A senior executive from a compliant platform recently spoke out publicly, raising questions about the new crypto legislation introduced by the Senate. He believes that this bill could be more stringent in practice than the existing regulatory framework—sounds quite ironic, but it is indeed a concern.

The original intention of this proposal is to clearly define the boundaries of authority between the SEC and CFTC in digital asset regulation, which is a good idea in itself. However, the executive pointed out several concerning aspects of the bill: on one hand, it could infringe on user privacy; on the other hand, it might undermine the reward mechanisms for stablecoins—both of which are significant issues for the entire ecosystem.

Currently, the reward mechanisms for stablecoins are a key way to attract users in the DeFi ecosystem. If these are restricted, it would effectively weaken the incentive layer of the entire on-chain economy. Privacy issues are even more sensitive—one of the main reasons crypto users choose this industry is their need for privacy. Therefore, for this bill to truly take effect, it needs further refinement.