TechFlow reported on January 18 that, according to Crowdfund Insider, Ryne Saxe, co-founder and CEO of the stablecoin protocol project Eco (ECO), said recent setbacks in advancing cryptocurrency market infrastructure legislation in the Senate—after Coinbase withdrew its support and the Senate Banking Committee canceled a scheduled markup session—highlight a "critical knowledge gap" between policymakers and digital asset/DeFi innovators. Saxe pointed out that the next version of the bill should protect investors and maintain market integrity without imposing broker or surveillance obligations on protocols that do not hold assets or exercise control. He called for reduced regulatory uncertainty and warned against "expansible regulatory discretion," which could otherwise push innovation further overseas.
He also emphasized that future regulation may shift focus from on-chain protocols to user-facing "frontends/applications layer." Additionally, restricting stablecoin yield would fail to address the fundamental transformation in how money moves, which is being reshaped by technology. Saxe believes lawmakers’ stance on limiting stablecoin yields favors traditional banking interests over consumers, potentially harming financial innovation and user rights.
