DeFi Leaders Launch Alliance to Counter Regulatory Pressure
A United Front for Decentralization
Seven of the most influential projects in Decentralized Finance (DeFi) have joined forces to create the Ethereum Protocol Alliance (EPAA). Formed on November 5, 2025, the group includes Aave Labs, Aragon, Curve, Lido Labs Foundation, Spark Foundation, The Graph Foundation, and the Uniswap Foundation. This coalition represents a significant portion of the Ethereum ecosystem and was established to address growing regulatory pressure on crypto-assets worldwide.
According to its founders, the alliance aims to provide a strong, collective defense against regulations that could stifle innovation. The EPAA is built on four core principles: protecting protocol code from regulatory interference, promoting on-chain data as a compliance tool, preventing overly restrictive rules, and ensuring open access to DeFi for everyone. By uniting, these protocols seek to safeguard the ability of users to store and transfer assets independently, without intermediaries.
Bolstering Advocacy with Data and Expertise
To strengthen its advocacy, the EPAA plans to collaborate with established organizations like the DeFi Education Fund and the European Crypto Initiative. This move is designed to bring deeper technical expertise to policy discussions. The initiative also taps into rising public interest in self-sovereignty, as recent surveys show 56% of Americans are interested in self-custody of their digital assets and believe in their right to transact without third-party involvement.
Impact on Ethereum’s Development and Security
By working to remove regulatory hurdles, the alliance could significantly accelerate Ethereum’s development. A clearer legal landscape would allow developers to concentrate on crucial innovations in scalability, interoperability, and user experience. Experts believe this proactive stance will help Ethereum maintain its leadership in the DeFi sector, which already secures billions of dollars, and pave the way for future network upgrades.
The alliance also underscores decentralization as the foundation of Ethereum’s security. The EPAA intends to challenge rules that could force centralization, such as mandatory Know Your Customer (KYC) requirements at the protocol level. Preserving the network’s distributed nature is critical for resisting censorship and attacks, thereby protecting the estimated $100 billion in assets it secures. The formation of this group signals a new stage of maturity for the Ethereum community as it prepares to navigate future challenges.