In the first-ever House Financial Services Committee hearing on DeFi, Republican and Democratic lawmakers clashed over its potential and risks. The hearing, titled “Decoding DeFi: Breaking Down the Future of Decentralized Finance,” aimed to explore DeFi's role in finance, with Republicans like subcommittee chair French Hill emphasizing its innovation, while Democrats, including Rep. Brad Sherman, voiced concerns about its use for tax evasion and criminal activity. Witness Peter Van Valkenburgh argued that crypto actors lack clear regulatory guidance, while Rep. Maxine Waters highlighted recent DeFi scams linked to the Trump family as evidence of industry dangers. The historic hearing took place as Congress faces a Sept. 30 deadline to pass a funding bill. Source: Blockworks