DeFi Regulations Face Industry Pushback as New Crypto Bill Advances Through Senate

A coalition of investors has launched an advertising campaign on major news networks, specifically targeting the decentralized finance regulations embedded in the proposed new crypto bill set for Senate consideration. The campaign, spearheaded by the advocacy group Investors For Transparency, aims to mobilize public opposition to DeFi-related provisions that lawmakers are preparing to vote on in committee within the coming week.

The DeFi Debate Heats Up

The regulation of decentralized finance has emerged as the most divisive element of this new crypto bill, fracturing consensus among policymakers, Wall Street institutions, and cryptocurrency stakeholders. The lack of clarity surrounding how DeFi protocols would be regulated has fueled concerns across the industry about overly restrictive rules that could stifle innovation. Various market participants remain uncertain about the exact language of these provisions, creating a window of opportunity for advocacy efforts before the final bill is finalized.

What’s Next for the New Crypto Bill

Senate Banking Committee leadership is expected to unveil the full legislative text ahead of next week’s markup session. This disclosure will provide the industry with concrete details about how DeFi activities and platforms would be regulated under the new crypto bill framework. The clarity provided by the committee’s release could significantly shape the final debate and positioning of both supporters and opponents during the voting process.

The timing of this advocacy push reflects mounting pressure to influence the legislative direction before the Senate committee moves forward. As the new crypto bill progresses through the legislative pipeline, the DeFi community’s organized response demonstrates the high stakes at play in shaping the regulatory future of decentralized finance.