A confidential Senate Democratic bill proposing sweeping KYC and AML requirements for DeFi protocols, validators, and node operators has ignited fierce industry backlash and bipartisan tension. The leaked legislation, which would grant the Treasury Department authority to create restricted protocol lists, threatens to accelerate the flight of US crypto liquidity to offshore platforms that already dominate global trading volume. Market analysts warn the regulations could fragment markets, widen spreads, and permanently damage America’s competitive position in the emerging crypto economy.
about Senate Democrats' DeFi Bill Sparks Industry BacklashVariant Fund
0 in Finance and 0 in Crypto last weekGENIUS Act: Stablecoin Builders Race for Early Compliance Edge
Stablecoin issuers face a critical race against time as the GENIUS Act’s implementation approaches. Early compliance preparation could create lasting competitive advantages while competitors await full regulatory clarity. Builders who start now gain operational moats that may prove insurmountable for late entrants.
about GENIUS Act: Stablecoin Builders Race for Early Compliance EdgeCorporate vs. Public Blockchains: Regulatory Debate Intensifies
Variant Fund’s Jake Chervinsky asserts that decentralized public blockchains continue to set the regulatory benchmark, noting that no US regulator has demanded permissioned validators or built-in compliance tools. This stance contrasts with recent corporate L1 launches like Circle’s Arceeee and Stripe’s Tempo, which some view as regulatory arbitrage. VC Revaz Shmertz argues these corporate chains preemptively satisfy compliance needs, creating bifurcated adoption where compliant chains serve institutions while neutral protocols handle retail/DeFi. Meanwhile, the DeFi Education Fund has proposed five principles for a token safe harbor to the SEC, advocating technology-agnostic approaches and broad eligibility based on decentralization goals rather than genesis status.
about Corporate vs. Public Blockchains: Regulatory Debate IntensifiesUS Banks Warn of $6.6T Shift to Stablecoins Over GENIUS Act
A coalition of US banks, spearheaded by the Bank Policy Institute (BPI), has raised alarms over a loophole in the GENIUS Act’s stablecoin bill. While the bill prohibits direct yields from stablecoin issuers, it doesn’t restrict crypto exchanges or affiliates from offering indirect yields—potentially diverting up to $6.6 trillion from banks. The BPI warns this could reduce lending capacity, raise interest rates, and increase borrowing costs. Crypto industry figures, including Coinbase’s leadership, reject the claims, framing them as a bid to stifle competition rather than address systemic risks. The debate highlights tensions between traditional finance and crypto innovation.
about US Banks Warn of $6.6T Shift to Stablecoins Over GENIUS ActTornado Cash Developer Faces Possible Retrial After Hung Jury
The trial of Tornado Cash developer Roman Storm has ended with a hung jury on charges of money laundering and sanctions violations, leaving the door open for a potential retrial by the US Department of Justice (DOJ). Storm was convicted on one felony count for conspiracy to operate an unlicensed money-transmitting business. Legal experts suggest the DOJ will decide soon whether to pursue a new trial, highlighting the ongoing legal scrutiny of crypto privacy tools. The case underscores the regulatory challenges facing developers in the decentralized finance (DeFi) space.
about Tornado Cash Developer Faces Possible Retrial After Hung JuryMason Nystrom: From Crypto Research to Venture Capital
Mason Nystrom’s career in crypto began in 2017 at Hong Kong’s Gatecoin, where he gained hands-on experience in operations, marketing, and customer service during the bull run. His deep dive into Ethereum at ConsenSys and his educational work at Messari established him as a leading voice in Web3, DeFi, and NFTs. Transitioning to venture capital, Nystrom joined Variant Fund before becoming a Junior Partner at Pantera Capital, bringing a researcher’s rigor to investing. His unique blend of technical expertise and clear communication bridges the gap between builders and backers in the crypto ecosystem.
about Mason Nystrom: From Crypto Research to Venture CapitalProject Eleven Raises $6M to Secure Bitcoin from Quantum Threats
Project Eleven, a firm specializing in post-quantum cryptography, raised $6 million to safeguard Bitcoin and other digital assets against future quantum computing risks. The funding round was co-led by Web3 investor Variant Fund and quantum tech investor Quantonation, marking Quantonation’s debut in the crypto space. CEO Alex Pruden stated the funds will support the development of tools, standards, and ecosystems to ensure digital asset security in a post-quantum era. The initiative includes projects like ‘Yellowpages,’ aimed at fortifying blockchain networks against quantum attacks.
about Project Eleven Raises $6M to Secure Bitcoin from Quantum ThreatsSenate Blocks GENIUS Act, Stablecoin Regulation Stalls
The Senate denied the motion to invoke cloture on the GENIUS Act, a bill designed to regulate stablecoins in the US, with a 49-48 vote against. Senate Majority Leader John Thune criticized Democrats for using the filibuster, calling it a missed bipartisan opportunity. Treasury Secretary Scott Bessent warned that without federal oversight, stablecoins will face fragmented state regulations, hindering US competitiveness. Lawmakers and industry leaders, including Senator Cynthia Lummis and Galaxy Digital’s Alex Thorn, remain optimistic about reintroducing the bill soon. The delay highlights ongoing debates over crypto regulation and America’s role in financial innovation.
about Senate Blocks GENIUS Act, Stablecoin Regulation StallsJesse Walden: From Music to Web3 Ownership Economy
Jesse Walden’s career evolution—from managing musicians to founding Variant Fund—exemplifies the transformative potential of Web3. After launching Mediachain Labs (acquired by Spotify) and working at Andreessen Horowitz, he identified a gap in crypto investing: a lack of focus on user ownership. Variant Fund now backs projects like Uniswap and Mirror, prioritizing platforms where users hold equity. Walden’s philosophy, rooted in his music industry experience, emphasizes decentralized control and community-driven value creation. His quiet yet impactful approach positions him as a key architect of the ownership economy, proving that non-technical visionaries can shape the future of the internet.
about Jesse Walden: From Music to Web3 Ownership Economy