DeFi Floodgates Could Open Wide on September 15

The US Senate is set to vote on September 15 on the Digital Asset Market Clarity Act, which could improve institutional confidence in DeFi and pave the way for a flood of capital into the space. Former lawmakers Tim Ryan and David McIntosh say that regulatory clarity is essential for institutions to commit meaningful capital to DeFi.

Ryan notes that institutions will not invest if they cannot determine which regulator has authority or what rules will be in place next year, but a successful vote on September 15 would bring a wave of money into DeFi and show that Congress is serious about creating a durable framework.

Virtu Financial, M1X Global, and Tradeweb have already completed a fully on-chain repo using a sovereign digital bond as collateral, with the securities delivery, cash leg, and return settling atomically on the Canton Network in under 10 minutes. McIntosh expects tokenized Treasuries to move first, followed by private credit and other real-world assets.