Lawmakers in the United States delayed the Digital Asset Market Clarity Act, sparking concerns from DeFi leaders. Amendments could impose unsuitable requirements on decentralized systems, leaving ambiguity around KYC and registration. Public criticism led to a brief pause in progress on the bill, including opposition from Coinbase CEO Brian Armstrong.
Vitalik Buterin calls for a new DAO design to address inefficiencies and vulnerabilities. DAOs should support core infrastructure like dispute resolution, insurance, and project stewardship. Governance structures need to address low participation, whale dominance, and decision fatigue. Privacy tools, AI assistance, and better design are crucial for DAO success.
DeFi protocol Pendle is revamping its governance token to sPENDLE due to low adoption of vePENDLE. The new token aims to lower barriers to participation with shorter lock-up periods and simpler governance mechanics. Pendle plans to allocate 80% of protocol revenue to governance rewards and token buybacks.
New SEC submissions are pressuring regulators to clarify self-custody rights and DeFi regulation in upcoming rules. Filings highlight the need to protect retail users’ self-custody rights and avoid broad exemptions that increase fraud risks. Negotiations continue in Congress as industry and policymakers seek a compromise.
Aave refocuses on DeFi, handing stewardship of Lens Protocol to Mask Network. Mask Network will lead consumer-facing development for Lens-based social applications as Aave focuses on DeFi. Vitalik Buterin praises the move, emphasizing the importance of decentralized social networks for fostering competition and improving online discourse.
In the DeFi market overview, most of the top 100 cryptocurrencies ended the week in the red. White Whale (WHITEWHALE) saw the biggest drop at over 57%, followed by Merlin Chain (MERL) at 48%. Total value locked in DeFi continues to fluctuate, highlighting the dynamic nature of the space.
Read more at Cointelegraph: DeFi Leaders Push Back as DAO, Governance and Custody Debates Intensify