Anti-DeFi organizations run TV ads, pressuring senators to pass crypto legislation that "excludes DeFi"

On January 10th, an anti-DeFi interest group is running ads on Fox News in the United States, urging the public to pressure their state senators to pass cryptocurrency market structure legislation that does not include DeFi-related provisions. A screenshot shared by crypto journalist Eleanor Terrett on the X platform on Friday shows that the organization “Investors For Transparency” states in the ad: “Tell your senator: Pass crypto legislation without DeFi provisions,” along with a hotline number for viewers to contact their senator’s office directly. The ad also reads: “Don’t let DeFi hinder innovation.” The statement is believed to echo the core concerns of the banking industry lobbying groups, namely that the CLARITY Act might allow stablecoin issuers to offer interest-bearing products, similar to bank deposits, thereby threatening the traditional banking system. The U.S. Department of the Treasury estimated in April this year that if stablecoins are widely adopted, up to $6.6 trillion in deposits could flow out of the traditional banking system. At the time of the ad campaign, the U.S. Senate Banking Committee announced that it will hold a revision hearing on the CLARITY Act this Thursday, January 15th, at 10 a.m. Eastern Time. The anti-DeFi campaign has sparked discontent within the crypto industry. Hayden Adams, CEO of Uniswap Labs, stated that the organization opposes DeFi while also not disclosing its members or funding sources, describing this approach as “both ironic and unsurprising.”