Stop Being Republicans’ Lapdog’ – Crypto CEOs Face Senate Fury as Bill Stalls
Democratic senators unleashed on crypto CEOs throughout Thursday’s Capitol Hill conferences, with one lawmaker warning executives to cease being ‘an arm of the Republican Party‘ as negotiations over the market-structure invoice reached a breaking level.
Instead of securing commitments or reassurances, the CEOs left with considerations that the laws would possibly drag into subsequent yr.
Politico reported that “Everyone walked away with a dedication to proceed work on this in a bipartisan approach, however there was a definite distinction when it comes to the timeline,” noting that passage this yr would require a “miracle.”
NEW: A play-by-play of what went down on the Senate Democrats–crypto trade leaders roundtable that simply wrapped, based on sources within the room:
The assembly opened with half-hour of introductions from trade leaders, which one attendee described as providing “the…
— Eleanor Terrett (@EleanorTerrett) October 22, 2025
Senate Banking Chair Tim Scott (R-S.C.) instructed trade leaders he desires the invoice by way of his committee earlier than Thanksgiving.
Crypto CEOs Face Partisan Battle as Market Structure Bill Stalls
However, Democrats rejected the imposed deadlines, demanding a joint, bipartisan drafting course of that offers them actual enter.
During their morning assembly, Democratic senators criticized CEOs for the trade’s response to a leaked Democratic proposal on regulating decentralized finance (DeFi).
JUST IN: U.S. senators suggest a serious crackdown on DeFi.
Treasury may blacklist “high-risk” DeFi, implement KYC on frontends, and strip dev protections. pic.twitter.com/nZCapokETr
— Nathan Jeffay (@NathanOnCrypto) October 10, 2025
Sen. Ruben Gallego (D-Ariz.) instructed executives he was “actually f**king pissed” about how the leaked DeFi proposals had been dealt with and warned: “Don’t be an arm of the Republican Party.”
The frustration stems from Democrats’ DeFi regulation proposal, designed to deal with unlawful finance considerations, being leaked to lobbyists and media, then publicly attacked by trade officers.
The CEOs additionally met with GOP lawmakers, however responses diversified.
Sen. John Kennedy (R-La.) opined that dashing the invoice would set off backlash and reversals underneath future administrations. “The worst factor we will do … is attempt to ram it by way of,” he mentioned.
He warned that shifting too quick would produce coverage “designed by a heroin addict with a socket wrench.”
Crypto CEOs Claim Progress
Coinbase CEO Brian Armstrong, nonetheless, told CNBC the talks had been “very productive,” calling current bipartisan conferences a uncommon optimistic signal.
“There’s sturdy bipartisan help to get this market construction laws performed. It’s essential for America and for the 15 million Americans concerned in crypto.”
Armstrong claimed roughly 90% of disputes have been settled, with “the final 10 % of points” to be labored out as soon as everybody meets collectively.
But behind closed doorways, divisions persist.
Some Democratic senators had been left livid. Leaders, together with Senators Catherine Cortez Masto, Mark Warner, and Gallego, confronted trade figures about Twitter reactions and leaks, demanding real accountability.
Sen. Cory Booker reportedly pushed the CEOs to help bipartisan appointments to the SEC and CFTC, a contentious problem given current government actions to undermine company independence.
Earlier this week, Chainlink CEO Sergey Nazarov acknowledged tensions had risen however remained hopeful.
“The Democrats had a priority that the crypto trade is, like, an extension of the Republican Party … But I don’t truly suppose that’s the case,” Nazarov mentioned.
NEW:
Chainlink co-founder Sergey Nazarov shares what was mentioned in in the present day’s Capitol Hill conferences with U.S. senators on crypto regulation and the digital asset market construction invoice. pic.twitter.com/AgLt4OlRfH
— Bitcoin.com News (@BTCTN) October 22, 2025
In parallel conferences, Nazarov publicly said that there was “a enough stage of Democratic help,” noting that greater than 10 senators had been actively engaged and dedicated to shaping the ultimate model.
Senate Banking Chair Tim Scott reportedly desires a markup earlier than Thanksgiving, whereas Democrats have rejected deadline stress and demand on a bipartisan co-authoring course of.
Senator Cynthia Lummis (R-WY), a key backer of the market construction initiative, has additionally expressed confidence that Congress will go the invoice this yr.
Betting Markets Turn Pessimistic
Outside the Capitol, crypto traders are dropping confidence. Polymarket bettors now place odds of the CLARITY Act passing in 2025 at roughly 19%, down sharply from 87% earlier in the summertime.
Additionally, the Digital Asset Market Clarity Act of 2025 handed the House on July 17 with a 294-137 vote.
Now underneath Senate evaluate, the 236-page invoice seeks to resolve years of regulatory uncertainty by clearly separating securities from commodities within the digital asset market.
Under the framework, digital property on sufficiently decentralized networks can be overseen by the CFTC, whereas centralized or early-stage tokens can be categorised as securities regulated by the SEC.
The invoice addresses market manipulation, together with wash buying and selling, spoofing, pump-and-dump schemes, and insider buying and selling, by way of express guidelines, stronger enforcement, and structural safeguards.
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