- Lawmakers and White House officials pushed to finalize crypto market structure legislation before year-end.
- Senator Gallego’s criticism of partisan attacks highlighted tensions during Democrats’ talks with crypto industry leaders.
- DeFi regulation remained the central debate, with senators favoring oversight of intermediaries over blockchain protocols.
A tense series of Capitol Hill meetings on Thursday brought together crypto industry executives, White House officials, and key lawmakers in a renewed effort to finalize long-delayed market structure legislation.
According to Fox Business reporter Eleanor Terrett, the day unfolded as a mix of urgency, cautious optimism, and political friction as both parties sought to find middle ground on digital asset regulation.
Participants described a growing determination among lawmakers to complete the bill before year-end despite ongoing disagreements over decentralized finance (DeFi) oversight and partisan distrust.
White House Reaffirms Priority on Crypto
The day began with a meeting between members of the Senate Banking Committee and David Sacks, the White House’s Crypto and AI Czar. Sources familiar with the discussion said Sacks emphasized that passing crypto market structure legislation this year remains a top administrative goal.
He was joined by Patrick Witt, Executive Director of the White House Crypto Council, who reiterated the administration’s readiness to assist lawmakers in completing the process. While most Republican members attended, Senator John Kennedy was absent from the morning session.
Lawmakers discussed potential markup timelines and possible compromises between the House and Senate versions of the bill. Industry representatives present at the meeting described the tone as businesslike and constructive, suggesting the White House aimed to keep momentum alive despite political headwinds.
Fallout and Industry Frustrations
Later in the day, Democratic senators held a separate roundtable with crypto industry leaders to address public frustration over policy leaks and communication breakdowns. Senators Kirsten Gillibrand and Majority Leader Chuck Schumer opened the meeting, urging cooperation and timely progress. Several participants said they appreciated hearing lawmakers recognize crypto’s role in supporting communities often underserved by traditional banking institutions.
However, tensions briefly escalated when Senator Ruben Gallego criticized online attacks against Democrats and accused Republicans of using industry voices for partisan messaging.
His outburst reportedly changed the tone of the discussion, though attendees said the meeting remained largely respectful afterward. The exchange underscored how political divisions continue to complicate negotiations even as both parties seek a unified path forward.
DeFi Debate Dominates Republican Session
The final meeting of the day saw a smaller group of Republican senators, including Tim Scott, Cynthia Lummis, Ted Budd, Bernie Moreno, and Kennedy, focus heavily on DeFi regulation.
Attendees said discussions centered on how to define and regulate DeFi without stifling innovation or penalizing open-source development. Kennedy, who joined this session, reportedly pressed for clear, actionable solutions instead of political posturing.
Participants floated practical ideas, including targeting regulation toward intermediaries rather than blockchain protocols. Some also proposed a bipartisan working session where lawmakers and industry experts could review the bill line by line. While no final decisions were reached, there was a shared sentiment that progress must happen soon.
Despite the government shutdown, all sides reportedly agreed that the crypto sector needs legal clarity before the year’s end — a goal that, according to Terrett, now carries a sense of unprecedented urgency across Capitol Hill.
