Viewpoint: The structural bill's obstruction exposes a cognitive gap, and regulatory focus should shift to the application layer

DeepFlowTech · 2026-01-18T03:04:56+00:00

Eco co-founder and CEO Ryne Saxe pointed out that the recent obstacle of the crypto market infrastructure bill in the Senate reflects a gap in understanding between policymakers and digital asset innovators. He called for future legislation to protect investors, reduce regulatory uncertainty, and emphasized that the regulatory focus should shift to the user application layer rather than restricting stablecoin yields.

DeepFlowTech

2026-01-18 03:04:56

Abstract generation in progress

Deep Tide TechFlow News, January 18 — According to Crowdfund Insider, Ryne Saxe, co-founder and CEO of the stablecoin protocol project Eco (ECO), stated that the recent setback in the advancement of the crypto market infrastructure bill in the Senate (after Coinbase withdrew support, the Senate Banking Committee canceled the review meeting) has exposed a “critical knowledge gap” between policymakers and digital asset/DeFi innovators. Saxe pointed out that the next version of the bill should protect investors and maintain market integrity while avoiding imposing broker or monitoring obligations on protocols that are non-custodial and lack control, and called for reducing regulatory uncertainty to prevent “arbitrary expansion of regulatory discretion,” which could further push innovation overseas.

He also emphasized that future regulation’s true focus may shift from on-chain protocols to user-facing “frontends/app layers”; at the same time, restricting stablecoin yields will not address the fundamental change of “funds flow being reshaped by technology.” Saxe believes that legislators tend to favor traditional banking interests over consumers regarding stablecoin yields, which may be detrimental to financial innovation and user rights.

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