In brief
- Leading crypto executives met with Senate Democrats and Republicans on Wednesday, in sit-downs that exposed divisions over the path forward to passing a crypto market structure bill.
- Democrats were frustrated about numerous issues, including recent leaks of proposed bill language, while Republicans warned that if the bill doesn’t move forward soon, it could collapse.
- Meeting attendees said the ongoing government shutdown and partisan tensions remain obstacles to any deal.
Top crypto industry executives met separately with key Senate Democrats and Republicans on Wednesday, in sit-downs that underscored how far apart lawmakers remain on market structure legislation—despite the positive vibes intended to be signaled by the meetings.
“Democrats don’t like these timelines being put on them,” a source familiar with the events of both meetings told Decrypt. “But the Republicans are like: ‘If we don’t move this in November, we don’t get it done by the end of the year, then the whole thing derails.’”
During the industry leaders’ meeting with Democrats on Wednesday, Senators Catherine Cortez Masto (D-NV), Mark Warner (D-VA), and Ruben Gallego (D-AZ) all expressed frustration at their Republican colleagues, and the crypto executives, for leaking a Democratic proposal on the bill’s DeFi language earlier this month—and publicly bashing it online, per the source.
“They were very upset with the reaction on Twitter,” the source said.
Sen. Cory Booker (D-NJ) also implored the crypto executives to be more supportive of Democrats in their push to ensure a bipartisan mix of commissioners at the CFTC and SEC, the source added.
That issue has become increasingly fraught—and central to the fate of the market structure bill— given the Trump administration’s moves to functionally end the independence of federal agencies including the CFTC and SEC. The market structure bill would give both regulators enormous leeway over the shaping and implementation of crypto regulation.
Industry attendees at Wednesday’s meetings included Coinbase CEO Brian Armstrong, Galaxy CEO Mike Novogratz, Andreessen Horowitz Head of Crypto Policy Miles Jennings, and Chainlink CEO Sergey Nazarov, among others.
Nazarov told Decrypt that though he walked out encouraged by Wednesday’s Capitol Hill meetings, and content with pro-crypto advocates in both parties, the race against the clock to get market structure legislation over the finish line loomed over both the Democrat- and Republican-led sit-downs.
“The shutdown is going to be the biggest factor,” Nazarov said, referencing the 22-day standstill on funding the federal government, which has slowed Congress down to a halt—and has no current end in sight.
The entrepreneur added that partisan tensions did flare up in the meeting with Democrats, over the crypto industry’s assumed political allegiances.
“The Democrats had a concern that the crypto industry is, like, an extension of the Republican Party,” Nazarov said. “But I don’t actually think that’s the case.”
“If the Democrats support our industry, then our industry will have many people that are very pro-Democrat,” he added.
Daily Debrief Newsletter
Start every day with the top news stories right now, plus original features, a podcast, videos and more.
