Illinois’ proposed digital asset tax rules could have serious consequences for DeFi, self-custody, and crypto users. Today, @fund_defi, @a16z, and @Uniswap submitted a letter urging Illinois regulators to reconsider several aspects of the proposal. Illinois should not impose obligations on software that it cannot possibly satisfy or penalize users for exercising control over their own assets. Our comments, featured in @Politico this AM, urge the Department to preserve the distinction between actual financial intermediaries and non-custodial infrastructure, protect self-custody, and align its rules with federal law. 🧵

Commissioner @HesterPeirce's Statement on Today's @SECGov Innovation Exemption Order is one of the best characterizations of DeFi we've ever seen. "What does the order not do? This order is not about decentralized finance. Truly decentralized systems that are driven by automated software do not give rise to the foundational concerns underlying securities regulation, namely that an intermediary you trust to act on your behalf will be foolish, careless, or compromised. An investor does not need an exemption to avail herself of permissionless smart contracts that mediate peer-to-peer trading." Thank you, Commissioner Peirce, for your tireless leadership defending the values that matter to builders of blockchain technology and DeFi systems.

@amandatums and I were honored to contribute to the foreword of @WalletConnect’s Report on the State of Policy, Compliance and Regulation and share @fund_defi’s vision for the future of global crypto policy. DeFi can unlock enormous benefits for people around the world. But realizing that potential requires getting the policy right: 1. protecting software developers and their freedom to build, 2. empowering users to control their own assets and access open financial networks, and 3. preserving the permissionless foundations that make blockchain and DeFi possible. The future of finance will be more open, digital, and user-controlled. Our job is to make sure policy enables that future.

Today, @fund_defi and @SolanaInstitute submitted comments to @FinCENnews on its proposed GENIUS Act customer identification rules. Our main message: CIP obligations should not apply to DeFi, decentralized blockchain infrastructure, or peer-to-peer crypto users. The GENIUS Act should not be implemented in a way that imports the same problems (and unnecessary friction inherent in traditional financial intermediaries) onto decentralized, non-custodial systems. The final rule should preserve clear protections for self-custody, secondary-market activity, validators, protocols, and other non-custodial infrastructure. We will continue to push to ensure GENIUS Act implementation protects decentralized blockchain infrastructure and crypto users.