Negotiations on the structure of the U.S. cryptocurrency market are stalled due to the Democratic Party's DeFi proposal

ChainCatcher news, according to Crypto in America, negotiations between Senate Republicans and Democrats on cryptocurrency market structure legislation have stalled due to a new proposal from Democrats to regulate DeFi, which has sparked strong opposition within the industry.

Republicans are frustrated by their Democratic colleagues' continued disagreements on DeFi issues, and there has been little substantive feedback on the draft discussions. Although both sides have had "productive discussions" in recent weeks, Republicans informed Democrats on Wednesday that negotiations are now paused until an agreement is reached on a revision date—banking committee leaders had originally planned to make revisions by September 30.

Multiple sources confirmed that Republicans have been trying to set the revision date for late October, but Democrats are cautious and unwilling to formally set a date, stating they want more time to develop a bipartisan draft. Both sides are blaming each other, and it remains unclear which side will concede first: whether Democrats will agree to a revision date or Republicans will return to the negotiating table.

The longer the stalemate lasts, the more likely it is that the bill will be delayed until it reaches President Trump's desk in 2026, by which time Congress will inevitably shift its focus to the midterm elections, and cryptocurrency policy will take a back seat.