Ethereum Giants Unite to Defend $100 Billion Ecosystem from Global Policy Threats

Seven of Ethereum’s most established protocol teams, including Aragon, Lido Labs Foundation, and the Uniswap Foundation, have joined forces to form the Ethereum Protocol Advocacy Alliance (EPAA). The alliance represents a rare moment of unity among Ethereum’s core builders, as growing regulatory scrutiny in the US and Europe threatens to reshape governance for decentralized systems.

For years, Ethereum’s Layer-1 protocols have quietly powered DeFi, stablecoins, and smart contracts across the global web3 ecosystem. However, increasing government regulation on cryptocurrencies is pulling protocol developers into policy debates, no longer just exchanges. The EPAA aims to defend the open infrastructure that secures more than $100 billion in on-chain assets from restrictive regulations.

In their announcement, the founding teams emphasized the importance of ensuring that laws and regulations accurately reflect how blockchain systems actually function, rather than ill-informed perceptions. Anthony Leutenegger, CEO of Aragon, stated: “We’ve seen firsthand the technical and practical complexity involved in building on-chain systems. Bringing together the most credible protocol teams will help ensure regulatory outcomes are workable for the builders moving this space forward.”

The EPAA’s shared policy framework centers on four key priorities:

• Protecting neutrality of the protocol layer to ensure that code itself isn’t subject to regulation.
• Advancing on-chain transparency as a real-time, verifiable compliance tool.
• Preserving flexibility for innovation by avoiding rigid or overly broad standards.
• Upholding global access to permissionless, decentralized infrastructure.

Each principle aligns with Ethereum’s broader mission to avoid unintentionally constraining the open networks that make decentralized finance (DeFi) resilient.

Sam Kim, Chief Legal Officer at Lido Labs Foundation, stressed: “Decentralization is the foundation of Ethereum’s credibility and resilience. Through the EPAA, we’re ensuring that policy recognizes and protects this principle.” Similarly, Brian Nistler of the Uniswap Foundation highlighted how prior regulatory challenges underscored the need for developers to actively shape the rules that govern their technologies.

The formation of the EPAA marks a turning point in crypto governance, as Ethereum’s builders transition from tech developers to key advocates. Unlike traditional trade associations, the EPAA operates without central leadership, budget, or lobbying arms, instead coordinating with established organizations like the DeFi Education Fund, the Decentralization Research Center, and the European Crypto Initiative to provide expertise and credibility to policymakers. Connor Spelliscy, Executive Director of the Decentralization Research Center, shared that: “Those who build decentralized systems should help shape the rules that govern them.”

The EPAA’s efforts come as global lawmakers contemplate regulatory frameworks for DeFi and smart contracts. Officials in Washington and Brussels are attempting to classify decentralized infrastructure that lacks centralized operators—an area the EPAA seeks to clarify. While the EPAA currently has seven founding members, it is designed to expand over time, ensuring ongoing advocacy for decentralization and open blockchain infrastructure.