Anti-DeFi Campaign Pushes to Remove DeFi from U.S. Law

A campaign is underway to pressure U.S. lawmakers to remove provisions related to decentralized finance (DeFi) from the proposed crypto market structure bill. The effort, led by a group that has not disclosed its funding or leadership, is using television advertisements to urge voters to contact their senators and oppose DeFi inclusion in the legislation. The group argues that DeFi poses risks to financial stability and consumer protection without proper oversight.

The anti-DeFi campaign has raised concerns among industry supporters about the transparency of its funding and motives. DeFi advocates argue that the technology promotes innovation and financial inclusion, and removing it from the bill could hinder progress. Critics, including some in the banking sector, warn that unregulated DeFi platforms could disrupt traditional financial systems.

The crypto market structure bill, expected to be marked up by the Senate Banking Committee on January 15, 2026, seeks to establish a regulatory framework for digital assets. It includes provisions addressing stablecoin yield, ethics rules, and the role of regulators like the SEC and CFTC.

Why Did This Happen?

The anti-DeFi campaign reflects growing tensions between traditional financial institutions and the crypto industry. Banking groups have expressed concerns that DeFi platforms, particularly those offering stablecoin-based yield products, could siphon deposits away from traditional banks. These fears are amplified by the potential for DeFi to offer competitive financial services outside the existing regulatory framework.

The Trump administration has taken a more favorable stance toward crypto, with the SEC under Chair Paul Atkins signaling a shift in enforcement priorities. This regulatory environment has led to increased interest in DeFi and other crypto innovations, but also created new political dynamics as lawmakers try to balance innovation with oversight.

How Did Markets React?

The debate over DeFi has had noticeable effects on market activity. Trading volumes in DeFi-related tokens have increased in the wake of the regulatory discussions, though analysts caution that volatility remains high. Venture capital investment in U.S. crypto projects has also shown sensitivity to regulatory signals, with uncertainty often leading to reduced funding.

The Senate Banking Committee’s markup of the crypto bill is a critical next step. If the committee approves the bill, it will move to the full Senate for consideration. The inclusion or exclusion of DeFi provisions will determine whether the sector receives regulatory clarity or is left in a legal gray area.

What Are Analysts Watching Next?

Analysts are closely monitoring negotiations between Senate Democrats and Republicans on the final language of the bill. Unresolved issues include protections for DeFi developers, stablecoin yield regulations, and ethics rules to prevent conflicts of interest.

Industry leaders have warned that if DeFi developers are not adequately protected, it could lead to widespread opposition from the crypto community. The Blockchain Regulatory Certainty Act, which would shield developers from prosecution under existing money transmission laws, is a key point of contention.

The outcome of these negotiations will shape the future of DeFi in the U.S. If the bill passes without DeFi provisions, the sector may face significant regulatory hurdles. Conversely, if protections are included, it could position the U.S. as a global leader in decentralized finance.

Markets will continue to watch how the bill evolves and whether it receives bipartisan support. A delay or failed vote could prolong uncertainty and affect investment decisions.