A new advocacy group has launched a national advertising campaign opposing the inclusion of decentralized finance (DeFi) in the upcoming cryptocurrency bill.
The effort intensifies lobbying days before a key Senate vote on the Cryptocurrency Market Structure Bill.
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“Investors for Transparency” group attacks DeFi while hiding donors
The group calls itself “Investors for Transparency” and has begun airing spots on Fox News’ prime-time programming.
The ad urges viewers to pressure senators to exclude DeFi from the favorable regulatory framework expected in the market structure bill, which is scheduled to go before the Senate Banking Committee on January 16th.
The campaign sparked immediate backlash from crypto industry leaders and pro-crypto lawmakers. They argue that the group represents traditional financial interests seeking to stifle competition.
US Rep. Warren Davidson criticized the campaign as a defensive move by established institutions to maintain the status quo.
“Decentralized finance (DeFi) is scaring big financial institutions and the surveillance state. With DeFi, you can cut out intermediaries, reduce costs, protect privacy… In short, DeFi helps protect freedom, so they’re trying to kill it,” he said.
Notably, industry insiders also pointed out the irony of the advocacy group’s name.
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The organization’s website states its mission is to build a “lasting golden age of financial innovation” based on trust and integrity, but the organization does not disclose its funding sources or leadership team.
“A group called Investors for Transparency is conducting public advertising and lobbying to destroy DeFi, the most transparent financial system on the planet. Ironically, but not surprisingly, their site does not disclose who is funding them,” said Hayden Adams, founder of DeFi protocol Uniswap.
Meanwhile, the controversy highlights a central tension in the proposed legislation. The focus is on how existing financial rules can be applied to software protocols that operate without centralized intermediaries.
The bill aims to create a consistent framework for the exchange, storage, and classification of digital assets, but DeFi remains an obstacle.
Regulators say the industry needs stricter oversight to prevent money laundering, while developers say it’s technically impossible to apply bank-style compliance to the code.
Senate Banking Committee Chairman Tim Scott, the bill’s sponsor, said the new rules aim to balance innovation and security.
Scott noted that the framework is designed to give entrepreneurs confidence to launch businesses in the United States, while also making the technology “difficult for criminals and foreign adversaries to exploit.”
Industry experts expect the commission to release the final document on the DeFi provisions shortly before the vote.
