Wall Street and Crypto Industry Hold Closed-Door Discussions on Legislative Differences, Progress Made on DeFi and Yield-Generating Stablecoins

Odaily News: Wall Street's major trade organization SIFMA held private meetings with representatives from the DeFi and crypto industry to discuss differences in the Senate's crypto market structure bill, with "progress" reportedly made particularly around DeFi regulatory provisions.

Sources stated that SIFMA recently opposed regulatory exemptions for certain DeFi protocols and developers within the bill, while also collaborating with banking lobby groups to push for restrictions on yield-generating dollar stablecoins. The crypto industry, on the other hand, is attempting to persuade them to lower their demands to avoid undermining the bipartisan negotiation outcomes.

The window of opportunity is rapidly closing. Senate Banking Committee Chairman Tim Scott plans to advance the bill for review next week. Industry insiders widely believe that if bipartisan support cannot be secured at the committee stage, the bill will face significant hurdles in reaching a full Senate vote. This legislation is seen as key to reshaping the US crypto regulatory framework, and its ultimate fate remains highly uncertain. (Decrypt)