Legislative deadlock: can Wall Street figures and the cryptocurrency industry reach a compromise before the vote?

Six Days to Resolve Regulatory Disputes

Time is running out. Just a week before the Senate vote on the cryptocurrency market structure bill, all parties involved in negotiations are aware of the reality that years of bipartisan efforts could be for nothing. On Wednesday, one representative from the cryptocurrency industry expressed internal frustration: “It’s hard to believe that after finally seeing cooperation between Democrats and Republicans, we could squander this effort due to an arbitrary deadline."

Where is the conflict?

Backstage discussions on Thursday revealed the core of the dispute. Key figures from both Wall Street finance and leading cryptocurrency companies met behind closed doors to address two pressing issues: the treatment of decentralized finance (DeFi) in the bill and the approach to profit-generating stablecoins.

SIFMA—an influential industry association from Wall Street—formally did not confirm its stance on profit-yielding stablecoins linked to the dollar, but its concerns were clear: the GENIUS Act bill, signed by President Trump last year, currently allows such instruments. At the same time, SIFMA raised objections to regulatory exemptions that could benefit DeFi services and their developers.

Are the talks moving the needle?

The answer is: partially. A spokesperson for the cryptocurrency industry described recent negotiations as both “constructive” and “productive.” Participants from Andreessen Horowitz and DeFi Education Fund worked to persuade SIFMA to withdraw some of its demands. Additionally, influential Democratic senators have already partially accommodated some of these requests.

On the same day, over 50 members of The Digital Chamber—a leading industry trade group—met with senators and White House officials on Capitol Hill to defend favorable provisions in the bill draft scheduled for release early next week. Their main points? Exactly those two topics: the treatment of profit-yielding stablecoins and protections for DeFi developers.

Why are DeFi developers in the hot seat?

The story here is clear. Recently, developers of blockchain-based platforms that enable asset trading without traditional intermediaries have been accused by both Democratic and Republican administrations under current money transfer regulations. The legal uncertainty has become a dangerous problem for them.

Accelerated schedule risks failure

Senate Banking Committee Chairman Tim Scott (R-SC) announced that a key hearing could begin as early as this Thursday. This decision to accelerate raises concerns among industry leaders that moving too quickly could undo months of work on bipartisan consensus. All players agree: without bipartisan support during next week’s committee review, the bill has no chance of moving to a full Senate vote.

Six days remain. Decision-makers from both sides must finally reach an agreement.