If you’re active in DeFi or holding XRP, this matters.
📅 January 15, 2026 may mark a turning point for U.S. crypto regulation.
In a recent Paul Barron Network discussion, Amanda Tuminelli of the DeFi Education Fund shared rare insight into what’s unfolding behind closed doors in Congress. Here’s what’s at stake 👇
🔍 1. DeFi in Focus: Code ≠ Bank
One of the most critical fights right now is over how DeFi developers are defined.
The core issue: Lawmakers are pushing to ensure that people who write and publish software are not regulated like banks or financial intermediaries.
Non-negotiable line:
Self-custody must remain protectedDevelopers who don’t control user funds should not be forced into KYC or compliance frameworks meant for centralized entitiesWhere things stand:
Votes are expected as early as next week, and there’s a real chance the finalized Clarity Act could reach President Trump’s desk before the end of the quarter.
🏦 2. Banks vs. Stablecoins: A Fight Over Capital
Traditional banks are increasingly alarmed by capital moving out of deposits and into crypto platforms, DeFi protocols, and exchanges.
Their response?
Attempts to weaken or overturn provisions of the Genius ActProposals to prevent non-banks from offering yield or rewards on stablecoins
This is shaping up to be a classic standoff: legacy finance defending its turf versus a new financial system built on open networks.
💠 3. XRP and Token Decentralization Standards
Token classification is becoming one of the most controversial elements of the Clarity Act.
One idea under discussion:
Projects may need to take concrete actions—potentially including token burns—to demonstrate true decentralizationDoing so could allow them to qualify for more favorable regulatory treatmentThis has sparked debate around whether companies like Ripple could be required to restructure token supply to meet new legal thresholds.
🌐 4. A Different SEC Tone Under Paul Atkins
A notable shift is coming from the SEC itself.
Under Paul Atkins’ leadership, there’s growing recognition that:
Decentralized networks should not be regulated the same way as centralized corporationsEnforcement-first regulation is giving way to clearer, more tailored frameworksFor many in crypto, this signals cautious optimism heading into 2026.
🔮 Bottom Line:
The Clarity Act could redefine how DeFi, stablecoins, and major tokens like XRP operate in the U.S. If passed as expected, it may usher in the most constructive regulatory era crypto has seen so far.
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