their software is used by one.
Bottom line: DeFi tools that provide liquidity or run autonomously aren’t performing exchange functions and neither the tech nor its devs should be regulated as exchanges.
Full letter: sec.gov/files/ctf-written-in…
Ayana Dow retweeted
The UK Financial Conduct Authority @TheFCA just published two important consultations addressing decentralized finance (DeFi) and the scope of cryptoasset regulation in the UK.
@fund_defi will be responding to the consultations to advocate for appropriate treatment DeFi protocols, software developers, and infrastructure providers.
Ayana Dow retweeted
This week, @fund_defi, @jump_ ,@paradigm, @SolanaInstitute and @Uniswap submitted a comment letter to @USTreasury on its proposed GENIUS Act Section 3 implementation rulemaking. The GENIUS Act established important statutory protections for DeFi and developers of blockchain technology. We believe that Treasury’s final rule must respect these statutory boundaries.
Ayana Dow retweeted
AI and crypto face the same fundamental policy question: When should developers be legally responsible for how other people use the software they build?
@amandatums and I wrote for @fund_defi about why the answer will shape the next generation of American technology. And - it’s why we need to continue to advocate for developer protections in policy. 🧵
Linked here: defieducationfund.org/wp-con…
Ayana Dow retweeted
Heard 🫡
@ChairmanSelig today, on “onchain finance”: “we are also exploring a durable policy for developers who publish software but do not solicit or take orders, control execution, or hold customer assets. A person should not have to register as an introducing broker simply because that person shipped code.
We are also working directly with builders to develop lawful pathways for onchain products in the United States. I’ve directed CFTC staff to engage with developers and founders to understand how onchain venues function, where control resides, how their activities compare to those performed by traditional market intermediaries, and how the CEA and our regulations apply to these new models.”
cftc.gov/PressRoom/SpeechesT…
Ayana Dow retweeted
1/ In honor of Commissioner Peirce’s last day at the SEC, the DEF team wanted to take a moment to honor her legacy. Commissioner Peirce’s artfully-named speeches and thoughtfully-crafted dissents provide clear, compelling explanations on why decentralization matters and how innovation makes markets more resilient and accessible.
Some of our favorite Commissioner @HesterPeirce moments 👇
Ayana Dow retweeted
DEF submitted a response to the EU’s MiCA Review.
In it, DEF asks EU regulators to ensure three key protections:
👉 Protect developers. People who write and publish software should not be subject to regulatory obligations or inherit liability for how third parties use their software, or be classified under regimes that do not describe the activities they actually perform.
👉 Protect user autonomy. Self-custody and privacy-enhancing technology should be clear, affirmative, enforceable rights, not features that cost users their protections.
👉 Protect permissionless infrastructure. Definitions should be accurate and technology-neutral, and should preserve the line between non-custodial software and the intermediaries that control customer assets.
MiCA has a head start in clarifying the line between control and code, and we encourage the Commission to ensure these same standards apply as they build their report and consider any future amendments to MiCA.
Ayana Dow retweeted
The EU is reconsidering how MiCA should apply to DeFi. The line it draws now could shape how developers build and users access decentralized technology across Europe for years. Today @fund_defi submitted our response with a simple principle: regulate intermediaries, not code.
MiCA already points in the right direction. Recital 22 recognizes that fully decentralized services without an intermediary fall outside its scope, while Recital 83 protects non-custodial software wallets.
Our response urges the EU to preserve and strengthen that distinction: protect developers, self-custody, privacy, and permissionless infrastructure; reject protocol certification regimes; and treat decentralization fundamentally as a question of control.
Software that does not custody assets, control transactions, or control the underlying protocol should not be regulated as though it were a financial intermediary.
Read the summary of our response here: defieducationfund.org/regula…
Ayana Dow retweeted
Today, the @SECGov released new FAQs on the application of the federal securities laws to crypto assets. The guidance gives developers and builders greater room to build, develop, and decentralize blockchain networks and DeFi systems in the United States.
Q2.3 makes clear that once a crypto system is functional, ongoing maintenance, upgrades, development funding, improvements, and efforts to grow network effects do not constitute “essential managerial efforts” under Howey.
Q2.4 goes even further: once a functional crypto system has no central party, statements by the issuer relating to the system likely would not create a new investment contract because no person controls the system in a way that determines its success or failure.
This is a MAJOR step forward for builders of blockchain networks and DeFi systems, and a huge validation of arguments talented lawyers have been making for years about decentralization, ongoing development, and the application of the securities laws to decentralized technology.
Link to FAQ here: sec.gov/about/divisions-offi…
Exciting to see the @CFTC bring some much-needed clarity for software developers in digital asset markets. This relief recognizes the role passive software providers can play in the ecosystem and is a welcome step for developers building innovative tools. 👏
.@CFTC Staff Issues No-Action Position to Providers of Passive Software: cftc.gov/PressRoom/PressRele…
Ayana Dow retweeted
We @fund_DeFi had the great honor of advocating for DeFi developers and users in the lead up to today's vote on the Clarity Act. DEF's mission is to advocate for good policy for those working on and using decentralized technology, and we take that job seriously - and the work is not done.
We are grateful to have had a seat at the table throughout the process, worked closely with members of Congress and their staff, collaborated with so many in the industry, and most of all, to have had the privilege of advocating for software developers who are innovating in ways we couldn't imagine a decade ago. We will continue showing up, pushing for reasonable, tech-neutral policies and supporting the builders creating what comes next.
To the members and the staffers who took our calls and pushed for good policy when it was inconvenient to do so: thank you. Some of you fought for developers at moments when there was no reward in it.
To everyone across the industry who worked on this alongside us, who helped us understand your work and how the tech functions, and who actually believe in this stuff, you know who you are and you know how we feel about you.
Last, but most of all, to the @fund_DeFi team, you are the best team there is. Small but mighty. You worked around the clock to review legislative text from the perspective of protecting developers, most of whom you haven't even met yet. I'm proud to work with you @_ayanadow @glzavatone @jenn_rosenthal @mbernstein6395 @itstaliad
Ayana Dow retweeted
Today, @fund_defi and @SolanaInstitute submitted comments to @FinCENnews on its proposed GENIUS Act customer identification rules. Our main message: CIP obligations should not apply to DeFi, decentralized blockchain infrastructure, or peer-to-peer crypto users. The GENIUS Act should not be implemented in a way that imports the same problems (and unnecessary friction inherent in traditional financial intermediaries) onto decentralized, non-custodial systems. The final rule should preserve clear protections for self-custody, secondary-market activity, validators, protocols, and other non-custodial infrastructure.
We will continue to push to ensure GENIUS Act implementation protects decentralized blockchain infrastructure and crypto users.
Ayana Dow retweeted
Thank you to Chairman @SECPaulSAtkins, Commissioner @HesterPeirce, and the SEC for today’s thoughtful proposal. It is encouraging to see the Commission recognize that blockchain networks can become more decentralized over time, and that this evolution matters under the federal securities laws. This is an important step toward a regulatory framework that better reflects how this technology actually works, and we look forward to future guidance on decentralized networks.
Ayana Dow retweeted
DEF’s Senior Counsel @_ayanadow is moderating a policy panel about the future of finance this week at Block Voices’ 2026 Thought Leadership Summit, featuring @KyleBligen from @TheDRC_ and NYS Assemblyman @clydevanel👇
Ayana Dow retweeted
The @GLFOP now supports the Clarity Act!
Today's progress didn't happen by accident. It's the result of countless conversations, meaningful engagement, and real changes made to address law enforcement concerns while preserving innovation. Three titles, 25 provisions, numerous thoughtful conversations about how to address illicit finance. Thank you to the Senators, their staffs, and the White House for working together to move this forward.
🚨NEWS: The National Fraternal Order of Police, one of the key law enforcement groups involved in negotiations over the Blockchain Regulatory Certainty Act, is now backing the latest version of the Clarity Act, saying revised BRCA language addresses its previous concerns and preserves law enforcement’s ability to investigate crypto crimes.
The BRCA remained unchanged in the latest version of the bill released Wednesday, so it’s unclear what changes the group is referencing.
Ayana Dow retweeted
Thank you to Senator @RonWyden for your continued advocacy for the BRCA!
In a letter to Senate leadership, he says: "I write to urge you to ensure that any version of the Digital Asset Market Clarity Act (Clarity Act) that is brought to the Senate floor preserves Section 604 of the bill as passed out of the Senate Banking, Housing, and Urban Affairs Committee."
The DEF team wholeheartedly agrees, and we appreciate Senator Wyden and his staff for their leadership on this important, bipartisan provision that protects software developers. A comprehensive market structure bill must include strong software developer protections.
Ayana Dow retweeted
Today, @fund_defi and @SolanaInstitute filed a joint response to @USTreasury 's proposed rule implementing the GENIUS Act’s AML and sanctions compliance framework for stablecoin issuers. Our message is simple: protect DeFi and p2p transactions on public blockchains.
Ayana Dow retweeted
"... we cannot erode more on developer protections if we really want to bring developers back onshore," says @RebeccaRettig1 on @CoinDesk's new show, The Policy Protocol.
"If we want to real innovation, and real builders, and people feeling safe building onshore, we have to make sure that the bill that passes and gets signed by President Trump really does protect software developers."
Ayana Dow retweeted
Clarity Act Title III ("Responsible Innovation in Decentralized Finance") was added to the Clarity Act to address concerns related to illicit finance and digital assets. It did not exist in the September draft. It was specifically added in response to concerns raised by prosecutors/law enforcement, to provide even more tools than were already in Title II ("Protecting Against Illicit Finance").
Anyone saying this bill does not give enough tools or runway for law enforcement to go after bad actors should *actually read* read Title II or Title III.
Ayana Dow retweeted
Powerful statement from @SECPaulSAtkins today. In his remarks, the Chairman explains that "our existing framework" does not always organize "neatly" to today's onchain markets. AND, he commits to providing a future-proof framework to clarify how existing regulatory definitions apply to technologies spanning the decentralization spectrum.
"But software applications today do not always organize themselves neatly along these categorical lines. A single protocol can execute a trade, manage collateral, route liquidity, execute trading strategies through vault structures, and settle the transaction—all within a unified, automated system, often within seconds."
The DEF team, in particular, appreciates that Chair Atkins highlights that DeFi *is* unique and requires different treatment from TradFi:
"As the Commission considers these policy initiatives, we should remember that onchain market structures today are often hybrid in nature, combining elements of what are often referred to as “traditional” and “decentralized” finance. We should clarify how the Commission views the spectrum of models that may implicate our statutes through notice and comment rulemaking, using our exemptive authorities where necessary and prudent, all with full participation from innovators, investors, and the public alike."
