DEF’s New SEC Coalition Letter; House Committee on Homeland Security Holds ‘Online Scam’ Hearing; HFSC Holds Hearing Re: Effectiveness of U.S. Sanctions Programs; and more

DEF and Coalition of 35 Industry Leaders Ask SEC to Formalize Guidance on DeFi User Interfaces

On April 21, 2026, DEF, alongside a coalition of builders, investors, users, and advocates across the digital assets industry, submitted a letter to the Securities and Exchange Commission (SEC). The letter responds to the April 13 statement from the Division of Trading and Markets staff regarding the potential application of broker-dealer registration requirements to non-custodial user interfaces “designed to assist users engaging in user-initiated crypto asset securities transactions.” 

In our letter, we expressed support for the Staff’s thoughtful and pragmatic approach to distinguishing non-custodial user interfaces from activities that constitute broker-dealer activity, and encouraged the SEC to build on the principles in the Statement through notice-and-comment rulemaking to establish durable regulatory clarity.

You can see DEF’s X post here.

House Committee on Homeland Security Holds ‘Online Scam’ Hearing 

On April 21, 2026, the U.S. House Committee on Homeland Security held a joint hearing of the subcommittees on Border Security and Enforcement and Cybersecurity and Infrastructure Protection titled, “Online Scams, Crypto Fraud, and Digital Extortion: An Examination of How Transnational Criminal Networks Target Americans.”

During the hearing, subcommittee members and witnesses discussed the current landscape of online scams and the potential for related national security threats. In particular, several speakers highlighted the growing role of AI in enabling sophisticated fraud schemes, noting that the integration of AI presents a double-edged sword; while AI can facilitate more advanced scams, it may also serve as a tool for detection and prevention.

Notably, Ari Redbord, Global Head of Policy at TRM Labs, stated:

“The solution to the criminal abuse of AI is not to ban or stifle the technology. It is to use it and use it wisely… We live in an age where the private sector holds the data, while the public sector holds the authorities. Neither can confront this threat alone.”

Redbord described TRM’s Beacon Network (Beacon) as the largest public-private network dedicated to the interdiction of illicit proceeds and the recovery of stolen funds in the digital asset ecosystem. Beacon connects major crypto exchanges with approximately 70 law enforcement agencies across the United States and allied countries. 

You can watch a recording of the full hearing here. 

Federal Reserve Chair Nominee Kevin Warsh’s Nomination Hearing

On April 21, 2026, the Senate Banking Committee held a confirmation hearing to consider Kevin Warsh to serve as the next Chair of the Federal Reserve. During the hearing, members examined Warsh’s views on a range of financial policy issues, including the role of emerging technology in the financial system. On the topic of digital assets, Senator Cynthia Lummis (R-WY) asked: “Yes or no, do you believe that digital assets should be incorporated into our financial industry so Americans have new investment opportunities and consumer protections?”

Mr. Warsh responded affirmatively, noting that “digital assets are already part of the fabric of our financial services industry in the United States. Yes.” 

A recording of the full hearing is available here. 

DEF’s CEO on Coindesk Discussing SEC Statement on DeFi User Interfaces 

On April 17, 2026, DEF Chief Executive Officer & Chief Legal Officer Amanda Tuminelli joined CoinDesk’s The Policy Protocol, hosted by Rebecca Rettig and Renato Mariotti, to discuss the SEC’s staff statement on user interfaces (described above). Tuminelli explained that unlike a project-specific no-action letter, the staff statement is broader in scope and more widely applicable across similar user interfaces. Tuminelli also noted that while the statement is a major step forward, it remains temporary and subject to change because it reflects staff guidance rather than formal Commission action. As such, she emphasized the need to “formalize the criteria and principles in the staff statement into something more durable,” which is a key priority for DEF as it continues pushing for lasting, technology-neutral regulatory clarity for DeFi builders and users, consistent with our April 21st coalition letter (discussed above and here).

HFSC Hearing: Effectiveness of U.S. Sanctions Programs

On April 22, 2026, the House Financial Services Committee held a hearing entitled, “Evaluating the Effectiveness of U.S. Sanctions Programs,” which examined how current U.S. sanctions policy advances foreign policy and national security objectives. 

Jonathan Burke, Assistant Secretary for Terrorist Financing at the Department of Treasury, was the sole witness for the hearing. Digital assets surfaced as a recurring theme throughout the hearing, and Burke explained that adversaries are leveraging “increasingly sophisticated methods to evade sanctions including shadow fleets, shell companies, digital assets and alternative payment systems.” 

Committee members questioned Burke on the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, and Burke pointed to Treasury’s proposed stablecoin rules as the Administration’s primary framework for addressing crypto-related AML compliance. 

You can watch a recording of the full hearing here. 

Technically Legal Podcast Features DEF’s Senior Counsel and Discussion About Crypto Regulation

On April 16, 2026, DEF Senior Counsel Ayana Dow joined Chad Main on the Technically Legal Podcast to discuss her path through corporate law, financial services, and Congress before pivoting to crypto policy and advocacy. 

During the podcast, Dow spoke to DEF’s mission advancing sound DeFi policy, as well as her work on the issues defining the moment: GENIUS Act implementation, market structure, and software developer protections. 

On the state of play in Congress, Dow said: “I really see this as the years of rulemaking now that we’re in this – market structure obviously is a huge [overhaul] and has taken a lot of work, a lot of bipartisan talks from all sides and folks in the industry.” And, on interagency coordination, she noted that while harmonization between the SEC and CFTC has long been a stated goal, “this year is when we’re actually seeing it really play out.”

Listen to the full podcast episode here.

Notable and Quotable

“Bitcoin is a valuable computer science tool as a power projection, and – outside of the economic formulation of it – it has really important computer science applications for cybersecurity.” 

– Navy Admiral Samuel Paparo, testifying before the House Armed Services Committee on “U.S. Military Posture and National Security Challenges in the Indo-Pacific Region”

---