In this week's edition of the Crypto Long & Short newsletter, Jennifer Rosenthal from the DeFi Education Fund highlights the urgent need to protect those building decentralized finance (DeFi) infrastructure. As traditional finance firms increasingly engage with DeFi, the newsletter stresses the importance of clear legislation to safeguard software developers who contribute to this evolving landscape. A recent bipartisan bill, the Promoting Innovation in Blockchain Development Act of 2026 (PIBDA), aims to clarify legal protections for developers, distinguishing them from those who manage customer funds. Meanwhile, Alexis Sirkia critiques Ethereum's Layer 2 strategy, arguing that it has failed to address the real constraints of value transfer, leading to fragmented liquidity pools and increased vulnerabilities. The newsletter also covers significant industry developments, such as Deutsche Börse's investment in Kraken and the $292 million hack of Kelp DAO, underscoring the ongoing challenges in the DeFi space. As the market evolves, the shift towards eliminating intermediaries is seen as crucial for building a more resilient and efficient financial ecosystem.