U.S. Crypto Regulation at Risk as Industry Threatens to Withdraw Support Over DeFi Concerns in Market Structure Bill

The future of comprehensive cryptocurrency regulation in the United States faces a critical juncture. Key stakeholders within the crypto industry are signaling a potential withdrawal of support for the pivotal market structure bill if it fails to adequately address the unique needs of decentralized finance (DeFi). This standoff highlights a significant divide between legislative efforts to establish clear rules and the core principles of the DeFi ecosystem. Industry advocates argue that applying traditional market frameworks to decentralized protocols could stifle innovation and harm the sector. The bill's progression now heavily depends on finding a regulatory compromise that acknowledges DeFi's distinct nature while ensuring consumer protection and market integrity. The outcome will have profound implications for the U.S. crypto market's structure, investor security, and global competitiveness.