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Here’s what the DeFi Education Fund (DEF) has been up to in December 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.
Challenging IRS Broker Rule
On December 27, 2024, DEF, alongside the Blockchain Association, and the Texas Blockchain Council filed a lawsuit in the U.S. District Court for the Northern District of Texas, challenging the IRS and Treasury Department’s final “broker” midnight rulemaking on the basis that the rulemaking exceeds the agencies’ statutory authority, violates the Administrative Procedure Act (“APA”), and is unconstitutional.
The rule finalized by the IRS on the same day would essentially create a new category of broker that will treat front-end providers (and in some cases, devs of unhosted wallet apps) as “brokers,” exceeding the historical, common sense, and reasonable understanding of the term.
Our suit seeks the following relief:
A declaratory judgment that the Rule is arbitrary, capricious, or otherwise contrary to law within the meaning of the APA;
An order vacating and setting aside the Rule in its entirety pursuant to the APA; and
An order enjoining Treasury from enforcing the Rule against Plaintiffs’ members and other digital assets industry participants.
For more information on the suit, check out the following resources:
Co-Authoring a Paper on Section 1960
In early December, DEF’s Amanda Tuminelli, along with Variant’s Jake Chervinsky and Daniel Barabander, coauthored an article in the International Academy of Financial Crime Litigators exploring the complexities of 18 U.S.C. § 1960, a U.S. statute criminalizing unlicensed money transmission.
The piece critiques recent prosecutions of noncustodial blockchain software developers, arguing that §1960 requires proof that a business both obtains and relinquishes control over funds, a condition that blockchain-based protocols often do not meet.
Furthermore, the authors advocate for a more precise legal framework to distinguish between legitimate blockchain activities and money transmission, suggesting that statutory amendments are needed to clarify criminal liability under §1960.
Check out the full article at the link, and be sure to check out Amanda’s interview with Unchained Crypto talking about the paper.
Opposing the Re-Confirmation of Caroline Crenshaw to the SEC
On December 9th, DEF alongside the Blockchain Association, sent a letter to Senators Tim Scott and Sherrod Brown opposing the re-confirmation of Caroline Crenshaw to be a commissioner of the SEC.
As we stated in the letter, “Congress has a clear mandate from the American people to establish sound and reasonable cryptocurrency-related policies. Unfortunately, Commissioner Crenshaw’s tenure at the SEC has been marked by actions that seem to be at odds with this charge.”
Ultimately, a few days after, the Senate decided not to take up the re-confirmation of Crenshaw, a win for the digital asset industry.
2024 Year in Review
As we have in years past, right before the holiday season, DEF published our 2024 year in review.
As we stated in the note, “tides seem to be shifting,” and we could not be prouder to “have taken the fight directly to the courts, regulatory agencies, and Capitol Hill.”
Take a look at our year in review for a more detailed overview of our work in 2024 as well as some insights into what we have planned for 2025.
December Financial Disclosures
We are continuing to share a more detailed look into our financial disclosures. You can find the December 2024 breakdown below. If you would like to look at our 2024 financial breakdowns, please click here.
Donations Received | $100,098 |
Grants | |
Lobbyists | $40,000 |
Public Relations | $7,500 |
Policy Litigation | $25,000 |
Marketing | |
Merchandise | |
Operating Expense | $16,693 |
Payroll and Associated Taxes | $120,814 |
Professional Fees | |
Accounting | $6,335 |
Legal | $1,811 |
Other Consultants | $5,000 |
Transacting Fees | $5,820 |
Insurance | $1,953 |
Tax & Licenses | |
Other Overhead | $8,083 |
December Media
Print/Online
MarketWatch: David Sacks and the coming crypto war over national security
“The national-security-related policy issues are going to be some of the stickier ones, but are ripe for debate at this point,” Miller Whitehouse-Levine, chief executive of the DeFi Education Fund, told MarketWatch...Levine said that the “Sacks appointment signals the incoming administration’s intent to pivot from the Biden administration’s hostile stance on crypto,” but added that there is yet no consensus on how the Trump administration should approach national-security concerns over crypto.
Fox Business: Crypto lobby targets SEC’s Crenshaw ahead of Senate committee vote
On Monday, CEOs of industry trade groups Blockchain Association and DeFi Education Fund penned a joint letter to Senate Banking leadership opposing Crenshaw's reconfirmation.
"Congress has a clear mandate from the American people to establish sound and reasonable cryptocurrency-related policies," they wrote. "Unfortunately, Commissioner Crenshaw's tenure at the SEC has been marked by actions that seem to be at odds with this charge."
Law360: Crypto Groups Rally Against Reappointing SEC's Crenshaw
The Blockchain Association and the DeFi Education Fund said Monday they have sent letters to Senate Banking Chair Sherrod Brown, D.-Ohio, and Ranking Member Tim Scott, R.-S.C., arguing Crenshaw's actions on the commission have "undermined Congress's clear mandate to establish sound regulatory policies for crypto."
"Congressman Hill has been a staunch advocate for sound digital assets policy, having led the Subcommittee on Digital Assets, Financial Technology, and Inclusion over the past two years," the DeFi Education Fund said in an emailed statement on Thursday. "We look forward to continuing our work with Chairman Hill to establish much-needed regulatory clarity while safeguarding the rights of software developers and DeFi users in the United States."
The Block: New Congress, new crack at crypto legislation: what's up next on the Hill in 2025
When asked if a stablecoin bill could be passed into law in 2025, DeFi Education Fund CEO Miller Whitehouse-Levine said it was a slim chance.
"Hope springs eternal," he said, giving the bill a 25% in 2025 and a 75% chance of passing in 2026
The Block: What's next at the SEC in a post-Gary Gensler era
If the current SEC doesn't adopt Regulation ATS ahead of Trump's inauguration, it's still up to the SEC on whether to move forward with that rule, said Miller Whitehouse-Levine, CEO of the DeFi Education Fund, in an interview.
Bloomberg Law: Crypto Backers Sue IRS for Decentralized Exchange Final Rule
The rule exceeded the Treasury Department’s authority in violation of the Administrative Procedure Act by, among other things, expanding the definition of broker, the lawsuit filed in the US District Court for the Northern District of Texas said. DeFi Education Fund and Texas Blockchain Council are also plaintiffs.
POLITICO Pro: Crypto, DeFi industry groups sue over new reporting regulations
The Blockchain Association, the DeFi Education Fund and the Texas Blockchain Council allege that Treasury and the IRS committed numerous violations of the Administrative Procedure Act, which guides federal rulemaking.
Podcasts
Unchained Crypto: Are Money Transmission Laws Putting Crypto Developers at Risk?
Unchained regulatory reporter Veronica Irwin sits down with Amanda Tuminelli, chief legal officer of the DeFi Education Fund, to discuss how U.S. money transmission laws are being applied to developers in cases like Tornado Cash. Tuminelli explains the stakes of Section 1960, the importance of custody and control, and how differing interpretations of law are creating uncertainty for crypto innovation.
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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