Ethereum Updates Today: DeFi's 'Code Before Capital' Movement Challenges Centralized Crypto Power

Leading decentralized finance (DeFi) protocols built on Ethereum have established the

Protocol Advocacy Alliance (EPAA) to push back against the increasing sway of centralized crypto companies in U.S. regulatory matters and to guarantee that onchain solutions are properly considered in policy debates, according to a . This alliance, which includes Aave Labs, Foundation, Lido Labs Foundation, and other prominent organizations, brings together protocols that collectively oversee more than $100 billion in non-custodial assets, as highlighted by . By combining their technical knowledge and promoting transparency onchain, the group intends to inform lawmakers and influence regulations that foster decentralized progress, according to an analysis by .

The creation of the EPAA marks a significant change in how DeFi projects interact with regulators. Rather than relying on traditional lobbying, which often focuses on financial influence, the alliance prioritizes technical expertise and works alongside advocacy organizations like the DeFi Education Fund and the European Crypto Initiative, as BeInCrypto points out. Its four main values—maintaining protocol neutrality, promoting transparency onchain, protecting the ability to innovate, and guaranteeing worldwide access to decentralized infrastructure—demonstrate a wider effort to uphold the essential principles of the Ethereum ecosystem, as reported by

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The alliance has emerged at a time when crypto regulations are under increased examination, especially in the U.S. and Europe, where lawmakers are working to define decentralized systems that lack central authorities, as BeInCrypto has reported. This comes after centralized organizations dominated earlier lobbying efforts. For instance, the Fairshake PAC, supported by a16z, Coinbase, and Ripple, raised $260 million and spent $195.8 million during the 2024 election cycle, according to Coinotag. In contrast, the EPAA relies on its shared technical reputation to offer policymakers practical guidance on how blockchain can be used in areas like smart contract compliance and decentralized governance, as noted by TradingView.

Tomasz K. Stańczak, co-executive director of the Ethereum Foundation, has expressed support for the alliance, describing it as "community-driven advocacy coordination" that fits with the foundation’s latest projects, such as an updated grants program and the launch of institutions.ethereum.org to attract institutional investors, Coinotag reports. This endorsement underscores Ethereum’s broader plan to enhance communication, branding, and collaboration as the network evolves, according to TradingView.

Industry experts emphasize that the EPAA’s strategy is forward-looking rather than just reactive. Anthony Leutenegger from Aragon stated that the alliance aims to ensure regulations acknowledge the "technical and practical complexity" of onchain systems, making them feasible for developers, as BeInCrypto reported. Likewise, Brian Nistler of the Uniswap Foundation highlighted the importance of protocol teams participating in policy discussions, referencing past regulatory hurdles as a driving force behind the alliance, according to BeInCrypto.

With its coalition model—lacking formal leadership or a set budget—the EPAA is positioned to be a nimble advocate for decentralized priorities. As regulatory landscapes shift, the alliance plans to broaden its membership and strengthen its advocacy, ensuring that onchain technologies remain central to the evolution of financial systems, as observed by CryptoNews.