A significant shift in U.S. crypto policy is opening new avenues for decentralized finance (DeFi) projects to integrate with traditional finance (TradFi). In June 2025, SEC Chair Paul S. Atkins delivered a pivotal speech titled 'DeFi and the American Spirit,' highlighting a more innovation-friendly regulatory stance. Key developments include enhanced protections for self-custody, staking, and open-source development, alongside a proposed 'Innovation Exemption' for DeFi projects. Major DeFi protocols such as Uniswap, Aave, and MakerDAO (now Sky) are actively exploring integration into regulated financial systems. These efforts focus on embedding on-chain liquidity layers, institutional lending, and ensuring stablecoin compliance under the proposed GENIUS Act, potentially transforming the landscape of financial services.