Dark | Light
[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]

![CryptoLimbo_ Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1205153155027107840.png) Limbo [@CryptoLimbo_](/creator/twitter/CryptoLimbo_) on x 161.7K followers
Created: 2025-07-07 11:56:06 UTC

The most important crypto vote in U.S. history just happened not everyone realises the significance.

The GENIUS Act of 2025 just passed 68–30 in the Senate.
It doesn’t just regulate stablecoins, it redefines the future of DeFi.

Here’s what’s in it 👇

🔹 1:1 backing (USD or Treasuries)
🔹 Mandatory audits & public disclosures
🔹 Clear licensing path (banks + qualified issuers)
🔹 Not treated as securities
🔹 Yield-bearing stablecoins = banned
🔹 Tech giants (Meta, etc) = blocked from issuing

🧩 Why this matters ?

• Stablecoins = $260B market, 60%+ of crypto transfer volume
• Reduces risk of depegs & collapses (e.g., Terra)
• Unlocks institutional confidence + legal rails for adoption
• Favors centralized issuers (e.g., USDC, USD1)

🔍 DeFi Protocol Impact

1.) $AAVE (~$26B TVL)
✅ Boosted liquidity from trusted stablecoins
✅ Institutional inflows
❌ Yield-ban cuts protocol income
❌ AML/CTF compliance favors centralized assets
➡️ Bullish adoption, bearish monetization

2.) $LQTY (~$350M TVL)
✅ May avoid fiat-backed rules via $LUSD
❌ Regulatory gray zones still apply
❌ Faces tough competition from compliant stablecoins
➡️ Decentralized advantage, but fragile moat

3.) $CRV (~$2B TVL)
✅ Higher stablecoin credibility = more volume
❌ Yield cuts = lower pool profitability
❌ Regulatory burden on decentralized governance
➡️ Volume up, profits down
  
My take?

This bill is a clear signal that the door just opened for banks, fintechs, and funds to step in.
For DeFi to survive this shift, it’ll need to evolve fast.
Protocols that can align with this new standard without losing their soul will lead the next cycle.

![](https://pbs.twimg.com/media/GvQL-LzWEAEKkjY.jpg)

XXXXXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1942190888978895335/c:line.svg)

**Related Topics**
[united states dollar](/topic/united-states-dollar)
[stablecoins](/topic/stablecoins)
[happened](/topic/happened)

[Post Link](https://x.com/CryptoLimbo_/status/1942190888978895335)

[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]

CryptoLimbo_ Avatar Limbo @CryptoLimbo_ on x 161.7K followers Created: 2025-07-07 11:56:06 UTC

The most important crypto vote in U.S. history just happened not everyone realises the significance.

The GENIUS Act of 2025 just passed 68–30 in the Senate. It doesn’t just regulate stablecoins, it redefines the future of DeFi.

Here’s what’s in it 👇

🔹 1:1 backing (USD or Treasuries) 🔹 Mandatory audits & public disclosures 🔹 Clear licensing path (banks + qualified issuers) 🔹 Not treated as securities 🔹 Yield-bearing stablecoins = banned 🔹 Tech giants (Meta, etc) = blocked from issuing

🧩 Why this matters ?

• Stablecoins = $260B market, 60%+ of crypto transfer volume • Reduces risk of depegs & collapses (e.g., Terra) • Unlocks institutional confidence + legal rails for adoption • Favors centralized issuers (e.g., USDC, USD1)

🔍 DeFi Protocol Impact

1.) $AAVE (~$26B TVL) ✅ Boosted liquidity from trusted stablecoins ✅ Institutional inflows ❌ Yield-ban cuts protocol income ❌ AML/CTF compliance favors centralized assets ➡️ Bullish adoption, bearish monetization

2.) $LQTY (~$350M TVL) ✅ May avoid fiat-backed rules via $LUSD ❌ Regulatory gray zones still apply ❌ Faces tough competition from compliant stablecoins ➡️ Decentralized advantage, but fragile moat

3.) $CRV (~$2B TVL) ✅ Higher stablecoin credibility = more volume ❌ Yield cuts = lower pool profitability ❌ Regulatory burden on decentralized governance ➡️ Volume up, profits down

My take?

This bill is a clear signal that the door just opened for banks, fintechs, and funds to step in. For DeFi to survive this shift, it’ll need to evolve fast. Protocols that can align with this new standard without losing their soul will lead the next cycle.

XXXXXX engagements

Engagements Line Chart

Related Topics united states dollar stablecoins happened

Post Link

post/tweet::1942190888978895335
/post/tweet::1942190888978895335