Traditional market safeguards like circuit breakers, designed to prevent panic selling on Wall Street, face fundamental incompatibility with decentralized finance. Following $19 billion in crypto liquidations last Friday, experts argue that DeFi’s autonomous architecture makes these traditional tools not just impractical but potentially harmful, creating price dislocations rather than preventing them.
about Why Wall Street Circuit Breakers Fail in DeFi MarketsAmanda Tuminelli
0 posts last weekSEC Urged to Create Safe Harbor for DeFi Developers
Andreessen Horowitz and the DeFi Education Fund have submitted a proposal to the SEC requesting a safe harbor for decentralized app (dapp) developers, exempting them from broker-dealer classification if they meet specific decentralization criteria. The proposal outlines four key requirements for eligibility, including non-custodial operations and no investment recommendations. This initiative responds to the SEC’s ‘Project Crypto,’ which aims to clarify regulatory exemptions for crypto projects. The letter argues that premature enforcement of broker-dealer rules could stifle innovation and harm investors. The SEC has previously targeted centralized developers of dapps, but this proposal seeks to balance regulation with the unique nature of decentralized technologies.
about SEC Urged to Create Safe Harbor for DeFi DevelopersSamourai Wallet Founders Plead Guilty to Unlicensed Money Transmitting
William Lonergan Hill and Keonne Rodriguez, the developers behind Bitcoin mixer Samourai Wallet, pleaded guilty to operating an unlicensed money transmitting business, potentially facing five years in prison. The DOJ agreed to drop a more serious money laundering charge that carried a 20-year sentence. Prosecutors alleged that Samourai Wallet facilitated over $100 million in illicit transactions, serving as a tool for criminals to launder money and evade sanctions. The case highlights ongoing legal battles around crypto privacy tools, with critics arguing the DOJ misinterprets money transmission laws. A judge will sentence the duo on November 6, while the broader debate over financial privacy in decentralized finance continues.
about Samourai Wallet Founders Plead Guilty to Unlicensed Money TransmittingHouse Passes Landmark Crypto Bills, GENIUS & CLARITY Acts
The House overwhelmingly passed the GENIUS Act, creating a federal framework for stablecoins, with 102 Democrats and 206 Republicans in support. The bill now awaits President Trump’s signature, with a signing ceremony already scheduled. The CLARITY Act, regulating broader crypto assets, also passed with surprising Democratic support (78 votes). Both bills signify a major win for crypto legitimacy, with industry leaders praising the bipartisan effort. A third bill, banning a U.S. central bank digital currency (CBDC), passed along party lines but faces Senate hurdles. The votes capped ‘Crypto Week,’ a legislative push nearly derailed by GOP infighting over anti-CBDC measures.
about House Passes Landmark Crypto Bills, GENIUS & CLARITY ActsDeFi Group Calls for Legal Protection for Developers Against User Liability
The DeFi Education Fund has urged the US Department of Justice to reconsider holding developers of decentralized finance protocols liable for user actions, likening them to car manufacturers not being responsible for drivers. They argue that misplacing liability could stifle innovation and create harmful legal precedents. The group calls for clearer regulatory guidelines that distinguish between technology creators and users, emphasizing the need for a legal framework that accurately reflects custody and control in financial regulations.
about DeFi Group Calls for Legal Protection for Developers Against User LiabilityCoinbase Wins Legal Battle Against SEC as Appeal Moves Forward
Coinbase achieved a significant legal victory as a U.S. District Court granted its motion for an interlocutory appeal against the SEC, halting proceedings while the case is reviewed by the Second Circuit. This appeal addresses whether digital asset transactions qualify as investment contracts, a pivotal issue for the crypto industry. Legal experts and community leaders hailed the decision as a crucial step for clarity in the regulatory landscape.
about Coinbase Wins Legal Battle Against SEC as Appeal Moves Forward