January 21, 2026: The following is a joint statement issued by the Crypto Council for Innovation, Blockchain Association, DeFi Education Fund, and Solana Policy Institute:
We are united in our commitment to protecting consumers while preserving the core features of decentralized and non-custodial technologies that make digital assets safer, more resilient, and more accessible. Today, the Crypto Council for Innovation, Blockchain Association, DeFi Education Fund, and Solana Policy Institute speak with one voice to urge the Federal Trade Commission to take a measured, technology-aware approach to consumer protection in emerging decentralized systems.
We strongly support the FTC’s mission to prevent unfair or deceptive practices. At the same time, we believe it is critically important that enforcement actions do not impose prescriptive technical standards that are incompatible with decentralized architectures. Mandating centralized control mechanisms, such as kill switches or circuit breakers, risks undermining the very security, resilience, and user protections that decentralized systems are designed to provide.
Decentralized technologies operate fundamentally differently from traditional custodial financial institutions. Developers who do not custody or control user funds should not be treated as if they do. Policies that fail to recognize this distinction risk chilling innovation, weakening security, and pushing responsible development offshore.
We respectfully urge the Commission to reconsider any approach that would use its enforcement authority to set substantive engineering standards for decentralized systems, particularly where Congress is actively debating comprehensive digital asset legislation. Consumer protection and innovation are not mutually exclusive. With the right regulatory approach, the United States can and should lead in both.
























