Hey Edge readers,

Crypto Week just wrapped up in D.C., and it was anything but quiet. In a matter of days, lawmakers pushed forward a trio of game-changing crypto bills, from stablecoin regulation to a ban on CBDCs. It’s the clearest signal yet that U.S. policy is catching up to the pace of crypto.

Stay sharp. 🫡

-The Exponential team

Overview: Crypto Week, a regulatory watershed

Crypto Week” refers to July 14–18, 2025, when the U.S. House of Representatives fast‑tracked three major crypto bills, the GENIUS Stablecoin Act, the CLARITY Act, and the Anti‑CBDC Surveillance State Act. These moves mark a decisive shift toward federal clarity and oversight in the crypto sphere, signaling both opportunity and caution for market participants. Let’s look at each one of these bills individually.

• GENIUS Act: Federal framework for stablecoins: The GENIUS Act passed both chambers, the Senate in June and the House on July 17, and is in route to President Trump’s desk. It mandates that U.S.-dollar‑pegged stablecoins be fully backed by liquid assets, audited, and transparent about reserves. This establishes the first comprehensive federal regulation for stablecoins, a move industry leaders say will boost trust and institutional involvement

• The CLARITY Act: Clearing the fog between SEC and CFTC: The CLARITY Act aims to define whether digital assets fall under SEC or CFTC oversight, ending years of regulatory confusion. It also blocks agencies from expanding authority through courts, reserving that power for Congress. Supporters say it will boost innovation, but critics warn it may let companies like Meta skirt securities laws and create shadow banks without traditional oversight.

• The Anti-CBDC Act: Politics meets privacy: The Anti-CBDC Act bans the Federal Reserve from launching a central bank digital currency, citing privacy and surveillance concerns. Supporters see it as protection against government overreach, while critics argue it’s a premature block on innovation. With other nations exploring digital currencies, the U.S. risks limiting its options in a future where digital finance may be the norm.

Why now? Money, politics, and Trump’s pivot

Crypto Week didn’t happen by chance, it was the result of growing support for clear, fair crypto rules. Over the past year, the digital asset industry has become one of the most active voices in U.S. policymaking, rallying support across parties to move forward. Former skeptics, including President Trump, stepped up to champion regulation that helps crypto grow responsibly in the U.S. He even got directly involved to help get the final votes across the finish line.

This is a turning point. For years, the U.S. lagged behind other markets due to unclear regulations and agency turf wars. With this new wave of legislation, crypto builders finally have a signal that innovation is welcome on U.S. soil. The path ahead may not be perfect, but this week shows that digital assets are no longer on the fringe, they’re part of the future of finance.

What it means for DeFi, and what’s next

New rules don’t just bring clarity, they unlock opportunity. Here are three big ways these bills could reshape the future of decentralized finance:

1. Yield-bearing stablecoins go mainstream
   With the GENIUS Act in place, stablecoins finally have a clear legal framework, including requirements for reserves, transparency, and audits. This paves the way for institutions to explore new use cases like yield-bearing stablecoins, which offer interest-like returns while maintaining dollar pegs. Expect to see more products that merge stable value with passive income, opening doors for users who want returns without volatility.

2. Startups get a green light to build
   The CLARITY Act reduces the regulatory guesswork that’s haunted crypto startups for years. By defining who oversees what the SEC or the CFTC, teams can now build and launch without fearing surprise enforcement actions. That means more DeFi protocols, more experimentation, and more innovation happening inside the U.S. rather than overseas.

3. Tokenized securities can bridge TradFi and DeFi
   The legal clarity introduced by these bills opens the door for traditional finance to tokenize real-world assets, from equities and bonds to private credit, and bring them on-chain in a regulated way. With the SEC and CFTC now having defined roles, financial institutions can begin to experiment with asset tokenization without fearing jurisdictional whiplash. This could lead to a wave of permissioned DeFi infrastructure where tokenized securities are traded, borrowed against, or used in structured products — all with embedded compliance. Over time, this fusion could make DeFi the settlement layer for real-world capital markets, connecting legacy institutions with crypto-native users and infrastructure.

This is a milestone worth celebrating. For the first time, the U.S. has embraced crypto with real, actionable legislation, not just talk. It’s a win for builders, investors, and anyone who believes in a more open financial system. The path forward is clearer, the doors are open, and the next era of DeFi starts now.

Congratulations, degens. 🎉

In the news 🗞️

• Ondo Brings Tokenized Treasuries to Sei in RWA Expansion: Ondo Finance has launched its USDY token—backed by U.S. Treasuries—on Sei, marking the chain’s first real-world asset integration. The move positions Sei in the growing RWA race, now a $13B sector, as it bids to become crypto’s financial execution layer.

• Kinetiq Hits $460M TVL on Day One, Becomes #2 on HyperEVM: Liquid staking protocol Kinetiq soared to $460M in TVL within 24 hours of launch, becoming the second-largest DeFi project on Hyperliquid’s HyperEVM. Its kHYPE token saw rapid adoption as top ecosystem protocols integrated staking vaults and rewards.

• Coinbase Unveils Base App in Super App Push with 10x Faster Transactions: Coinbase has rebranded its wallet to “Base App,” merging trading, payments, and messaging into one on-chain platform. Powered by Flashblocks, Base now delivers near-instant transaction feedback, advancing Coinbase’s vision of a crypto-native super app.

Trending 📈