DC embraces DeFi with GENIUS, CLARITY Act amendments

Key Points

1. President Trump signed the GENIUS Act into law, setting clear standards for stablecoin regulation, including reserve backing, consumer protection, and AML compliance.

2. The CLARITY Act, passed by the House, includes amendments that explicitly exclude DeFi activities like publishing code and non-custodial spot-market activity from certain regulatory requirements.

3. Rep. Hill and Rep. Thompson emphasized that DeFi developers do not take custody of user assets in the same way as centralized actors, clarifying Congress's intent to distinguish DeFi from traditional finance.

4. Despite progress, gaps remain, such as the lack of federal pre-emption and potential legal uncertainties for certain protocols.

5. The regulatory milestone is seen as establishing the US as a key jurisdiction for digital assets, with industry leaders like Fabian Dori highlighting its significance.