Crypto Journalist

Amin Ayan

Crypto Journalist

Amin Ayan

About Author

Amin Ayan is a crypto journalist with over four years of experience in the industry. He has contributed to leading publications such as Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. He has…

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Last updated: 

August 2, 2025

The DeFi Education Fund (DEF), a policy advocacy group backed by an early Uniswap grant, has called on the US Senate Banking Committee to take a more measured approach to DeFi regulation.

In a formal response to the draft Responsible Financial Innovation Act of 2025 (RFIA), DEF and a coalition of top crypto firms outlined a framework they believe can safeguard innovation without undermining national security or consumer protections.

The response was co-signed by a16z Crypto, Jito Labs, Jump Crypto, Paradigm, Multicoin Capital, Solana Policy Institute, Uniswap Foundation, Uniswap Labs, and Variant Fund.

DEF Calls for Clear DeFi Rules, Developer Protections in Senate Response

The DEF’s response pushes for four key pillars, including distinguishing between DeFi developers and intermediaries, defining which entities are required to register with federal authorities, setting decentralization criteria, and ensuring technology-neutral rulemaking.

These suggestions come amid the Senate’s call for public feedback on the RFIA, which builds on the earlier CLARITY Act.

Lawmakers say they aim to strike a balance between market growth and financial oversight, but DEF argues that a nuanced understanding of decentralized systems is essential.

One of the more urgent issues raised in the letter involves the ongoing federal case against Tornado Cash developer Roman Storm.

DEF criticizes current FinCEN guidance used in the prosecution, warning that treating non-custodial software code as a financial service sets a dangerous precedent.

“Software that does not take custody or control should not be regulated as an intermediary,” DEF states, urging legislative clarification.

The coalition also emphasized the need for federal preemption to override conflicting state laws.

According to DEF, without preemption, well-funded traditional financial players could exploit state-level loopholes to target DeFi developers and suppress emerging competition.

Andreessen Horowitz Flags Gaps in Draft Crypto Bill

On Thursday, Andreessen Horowitz (a16z) also urged US lawmakers to revisit and revise the draft crypto regulation bill, warning that the current proposal could open legal loopholes and weaken investor protections.

While the draft seeks to clarify the regulatory landscape for digital assets, a16z argues that the framework as written poses legal and structural risks, especially around the treatment of “ancillary assets.”

Ancillary assets refer to digital tokens sold alongside investment contracts, typically without providing buyers with equity, dividends, or governance rights.

a16z said using this category as the foundation for new legislation “without significant modifications” is problematic.

The firm believes this structure contradicts the Howey test, which is the longstanding legal standard for determining whether an asset qualifies as a security under U.S. law.

“Rewriting Howey,” the letter stated, “would depart from settled law and endanger investor protections.”

Instead, a16z supports the CLARITY Act’s narrower definition of “digital commodities” and recommends codifying a control-based decentralization model.

This would assess whether any party retains unilateral control, operational, financial, or governance, over a blockchain system.

According to the firm, decentralization should mark the point at which an asset transitions from a security to a commodity.

Solana shows strong bullish signs supported by moving average, volume, and momentum indicators. Rally.

What the Bulls need to see to maintain the rally

with x postGEMXBT said the Solana 1-hour chart shows a bullish market structure, with price trading above the 5, 10 and 20-day moving averages. The signs of a short-term moving average indicate that the buyer is in control. Recent price action is supported by notable volume spikes, which checks the strength behind the upward movement and adds reliability to the rally.

Related readings

key resistance It’s around $154, when Sol had previously faced sales pressure. This zone determines whether bullish momentum can increase the price. On the downside, support sits near $150. This acts as a cushion to absorb immediate sales pressure and prevent deeper pullbacks.

The relative strength index (RSI) is approaching the territory that was acquired. This may indicate that the asset is due to the period of consolidated or sideways movement before continuing the climb. Meanwhile, moving average convergence divergence (MACD) has recently shown bullish crossovers, suggesting that upward trends could continue when buying interest.

Crypto Investor and Trader Theodor Coin It was revealed The Solana 1 hour chart shows a clear recovery after the DIP seen in early July. Open profits are on the rise, currently exceeding $3.62 billion.

The increase here usually indicates a growing trader market Engagement is a precursor to increased volatility and significant price movements. From here, A breakout that exceeds the $154 resistance could unleash a strong rally supported by growing market interest and positive momentum.

The uptrend line remains the same. It’s a positive sign

Also known as Day on X. update Solana holds it for longer than long term support The level was a lary launchpad with an area of ​​about $120 on the weekly chart.

Related readings

Long-term uptrend line It’s still Undamaged, each one gets higher, and the case with large cup and handle patterns becomes stronger. However, this pattern will not be seen until Sol surpasses its $250 important resistance zone. This is the level that limits price action during the previous rally.

If Sol breaks out beyond the $250 zone, you can unlock the $500 measured transport price target. milestone Solana recovers and expands. Analysts also noted that Sol is not there yet, and that the Bulls’ first step is regaining a $185 resistance level.

Featured images from ISTOCK images, charts on tradingView.com