Americans’ Feelings on Traditional Finance vs. Crypto and DeFi

By Jennifer Rosenthal | Chief Communications Officer at DeFi Education Fund
December 4, 2025

A new national study conducted with Ipsos and supplemented by in-depth interviews in the Bronx and Queens provides fresh insights into how Americans, especially underbanked communities, view the financial system and emerging technologies, like crypto and decentralized finance. Consider thinking about crypto or Decentralized Finance – or DeFi, for short – as the natural evolution of the financial system. We used to rely on the postal service but today rely largely on e-mail, and similarly, many of us tend to rely on an assortment of financial services and fintech companies, but can now increasingly rely on DeFi.

The Ipsos data reveals Americans’ broad demand for greater control of their financial assets and data, and the potential opportunities for financial innovations that prioritize affordability, equity, and consumer protection.

Key Findings:

• Many Americans express frustration with fees, lack of transparency and slow innovation in traditional finance.
• Among those familiar with DeFi, the key benefits that stand out are greater autonomy, easier access and fewer middlemen.

To start, we looked at Americans’ current feelings on traditional finance, and found that Americans’ trust in traditional financial institutions is lukewarm. Only 49% of Americans think that the current U.S. financial system meets their financial needs, and less than half of Americans trust large banks – with fewer than 1 in 10 expressing complete trust in national banks or community banks.

In depth interviews revealed that Americans are aware of the challenges that exist within the financial system of today; traditional finance was described as “slow and costly,” operating on an “archaic timetable,” with interviewees highlighting that the fee structures leave them feeling “nickeled and dimed.” The national survey confirmed that most Americans do not feel like the financial system is future-proof in the age of AI. Only 29% of Americans believe the U.S. financial system is secure, and roughly 3 in 4 Americans agree that “the current financial system needs to be upgraded to combat new threats, like cyber crime or AI.”

Despite limited familiarity with the nuances of crypto and DeFi technology, people welcome DeFi’s ability to deliver control, security, and transparency to users. A majority of American consumers want full personal control over their money (56%), and more than half of Americans agree we should “have a way to digitally send money to people without any third party involved.”

As Congress and federal regulators work to build policies for crypto in Washington D.C. – with GENIUS Act implementation and digital asset market structure legislation underway – 42% of Americans said that if proposed legislation was passed into law, they would be likely to try out DeFi, and 25% of Americans believe DeFi could strengthen financial security.

Savvy financial professionals have a unique opportunity to help clients learn about and gain exposure to DeFi as a timely investment theme. With crypto and DeFi adoption still in this early phase – plus the newly launched suite of digital asset ETPs that provide familiar, regulated exposure to DeFi assets – financial professionals that provide their clients with clarity, credible research, and free resources about crypto and its sectors, like DeFi, will be in a strong position to win the next generation of investors.

Americans are increasingly curious about the possibilities that emerging technologies and investments can unlock. DeFi is a direct response to the technology developments of the 21st century: an innovation that can help improve the state of the financial system by bringing down costs, removing frictions, alleviating privacy and security risks, and creating tools and solutions that meet modern consumer needs. Financial professionals are well-placed to help clients construct portfolios that are ready for the future. The new “Demystifying DeFi” research provides timely, methodologically sound third-party data that can help make client conversations more concrete and actionable.

For further reading, you can download the full research report here: Demystifying DeFi: New National Research from DEF & Ipsos

About Jennifer Rosenthal

Jennifer Rosenthal currently serves as the Chief Communications Officer at DeFi Education Fund (DEF), a nonpartisan nonprofit advocating for sound DeFi policy, where she leads the organization’s communications, marketing and fundraising efforts.

Prior to joining DEF, Jennifer was the Head of Corporate Communications at Grayscale Investments, where she led external media relations and corporate affairs, notably as the firm navigated a high-profile, victorious legal battle against the SEC to obtain approval for spot Bitcoin ETFs to begin trading in the United States.

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The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the position of DACFP or its affiliates. This content is provided for educational and informational purposes only and does not constitute investment, financial, legal, tax, or accounting advice, nor an offer, solicitation, or recommendation to buy or sell any security or other asset. Information is current as of the date of publication and may become outdated; no representation is made as to its accuracy or completeness. Publication does not constitute an endorsement of the author, the author’s firm, or any product or service referenced, and the author may hold positions in the assets discussed. Readers should consult their own qualified professionals before making any financial decisions.