The following article is a guest post and opinion of Chris “Jinx” Jenkins, Head of Operations at Pocket Network.

Internet pioneer Tim Berners-Lee once dreamed of an open and accessible digital information system. His vision for the web — a virtual space where everyone had equitable opportunities to contribute, collaborate, share, and learn together — has shifted.

But the internet has moved in the opposite direction from this open garden. From single points of failure to censorship by sectors both public and private, it is now in the middle of a fight between messaging-obsessed political bodies and profit-hungry corporations, each seeking to control or monetize information flows.

Web3, powered by decentralized apps (DApps), promises to rekindle Berners-Lee’s dream of a permissionless space for free, open communication and innovation. Yet ironically, DApps today also rely heavily on centralized infrastructure or data sources. These single points of failure compromise the entire ecosystem’s security and integrity — as seen in many of the complaints around Solana.

Systems are only as secure as their weakest points. And to fulfill Web3’s ethos, DApps must adopt and implement genuinely open, decentralized, and verifiable infrastructure.

DApps Suffer from Concentrated Vulnerabilities

Most developers build the front end of DApps on a decentralized interface, but depend on centralized data infrastructure for backend support.

DApps largely run on centralized data hosting platforms and cloud providers like Amazon Web Services, Google Cloud, and Microsoft Azure. Although easily accessible, these platforms are susceptible to single-point failures and censorship, leading to global outages and downtime.

History is a witness to these failures. There are multiple examples where Infrastructure-as-a-Service platforms have faced disruptions, interrupting seamless DApp usage.

For instance, although MetaMask functions as a decentralized wallet, its endpoints run on centralized tech like Infura to access Ethereum. In 2022, when Infura blocked access after U.S. sanctions, MetaMask users temporarily couldn’t access their wallets from specific regions.

This is not an isolated incident. Infura clients have also faced interruptions in the past. Similarly, Solana and Polygon users faced outages due to the overloading of centralized RPCs during high network traffic.

DApps using centralized infrastructure to supply data are thus susceptible to downtime, information inaccuracies, usage gaps, and disconnected data flows. These incidents demonstrate the need to shift to decentralized infrastructure for data transferability and smooth accessibility without facing outages.

The Need for a Decentralized DApp Ecosystem

DApps without a decentralized stack are an oxymoron.

Instead of AWS, Google, or Azure, DApps must use open-source solutions like InterPlanetary File System (IPFS), Filecoin, or Arweave. These protocols provide a tamper-proof, distributed storage facility with high uptime and protection against random outages.

DApps running on decentralized infrastructure work with independent node operators. This helps distribute data queries across the network, eliminating single points of failure for unstoppable data availability.

Since individual nodes cannot block information flows, DApps run smoothly even when several nodes are offline. So the network always remains accessible without any downtime.

Decentralized infrastructure further removes the dependency on intermediaries who arbitrarily control data flows. Instead, DApps can connect with data, service providers, and users within an integrated, enmeshed open-source system.

Pocket Network unlocks open data accessibility so that any DApp can get the information it needs, without relying on centralized or singular entities. Pocket’s Shannon upgrade created the first truly permissionless Open API Network.

Decentralized social networks like BlueSky and the AT Protocol don’t depend on centralized RPCs. Rather, they work with decentralized RPCs to access open data. Similarly, DeFi protocols using Chainlink don’t need to depend on centralized APIs to source real-time on-chain price data.

A robust, genuinely decentralized tech stack is critical for DApps to build a digital ecosystem without single points of failure, paving the way to return to Berners-Lee’s vision of a globally accessible network.

Towards Berners-Lee’s Vision of an Open Internet

Tim didn’t envision a society where a few megacorporations build walled gardens with asymmetrical relationships between users and companies. He wanted open communication in the digital world without any powerful intermediaries controlling information exchange.

This vision is aligned with Satoshi Nakamoto’s idea of a decentralized, peer-to-peer exchange system. And although crypto now leans toward a casino-style gambling circus, that was not how Nakamoto and the cypherpunk community imagined it to be.

That said, Web3 innovators are actively building the infrastructure necessary to bring Tim and Satoshi’s vision to fruition. Because an open digital world with equitable accessibility is a must-have, not a nice-to-have.

Decentralized infrastructure protocols for open-source data are rapidly emerging as the new frontier for seamless data accessibility to train AI models and support cross-chain DApp usage. With a $350 billion open data market, it’s critical to wrest control away from centralized providers and distribute it among decentralized operators.

To thrive, crypto, AI, and other emerging tech must reject Web2’s business model and embrace the internet’s OG vision, now enshrined in the Web3 paradigm. Moving toward a decentralized infrastructure that doesn’t suffer from single points of failure is crucial to building a resilient and reliable internet.

Mentioned in this article

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

On a negative development for the US crypto industry, the highly anticipated stablecoins legislation has failed to advance in the US Senate after not receiving enough support from Senate Democrats. Several Republican senators have slammed the Democratic lawmakers for putting “partisan politics above policy.”

Democrats Block Stablecoins Bill

On Thursday, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act failed to pass the cloture vote in the US Senate after several lawmakers withdrew their support in the past week.

As reported by Reuters, only 49 senators voted to advance the bill, falling short of the 60 votes required to end the debate on the legislation. Notably, two Republican senators voted against advancing the bill alongside Democrats.

In February, US Senator Bill Hagerty introduced the GENIUS Act to develop a framework to allow tokens like USDT and USDC to fall under the Federal Reserve Rules.

The bill, co-sponsored by Senators Tim Scott, Cynthia Lummis, Kirsten Gillibrand, and Angela Alsobrooks, would establish a “safe and pro-growth regulatory framework that will unleash innovation and advance the President’s mission to make America the world capital of crypto.”

The stablecoins legislation was considered a bipartisan effort to increase regulatory clarity after multiple Democrats showed support over the past few months. Additionally, the bill went through various amendments to address senators’ concerns, including stricter requirements for stablecoin issuers and Anti-Money Laundering (AML) provisions.

Nonetheless, ten Senate Democrats expressed further concerns about the revised version of the bill on May 3, reportedly catching many lawmakers off guard. Among the critics, four Democrats who previously supported the bill signed the opposition statement.

The lawmakers alleged that the draft bill omitted essential AML and national security safeguards and had ambiguous regulations that could expose crypto markets to exploitation.

Similarly, Senator Elizabeth Warren urged Congress to reject the GENIUS Act as it could pave the way for alleged “crypto corruption.” On May 4, the crypto-skeptic lawmaker claimed that the Trump family could benefit from World Liberty Financial’s (WLFI) USD1 stablecoin deal with MGX, a firm based in the United Arab Emirates.

The deal comprises a $2 billion investment connected to Binance and WLFI’s stablecoin. Warren affirmed that the Senate shouldn’t approve the crypto bill “to enable this type of corruption.”

US Senators Call Out ‘Political Gamesmanship’

One of the bill’s co-sponsors, Senate Banking Committee Chairman Tim Scott, called out Democrats for “playing politics with bipartisan legislation.” Speaking on the Senate floor on May 8, Scott accused Senate Democrats of putting partisan politics above policy and innovation.

It should have been a historic day for Americans (…) to see their financial system democratized (…). Instead, we witnessed a disappointing display of political gamesmanship that puts partisan politics above policy, and obstruction above innovation.

He affirmed that the GENIUS Act was a bipartisan achievement at the Senate Banking Committee, adding that the shift was not driven by a change in the bill’s “substance.” He alleged that the failure wasn’t a vote against the legislation, but a vote against President Trump and his legislative agenda.

Senator Lummis also expressed her disappointment on X: “Make no mistake, digital assets are the future and America must lead the way,” she stated, adding that “It’s important that we continue moving digital asset legislation forward that preserves America’s dollar dominance and makes America the crypto capital of the world.”

Meanwhile, Treasury Secretary Scott Bessent argued that the world needs American leadership for stablecoins and other digital assets to thrive. He criticized the Senate for missing “an opportunity to provide that leadership” by passing the bill.

“Without it, stablecoins will be subject to a patchwork of state regulations instead of a streamlined federal framework that is more conducive to growth and competitiveness. The world is watching while American lawmakers twiddle their thumbs. Senators who voted to stonewall U.S. ingenuity today face a simple choice: Either step up and lead or watch digital asset innovation move offshore,” he concluded.

Bitcoin (BTC) trades at $102,982 in the one-week chart. Source: BTCUSDT on TradingView

Featured Image from Unsplash.com, Chart from TradingView.com

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

A controversial 48-49 Senate vote on Thursday to reject the GENIUS Act has sparked an immediate backlash from U.S. Treasury Secretary Scott Bessent, who condemned the decision as a “historic misstep” with global consequences.

In a strongly worded post on X (formerly Twitter) on May 9, Scott Bessent condemned the Senate’s failure to advance the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, arguing it squandered a rare chance to lead the global stablecoin market.

“The world needs American leadership,” Bessent wrote. “The Senate missed an opportunity to provide that leadership today by failing to advance the GENIUS Act.”

Did the Senate Just Kill U.S. Crypto Dominance?

Scott Bessent labeled the bill a “once-in-a-generation opportunity” to assert dollar dominance through innovation.

He criticized the Senate for allowing state-by-state regulatory fragmentation to persist and warned that digital asset development could shift abroad without a unified federal framework.

The GENIUS Act, introduced in February by Senator Bill Hagerty (R-TN) and co-sponsored by prominent Republicans, including Chairman Tim Scott (R-SC) and digital assets advocate Senator Cynthia Lummis (R-WY), sought to provide a comprehensive federal framework for the issuance and regulation of stablecoins in the United States.

Despite early bipartisan momentum, the bill failed a procedural vote on May 8 after Senate Democrats abruptly pulled support over national security concerns, AML provisions, and last-minute resistance from key lawmakers.

Senator Mark Warner (D-VA), who opposed the bill, said its text was “not yet finished,” while others hinted at deeper political friction.

The Unspoken Political Tensions Fueling the GENIUS Act’s Demise

Some Democrats privately expressed discomfort with President Trump’s recent pro-crypto involvements, which they feared had tainted the legislative process with political overtones.

The bill’s failure has cast a shadow over the future of stablecoin regulation and broader crypto legislation, particularly ahead of the 2026 midterms when all House seats and one-third of the Senate will be up for grabs.

Senator Cynthia Lummis, a key co-sponsor, voiced her disappointment on X, stating that failing to pass the GENIUS Act was a step backward in securing America’s digital future.

John Deaton, a well-known pro-XRP lawyer, called on lawmakers to rise above partisan divisions. “Senators need to place the country first, not politics. This bill had bipartisan support just a week ago. What happened?”

Decentralization vs. Control: The Ideological Clash Central to Stablecoin Debates

Ethereum co-founder Vitalik Buterin, while not directly commenting on the GENIUS Act, had previously warned against “centralized stablecoins becoming a tool for geographical control.” The implication is that a U.S.-denominated stablecoin framework could undermine crypto’s decentralized ethos.

Lawmakers argue that stablecoins like Tether’s USDT require oversight to prevent criminal exploitation.

In addition, according to a previous report, stablecoins make up the bulk of illicit transaction volume in 2024.

The collapse of TerraUSD further fueled debate. The crash erased $40 billion in value, raising concerns about consumer risks in decentralized systems. Proponents of regulation cite TerraUSD as evidence that even decentralized models can fail, leaving users vulnerable.

However, critics note a contradiction. Many “decentralized” stablecoins still depend on centralized elements, such as development teams or governance structures. The result is a paradox, as blockchain systems designed to eliminate trust still rely on it, just in different hands.

Frequently Asked Questions (FAQs)

The post Scott Bessent Slams 48-49 Senate Snub – Will GENIUS Act Failure Cost U.S. Crypto Crown? appeared first on Cryptonews.

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Ethereum (ETH) has officially lost the $2,000 mark, trading below this key level for the first time since 2023 and reaching its lowest point since October 2023. The price plummeted as low as $1,750, marking a dramatic drop from its December 2024 high of $4,100. This staggering 57% decline has created a difficult environment for bulls, as Ethereum struggles to find stability amid growing selling pressure.

The broader crypto market downturn, driven by macroeconomic uncertainty and risk-off sentiment, has left ETH in a vulnerable position, with traders unsure whether a bottom has formed or if further downside is ahead. The sharp decline in Ethereum’s value has intensified bearish sentiment, making it one of the worst-performing major altcoins over the past few months.

According to Glassnode data, Ethereum is testing key levels below $2,000 and above $1,800 based on the MVRV Pricing Bands. Historically, this range has acted as a major support zone, and its ability to hold will be critical in determining Ethereum’s short-term price direction. If ETH fails to stabilize, the market could be in for another wave of selling, potentially pushing prices even lower.

Ethereum Tests Critical Support As Market Struggles

The entire crypto market has suffered a major breakdown, mirroring the decline in U.S. stock markets as trade war fears and uncertainty surrounding U.S. President Trump’s policies weigh heavily on investor sentiment. Macroeconomic instability and volatility have been the primary market drivers since the U.S. elections in November 2024, and current conditions suggest that this trend is far from over.

Rising global trade war concerns and erratic decision-making by the U.S. administration have further fueled fear and uncertainty, sending the U.S. stock market to its lowest levels since September 2024. This risk-off environment has translated into increased selling pressure across the crypto market, with Ethereum (ETH) struggling to hold critical support levels.

Top analyst Ali Martinez shared insights on X, highlighting that Ethereum is now testing key levels based on the MVRV Pricing Bands. According to on-chain data, ETH’s Realized Price currently sits at $2,060, a level that has acted as crucial support in previous cycles. If Ethereum fails to hold above this mark, the next major downside target is around $1,440, which would represent a substantial drop from current levels.

With market conditions still fragile, the next few trading sessions will be crucial in determining Ethereum’s short-term trajectory. If ETH can hold above $2,060, it may have a chance to stabilize and attempt a recovery. However, if selling pressure intensifies, the market could see Ethereum test significantly lower price levels, adding to the growing uncertainty among investors.

ETH Struggles Below $2,000

Ethereum is currently trading at $1,900, following days of heavy selling pressure that have led to significant losses. ETH has failed to hold key levels, with the price dropping as low as $1,750 just a few hours ago, marking one of its lowest points in months. With the market under continued bearish control, bulls are now racing to reclaim the $2,000 mark in an effort to stabilize price action and shift momentum toward a potential recovery phase.

For Ethereum to regain strength, it must hold above current levels and push past $2,000 quickly. A break above this key resistance zone would indicate renewed buying interest, reducing selling pressure and allowing ETH to attempt a more sustained recovery. However, if ETH fails to reclaim $2,000, the market is likely to see a continuation of the downtrend, with further declines expected.

With Ethereum in a fragile position, the next few days will be crucial in determining whether bulls can step in to reverse the trend or if ETH will slide into deeper correction territory. Traders are closely watching price movements, as Ethereum remains at risk of further downside if key levels are not regained.

Featured image from Dall-E, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.