1inch Public Policy & Regulatory Engagement Grant Proposal 2026
Simple Summary
In 2025, the 1inch public policy team executed a global regulatory engagement strategy spanning the US, EU, and UAE — delivering 10+ regulatory meetings and roundtables, 8+ conference speaking engagements, 4 trade group memberships, and multiple comment letters and coalition filings shaping DeFi legislation. Highlights include engagement with US financial regulators, participating in international law enforcement-focused events on crypto security, winning the INATBA Best DeFi Solution 2025 award and co-signing comment letters sent to US President and FinCEN. These engagements resulted in continued dialogue and follow-up requests. For a summary of 2025 achievements, see Annex 1 at the end of this proposal.
This proposal seeks funding to support 1inch’s public policy, regulatory engagement, and institutional advocacy program for the full year 2026. The program is led by the Degensoft Ltd legal and compliance team, and covers trade group memberships, direct lawmaker and regulator engagement, law enforcement and anti-crime outreach, and supporting materials development.
Activities for 2026 include:
- Active membership in three US trade groups: DeFi Education Fund, Crypto Council for Innovation, and Blockchain Association.
- Active participation in associations, including Solana Policy Institute, Hyperliquid Policy Center and Ethereum Protocol Advocacy Alliance.
- Continued direct engagement with US lawmakers and enforcement agencies through trade group channels and targeted DC visits.
- Participation in anti-crime and law enforcement conferences to build credibility with security-focused institutional audiences.
- Publication and socialization of the 1inch Risk Management Whitepaper and 1inch Shield framework with regulators, trade groups, and lawmakers.
Total Grant Value $155,000 in USDC.
This amount covers: trade group memberships, lawmaker and regulator engagement, and anti-crime and security event attendance.
Abstract
This proposal requests grant funding to support 1inch’s global public policy and regulatory engagement program for the full year 2026. The program will position 1inch as a proactive, risk management-conscious participant in lawmaking and regulatory conversations that will define DeFi’s operating environment for years to come — particularly in the United States.
The budget will cover annual memberships in leading US crypto advocacy organizations, direct engagement with US lawmakers and regulatory agencies, participation in anti-crime and security events, and the development of security tooling such as 1inch Shield, and supporting materials including protocol demo recordings, jurisdiction-specific briefing documents, the 1inch Risk Management Whitepaper. These activities will protect 1inch’s ability to operate across key jurisdictions, accelerate institutional trust, and ensure that 1inch’s non-custodial architecture and security-first approach are understood and reflected in emerging regulatory frameworks.
The program builds on the foundation established in 2025 under a prior DAO-approved allocation of $110,000, which has now been fully deployed. The expanded 2026 budget reflects the significantly increased pace of US legislative activity and the opportunity to deepen relationships established during 2025 — particularly with Congressional offices, US Treasury, and leading trade associations for direct access to lawmakers, regulators and other top-tier companies focused on security to deepen institutional relationships and potential BD opportunities.
Motivation
The global regulatory environment for DeFi is at an inflection point. In the United States, Congress is actively drafting the CLARITY Act — the most significant digital asset market structure legislation in US history — passed the House in July 2025 with bipartisan support (294–134) and is now in the Senate Banking Committee, where a stablecoin yield compromise is being negotiated ahead. The bill would clarify SEC vs. CFTC jurisdiction over digital assets and could define how DeFi protocols are classified and regulated. In the EU, MiCA implementation is underway. In the UAE, VARA is developing its licensing framework for DeFi. The decisions made in these jurisdictions over the next 12–18 months will materially impact how 1inch can continue to operate, grow, and serve users and institutional partners in these markets.
1inch has a unique advantage: it is one of the only DeFi protocols with an established track record of direct regulatory engagement, a documented risk management framework (1inch Shield), and enterprise-grade security certifications (ISO 27001, SOC 2 Type 1, with SOC 2 Type 2 in progress). This credibility must be maintained and expanded through consistent, strategic engagement — not treated as a one-time effort.
Why this matters to the DAO:
Proactive regulatory engagement reduces legal and operational risk for the entire 1inch ecosystem. Ensuring that policymakers understand the protocol’s non-custodial architecture and security-first approach is a form of risk mitigation, not a marketing expense.
Specification
The grant covers next budget categories for the full year 2026:
1. Trade Group Memberships
| Organization | Primary Value |
|---|---|
| DeFi Education Fund (DEF) | Leading DeFi-dedicated trade group; strongest law-shaping advocacy including comment letters to legislators/agencies, amicus briefs for better DeFi legal outcomes, and policy research publication |
| Crypto Council for Innovation (CCI) | Blue-chip membership base (Coinbase, a16z, Paradigm); strongest on working group participation, comment letter co-authorship, institutional visibility, and networking with elite firms |
| Blockchain Association (BA) | Largest US crypto/blockchain trade group; strong legislative lobbying, direct Congressional access, legislative intelligence, demo distribution channel, and networking opportunities |
| Solana Policy Institute | Non-profit focused on educating US policymakers on how decentralized networks such as Solana create value |
| Hyperliquid Policy Center | A US non-profit funded by Hyperliquid Labs and Hyperliquid Foundation to engage in digital asset derivatives policy work in the US. |
| Ethereum Protocol Advocacy Alliance | A coalition has the support of Ethereum Foundation with a mission to balance the influence of centralized crypto entities in lobbying and ensure regulatory outcomes are functional for decentralized builders. |
| Blockchain Security Standards Council | A non-profit consortium dedicated to strengthening confidence in end-to-end security within blockchain ecosystems. |
Total Grant Value $155,000 in USDC.
Recipient of funds: Degensoft Ltd (BVI).
Receiving address for funds distribution: eth:0x9eeb2a2946Ee0Ba3553E64918DB10288256BE185
Funds will be disbursed in one tranche. The recipient welcomes DAO oversight and will provide a mid-year update covering all funded activities.
Rationale
Protecting 1inch’s ability to operate in the United States. The US represents the single highest-risk and highest-opportunity jurisdiction for 1inch. Congress is actively drafting the CLARITY Act, which will define the legal and regulatory classification of DeFi protocols. 1inch’s existing architecture — including multi-surface screening and documented risk management — demonstrates that decentralized protocols can achieve regulatory objectives through technology-native approaches. Maintaining presence in this conversation through DEF, CCI, and BA and other trading groups ensures 1inch’s technical reality is understood by the lawmakers writing these rules.
Building institutional trust through demonstrated risk management. 1inch Shield — the protocol’s comprehensive risk management framework encompassing multi-surface screening, multi-source intelligence, multi-actor risk application, and enterprise governance — is a genuine differentiator. Combined with ISO 27001 certification, SOC 2 attestation, and documented incident response capabilities, 1inch can credibly present itself to regulators and institutions as the standard-bearer for responsible DeFi infrastructure.
Shaping DeFi-friendly policy outcomes. Reactive engagement — waiting for laws and regulations to be finalized and then scrambling to comply or challenge them — is far more expensive and risky than proactive participation. Through trade group memberships, 1inch gains the ability to contribute to comment letters, participate in working groups drafting industry positions, and co-sign coalition communications. In 2025, this translated to concrete actions: a DEF comment letter to FinCEN, a coalition letter to the US Senate, and a letter to President Trump. These are the mechanisms through which industry shapes legislation, and 1inch must remain at the table.
The cost of a single regulatory enforcement action dwarfs the entire proposed budget by orders of magnitude. Proactive engagement builds a documented record of good-faith risk management and ensures that the protocol’s architecture is understood before conclusions are drawn based on incomplete information.
Considerations
Management and Execution. The program is led by the Degensoft Ltd legal and compliance team, with support from BD, Event, PR and Marketing contributors for institutional relationship development. All engagement activities, trade group participation, and regulatory interactions are documented internally.
Alignment with DAO Interests. Every activity funded by this grant directly protects the 1inch protocol’s ability to operate and the DAO’s long-term viability. This grant funds proactive engagement to reduce that risk.
KPIs and Accountability. The team will track and report on the following metrics: number of lawmaking and regulatory touchpoints (meetings, roundtables, consultations, briefings); consultation and comment letter contributions; conference and event presence with regulatory or institutional audiences; trade group engagement depth including working group participation and advisory roles; absence of enforcement actions; and documentation utilization.
Opportunities for Institutional Positioning. Trade group membership provides access to private events, working groups, and briefing opportunities that are not available to non-members.
Transparency and Reporting. Degensoft Ltd will provide the DAO with a full-year report that will be published following the conclusion of the 2026 program, covering all KPIs, key regulatory developments, and recommendations for 2027 engagement.
Annex 1: 1inch Public Policy & Regulatory Engagement Achievements 2025
Simple Summary
What the 2025 program delivered:
The 2025 program proposal can be found here. The prior allocation funded memberships in GBBC, INATBA, DeFi Education Fund, and Blockchain Association, along with travel for regulatory meetings and conference participation. Key outcomes included:
Achievements
| Time | Achievements |
|---|---|
| Q4 2024 | Met Liechtenstein Office for Financial Market Innovation and Digitalisation and FMA on 1inch products and its alignment with MiCA. |
| Q4 2024 and throughout 2025 | Participated in a regulatory roundtable with the Virtual Assets Regulatory Authority (VARA) in Dubai |
| Q1 2025 | Spoke at Davos on DeFi security and invited ecosystem to contribute and help build better security |
| Q1 2025 | Contributed to INATBA (International Association for Trusted Blockchain Applications) Self-Regulation Paper, setting industry standards for DeFi |
| Q1 2025 | 1inch Cross-Chain Swap recognised as the best DeFi solution 2025 by INATBA Award |
| Q1 2025 | Co-hosted private Interpol event focused on security and anti-crime in crypto |
| Q2 2025 | Contributed to GBBC Blockchain Use Case Handbook |
| Q2 2025 | Spoke at VASP Supervision Symposium (hosted by FIU (Financial Intelligence Unit) Malta) and met VASP leads from various regulators |
| Q2 2025 | Spoke at Crypto Valley DeFi security |
| Q2 2025 | Met with XReg to discuss Gibraltar regulatory regime for DLT, based on auditing smart contracts only |
| Q2 2025 | Spoke at GBBC DC Week to socialize 1inch brand among US crypto companies and policymakers and gauge US regulatory risks and entryways. Attended GBBC event with US Senators |
| Q3 2025 | Commented on DEF letter to US FinCEN to update guidance of entities involved in crypto currencies |
| Q3 2025 | Signed coalition letter from DEF to US Senate on blockchain developer protections |
| Q3 2025 | Attended roundtable at DARTE-Berlin to discuss crypto regulatory developments and socialize 1inch brand and security leadership |
| Q4 2025 | Spoke at Merge Madrid re DeFi regulatory challenges and opportunities. Socialize 1inch brand and security efforts |
| Q4 2025 | Spoke at European Blockchain Convention re DeFi regulatory challenges, opportunities and outlooks. Socialize 1inch brand and security efforts |
| Q4 2025 | Signed letter to President Trump for crypto-friendly laws and regulatory environment, with top crypto projects, organized by Solana Policy Institute |