Campaign Urges Removal of DeFi from Crypto Legislation
Anti-DeFi Campaign Gains Momentum
An organization opposing decentralized finance (DeFi) is reportedly broadcasting ads on Fox News, urging the public to lobby their senators to exclude DeFi provisions from the CLARITY Act. These provisions are seen as potentially harmful to the traditional banking sector.
Details of the Campaign
According to screenshots shared by Eleanor Terrett, host of Crypto in America, the group Investors For Transparency is behind this campaign. The ads advocate for passing crypto legislation without DeFi elements, highlighting a hotline number for contacting senators.
The ads emphasize the slogan, "Don’t Let DeFi Stall Innovation," reflecting banking lobbyists' concerns about stablecoin issuers offering interest-bearing products that could divert funds from banks.
Industry Reaction and Legislative Challenges
Crypto industry leaders, including Uniswap Labs CEO Hayden Adams, have criticized the campaign, noting its lack of transparency. Meanwhile, the Senate Banking Committee is set to discuss the CLARITY Act, with fears it might face delays due to upcoming elections.
Legislative Outlook
While some Democratic lawmakers push for safeguards in the crypto market structure bill, Senate Banking Committee Chair Tim Scott remains optimistic about its swift passage. However, analysts predict potential delays in the bill's implementation.
Source: US Senate Banking Committee