The U.S. Senate is preparing for a pivotal vote on the crypto market structure bill scheduled for January 15, as divisions over DeFi developer protections persist. The measure seeks to resolve a jurisdictional dispute between the SEC and the CFTC, with the SEC overseeing ancillary assets and the CFTC taking responsibility if distribution is decentralized. However, amid prosecutions of cryptocurrency developers for alleged money-transfer violations, questions about ethics provisions and protections for software developers remain unresolved. A controversial provision clarifying that blockchain developers are not the money transmitters continues to spark debate across the industry.
In addition, intra-party tensions in the Republican caucus over stablecoin yields have surfaced, with some senators voicing concern about potential impacts on bank deposits and the banking sector. The American Bankers Association has warned that stablecoin incentives could siphon significant funds from traditional banks, potentially limiting their lending capacity.
Leave a Reply