Banking Lobby Runs Prime-Time Ads Against DeFi

 Anti-DeFi organization calls on senators to strip crypto bill of DeFi provisions with Fox News advertisements before key committee votes next week. 

The advertisements were aired in prime time by an unknown advocacy group against DeFi provisions in upcoming crypto billing. The advertisements were shown on Fox News a few days before crucial Senate votes.  

Eleanor Terrett on X writes that Investors For Transparency is advertising against the DeFi components. The group has offered a hotline number that the viewers can use to call senators directly.  

Source: Eleanor Terrett 

Mystery Group Targets Banking Committee Vote

The Senate Banking Committee planned to mark up its CLARITY Act on Thursday, January 15. Chairman Tim Scott declared that the committee will proceed with digital asset laws.  

Scott intends to provide explicit regulations that safeguard Main Street investors, as BankingGOP tweeted on X. The act aims at maintaining innovation within the country and protecting national security.  

Source: U.S. Senate Banking Committee GOP

The commercials instruct the audience to enact crypto laws without DeFi clauses. Banking lobbyists are nervous that issuers of stablecoins will be able to suck out conventional deposits by offering interest-bearing products.  

This is estimated by treasury data to be 6.6 trillion, leaving banking systems with widespread adoption of stablecoins. This is an issue that leads to the rejection of DeFi elements within market structure bills.  

Industry Voices Slam Anonymous Campaign

Uniswap Labs CEO Hayden Adams condemned the anonymity of the group. He described it as ironic that Investors For Transparency is the campaign that opposes DeFi and conceals sources of funding.  

The crypto community showed an aggravation with the banking lobbying. Conflict-of-interest protections, in the legislation, are purportedly advocated by democratic lawmakers.  

The Washington Research Group of TD Cowen predicts that the bill will not be passed until 2027. The implementation may extend into 2029 during the midterm election issues.  

The use of DeFi is still hotly debated by legislators and market participants. The acclaimed final language will be shown by the banking committee before the Thursday markup.

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