Policy Game Under Time Pressure: Wall Street and Crypto Community Accelerate Negotiations on Market Structure Bill

The key moment of U.S. crypto regulation is accelerating. According to the latest news, the main trade organization on Wall Street, SIFMA, held a private meeting with representatives from the DeFi and crypto industry on January 9 to discuss core disagreements over the Senate’s Crypto Market Structure Bill. Both sides made “progress” on DeFi regulation provisions, but significant differences remain on topics such as yield-bearing stablecoins. More critically, the bill is set for a key vote in the Senate next week, with the time window rapidly closing.

Negotiation Focus: DeFi Progress vs. Stablecoin Disputes

This closed-door meeting reflects the core contradictions in U.S. crypto regulation. According to sources, SIFMA expressed objections to the bill’s proposed regulatory exemptions for certain DeFi protocols and developers, but after industry persuasion, some progress was made on this issue. This suggests that the DeFi regulatory framework may retain some flexibility to a certain extent.

However, disagreements have not been fully resolved. Reports indicate that SIFMA and banking lobbying groups are pushing to restrict yield-bearing USD stablecoins, which has become a new focal point for negotiations. The crypto industry is trying to persuade SIFMA to lower its demands to avoid overregulation that could harm innovation.

Why is this negotiation so critical?

Chairman Tim Scott of the Senate Banking Committee plans to advance the bill for review next week, meaning the time window is extremely limited. Industry analysts suggest that without bipartisan support at the committee stage, the bill will struggle to proceed to a full Senate vote. In other words, next week’s review essentially determines the bill’s fate.

This time pressure is pushing both sides to accelerate compromises. Both Wall Street and the crypto industry realize that if the bill fails due to disagreements, the resulting regulatory framework could become even more stringent. Therefore, making progress on DeFi issues is actually a strategic move by both sides to preserve the bill.

The importance of the bill cannot be underestimated

This Crypto Market Structure Bill is seen as a key piece of legislation to reshape the U.S. crypto regulatory framework. Currently, U.S. crypto regulation is fragmented, with different agencies holding different powers and standards, creating significant uncertainty for the industry. A clear market structure bill could provide much-needed clarity.

From this perspective, negotiations between SIFMA and the crypto industry are not just about bargaining over certain provisions but about shaping the regulatory environment for the U.S. crypto ecosystem in the coming years. Whether DeFi exemptions are preserved directly affects the survival space for DeFi protocols and developers; the extent of restrictions on yield-bearing stablecoins will influence the development direction of the entire stablecoin ecosystem.

What will the key vote next week decide?

The critical review pushed forward by Tim Scott next week is essentially the final negotiation window. Sources indicate that both sides are under tight time constraints and are pushing for compromises. This means:

• If DeFi exemption clauses are preserved, it indicates successful lobbying by the crypto industry, providing more compliance space for DeFi protocols.
• If restrictions on yield-bearing stablecoins are included in the bill, it shows that Wall Street and banking lobby groups have greater influence, which will limit certain functions of stablecoins.
• If the bill passes committee review with bipartisan support, it is likely to proceed to a full Senate vote and ultimately become law.

From personal observation, progress has been made on DeFi regulatory exemptions, indicating that the crypto industry’s voice is being heard. However, disagreements over yield-bearing stablecoins remain, and the direction of this issue could be a key factor in the final shape of the bill.

Summary

This private negotiation between Wall Street and the crypto community reflects that U.S. crypto regulation has entered a critical bargaining stage. Progress on DeFi exemptions shows both sides are seeking balance, but disagreements over yield-bearing stablecoins remind us that the final regulatory framework remains uncertain. Next week’s Senate review will be a turning point; the outcome of this vote could influence the future development of the U.S. crypto industry for years to come. For those paying attention to U.S. crypto policy, the coming week is worth close monitoring.