Tensions rise as Senate Democrats, crypto executives meet on sweeping digital assets bill

Tensions escalated during a Wednesday meeting between Senate Democrats and cryptocurrency industry leaders concerning a bill to regulate the crypto market structure. This meeting followed the leak of a Democratic proposal that would grant regulators power to define control in decentralized finance (DeFi), drawing heavy criticism from the industry, which felt it would effectively ban DeFi. A source indicated that a Democratic senator expressed anger, accusing industry advocates of being an "arm of the Republican Party" for derailing previous negotiations. Democrats emphasized their desire to pass a bill but warned that further attempts to derail talks would cause setbacks. The Senate is working on its own legislation after the House passed its version, with the Senate Banking Committee draft allocating jurisdiction between the SEC and CFTC. Notable attendees included executives like Brian Armstrong and Mike Novogratz, though Senator Elizabeth Warren was absent from the Democratic meeting.

(Source：The Block)