According to them:
“A safe harbor would provide much-needed regulatory clarity to developers of user interfaces and ensure that they can build in the United States without fear of the misapplication of laws inappropriate for modern software infrastructure.”
DeFi Education Fund stated that the proposal focuses on apps that function as technical infrastructure. These apps let people initiate their blockchain transactions and interact with smart contracts.
Under these guidelines, the platform would allow users to execute transactions independently, without taking custody of assets, exercising discretion over trade execution, or soliciting investments.
While dApps could still employ tools like routers or solvers to improve efficiency, the user would retain final approval over every transaction.
Additionally, qualifying dApps must operate on blockchain networks or smart contracts that are non-custodial, permissionless, and free from control-based trust dependencies.
Both entities argued that these criteria would set expectations for developers and reduce accidental violations. They also stressed that decentralization unfolds in stages, as projects often start with tighter safety controls and then hand off authority as they mature.
If the regulators force rigid rules too early, teams may rush changes, introduce security gaps, or halt progress altogether. Considering this, they urged the regulator to give concessions to platforms actively moving toward decentralization.
They noted that this coverage would encourage teams to adopt open, non-custodial designs and avoid penalizing them during transition, when they still have some operational responsibilities.
These high-profile cases have amplified concerns across the crypto community about the growing legal pressures facing decentralized protocol developers.
