Bipartisan Cryptocurrency Legislation Approaches Vote as DeFi Oversight Sparks Discussion

Coinbase CEO Brian Armstrong has expressed increasing confidence that a U.S. crypto market structure bill could be enacted before the end of the year, even amid a partial government shutdown. In several public remarks, Armstrong pointed to strong bipartisan support for regulatory clarity, noting that lawmakers from both sides are "90% of the way" to reaching an agreement on the bill, as reported by a

. The proposed legislation, which seeks to create a definitive regulatory framework for the crypto sector, has attracted considerable attention from both industry stakeholders and politicians as it advances through Congress.

Armstrong noted that the remaining 10% of unresolved issues in the negotiations between Senate Democrats and Republicans center on matters such as decentralized finance (DeFi) and stablecoin oversight, according to the PYMNTS article. He expressed optimism that the Senate committee would give its approval by Thanksgiving, with a full Senate vote anticipated before the end of December, as reported by

. This schedule coincides with broader initiatives to close regulatory gaps in the crypto space, including the CLARITY Act—which aims to split oversight between the SEC and CFTC—and the GENIUS Act, which has already been enacted to legalize stablecoin rewards, according to .

The bipartisan effort has encountered some challenges. While members of the Senate Banking Committee have voiced cautious hope, critics like Sen. Elizabeth Warren (D-Mass.) have questioned possible conflicts of interest, especially regarding crypto projects linked to Trump. Furthermore, the regulatory framework proposed by Senate Democrats has met resistance from industry organizations, with Blockchain Association CEO Summer Mersinger cautioning that strict KYC requirements and DeFi limitations could hamper innovation and push it abroad, according to

.

Market sentiment has responded favorably to these legislative moves.

shares climbed 0.46% in after-hours trading following Armstrong's comments, bringing the stock's year-to-date gain to nearly 30%. Experts believe that clearer regulations could strengthen investor trust, especially for centralized platforms like Coinbase, which has been actively involved in discussions with lawmakers to influence the bill's content.

David Sacks, the White House's lead on Crypto and AI, has echoed Armstrong's positive outlook, describing the current situation as "excellent" for bipartisan approval. Still, progress depends on resolving disagreements over DeFi regulation and ensuring robust protections for stablecoins. Armstrong has called on legislators to exempt decentralized protocols from the same rules that govern centralized firms, warning that excessive regulation could stifle innovation.

As the 2025 legislative session unfolds, the results of these talks are expected to shape the regulatory environment for the U.S. crypto industry for years ahead. With both parties working to iron out the final details, the priority remains to protect investors while encouraging technological progress in this rapidly changing sector.