The U.S. Senate's bipartisan agreement has reached a framework covering stablecoins, custody rules, and DeFi regulation.
Regulatory responsibilities are divided between the SEC and the CFTC, and DeFi protocols may face a lighter touch based on activity regulation.
At the same time, the proposed rules for stablecoin yield products may be limited, leading to a decline in related stocks.
Additionally, a correction occurred in the crypto market today, with approximately $14 billion in options expiring causing short-term volatility and triggering a cascade of long liquidations.
Geopolitical tensions in the Middle East have also exacerbated the decline in risk appetite.