Galaxy Research Director: US Two Parties Discuss Crypto Market Structure Bill, Democrats Propose Front-End Compliance for DeFi

Galaxy research director Alex Thorn shared the latest developments on the crypto market structure bill on X platform, stating that a bipartisan meeting was held today to discuss the core demands put forward by the Democrats and Republicans to advance the bill. The Democrats' main demands in the DeFi sector include front-end compliance with sanction requirements, granting the Treasury Department greater special measures authority, and establishing regulatory rules for non-decentralized DeFi. Other Democratic demands include adjusting the classification of crypto assets, introducing new investor protection clauses for crypto ATMs and FTC consumer protection, adding anti-evasion clauses, setting a cap of $200 million for issuers to raise funds, and requiring counterparties to proactively declare to the SEC and explain that they do not constitute securities. Matters still under discussion include the regulation and handling of stablecoin returns, ethical standards, and conflicts of interest. Republicans are pushing for the Senate Banking Committee to review the bill next Thursday (January 15). It is unclear whether the two parties can reach a consensus to make it a bipartisan bill, as many issues remain unresolved.

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