DeFi Education Fund Urges Senators To Reject Proposed Amendments In Crypto Bill Markup

bitcoinistPublicado a 2026-01-15Actualizado a 2026-01-15

Resumen

The DeFi Education Fund is urging the Senate Banking Committee to reject specific proposed amendments to a new crypto market structure bill, warning they could harm the DeFi ecosystem and software developers. Key concerns include #42 (Reed, Kim), authorizing Treasury to sanction smart contracts; #45 (Reed), creating a new digital asset definition under the Bank Secrecy Act; and #47 (Reed), removing a provision on unlicensed money transmission. Amendments #72 and #73 (Cortez Masto) aim to narrow developer definitions and expand FinCEN's authority, while #74 and #75 could stifle growth by prohibiting transactions with unlawful protocols. Amendment #104 (Warren) would strike a key distribution carve-out for crypto. The fund argues these changes pose significant risks to innovation and operational flexibility in the decentralized finance space.

As the Senate Banking Committee prepares to mark up the newly proposed draft of the crypto market structure bill, the DeFi Education Fund has released a list of amendments it strongly urges senators to oppose.

In a recent post on social media platform X (formerly Twitter), the organization expressed concerns that the descriptions of the draft indicate potential harm to decentralized finance (DeFi) and could negatively impact software developers.

Red Flags Emerge From Crypto Market Structure Bill Draft

In its message, the DeFi Education Fund emphasized the importance of safeguarding the integrity of the emerging DeFi landscape and called on senators to consider the far-reaching consequences of these proposed changes.

Among the amendments highlighted were Amendment #42, proposed by Senators Reed and Kim, which seeks to authorize the Treasury to sanction smart contracts and centralized platforms involved in illicit activities.

This amendment raised significant red flags for advocates who worry about its implications for innovation and operational flexibility within the decentralized finance ecosystem.

Another amendment of concern, Amendment #45 by Senator Reed, aims to create a specific definition for digital assets under the Bank Secrecy Act.

Similarly, Amendment #47, also from Senator Reed, intends to remove a provision related to federal criminal offense concerning unlicensed money transmission.

These changes, according to the DeFi Education Fund, loom dangerously over the operational landscape for developers and financial institutions that interact with digital assets.

Stifling DeFi Growth

Additionally, Senators Cortez Masto’s proposed amendments, specifically #72 and #73, aim to narrow the definition of non-controlling developers and expand the authority of the Financial Crimes Enforcement Network (FinCEN) alongside the Treasury for blockchain-enabled platforms.

Amendments #74 and #75 further seek to strengthen existing laws related to money transmission and prohibit transactions involving unlawful DeFi protocols, which the Fund suggests could stifle the industry’s growth.

Amendment #104, proposed by crypto-skeptic Senator Elizabeth Warren, also drew attention by striking a key distribution carve-out for crypto offerings.

This follows similar calls by Summer Mersinger, CEO of the Blockchain Association, who recently claimed that the “Big Bank Lobby” is pushing Congress to change key provisions of the already enacted GENIUS Act concerning stablecoin rewards, further highlighting the current state of the future of crypto in Congress.

The daily chart shows the total crypto market cap recovery above $3.2 trillion. Source: TOTAL on TradingView.com

Featured image from DALL-E, chart from TradingView.com

Preguntas relacionadas

QWhat is the main concern expressed by the DeFi Education Fund regarding the proposed crypto market structure bill?

AThe DeFi Education Fund is concerned that the proposed amendments could harm the decentralized finance (DeFi) ecosystem and negatively impact software developers.

QWhich amendment, proposed by Senators Reed and Kim, has raised significant red flags for DeFi advocates?

AAmendment #42, which seeks to authorize the Treasury to sanction smart contracts and centralized platforms involved in illicit activities, has raised significant red flags.

QWhat is the purpose of Senator Elizabeth Warren's Amendment #104 according to the article?

AAmendment #104, proposed by Senator Elizabeth Warren, aims to strike a key distribution carve-out for crypto offerings.

QWhich senators proposed amendments to narrow the definition of non-controlling developers and expand FinCEN's authority?

ASenator Cortez Masto proposed amendments #72 and #73, which aim to narrow the definition of non-controlling developers and expand the authority of FinCEN and the Treasury.

QWhat recent claim did Summer Mersinger, CEO of the Blockchain Association, make about the 'Big Bank Lobby'?

ASummer Mersinger claimed that the 'Big Bank Lobby' is pushing Congress to change key provisions of the already enacted GENIUS Act concerning stablecoin rewards.

Lecturas Relacionadas

In Conversation with Ray Dalio: We Are Currently in an AI Bubble, with 1% of My Portfolio in Bitcoin

Ray Dalio, founder of Bridgewater Associates, warns in an interview that the current AI boom shows classic bubble characteristics, which could lead to significant economic downturns as seen in past cycles like 1929 or 2000. He explains that speculative enthusiasm, fueled by debt and overvaluation, often precedes a crash when rising rates or taxation force asset sales, causing widespread losses and recession. Dalio also outlines his "Big Cycle" theory, describing an approximate 80-year pattern where widening wealth gaps, massive government deficits, and shifting geopolitical power (like China's rise) create internal conflict and global instability. He emphasizes that we are in a late-cycle, transitional phase where traditional powers like the US and UK face decline. For personal wealth protection, Dalio advises diversification beyond cash into assets like stocks, bonds, real estate, and particularly gold, which he prefers over Bitcoin. While he holds about 1% of his portfolio in Bitcoin as a non-printable hard asset, he views gold as more secure from technological or governmental threats. Regarding AI's impact, Dalio believes it will disproportionately benefit capital owners, worsening inequality by replacing both physical and cognitive labor. He suggests that human intuition and emotional intelligence, combined with AI, will be key for future workers. On taxation, Dalio argues that wealth taxes are impractical and risk triggering asset sell-offs, reducing productive investment. He points to the UK as a cautionary example of debt, low productivity, and political strife. Geopolitically, Dalio foresees a more regionalized world, with the US showing weakness in prolonged conflicts like with Iran, akin to past imperial declines. The ideal outcome, he suggests, is coexisting powerful blocs (e.g., Americas, China-Asia Pacific) without major war.

marsbitHace 5 min(s)

In Conversation with Ray Dalio: We Are Currently in an AI Bubble, with 1% of My Portfolio in Bitcoin

marsbitHace 5 min(s)

Daily 7.2 Trillion KRW: Foreign Capital's Record Net Buying on Friday! Wall Street Says Headwinds for Korean Stock Fund Flows Have Subsided

South Korean stock market sees a dramatic shift in fund flows. On July 31, foreign investors made a record net purchase of approximately KRW 7.2 trillion in KOSPI stocks, marking a fundamental reversal from the persistent large-scale net outflows seen in previous months. This contributed to a significant narrowing of foreign net selling in July to KRW 9.8 trillion, down sharply from KRW 48.4 trillion in June and KRW 44.5 trillion in May. Simultaneously, domestic institutional pressure eased. South Korean pension funds and asset managers turned to a net buying position in July, purchasing KRW 1.0 trillion worth of KOSPI shares, contrasting with net sales in May and June. Market volatility is expected to be dampened by new financial regulations. Effective July 31, the Financial Services Commission tightened access for retail investors to single-stock leveraged ETFs by raising the minimum cash deposit requirement. Trading volumes for these products subsequently dropped to about 50% of their monthly average. Citigroup Research maintains its year-end KOSPI target of 10,000 points. The firm cites several supportive factors: the substantial easing of headwinds from capital outflows, a robust fundamental outlook for the semiconductor sector, historically low market valuations, strong economic fundamentals, and the potential for policy support from financial authorities if needed.

marsbitHace 5 min(s)

Daily 7.2 Trillion KRW: Foreign Capital's Record Net Buying on Friday! Wall Street Says Headwinds for Korean Stock Fund Flows Have Subsided

marsbitHace 5 min(s)

Breaking! OpenAI's Next-Gen AI Solves 10 Fields Medal-Level Problems

OpenAI's next-generation AI model Astra achieves breakthroughs in 10 long-standing mathematical conjectures. The results, including constructing the first known infinite, finitely presented non-sofic group—resolving a major question since 1999—and advancing the high-dimensional sphere packing problem beyond a 46-year-old barrier, are detailed in a 249-page paper. Key proofs have been formally verified using Lean 4. The AI also refuted a rigidity conjecture by Fields Medalist Alain Connes. According to OpenAI, generating these proofs cost under $2,000. Experts describe the findings as potentially Fields Medal-worthy and a landmark moment for both mathematics and AI, showcasing the model's ability to produce profound, human-like reasoning across diverse fields like group theory, geometry, and operator algebras.

marsbitHace 1 hora(s)

Breaking! OpenAI's Next-Gen AI Solves 10 Fields Medal-Level Problems

marsbitHace 1 hora(s)

How to Make Yourself Irreplaceable by AI Forever

This article argues that the primary threat from AI is not job replacement, but remaining trapped in "wage slavery"—financial dependence on employers. The path to becoming irreplaceable is not resisting AI, but becoming an "unemployable" individual who builds their own meaningful enterprise. The author identifies five key elements for this: Agency (acting without permission), Taste (judging what's worthwhile), Persuasion, Persistence, and Iteration. The solution is to stop being a "pawn" in someone else's game. To start, you must fundamentally change your identity and environment, then engage in rapid, real-world trial and error. While both coding and creating media (content) are powerful, content is more crucial. AI can generate assets, but true value lies in subjective, human-driven content that builds trust and narrative. The actionable advice is to carve out 15 minutes to answer foundational questions: 1) Uncover your "raw material"—what you know deeply or solve effortlessly. 2) Define your contrarian perspective—what common beliefs you think are wrong. The intersection of these answers is your direction. Finally, you must launch by publishing your first core idea immediately, using the feedback to iterate and develop the skills needed for a self-directed life and career.

marsbitHace 2 hora(s)

How to Make Yourself Irreplaceable by AI Forever

marsbitHace 2 hora(s)

Thanks to Dice Rolls, Bitcoin Keys Are Stored Offline, But Not Everyone Will Do It

The article discusses using dice rolls to generate secure Bitcoin wallet seeds, providing entropy independent of potentially flawed hardware random number generators. It explains that each fair dice roll offers about 2.585 bits of entropy, with around 50 rolls needed for a standard 12-word seed phrase and 99+ recommended for higher security. This method gained attention after a vulnerability was revealed in some Coldcard hardware wallets, where a faulty firmware RNG (dating back to 2021) compromised generated keys. The analysis notes that while a dice-generated main seed was safe from this specific flaw, other Coldcard functions (like creating paper wallets, backup keys, or passwords) could still be vulnerable if they used the defective RNG. The piece argues that while dice-based entropy is technically robust, the manual process is error-prone, tedious, and unrealistic for most new users, who might make mistakes in recording or inputting rolls. It concludes that while manual entropy generation should remain an option for advanced users, the long-term goal is to develop reliable, user-friendly hardware and software that securely generates randomness without requiring specialized knowledge. Coldcard users are advised to check their firmware version and replace any secondary secrets (like paper wallet keys) created with vulnerable devices, while also considering multi-signature setups with devices from different manufacturers for added security.

cryptonews.ruHace 5 hora(s)

Thanks to Dice Rolls, Bitcoin Keys Are Stored Offline, But Not Everyone Will Do It

cryptonews.ruHace 5 hora(s)

Trading

Spot