Wall Street and Crypto Leaders Clash Over DeFi Regulations Ahead of Senate Vote
Wall Street and cryptocurrency representatives engaged in tense private discussions Thursday, attempting to bridge divides on decentralized finance (DeFi) oversight and stablecoin rules. The closed-door meeting preceded next week's critical Senate markup of a proposed crypto market structure bill.
Regulators emphasized the need for transparency and risk controls in DeFi protocols, while industry advocates pushed for regulatory flexibility to preserve innovation. Key sticking points included reporting requirements for lending platforms, automated market makers, and staking protocols.
Stablecoin regulation emerged as the most contentious issue, with both sides preparing for intensified lobbying efforts before the Senate session. The talks yielded no binding agreements, leaving major regulatory conflicts unresolved.
