US legislators about the law of the market structure appear to be ongoing, but are fighting.
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The narrative
The policy work around digital assets seems to be in a small limbo while the US government is running the second week. There are signs that lawmakers are constantly working details on the law of the market structure, which the industry wants it to hopes to concentrate on the duties of the Securities and Exchange Commission, Commodity Futures Trading Commission and establish how the crypto industry will be considered by US regulations. At that point, the Democrats suggested some rules around the decentralized finance (DEFI) that members of the crypto industry were fast and strongly opposed.
Why important
The industry is still waiting to see what kind of law in the market structure eventually exit Congress. Senator negotiations appear to be ugly – at least public – based on reporting this week.
Breaking it
Some democratic Senate has combined a proposal for regulating decentralized financial (DEFI), important to treat any project that works with the front end customers should register with a federal regulator and treat as a broker. Any DEFI project that does not focus on the generation of income will be “enough decentralized” and will therefore not be subject to regulatory administration.
It also contains a provision that developers will say that there is no legal responsibility for how their open-source projects are used, if they do not marry technology.
The crypto industry is not pleased with this proposal. Executives, lawyers and lobbyists look alike Argued that the proposal will be joined by the Defi segment of the crypto industry, which drives it right away.
The suggested defi regulations, which were first reported by Punchbowl News and Politico, which seemed to mark another point of dispute between Republicans and Democrats working on the bill. According to PoliticoThe parties appear to be far away, along with the Senate Banking Committee Chair Tim Scott who pushed Democrats to agree with a markup hearing before continuing to organize the language and democrats who wanted more input in the actual text of the law.
As a reminder, any market structure bill will need bipartisan support to get to the Senate, and last month a group of 12 Democrats who are likely to vote for the bill has laid a list of priorities they want to see before they support the law.
It is possible that the defi proposal is stronger than it needs to be a tactic in communication, and can be watery.
A markup was originally scheduled to be scheduled for September 30, and pushed late last month until October 20, but it seems that this date may also be doubtful.
Many individuals I spoke with this week say that more pessimistic market structures may occur before spring, which teaches both the ongoing government closure and the lack of visible movement from lawmakers who make up the bill.
As CoinDesk reported last week, while shutdown was not a great sign for negotiations on market structure, there was still a time before the industry really needed to be concerned about whether this bill would happen in 2025 or not.
Wednesday
Thursday
- DC FinTech Week Day 2 (I’ll moderate a panel; say hi if you’re there!)
- PGP’s DC Privacy Summit
If you have thoughts or questions on what I should discuss next week or any other comment you would like to share, do not hesitate to email me nik@coindesk.com O Find me in Bluesky @nikhileshde.bsky.Social.
You can also join the group talk Telegram.
See you next week!
