U.S. Lawmakers Debate Contentious Crypto Market Structure Legislation

Ongoing U.S. government shutdown impacts policy work on digital assets. Lawmakers continue negotiations, but debates over market structure legislation, particularly around decentralized finance (DeFi), remain contentious.

Key Points

Democrats proposed DeFi regulations requiring projects working with customers to register as brokers unless deemed "sufficiently decentralized."
The proposal grants no legal liability to developers of open-source projects not profiting from the technology.
Industry leaders oppose the proposal, claiming it could harm the DeFi sector.
Tension between Republicans and Democrats persists; bipartisan support is necessary for legislative progress.
A markup hearing initially scheduled for September 30 was postponed to October 20, with further delays expected.
Despite the current shutdown, there remains time to finalize legislation before its impact is critical in 2025.