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 BacklashJake Chervinsky
0 posts last weekCorporate 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 ActEthereum Foundation Backs Tornado Cash Dev’s Legal Fight
Tornado Cash co-founder Roman Storm faces up to five years in prison after being convicted of conspiracy to operate an unlicensed money transmitter, while two other charges remain unresolved. The Ethereum Foundation announced a $500,000 matching pledge for his legal defense, framing the case as a threat to open-source development. Meanwhile, Samourai Wallet’s founders pleaded guilty to similar charges, underscoring regulators’ aggressive stance against privacy tools. Legal experts warn the verdict could set a dangerous precedent for developers of non-custodial protocols, with Storm’s appeal likely to test the boundaries of financial crime statutes applied to code.
about Ethereum Foundation Backs Tornado Cash Dev's Legal FightTornado 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 JurySenate 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 StallsDeFi Fund Urges White House to Drop Tornado Cash Charges
The DeFi Education Fund has petitioned the White House to drop charges against Tornado Cash co-founder Roman Storm, calling the DOJ’s prosecution ‘lawless’ and a threat to open-source development. The group argues that holding developers liable for how others use their code contradicts FinCEN’s guidance and stifles innovation. The letter, signed by industry leaders, warns that such legal actions could drive crypto development out of the U.S. and urges the administration to restore legal clarity. The case follows a Texas court ruling that the Treasury overstepped in sanctioning Tornado Cash, adding fuel to the debate over regulatory overreach in crypto.
about DeFi Fund Urges White House to Drop Tornado Cash ChargesMichael Saylor Supports XRP in Multi Token Cryptocurrency Reserve Strategy
Michael Saylor, co-founder of MicroStrategy, has shifted his stance on XRP, now supporting its inclusion in a multi-token cryptocurrency reserve, which he deems “bullish” for Bitcoin and the crypto industry. This change comes after he previously labeled XRP an unregistered security and advocated for regulatory action against it.Following the announcement, XRP trading surged by 37% on a Canadian exchange, while its price initially rose to $2.9 before dropping to $2.5 amid market volatility. Ripple also unlocked 1 billion XRP tokens, continuing its monthly release schedule, as discussions around the reserve unfold.
about Michael Saylor Supports XRP in Multi Token Cryptocurrency Reserve StrategySEC Closes Investigation into Uniswap Labs Signaling Shift in DeFi Regulation
The U.S. Securities and Exchange Commission (SEC) has closed its investigation into Uniswap Labs, marking a significant victory for the decentralized finance (DeFi) sector. Initially accused of operating as an unregistered broker and potentially issuing unregistered securities, the SEC decided against further action, reflecting a shift in its regulatory approach under new leadership. Uniswap’s governance token, UNI, saw a 5% increase following the announcement, as the company and industry leaders expressed optimism for a more supportive regulatory environment for decentralized technologies.
about SEC Closes Investigation into Uniswap Labs Signaling Shift in DeFi RegulationUniswap Labs Investigation Closed by SEC Leading to UNI Token Surge
The SEC has closed its investigation into Uniswap Labs without taking enforcement action, marking a significant victory for the decentralized finance (DeFi) sector. Following the announcement, Uniswap’s governance token, UNI, surged approximately 5%. Founder Hayden Adams emphasized the need for regulatory frameworks that acknowledge the unique nature of decentralized technologies while promoting innovation and transparency.
about Uniswap Labs Investigation Closed by SEC Leading to UNI Token SurgeGrayscale Files for XRP ETF Amid SEC Delays and Regulatory Challenges
Grayscale has filed a 19b-4 application with the SEC to convert its XRP Trust into an XRP ETF, amid ongoing delays in the approval process for altcoin ETFs. The SEC’s internal restructuring and leadership changes have contributed to these delays, with several other companies also awaiting review for their XRP ETF applications.Despite strong expectations for approval, the unresolved SEC vs. Ripple lawsuit looms over the situation. Currently, XRP’s price remains stable at $3.09493, reflecting minimal movement following the filing.
about Grayscale Files for XRP ETF Amid SEC Delays and Regulatory ChallengesTrump’s Silence on Crypto Sparks Market Volatility but Experts Remain Optimistic
Donald Trump’s presidency began with silence on cryptocurrency, causing Bitcoin to drop 6% from its historic high. Despite initial market jitters, experts remain optimistic due to supportive regulatory signals and potential advancements in crypto legislation from Congress. Industry leaders emphasize patience, noting that Trump’s past actions indicate an interest in digital assets.
about Trump's Silence on Crypto Sparks Market Volatility but Experts Remain Optimistic