Galaxy Research Director: The two parties in the U.S. are negotiating the crypto market structure bill, with the Democrats making demands for front-end compliance regarding DeFi

Galaxy Research Director Alex Thorn shared the latest developments on the crypto market structure bill on the X platform: "A bipartisan meeting was held today to discuss the core demands put forward by both Democrats and Republicans to advance the bill. We reviewed a key document that emerged from this meeting.

The main demands from the Democrats regarding DeFi include: front-end compliance with sanctions requirements; granting the Treasury 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 provisions for crypto ATMs and FTC consumer protection; adding anti-avoidance clauses (to prevent evasion of securities laws or other regulatory requirements through loopholes); setting a cap of $200 million for fundraising by issuers, and requiring protocol parties to proactively report to the SEC, clarifying that they do not constitute securities.

Outstanding issues for further discussion include the regulation and handling of stablecoin yields; ethical standards and conflicts of interest, among others. Republicans are pushing for the Senate Banking Committee to review the bill next Thursday (January 15). It remains unclear whether the two parties can reach a consensus to make it a bipartisan bill, as many issues are still unresolved."