Negotiations on the structure of the U.S. cryptocurrency market are stalled due to the Democratic Party's DeFi proposal

ChainCatcher news reports that negotiations between Senate Republicans and Democrats on cryptocurrency market structure legislation have stalled due to a new proposal from Democrats to regulate DeFi, which has sparked strong opposition within the industry.

Republicans are frustrated by their Democratic colleagues' differing views on DeFi issues, and there has been little substantive feedback on the draft discussions. Although both sides have had "productive discussions" in recent weeks, Republicans informed Democrats on Wednesday that negotiations are now paused until an agreement is reached on the amendment date—the Banking Committee leaders had originally planned to make amendments by September 30.

Several sources confirmed that Republicans have been trying to set the amendment date for late October, but Democrats are cautious and reluctant to formally set a date, stating that they want more time to draft a bipartisan proposal. Both sides are blaming each other, and it remains unclear which side will concede first: whether Democrats will agree to the amendment date or Republicans will return to the negotiating table.

The longer the stalemate continues, the more likely it is that the bill will be delayed until 2026 before reaching President Trump's desk, at which point Congress will inevitably shift its focus to the midterm elections, and cryptocurrency policy will take a back seat.