Crypto Regulations 90% Done, DeFi & Stablecoin Rules Remain
US senators have agreed on about 90% of proposed crypto regulations, focusing rules on centralized service providers rather than open-source blockchain protocols. The remaining debates center on DeFi oversight and smart contract frameworks. The GENIUS Act passed in June established federal standards for stablecoin backing, transparency and consumer safeguards. It bans issuers from paying interest but allows exchanges to offer stablecoin rewards — a provision facing pushback from large banks lobbying to reverse these rules. Coinbase CEO Brian Armstrong warned that banks’ efforts risk undermining stablecoin protections and argued for clear, balanced crypto regulations to support innovation while protecting consumers. Finalizing these rules by Thanksgiving could bring needed market clarity.
Bullish
Finalizing crypto regulations provides much-needed clarity, reducing policy uncertainty and boosting market confidence. In the short term, traders may increase positions as regulatory risk diminishes. Over the long term, balanced crypto regulations and stablecoin safeguards foster a healthier ecosystem, supporting sustained growth and innovation.