Iran Sanctions and DeFi Infrastructure: Van Valkenburgh’s View

Coin Center research director Peter Van Valkenburgh has argued that U.S. sanctions on Iran do not automatically preclude the development or operation of DeFi infrastructure, drawing a line between sanctions enforcement aimed at specific actors and the neutral software that underpins decentralized finance.

What Van Valkenburgh Said About Iran Sanctions and DeFi Infrastructure

Van Valkenburgh made the case that Iran-related sanctions and the existence of DeFi infrastructure are not mutually exclusive, according to reporting from Unchained. The framing centers on whether restrictions targeting Iran’s economy extend to the underlying protocols themselves. For related coverage, see 240 UK Taxpayers Made Over $1.3M Each From Crypto in Fiscal 2025.

The discussion was surfaced by Unchained host Laura Shin, who highlighted the segment on X. The position is a legal and policy interpretation from Coin Center, not a settled determination by regulators or the courts. For related coverage, see Aerodrome CEO Says Tokenized Nvidia Priced Earnings While Nasdaq Was Closed.

How the Treasury Sanctions Context Shapes the Argument

The debate reacts to actions from the U.S. Treasury, whose Office of Foreign Assets Control administers the sanctions program covering Iran, as reflected in the department’s public sanctions announcements. Treasury has repeatedly moved to restrict Iran’s access to digital assets, including sanctions on crypto exchanges tied to the country.

Van Valkenburgh’s argument turns on a distinction between enforcing sanctions against particular people or entities and treating the software or infrastructure as inherently prohibited. That same tension has surfaced as Treasury designated digital assets a sanctionable sector of Iran’s economy.

Because the available record on this specific statement is limited, the precise legal boundary between compliant and non-compliant activity remains a matter of interpretation rather than a bright-line rule.

Why This Debate Matters for Crypto Regulation Coverage

The question feeds directly into the broader policy fight over whether neutral, permissionless infrastructure can coexist with sanctions-compliance obligations. It is the same fault line running through recent moves to widen the Iran crackdown across crypto, gold and shipping.

For readers following crypto regulation, the takeaway is narrow but meaningful: a leading advocacy group is arguing that sanctions and DeFi infrastructure are not inherently incompatible, and how regulators respond will shape how builders approach compliance going forward.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.