- Anti-DeFi group pushes Senators to exclude DeFi provisions from legislation.
- Crypto market structure bill faces backlash over DeFi-related concerns.
- DeFi provisions spark heated debate as Senate markup approaches next week.
An advocacy group called Investors For Transparency is running high-profile advertisements on Fox News, urging viewers to demand their Senators exclude decentralized finance (DeFi) provisions from the upcoming crypto market structure bill. The group’s ads, which are airing just a week before Senators are set to vote, present a clear message: “Tell Your Senator: Pass Crypto Legislation Without DeFi Provisions.” Another ad warns, “Don’t Let DeFi Stall Innovation,” reflecting concerns from the banking sector.
The banking industry is particularly worried about stablecoin issuers offering interest-bearing products that resemble bank deposits, which could siphon substantial funds away from traditional financial institutions. The U.S. Treasury has warned that widespread adoption of stablecoins could lead to as much as $6.6 trillion in deposits flowing out of banks. These concerns form the core of the Investors For Transparency group’s campaign.
Also Read: Ethereum Co-Founder Backs Tornado Cash Developer: “Privacy is a Human Right”
DeFi Provisions Stir Debate Ahead of Legislative Markup
The treatment of DeFi within the bill has become one of the most contentious issues among lawmakers and the financial sector. According to Eleanor Terrett, a commentator on X (formerly Twitter), “A new advocacy group, ‘Investors For Transparency,’ is running prime-time ads on @FoxNews, urging viewers to oppose DeFi provisions in the upcoming crypto market structure bill just a week before senators are due to cast votes on it in relevant committees next week.”
Terrett further noted that the DeFi provisions are hotly contested, and the final language on this matter should be clarified when the Senate Banking Committee releases its portion of the bill ahead of the January 15 markup.
These provisions, which could allow stablecoin issuers to offer bank-like products, are at the center of intense debate. While traditional financial institutions are lobbying against these elements of the bill, the crypto community is pushing for them to remain in the legislation, arguing that they would help promote innovation.
Crypto Industry Criticizes Anti-DeFi Push
The campaign against DeFi provisions has triggered frustration within the crypto community. Uniswap Labs CEO Hayden Adams expressed his discontent, calling the group’s opposition to DeFi “ironic” and highlighting their lack of transparency. He criticized the fact that the Investors For Transparency group is not revealing its funding sources or members, raising concerns about accountability in their campaign.
As lawmakers prepare for the Senate Banking Committee’s review of the CLARITY Act, the bill’s future remains uncertain. While some fear delays due to the 2026 U.S. midterm elections, which could push the bill’s passage into 2027 and its implementation into 2029, Senate Banking Committee Chair Tim Scott remains optimistic. He believes the bill could pass sooner, bringing real benefits to the American people and the financial system.
Also Read: Ethereum Experiences Massive Outflows, Marking a Potential Market Shift
