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In a joint speech, the decentralized financing sector (DEF) urges the Senate to be cautious with sector legislation

In cooperation with an alliance which includes large companies operating in the Carto sector, the DEF fund (DEF) has determined a commercial framework aimed at protecting innovation without prejudice to national security.

DEF (DEF) – and is considered one of the spokespersons for the sector and interested in policies and supported by an early contribution from the Uiswap Foundation – the Banque Committee of the US Senate to follow a more conservative approach to organize the decentralized financing sector (DEFI).

Main points:

  • The Fund for learning financing systems urges the Senate to distinguish in its legislation between developers of decentralized financing requests and mediators.
  • The fund warns that current laws can criminalize self-conservative software developers (non-static) of digital assets.
  • The fund provides for proactive federal action to protect decentralized financing innovations from all the laws that could target it at the American state level.

In an official response to the project of the financial innovation law of 2025 (RFIA), the Fund for Education on Decentralized Financing Systems (DEF) has been determined as well as a group of large CREPTO companies a commercial framework aimed at protecting the innovation approach without prejudice to national security or consumer protection.

I was signed by the Crypto A16Z, Jito Labs, Jump Crypto, Paradigm, Multicoin Capital, Solana Policy Institute, Uniwap, Uniwap Labs and varying Fund.

The Fund for Financing Systems Apprenticeship (DEFI) calls for the approval of clear legislation for the sector and to the protection of promoters in its response to the Senate

The response of the decentralized financing fund (DEF) is based on four basic pillars, which is a distinction between developers of decentralized financing requests (DEFI) and brokers, identifying the bodies which must be registered with federal authorities, establishing decentralization criteria and ensuring the creation of technological neutral laws.

These suggestions arise within the framework of the Senate appeal to express public opinion on the RFIA (RFIA) project on the basis of the previous law on clarity, where legislators say that they aim to balance the growing and financial control of the sector, but the fund for financing the learning fund Decentralization (DEF) believes that a careful understanding of decentralized systems is essential in this regard.

Perhaps one of the most insistent questions that the discourse has touched is those linked to the Roman Storm developer (Roman Storm) Tornado Cash, because the DEF Fund criticizes the current directives of the Fincen crime organization used in this case, warning that of the software code in the applications provided for the self-preccueeurs (non-static) services for digital active ingredients that represent predecessary dangerous. On this subject, the fund explained that “software that does not engage the conservation or control of non -conservative assets should not be treated legally as financial brokerage bodies”, calling for a legislative clarification of this problem.

For its part, the CRIPTO Alliance highlighted the need to weigh federal laws when conflicts occur with the laws of the States, because the DEF fund considers that without circulating federal laws, the giants of traditional financing systems can exploit gaps in terms of states’ laws to target developers of decentralized financing applications to remove emerging competitors.

Andress Horowitz warned gaps in the Cripto law project

Andresson Horwatz urged American legislators on Thursday to reconsider the Creibo sector regulatory law, warning that the current proposal can provide legal gaps and weaken investors’ protection.

Although the draft legislation aims to give the character of clarity to the organizational scene of the CRAPTO sector, the company A16Z considers that the legislative framework of its current form implies legal and structural risks, in particular with regard to the treatment of “undervaluations”, which refer to digital currencies sold with investment contracts, which generally do not give owners’ rights.

A16Z stressed that the problem lies in the use of this category as the basis of new legislation “without fundamental amendments”, because the company considers that this structure contradicts the “Howe” test, which is the legal standard in force to determine whether an asset can be considered as financial documents under American law; The letter also indicated that an attempt to “reformulate a test Amateur (Howe) will be a firm law and that the interests of investors are subject to risks.

Instead, the A16Z supports the closer definition of “digital products” in accordance with the Clards Act, and recommends that a unified decentralization code depends on the extent of the possibility of controlling as a reference model, provided that this model is reassessed in the case where any party benefits from unilateral control, whether operational or financial or linked to all blocking systems.

According to the company, decentralization should be the main criterion to transform an asset of a financial document into a basic product.

The position in a joint speech, the decentralized financing sector (DEF) urges the Senate to be cautious with the laws of the sector appeared first on Arab Cryptonews.

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