Bell Curve Permissionless: America’s DeFi Renaissance | Eugene Chen & Merlin Egalite
How US Regulation Will Ignite DeFi Innovation and Global Stablecoin Dominance
Regulatory clarity in the U.S., especially with new legislation like the stablecoin bill, is poised to fundamentally boost DeFi innovation and adoption both in the U.S. and globally.
Eugene Chen and Merlin Egalite emphasize that with clear rules, fintech companies can integrate stablecoins into payment and savings products, increasing usage safely and legally. Merlin highlights how this clarity paves the way for stablecoins like USDC to expand into international markets in Asia, Africa, and South America.
They project that despite some restrictions (like limits on paying interest on stablecoins), DeFi protocols will innovate alternative mechanisms to deliver yield. The U.S. dollar will likely maintain dominant stablecoin status worldwide due to its unparalleled currency demand, even as new regulatory frameworks ensure safer, more compliant financial infrastructure.
Clear, transparent regulation will encourage institutional participation and help onshore crypto innovation back in the U.S., countering past uncertainties and gray zones that hindered growth.
Regulatory Clarity Spurs US DeFi
- Regulatory clarity in the US will provide clear foundations and reduce regulatory discretion in DeFi.
- This will encourage innovation and create a friendlier environment for US DeFi projects.
Stablecoin Clarity Boosts Fintech
- Clarity on stablecoin rules in the US will push more fintechs to integrate them into their payment systems.
- This will fuel innovation and increase crypto exposure domestically and globally.