Cryptocurrency is becoming an increasingly important political issue, with today’s docket including the first-ever DeFi hearing convened by Congress. And judging by today’s hearing, the asset class continues to be a partisan issue, with vastly diverging views shared by Republicans and Democrats. Subcommittee chair French Hill, R-ARK, said that the goal today was to “explore emerging technologies as we consider how blockchains can be used in finance.” According to Hill, today’s hearing was “not only about smart contracts” but also “how decentralized peer-to-peer technology preserves individual freedom and improves our financial services.” He was met with stiff skepticism from his counterparts across the aisle, with a Democratic party that largely refuses to embrace crypto. Risk of Scams and Tax Evasion “What we have here is an effort to liberate billionaires from income taxation,” said Rep. Brad Sherman, D-Cali., who has called for an outright ban on cryptocurrencies. He was quickly countered by one of crypto’s defenders, head of research for the pro-crypto think tank CoinCenter Peter Van Valkenburgh, who said that while tax evasion is a crime, it doesn’t warrant a completely surveilled financial system. Sherman was accompanied by Rep. Stephen Lynch, D-Mass, who criticized the industry and said he opposed the FIT act. “I urge this committee to refrain from moving forward with similar legislation that would invite the same consumer and investor protection risks by legitimizing this industry,” he added. Another Democrat was also unabashedly anti-crypto in today’s hearing. Rep. Maxine Waters, D-Cali, voiced concerns about Eric Trump’s new DeFi project, World Liberty Finance. "While DeFi aims to create greater efficiencies and transparency, it can also pose heightened risks of hacks, scams, unequal information and conflicts of interest that can harm consumers and investors," Waters said. "We've seen this play out in the new DeFi venture that Eric Trump and Donald Trump Jr. plan to launch, called World Liberty Financial." DeFi in DC On behalf of the cryptocurrency industry, and alongside Van Valkenburgh, sat Rebecca Rettig of Polygon Labs, Brian Avello, Chief Legal Officer at venture firm UDHC, and Amanda Tuminelli of the DeFi Education Fund. Another witness was Mark Allen Hays, a senior policy analyst at Americans for Financial Reform. Even though Democrats decided to fight back against most of DeFi, showing that the asset class continues to find detractors in the hallways of Congress, pundits celebrated a momentous occasion for the industry. For the first time, DeFi had U.S. lawmakers as an audience, proving it has gone from a fringe industry to a mainstay in American economics and politics. “I remember years ago when DeFi was like ten projects that no one thought would amount to anything,” said Jake Chervinsky, a board member of the DeFi Education Fund. “Now it's on full display in the halls of power in DC.”