US Senate Democrats Clash with Crypto CEOs over Decentralized Finance Bill Amid Bipartisan Negotiation Stalemate

U.S. cryptocurrency industry leaders and Senate Democrats engaged in tense discussions over proposed legislation to regulate digital assets, with over ten Democratic senators actively participating. Key points of contention included leaked Democratic proposals on decentralized finance (DeFi), which the industry criticized as restrictive, while lawmakers accused crypto executives of amplifying partisan attacks and undermining the legislative process. Democratic senators expressed frustration, warning industry leaders against aligning with Republican interests and demanding a more collaborative, bipartisan drafting process. Senate Republicans, led by Chair Tim Scott, aimed to advance the market structure bill swiftly, but Democrats resisted imposed deadlines, seeking real input in shaping the law. Despite the heated exchanges, some crypto CEOs, like Coinbase's Brian Armstrong, described the talks as productive and noted strong bipartisan support for clear regulatory frameworks to benefit millions of U.S. crypto users. The debate highlights the delicate balance between fostering innovation in decentralized finance and addressing concerns about illegal activities within the crypto space.