US Senator Lummis’s crypto tax relief plan fuels DeFi momentum: Finance Redefined

Uncover key highlights within the Crypto area. This article dives into: “US Senator Lummis’s crypto tax relief plan fuels DeFi momentum: Finance Redefined”.

US Senator Cynthia Lummis submitted a draft invoice on Thursday proposing to exempt sure crypto transactions from taxation and defer taxes on mining and staking rewards till the underlying tokens are bought.

“My legislation ensures Americans can participate in the digital economy without inadvertent tax violations,”  mentioned Lummis.

The senator’s draft invoice was printed three weeks after the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, handed the Senate in a 68–30 vote on June 11, Cointelegraph reported. 

The GENIUS Act might “legitimize” stablecoins for institutional contributors by setting clear collateralization requirements, cementing them as a “better form of money,” mentioned Andrei Grachev, managing companion at DWF Labs and Falcon Finance.

The rising US regulatory readability might allow extra conventional finance gamers to hunt out decentralized monetary companies, because of their disappointment with conventional banking companies, in response to Aave Labs founder Stani Kulechov.

“Thanks to horrible banking experiences, we’ve seen a lot of finance coming into fintech, and fintech applications able to capture a lot of market share,” Kulechov mentioned onstage at EthCC 2025.

Beyond decentralized finance (DeFi), the tokenization of real-world belongings is a “multi-trillion-dollar opportunity” for the crypto sector to interact with conventional finance, added Kulechov.

Stani Kulechov onstage at EthCC 2025 in Cannes, France. Source: EthCC

In the broader crypto area, Chainlink, a decentralized blockchain oracle community for crosschain communication, launched a brand new compliance framework geared toward unlocking over $100 trillion price of institutional capital for the crypto market.

“Chainlink ACE is the compliance and identity standard the tokenized asset economy has been waiting for, with today’s launch providing a final critical building block for over $100 trillion in institutional capital to move onchain,” mentioned Sergey Nazarov, the co-founder of Chainlink.

US Senator Cynthia Lummis drafts standalone crypto tax invoice

US Senator Cynthia Lummis submitted a draft invoice on Thursday, outlining a number of provisions to overtake the tax code and exempt sure digital asset transactions from taxation after crypto amendments failed to look within the price range bundle.

The invoice proposes a de minimis exemption for digital asset transactions and capital positive factors of $300 or much less, with a $5,000 annual exemption cap.

The Wyoming Senator additionally outlined provisions to exempt crypto lending agreements and digital belongings utilized in charitable contributions from taxation. Additionally, the invoice proposed deferring taxes on mining and staking rewards till the underlying belongings are bought. Lummis mentioned:

“This groundbreaking legislation is fully paid for, cuts through the bureaucratic red tape, and establishes common-sense rules that reflect how digital technologies function in the real world. We cannot allow our archaic tax policies to stifle American innovation.

“My legislation ensures Americans can participate in the digital economy without inadvertent tax violations,” she added.

Senator Lummis’s crypto tax draft invoice. Source: Senator Lummis

The standalone draft invoice is now the Wyoming senator’s finest probability of passing the pro-crypto laws promised to the crypto group after the Senator handed the spending invoice with out addressing digital belongings.

$250 million Ondo Catalyst fund indicators “arms race” for RWA tokenization

DeFi protocol Ondo Finance and enterprise agency Pantera Capital plan to ramp up investments in real-world belongings (RWAs), highlighting the business’s rising give attention to tokenization amid favorable regulatory developments within the United States.

Both firms knowledgeable Axios that they plan to speculate $250 million in RWAs via a brand new fund known as Ondo Catalyst. Ondo’s chief technique officer, Ian De Bode, mentioned the funds shall be invested to accumulate fairness stakes and tokens in rising tasks.

“We are seeing a bit of an arms race right now” within the tokenization market, De Bode advised Axios, referring to the surge of firms getting into the area. Exchanges particularly are zeroing in on tokenized shares and exchange-traded fund (ETF) choices.

As Cointelegraph lately reported, digital brokerage agency Robinhood has launched a brand new layer-2 blockchain to allow European shoppers to commerce tokenized US shares and ETFs.

In May, Kraken introduced plans to supply tokenized US inventory buying and selling to buyers outdoors the United States.

Meanwhile, crypto change Coinbase is reportedly pursuing regulatory approval to supply tokenized equities, a transfer that may assist it compete with Robinhood and different buying and selling platforms.

Ondo Finance has been ramping up its push into onchain finance, lately saying the formation of a Global Markets Alliance with a number of crypto companies to drive adoption of blockchain-based capital markets. On Thursday, the corporate introduced that OKX Wallet has joined the alliance. 

PancakeSwap doubles quarterly quantity to $530 billion as upgrades enhance development

PancakeSwap, a multichain decentralized change (DEX), reported a record-breaking $325 billion in buying and selling quantity for June, the best month-to-month buying and selling quantity within the platform’s five-year historical past. 

The June whole surpassed May’s $174 billion and pushed PancakeSwap’s second-quarter quantity to $530 billion, greater than doubling the $211 billion recorded within the first quarter, in response to information from Dune Analytics.

PancakeSwap DEX month-to-month quantity and dealer Source: Dune Analytics

The surge in exercise follows a collection of current upgrades, together with the April rollout of PancakeSwap Infinity, which launched a number of options designed to enhance person expertise and buying and selling effectivity.

The improve launched decrease fuel charges, customizable liquidity swimming pools utilizing “Hooks,” and assist for superior liquidity suppliers via CLAMM and LBAMM pool varieties. 

Chef Kids, head of PancakeSwap, advised Cointelegraph that PancakeSwap Infinity provides key benefits for builders and liquidity suppliers. For builders, the platform permits new pool varieties and customized Hooks to be built-in with out redeploying good contracts or launching new variations, which “drastically lowers development overhead and accelerates innovation.”

FATF’s crypto guidelines hints at subsequent regulatory crackdown

Cryptocurrency rules are more and more aligning with international requirements as 73% of eligible jurisdictions have now handed legal guidelines to implement the Financial Action Task Force’s (FATF) Travel Rule.

The Travel Rule mandates crypto service suppliers to gather and share customers’ transaction information, much like conventional finance necessities. On June 26, the FATF launched its annual report that outlines how current regulatory strikes by jurisdictions are converging with its international Anti-Money Laundering (AML) framework.

This is a direct results of a years-long marketing campaign by the FATF to convey cryptocurrencies consistent with conventional AML and Counter-Terrorist Financing (CFT) requirements.

The FATF spotlighted stablecoins and decentralized finance (DeFi) for the second consecutive yr, highlighting their rising use in illicit finance, together with by North Korean actors. The group mentioned it plans to launch focused papers on stablecoins, offshore crypto platforms and DeFi by subsequent summer time, hinting at the place international crypto regulation might head subsequent.

FATF’s AML/CFT priorities are handled as a guidelines by regulators. Source: Joshua Chu

Crypto losses hit $2.5B in first half of 2025, however hacks fall in Q2: CertiK

Losses to crypto hacks, exploits and scams spiked to $2.47 billion within the first half of 2025, however the second quarter noticed a decline within the whole variety of hacks, mentioned blockchain safety agency CertiK.

Over $800 million was misplaced throughout 144 incidents in Q2, a 52% lower in worth misplaced in contrast with the earlier quarter, with 59 fewer hacking incidents, CertiK mentioned in a report on Tuesday.

In whole, the primary half of 2025 noticed greater than $2.47 billion in losses because of hacks, scams and exploits, representing a virtually 3% enhance over the $2.4 billion stolen in 2024.

However, contemplating the greater than $187 million returned throughout the yr’s first half, CertiK mentioned the adjusted whole is nearer to $2.2 billion.

Source: CertiK

Despite the spike in losses, CertiK mentioned it doesn’t essentially “suggest a deteriorating security landscape” as a result of the lion’s share of losses got here from simply two incidents, towards crypto change Bybit and Cetus Protocol, price $1.78 billion mixed.

DeFi market overview

According to information from Cointelegraph Markets Pro and TradingView, a lot of the 100 largest cryptocurrencies by market capitalization ended the week within the inexperienced.

The Pudgy Penguins (PENGU) token rose over 66% because the week’s greatest gainer, adopted by the Bonk (BONK) memecoin, up almost 25% on the weekly chart.

Total worth locked in DeFi. Source: DefiLlama

Thanks for studying our abstract of this week’s most impactful DeFi developments. Join us subsequent Friday for extra tales, insights and schooling concerning this dynamically advancing area.

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