Safeguarding the Creators of DeFi Infrastructure

Welcome to Crypto Long & Short, your institutional newsletter for insights into the world of cryptocurrency. This week, we delve into the crucial topic of safeguarding the creators of DeFi infrastructure. As traditional finance companies increasingly embrace DeFi-related initiatives, it's essential to protect the technology and infrastructure that underpin this innovative field. Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, emphasizes the need to defend high-level policy objectives that support the growth of DeFi. One key area of focus is software developer protections, as seen in the recently introduced Promoting Innovation in Blockchain Development Act of 2026. This bipartisan bill aims to protect software developers from misclassification under criminal code, ensuring they are not unfairly treated as criminals. Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, analyzes Ethereum's scaling problem, arguing that the rollup model was flawed from the start. He suggests that state channels offer a more effective solution, allowing participants to transact peer-to-peer off-chain and eliminating the need for intermediaries. As the crypto landscape continues to evolve, it's crucial to support legislative and regulatory initiatives that foster clarity, reduce uncertainty, and enable responsible participation in both centralized and decentralized markets. Join us in defending the policy principles that make building and using DeFi possible.