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Crypto Bill Under Fire: Ads Rally Public to Lobby Senators Against DeFi Crackdown

Crypto Bill Under Fire: Ads Rally Public to Lobby Senators Against DeFi Crackdown

Author:
Bitcoinist
Published:
2026-01-11 05:00:42
12
2

Washington's latest crypto legislation faces a grassroots rebellion—and the battle just went prime time.

The Ad Blitz That's Turning Up the Heat

Forget backroom deals. A coordinated advertising campaign is flooding airwaves and social feeds, urging everyday citizens to pressure their senators. The target? A proposed bill that takes direct aim at the decentralized finance (DeFi) ecosystem. The message is stark: this legislation doesn't just regulate—it threatens to stifle innovation and hand control back to the very institutions crypto sought to bypass.

Why This Bill Has the Community on Edge

The draft rules push for stringent know-your-customer (KYC) and anti-money laundering (AML) protocols on DeFi protocols. Critics argue this is a fundamental mismatch—like demanding a library card for a public park. The core tech, built on open-source smart contracts, lacks a central entity to enforce such rules. Compliance, they warn, would mean rebuilding DeFi in Wall Street's image, negating its permissionless promise.

The Lobbying War Goes Public

This ad campaign marks a strategic shift. Instead of just industry insiders making calls, it's mobilizing the crypto-holding public—a voting bloc that's growing in number and economic stake. The call to action is simple: contact your senator, voice your opposition, and protect financial sovereignty. It's a direct challenge to the traditional finance playbook, where rulemaking often happens far from public scrutiny.

The Stakes for the Future of Finance

At its heart, this is a clash of philosophies. One side sees unregulated code as a systemic risk; the other sees regulated code as an oxymoron. The outcome will set a precedent for how nations govern borderless, algorithmic finance. Will the U.S. nurture this sector or force it to conform to frameworks designed for a pre-blockchain era? The ads are betting that public pressure can tip the scales.

As one spot quips, 'The only thing more decentralized than DeFi might soon be the political pressure against this bill.' A cynical take? Perhaps. But in the high-stakes game of financial regulation, sometimes the best defense is a very loud, very public offense.

Ad Campaign Targets Lawmakers With Hotlines And Numbers

According to reports, the ads warn of broad risks if DeFi is folded into federal law. They cite a figure — $6.6 trillion — that has been used in public discussion about how much in bank deposits might be affected if stablecoins gain wide acceptance with interest-like features.

The ads urge people to call Senate offices and push senators to strip DeFi provisions from the CLARITY Act ahead of a scheduled markup on January 15, 2026. Phone numbers and a web address are shown in the ads, encouraging immediate contact.

A new advocacy group, ‘Investors For Transparency,’ is running prime-time ads on @FoxNews, urging viewers to oppose DeFi provisions in the upcoming crypto market structure bill just a week before senators are due to cast votes on it in relevant committees next week. The treatment… pic.twitter.com/jsZ3GcDuVX

— Eleanor Terrett (@EleanorTerrett) January 10, 2026

Senate Timetable And Political Pressure

Based on reports, the CLARITY Act is set for consideration by the Senate Banking Committee, and committee members are getting calls from both sides. Senate Banking Committee Chair Tim Scott has said he expects the committee to MOVE on crypto legislation, and senators are weighing how to balance investor protections with innovation.

Outside groups and industry players have ramped up outreach. Some hope the bill moves quickly, while others see the political heat as likely to slow progress.

Crypto: Industry Response And Questions About Funding

Crypto firms and DeFi supporters have pushed back. Hayden Adams, CEO of Uniswap Labs, publicly criticized the group’s name as misleading and questioned who is funding the ads.

Based on public filings and media reporting, no clear single donor has been identified that explains the scale of the TV buy. Industry leaders say that a campaign attacking DeFi while claiming to speak for investors should disclose its backers.

The ads’ emphasis on bank-deposit risk has been called overstated by some market watchers, who argue that the figures are speculative and depend on many assumptions.

What The Campaign Wants And What It Means

Reports say that the ads want senators to approve a version of the CLARITY Act without language covering decentralized finance platforms or new stablecoin rules that could allow interest-like yields.

Supporters of that view say the rules WOULD protect the traditional banking system from a sudden outflow of deposits. Opponents say excluding DeFi would lock in regulatory uncertainty and hurt US competitiveness in an area where developers and users already operate globally.

Featured image from Unsplash, chart from TradingView

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