Deliberations over the crypto market structure bill between industry executives and US lawmakers hit a fever pitch on Wednesday in a tense meeting, following a leaked proposal from Democrats to impose permissioned requirements on the decentralized finance (DeFi) sector.
Democratic senators accused industry executives of acting as an extension of the Republican Party after a leaked Democratic proposal mandating know-your-customer and anti-money laundering regulations on DeFi caused a public outcry, according to Eleanor Terrett, who cited sources at Wednesday’s meeting.
The lawmakers reportedly warned industry representatives that continued public outcry over the bill, or specific provisions in the proposed legislation, would slow down the progress of passing regulations into law.
Source: Eleanor Terrett
Bo Hines, the former director of US President Donald Trump’s Working Group on Digital Assets, criticized the reaction from Democrats, saying: “So let me get this straight: a Democratic Senator is upset the crypto community was able to review the policy proposals he wants to turn into law? How is this not satire?”
The tense meeting comes as the US government shutdown enters its fourth week, stalling progress on passing a crypto market structure bill and providing regulatory clarity for the industry in the United States.
Crypto market structure bill on track despite government shutdown
Wisconsin Representative Bryan Steil said the crypto market structure bill, known as the CLARITY Act, is still on track to be signed into law by 2026, despite the ongoing government shutdown.
“I’m hopeful that as we come on the other side of the shutdown that we have an opportunity to hit the ground running and have the Senate move forward quickly,” Steil told CNBC on Oct. 8.
White House economic adviser Kevin Hassett also told CNBC on Monday that the government shutdown is likely to end this week if Republicans manage to gain some votes from the other side of the aisle.
“The moderate Democrats will move forward and get us an open government, at which point we could negotiate whatever policies they want to negotiate with regular order,” Hassett said.