Stablecoin rewards provisions face industry test in Senate crypto bill

TL;DR:

With the CLARITY Act scheduled for a markup on Thursday, some lawmakers could still be at odds over decentralized finance, stablecoins and ethical concerns.

Key Points:

Background:

Decentralized Finance (DeFi) refers to financial services built on blockchain networks that operate without traditional intermediaries like banks. DeFi protocols enable lending, borrowing, trading, and earning yield on cryptocurrency assets through smart contracts.

Why It Matters:

DeFi represents a fundamental reimagining of the financial system, offering permissionless access to financial services globally. DeFi developments impact how value is exchanged, stored, and utilized in the crypto ecosystem, driving innovation in financial products and services.