The DeFi Education Fund has launched an official foundation to broaden its scope and influence. The new entity aims to increase public understanding and advocate for decentralized finance through research, education, and policy outreach.
The DeFi Education Fund, a crypto lobbying group, has officially launched its namesake foundation, according to a press release issued on August 13.
DeFi Education Fund Establishes a New Foundation
The DeFi Education Foundation will maintain its crypto advocacy efforts, as stated in the press release on Wednesday, while also providing benefactors with the opportunity to capitalize on “charitable giving incentives.”
“The DeFi Education Foundation (DEF) is a newly established 501(c)(3) nonprofit organization that is committed to the advancement of DEF’s mission to educate lawmakers about DeFi, protect software developers, and promote sound DeFi policy,” the press release states. We are delighted to announce its launch.
The organization further stated that the move would be a “net positive” for many DEF donors and that in-kind crypto donations to the DeFi Education Foundation would be a more tax-efficient method of supporting DEF’s mission.
“We are steadfast in our commitment to advancing our mission on behalf of the DeFi industry. However, with the establishment of this new entity, we can offer new benefits to our supporters,” the press release reads.
Navigating Crypto’s Regulatory Landscape
The foundation’s announcement coincides with its parent organization’s proposal to establish a “safe harbor” for blockchain-powered applications in the face of regulatory uncertainty, which was submitted to the Securities and Exchange Commission (SEC) by a16z.
One of the concerns is that the SEC’s previous approach could result in classifying blockchain app developers as brokers, which would impose onerous registration and compliance requirements.
A recent blog post on the DeFi Education Fund’s website stated that broker registration requirements for neutral apps would compel software developers to assume roles and responsibilities they had never considered, such as acting as gatekeepers, taking custody, and intermediating activity. These actions would undermine the benefits of blockchain systems and expose users to new risks.
The organization’s dual focus on advancing crypto advocacy and providing a tax-efficient method for supporters to support efforts addressing regulatory challenges like the SEC’s broker classification concerns is underscored by the foundation’s inauguration.