The firm, alongside the Blockchain Association, DeFi Education Fund, and Texas Blockchain Council, has filed a legal challenge, arguing that these new broker rules threaten the U.S. digital asset industry’s future.
In a Dec. 30 post on X, Michele Korver, A16z Crypto’s head of regulation, announced support for the lawsuit. The DeFi Education Fund described the regulations as tantamount to a DeFi ban, saying they undermine the potential of decentralized finance and digital assets.
Korver stated that A16z views the rules as a major threat to DeFi innovation, labeling them “midnight” regulations that overstep the Treasury’s statutory authority, violate the Administrative Procedure Act, and are unconstitutional. A16z believes the new rules could hinder the development of a more inclusive and efficient financial system that DeFi promises.
A16z is committed to defending DeFi through legal challenges, legislative advocacy, and engagement with policymakers. Korver reassured developers that industry lawyers are actively working to protect the technology. “We will keep fighting on all fronts – in the courts, and with the help of Congress and the incoming executive branch,” she said.
Echoing these concerns, Uniswap founder Hayden Adams criticized the rules as a deliberate effort to stifle DeFi at the end of the current administration. He expressed hope that they would be overturned through legal and legislative processes.