House Passes "Broker" CRA; Stablecoin Progress; SEC Exchange Rulemaking; OCC Banking Guidance

The DeFi Debrief Week of March 18

Bipartisan Supermajority in the House Passes “Broker” CRA

On March 11, a bipartisan supermajority in the House of Representatives passed H.J. Res. 25, a joint resolution introduced by Representative Mike Carey (R-OH) to disapprove of the DeFi portion of the Internal Revenue Service’s (IRS) “Broker Rule.” The resolution passed the House 292-132, with 76 Democrats voting for the legislation.

On March 4, the Senate also passed companion legislation, which was expressly endorsed in a Statement of Administration Policy (SAP) released by the White House Crypto and AI Czar David Sacks.

As DEF has previously explained, the “Broker” rulemaking is an unlawful and unconstitutional attack on DeFi developers, users, and the US crypto industry broadly, and is a direct threat to the promise of DeFi.

DeFi Education Fund applauds the bipartisan supermajority of Members in Congress who recognized the need to push back against regulatory overreach to protect Americans' freedom to choose how they transact and American innovation. The supermajority vote underscores rapidly growing pro-crypto bipartisan support in Congress, and the need for clear regulation that respects disintermediation.

Next, the legislation will move back to the Senate for another vote, as all revenue bills must originate in the House.

Congress Moves Forward Stablecoin Legislation

House Financial Services Committee Holds Hearing on Stablecoins & CBDCs

The 119th Congress continues to progress on stablecoin legislation, one of the first legislative priorities outlined in the administration’s crypto roadmap.

On March 11, the House Financial Services Committee (HFSC), chaired by Representative French Hill (R-AR), held a hearing titled “Navigating the Digital Payments Ecosystem: Examining a Federal Framework for Payment Stablecoins and Consequences of a U.S. Central Bank Digital Currency” to discuss proposed regulatory frameworks for stablecoins and legislation to prohibit the issuance of an American central bank digital currency (CBDC).

At the center of discussion was the Stablecoin Transparency and Accountability for a Better Ledger Economy Act (STABLE) Act, which was presented in February 2025 by Chairman Hill and Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee Chairman Bryan Steil (R-WI). Throughout the hearing, witnesses highlighted the significance of stablecoins in reinforcing the dollar’s dominance as the world’s reserve currency, lowering U.S. borrowing costs, and enhancing American economic leadership.

Senate Banking Committee Passes GENIUS Act

The Senate Banking Committee (SBC) passed stablecoin legislation out of Committee. On March 13, SBC held a markup of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, the Senate’s proposed bipartisan stablecoin regulatory framework.

Prior to the markup, cosponsoring Senators Bill Hagerty (R-TN), Tim Scott (R-SC), Cynthia Lummis (R-WY), Angela Alsobrooks (D-MD), and Kirsten Gillibrand (D-NY) released an updated draft of the legislation. The legislation included an amended definition of “payment stablecoin” and broad provisions extending regulatory requirements and prohibitions on the trading of unauthorized foreign payment stablecoins in secondary markets, potentially implicating DeFi market participants as “digital asset service providers.” This is something the DEF is tracking closely.

SBC passed the legislation 18-6, with all Committee Republicans and 6 Committee Democrats voting in support. The legislation will now proceed to the Senate floor for debate and voting.

DeFi Education Fund applauds the Senate’s efforts to provide the crypto industry with greater regulatory clarity. The Committee vote underscores the bipartisan desire in Congress to provide clear rules of the road for the industry and enhance consumer protections.

SEC Not Moving Forward with “Exchange” Rulemaking

The Securities and Exchange Commission (SEC) is reportedly moving away from its proposal to require crypto firms, including DeFi protocols and projects, to register as trading systems, further signaling the shift in regulatory approach under Acting-Chair Mark Uyeda. The 2022 proposal aimed to expand the definition of exchange to cover vastly more crypto projects and participants. DEF filed three comment letters relating to the proposed rule in April 2022, June 2022, and June 2023.

In a recent speech, Chair Uyeda acknowledged that with regard to the proposed rule, the “definition of the term ‘exchange’ included ‘communications protocols’ without clearly defining what that term meant” and “[e]ffectively, the vastly expanded definition of an ‘exchange’ would have picked up various protocols used with respect to crypto assets.” Therefore, the Chairman has “asked SEC staff for options on abandoning that part of the proposal.”

For DeFi, this reversal is significant; the original proposal posed a major threat to decentralized protocols which would have subjected them to compliance burdens that are incompatible with their infrastructure. When the SEC formally abandons the effort, it will alleviate immediate concerns that DeFi protocols and projects will be forced into traditional exchange registration frameworks.

The DeFi Education Fund is grateful to Acting-Chair Uyeda for recognizing the technological realities of decentralized networks.

OCC Rescinds Anti-Crypto Banking Guidance

On March 7, the Office of the Comptroller of Currency (OCC) took action to reduce the burden on banks seeking to engage in various crypto activities. Interpretive Letter 1183 rescinded a previous interpretive letter requiring banks to demonstrate adequate controls and receive supervisory nonobjection before engaging in certain permitted crypto activities. The Letter also reaffirmed the OCC’s stance that banks are permitted to engage in certain activities, including providing crypto asset custody services, holding dollar deposits serving as reserves backing stablecoins, acting as nodes on a distributed ledger, and facilitating stablecoin payment transactions on a distributed ledger.

The Letter represents a positive shift in the OCC’s regulatory approach to crypto and blockchain. Acting Comptroller of Currency Rodney Hood explained that the Letter “will reduce the burden on banks to engage in crypto-related activities and ensure that these bank activities are treated consistently by the OCC, regardless of the underlying technology.” In other words, the OCC has taken the stance that banks should not need to meet different control standards solely because they seek to engage in activities that leverage blockchain technology.

DEF commends the OCC’s technology-neutral efforts to support blockchain innovation in banking, while ensuring these activities are conducted in a safe, sound, and compliant manner.

The DeFi Education Fund Team Update

The DeFi Education Fund Announces Leadership Transition

DeFi Education Fund (DEF) is thrilled to announce that Amanda Tuminelli has been appointed as Executive Director, effective March 17, 2025. Amanda will also remain DEF’s Chief Legal Officer.

Amanda succeeds Miller Whitehouse-Levine, who is stepping down to pursue a new, to-be-announced opportunity. Miller has joined the Board of DEF and will continue to be an advocate for DeFi. We wish Miller all the best and thank him for his years of leadership in protecting the DeFi industry.

Risley v. Uniswap Ruling: A Massive Win for DeFi

Last week, DEF published an analysis of the recent Second Circuit Court of Appeals ruling in Risley v. Universal Labs (Uniswap), where the court held that Uniswap could not be held liable for third-party transactions using the Uniswap protocol’s smart contracts. “The Risley decision is a major win for DeFi because it reinforces the distinction between decentralized platforms for peer-to-peer transactions and the actual creators or sellers of tokens." Read the full analysis [HERE].

DAOs at Work: How Blockchain-Powered Organizations Are Driving Change

Last week, DEF released a blog outlining many of the positive use cases of operating DAOs. The blog explores how many DAOs with the most beneficial impacts on the world are underrepresented in popular discourse about DAOs. The blog post delves into the various impacts these DAOs have on the communities they serve and advance. Read the full blog post [HERE].