DeFi Debrief: Week of September 21, 2026

DEF and a16z Submit Joint Letter to SEC Crypto Task Force; New UK FCA Crypto Policy Statement; CRS Publishes GENIUS Act Report; and more.

A Safe Harbor from Exchange Registration: Recommendations for Decentralized Exchanges and Applications

On September 14, 2026, DEF and a16z submitted a joint letter to the SEC Crypto Task Force proposing a safe harbor from exchange registration requirement of the Securities Exchange Act of 1934 for decentralized exchange protocols (DEXs) and certain apps that provide access to them (DEX apps). The proposal covers DEXs and DEX apps that do not operate like traditional exchanges or present the intermediary-related risks that exchange regulation is designed to address. 

Under the framework proposed in the letter, DEXs and DEX apps—subject to criteria addressing non-custodial operation, automation, permissionless access, credible neutrality, and the absence of discretionary intervention—would be presumed not to be exchanges or required to register under the Exchange Act. It also recommends that SEC staff first issue guidance clarifying the treatment of qualifying DEXs and DEX apps, followed by formal rulemaking to codify the safe harbor. 

Read a16z’s blog post discussing the joint submission here. 

New UK FCA Policy Statement on Cryptoasset Perimeter Guidance

On September 16, 2026, the UK Financial Conduct Authority (FCA) published Policy Statement PS26/18: Cryptoasset Perimeter Guidance, setting out guidance on when cryptoasset activities require FCA authorization under the UK’s new regulatory regime. The guidance covers activities such as issuing qualifying stablecoins, operating cryptoasset trading platforms, safeguarding cryptoassets, dealing and arranging cryptoasset transactions, and arranging cryptoasset staking. It also provides greater clarity on the application of the regime to overseas firms and its interaction with existing regulatory requirements.

The guidance follows changes the UK government has made to the underlying legislation, including limited exclusions and additional clarity for certain technical services. The FCA plans to consult in October on updates to its perimeter guidance reflecting those changes and addressing certain technology service providers and decentralized protocols.

The new regime will come into force on October 25, 2027, with authorization application window opening September 30, 2026. The FCA has indicated that most crypto firms can use the current guidance to prepare for authorization. 

Congressional Research Service Publishes GENIUS Act Report

On September 17, 2026, the Congressional Research Service (CRS) published a report examining the GENIUS Act’s regulatory framework for payment stablecoins. CRS notes that the Act’s definition of a digital asset service provider (DASP) excludes, among other things, distributed ledger protocols, self-custodial software, and “developing, operating, or engaging in the business of developing distributed ledger protocols or self-custodial software interfaces.” CRS further explains that the exclusion of distributed ledger protocols “seemingly applies” to DeFi applications, including lending and borrowing protocols and decentralized exchanges.

The report also raises questions about AML obligations with respect to stablecoins that move from issuers or centralized intermediaries to self-custody or DeFi applications. CRS notes that the GENIUS Act does not clearly specify whether those responsibilities remain with a DASP, shift to the issuer, or cease to attach to a particular party as assets move. CRS also discusses Treasury’s view that emerging compliance tools, such as blockchain analytics and zero-knowledge proofs, could help address certain risks, but may require further technical development and changes to existing regulation or guidance.

You can read the report here. 

CFTC Innovation Task Force to Host Frontier Forum Series

On September 21, 2026, the CFTC’s Innovation Task Force announced the Frontier Forum Series on Innovative Financial Technologies, a new series of public roundtables. Each forum will bring together participants from the public and private sectors to discuss how the CFTC can support innovation while protecting market participants and preserving the integrity and resilience of U.S. financial markets. 

The first forum will take place on October 28, 2026 and will focus on artificial intelligence and agentic finance. In announcing the series, CFTC Chairman Michael Selig said “The technologies transforming our markets are rapidly advancing, and the CFTC must engage directly with the people building, using, and studying them.” The CFTC is accepting speaker nominations from the public. 

Notable and Quotable
“We [should not] require an intermediary to step in the middle of peer-to-peer transactions” – Commissioner Pierce during her Peanut Butter & Watermelon: Financial Privacy in The Digital Age Speech