Unchained DEX in the City: Why the Market Structure Bill May Not Be Good for DeFi
19 snips
Jan 15, 2026 
In this engaging conversation, Summer Mersinger, CEO of the Blockchain Association and former CFTC Commissioner, dives into the complexities of new crypto market structure legislation. She highlights the challenges of defining DeFi and how proposed regulations could inadvertently encompass vital safety measures. Mersinger discusses the contentious stablecoin yield negotiations and the tensions between traditional finance and DeFi. Additionally, she addresses the mistrust driving regulatory language and the burdens posed by new illicit finance duties.
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Issuer Freezes Are A Real Control Mechanism
- Tether's $182M freeze shows issuer-level control is real and widespread on-chain.
- Freezes immobilize funds without court seizure and can affect users globally regardless of chain jurisdiction.
Freeze Versus Seizure: Key Legal Difference
- Freezes differ from seizures: freezes keep funds on-chain but non-transferable while seizures are court-authorized asset takings.
- Issuer freezes can follow law enforcement requests or be based on sanctions or risk analysis.
Legislation Is Formalizing Freeze Powers
- Market-structure drafts try to codify issuer freeze powers rather than inventing them.
- Codifying these powers forces users to confront trade-offs between regulation and centralized control.