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Here’s what the DeFi Education Fund (DEF) has been up to in August 2024. If you have any questions or would like to learn more about a specific activity, please do not hesitate to reach out at contact@defieducationfund.org.
Protecting Open Source Development
In early August, DEF was excited to share that we have resolved all disputes related to the patent claiming invention of oracle-like technology owned by True Return Systems.
As a quick refresher, in September 2023, DEF petitioned the US Patent & Trademark Office for the cancellation of a patent held by True Return Systems (TRS) that effectively covers systems linking off-chain data to a blockchain (like oracles).
As part of the agreement with True Return Systems, DEF purchased the patent in question and TRS dismissed the ongoing litigations against Compound Protocol and Maker DAO.
With the patent in hand, DEF will dedicate it to the public so that the patent can never again be used against those deploying oracle technology.
For more information, take a look at an X thread on the matter.
Countering the SEC’s War on Privacy
On August 23, DEF, alongside the Blockchain Association, submitted an amicus brief in support of a challenge to the SEC’s Consolidated Audit Trail (CAT), the largest government-mandated mass collection of personal financial data in American history.
Our amicus brief argues, among other things that there is a significant risk that the CAT is a honeypot, especially given the fact that data breaches are on the rise, writing, “data submitted to the CAT database will be divulged to outside parties, through accidents, or nefarious exploits.”
Analyzing Recent SCOTUS Rulings and their Impact on Crypto
In August, DEF legal intern Jonathan Obeda published a blog post providing a deep dive into this summer’s series of SCOTUS decisions affecting administrative and regulatory law. Looking at cases including, Loper Bright Enterprises v. Raimondo, Securities and Exchange Commission v. Jarkesy, and Corner Post, Inc. v. Board of Governors of the Federal Reserve System, Obeda discusses the impact these cases will have on regulatory agencies as well as the likely effects on the digital asset industry.
Read the blog here.
August Financial Disclosures
We are continuing to share a more detailed look into our financial disclosures. You can find the August 2024 breakdown below. If you would like to look at our 2024 financial breakdowns, please click here.
Donations Received | $212,523 |
Grants | |
Lobbyists | $40,000 |
Public Relations | $7,854 |
Policy Litigation | $124,670 |
Marketing | |
Merchandise | |
Operating Expense | $9,359 |
Payroll and Associated Taxes | $130,590 |
Professional Fees | $125 |
Accounting | $6,150 |
Legal | |
Other Consultants | $4,000 |
Transacting Fees | $2,050 |
Insurance | $4,647 |
Tax & Licenses | |
Other Overhead | $3,620 |
August Media
Print/Online
The Blockchain Association and the DeFi Education Fund say the U.S. Securities and Exchange Commission's newly operational database poses privacy concerns for millions and could loop in digital assets.
Capitol Account: CAT Fight: Legal Challenge to SEC's Stock Trading Database Draws Support
Crypto wasn’t mentioned in the regulations that set up the CAT. But the Blockchain Association and the DeFi Education Fund note that the commission under Gensler has moved (via enforcement cases and rulemakings) to categorize some market participants as brokers or dealers or exchanges. So it's not a leap to assume token transactions would need to be reported to the database. That, the trade groups’ brief argues, could include providing details that link wallet addresses to the names of their owners – a situation that would have massive privacy implications.
Blockworks’ On the Margin: The SEC’s ‘unconstitutional’ collection of trading data
The Blockchain Association (BA) and its sister organization, the DeFi Education Fund (DEF), agree. The crypto lobbyist groups filed an amicus brief last week in support of class action defendants, furthering that Rule 613 has even more detrimental effects on the crypto industry.
Blockworks: DEF purchases patent at center of suits against MakerDAO and Compound
The DeFi Education Fund said it purchased a patent from True Return Systems that will end litigation against MakerDAO and Compound Protocol.
The patent in question is a “method and system for separating storage and process of a computerized ledger for improved function.” The patent was approved by the US Patent and Trademark Office back in 2018.
Law360: DeFi Org Inks Deal To Get Crypto Patent Suits Dropped
Cryptocurrency advocacy group the DeFi Education Fund on Monday announced it reached an agreement with a blockchain solutions firm it accused of "trolling" a pair of decentralized crypto protocols, purchasing the patent at issue and dedicating it to the public in return for a dismissal of the suits.
Decrypt: Patent at Crux of MakerDAO Lawsuit Purchased, Ending Crypto Tech Dispute
The DeFi Education Fund (DEF) on Monday reached an agreement with True Return Systems (TRS) to purchase a patent for oracle-like technology. The disputed patent was at the heart of two legal complaints against MakerDAO and Compound, a pair of decentralized finance protocols.
Blockworks’ Empire Newsletter: DeFi the patent trolls
The patent wording itself is admittedly vague, something that the DeFi Education Fund was quick to point out when it filed an Inter Partes Review challenge with the USPTO.
Cointelegraph: DEF buys patent to stop lawsuits against MakerDAO and Compound
The DeFi Education Fund (DEF) purchased a patent owned by True Return Systems (TRS) that was the basis of lawsuits against decentralized autonomous organizations MakerDAO and Compound Protocol for infringement.
Cointelegraph: Crypto advocates file brief against SEC's investor tracking database
The DeFi Education Fund and the Blockchain Association jointly filed an amicus brief in a case brought by two individuals and the New Civil Liberties Alliance (NCLA) against the United States Securities and Exchange Commission (SEC), its chairman Gary Gensler and the Consolidated Audit Trail (CAT). The complaint does not mention cryptocurrency or blockchain, but the organizations argue that the CAT could have a profound negative effect on crypto users.
For up-to-date information about what’s happening in D.C. and what we are up to, please follow us on Twitter @fund_defi and subscribe to our Substack.
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