The two U.S. parties push forward with crypto legislation: DeFi regulation becomes the focus, Senate to review on January 15

【Blockchain Rhythm】Just entering January, new developments have emerged in the US cryptocurrency market regulation. Recently, bipartisan lawmakers held a meeting and reached some consensus on advancing the Crypto Market Structure Act, while also revealing several disagreements.

According to the key documents produced from the meeting, the Democratic Party’s core demands in the DeFi sector include three aspects: requiring front-end platforms to comply with sanctions and compliance requirements, expanding the “Special Measures” authority of the Treasury Department, and establishing specific regulatory rules for non-decentralized DeFi. Implicitly, this suggests an intention to bring DeFi under a stricter regulatory framework.

In addition, the Democrats have put forward several key demands. First, to adjust the classification standards for crypto assets; second, to introduce investor protection clauses for crypto ATMs and consumer protection; third, to include anti-avoidance provisions to prevent regulatory loopholes. Notably, they also want to set fundraising caps for issuers—each project can raise a maximum of $200 million—and require protocols to proactively report to the SEC and prove they are not securities.

There are still many issues to be further discussed, such as how to regulate stablecoin yields, ethical standards, and conflicts of interest. On the Republican side, efforts are underway to push the Senate Banking Committee to review the bill on January 15. But frankly, whether the two parties can reach a genuine consensus remains uncertain—many unresolved issues persist, and bipartisan cooperation faces significant challenges.