The DeFi Education Fund launches the DeFi Education Foundation to receive tax-deductible donations, supporting lawmakers' education on the legal framework for digital assets.
The DeFi Education Fund (DEF), one of the largest lobbying groups in Washington focused on decentralized finance, announced the establishment of the DeFi Education Foundation on Wednesday. This new nonprofit organization aims to support the education of lawmakers in the process of building a legal framework for the entire cryptocurrency industry.
According to Jennifer Rosenthal, DEF's Director of Communications, this is a critical moment for digital asset laws and policies, and the important work of DEF for the future of DeFi can only be accomplished with support from advocates. The nonprofit will provide opportunities for donations with charitable incentives, allowing donors to take advantage of tax benefits.
Jason Schwartz, tax partner at Cahill NXT, explains that direct donations to charities can 'avoid capital gains tax and allow deductions at fair market value.' This creates significant financial incentives for individuals and organizations wanting to support educational efforts about DeFi.
The complex legal landscape for DeFi
The launch of the nonprofit comes amid DeFi facing numerous legal challenges. Recently, a jury found Tornado Cash founder Roman Storm guilty of conspiracy to operate an unlicensed money transfer service, setting a troubling precedent for DeFi developers.
DEF maintains the view that the software developers of 'non-custodial peer-to-peer protocols' do not control or hold users' assets, therefore cannot be viewed as businesses providing money transfer services. This stance becomes increasingly important as regulators seek to determine the legal responsibilities of participants in the DeFi ecosystem.
The organization has called on Republican Senators, who are building comprehensive legislation to regulate the cryptocurrency industry, to carefully consider how to regulate DeFi. DEF also urged the U.S. Securities and Exchange Commission (SEC) to establish a 'safe harbor' for certain blockchain applications as the agency rolls out the 'Crypto Project' to update the regulatory framework.
The new nonprofit will be led by Tuminelli (Executive Director of DEF), Greg Xethalis from Multicoin Capital, and Michael Mosier, co-founder of Arktouros PLLC. The presence of experienced figures in both investment and legal fields shows that DEF is preparing for an organized education and lobbying campaign.
