Ethereum News Today: DeFi's 'Code Over Cash' Push Counters Centralized Crypto Influence

Major Ethereum-based decentralized finance (DeFi) protocols have launched the Ethereum Protocol Advocacy Alliance (EPAA) to counter the growing influence of centralized crypto firms in U.S. policymaking and ensure onchain solutions are fairly represented in regulatory discussions, according to a Coinotag report. The coalition, formed by Aave Labs, Uniswap Foundation, Lido Labs Foundation, and other key players, unites protocols managing over $100 billion in non-custodial assets, as reported by TradingView. By pooling technical expertise and advocating for onchain transparency, the alliance aims to educate lawmakers and shape policies that support decentralized innovation, according to a BeInCrypto analysis.

The EPAA's formation underscores a pivotal shift in how DeFi protocols engage with regulators. Unlike traditional lobbying efforts, which often prioritize financial clout, the alliance emphasizes technical pragmatism and collaboration with advocacy groups such as the DeFi Education Fund and the European Crypto Initiative, as noted by BeInCrypto. Its four core principles—preserving protocol neutrality, advancing onchain transparency, safeguarding innovation flexibility, and ensuring global access to decentralized infrastructure—reflect a broader push to protect the foundational tenets of Ethereum's ecosystem, according to a CryptoNews report.

The alliance's emergence comes amid heightened scrutiny of crypto regulation, particularly in the U.S. and Europe, where policymakers grapple with how to classify decentralized systems lacking central operators, as BeInCrypto has noted. This context follows the dominance of centralized entities in previous lobbying cycles. For example, the Fairshake PAC, backed by a16z, Coinbase, and Ripple, raised $260 million and spent $195.8 million in the 2024 election cycle, according to Coinotag. The EPAA, by contrast, leverages its collective technical credibility to provide policymakers with actionable insights into blockchain's real-world applications, such as smart contract compliance and decentralized governance, as TradingView reported.

Ethereum Foundation co-executive director Tomasz K. Stańczak has endorsed the alliance, calling it a "community-led coordination on advocacy" that aligns with the foundation's recent initiatives, including a revamped grants program and the launch of institutions.ethereum.org to onboard institutional investors, according to Coinotag. This support highlights Ethereum's broader strategy to strengthen communication, branding, and coordination as the ecosystem matures, as TradingView noted.

Industry leaders stress that the EPAA's approach is not merely defensive but proactive. Anthony Leutenegger of Aragon noted that the alliance's goal is to ensure regulations reflect the "technical and practical complexity" of onchain systems, making them workable for developers, BeInCrypto reported. Similarly, Brian Nistler of the Uniswap Foundation emphasized the need for protocol teams to have a seat at the policy table, citing past regulatory challenges as a catalyst for the alliance's formation, BeInCrypto added.

The EPAA's coalition-based structure, without formal leadership or a fixed budget, positions it as a flexible advocate for decentralized interests. As regulatory frameworks evolve, the alliance aims to expand its membership and amplify its message, ensuring that onchain solutions remain integral to the future of finance, CryptoNews observed.