Decentralization Research Center (DRC) Update
Report created by The DRC for ENS Dao
March - November 2025
Over the past eight months, the Decentralization Research Center (DRC) has expanded its influence in U.S. policy circles, released new frameworks that shape how decentralization is understood and evaluated, and continued to support emerging technologies grounded in democratic governance, user empowerment, and community ownership.
With significant legislative movement on crypto and decentralized technology this year, DRC has served as a trusted resource to policymakers, researchers, and civil society leaders. Below is a summary of our key activities and accomplishments.
1. Summit: Convening Policymakers, Technologists & Researchers
April 2025 – Decentralized Tech Summit
In April, DRC hosted the third annual Decentralized Tech Summit, convening 100+ leaders across Congress, the White House, industry, and academia to address the future of decentralized technologies and the policy frameworks that will shape them. The 2025 summit emphasized blockchain decentralization, emerging policy proposals, and the intersection of decentralized systems with AI, digital identity, data cooperatives, and decentralized social media.
The event helped foster alignment around shared goals, including responsible decentralization, safeguards for consumers, and equitable access to innovation.
2. Framing the Debate: Control Criteria for Decentralization
April 2025 – “Flourishing Framework” & Control Criteria Paper
In the wake of renewed legislative interest in decentralization, DRC released a paper central to our advocacy position outlining a set of control criteria for determining when a system can be considered “sufficiently decentralized.” The paper advanced a more rigorous and principled approach to evaluating decentralization, not just as a technical feature, but as a governance, legal, and social condition.
This framework has since served as the foundation for briefings with House and Senate staff (see #6–8 below) and for coalition-building efforts to support decentralization as a measurable, incentivized policy goal.
3. Thought Leadership: Global Report on Data Cooperatives
May - October 2025 – Co-authored with Project Liberty Institute
DRC partnered with the Project Liberty Institute to release “How Can Data Co-ops Help Build a Fair Data Economy?” - a report timed with the UN’s International Year of Cooperatives. The report highlights the evolving role of cooperatives in the digital era and explores how collective ownership models can support a fairer and more democratic data economy.
The paper surveys legal models, tech architecture, and use cases from around the world, positioning data cooperatives as one path toward more user-owned and interoperable ecosystems.
4. Federal Advocacy: Responses to U.S. Treasury and Congress
July 2025 – Treasury Request for Information (RFI)
DRC submitted a detailed response to the Treasury’s RFI on illicit finance risks in DeFi and related systems. Our response emphasized the importance of distinguishing between decentralized and centralized systems, called for clarity around control and intent, and advocated for policy mechanisms that do not stifle innovation through overreach.
April 2025 – POSA-CCI Joint Staking Letter
DRC co-signed a letter with Proof of Stake Alliance (POSA), the Crypto Council for Innovation (CCI), and other stakeholders, addressing the mischaracterization of staking within proposed regulatory frameworks. We highlighted the importance of distinguishing protocol-level operations from investment contracts.
August 2025 – Developer Protections Letter to Senate
DRC joined a coalition letter urging Senate leadership to preserve developer protections in digital asset legislation, reinforcing safe harbor principles and clarifying the distinction between protocol developers and intermediaries.
October 2025 – CDFI/MDI Provision Engagement
DRC endorsed a Senate amendment calling for a study on how CDFIs/MDIs can offer digital assets via partnerships and promote financial education to combat scams - developed with Sen. Alsobrooks’ office and the National Bankers Association.
5. Legislative Engagement: House & Senate Market Structure Drafts
Summer 2025 – Control Criteria Briefings on Capitol Hill
Throughout the summer, DRC responded to key draft bills and RFIs from both the House Financial Services Committee and Senate Banking and Agriculture Committees.
House Draft: We submitted a detailed issues list and followed up with staff briefings on how our control criteria could guide future definitions in the legislation.
Senate Banking: We submitted a standalone RFI response in August, again focused on our decentralization framework.
Senate Ag: We shared concerns and constructive proposals in response to their jurisdictional draft.
These efforts helped position DRC as a go-to voice for technical clarity and implementation-ready decentralization standards.
6. Movement-Building: Coalition Letter Supporting CLARITY Act
Fall 2025 – 50+ Organizations Back Decentralization Test
DRC organized and published a joint letter, co-signed by more than 50 leading organizations, in support of the CLARITY Act’s proposed “maturity test” for decentralization. This is the largest public coalition to date backing a common definition of decentralization in federal legislation.
The letter emphasized the importance of insider restrictions and lock-ups until a network meets decentralization benchmarks and included recommendations for how such a test could drive innovation while protecting consumers.
7. Safe Harbor Engagement: Meeting with SEC
September 2025 – DRC + SEC Meeting
DRC met with SEC staff to present a “safe harbor” policy proposal that would allow early-stage blockchain projects time-limited flexibility while working toward decentralization benchmarks.
Our proposal builds on prior efforts from Commissioner Hester Peirce and incorporates our control criteria framework, aiming to create regulatory predictability without weakening consumer protections.
Looking Ahead: 2026 Priorities
In 2026, DRC will expand its impact by ensuring that federal rulemaking, not just legislation, actively incentivizes decentralization across agencies like the SEC, CFTC, Treasury, and the White House. We’ll deepen our regulatory engagement and scale technical input through a decentralization policy framework and maturity model.
To meet this moment, we must grow. Competing industry groups invest hundreds of millions annually, outpacing grassroots, values-aligned efforts. DRC will focus the next couple of quarters on securing critical funding to expand our legal and regulatory strategy, research capacity, communications, and operational infrastructure.
With additional support, we can convene more bipartisan forums, strengthen our presence in D.C., and shape the future of decentralized technologies across blockchain, AI, digital identity, and data policy.