The U.S. Congress has unveiled a bipartisan bill aimed at restructuring the crypto market by introducing real-time transaction monitoring, stronger registration requirements, and mandatory use of trusted custodians. The industry has reacted with mixed sentiments, criticizing the influence of bank lobbyists while some argue that clearer rules could benefit large crypto firms and regulatory clarity would bolster their growth. Coinbase has long invested in building relationships with regulators, and supporters say passage could further strengthen its competitive position; DeFi projects are expected to face direct impacts, as the bill would require smart contract developers to register with federal regulators, a move seen as a threat to the DeFi ethos and potentially pushing U.S. developers abroad.
The measure also clashes with Bitcoin’s cypherpunk ethos. The Bitcoin community, prioritizing financial privacy, argues that this regulation would replicate traditional financial surveillance on the blockchain and has voiced strong opposition.
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