Senate Crypto Bill Draft Reveals DeFi Protection and Market Structure Framework

A preliminary draft of a major U.S. Senate cryptocurrency market structure bill has been revealed, indicating a significant step towards regulatory clarity. The unfinished legislation, spearheaded by Senators Kirsten Gillibrand and Cynthia Lummis, aims to establish a comprehensive framework for digital assets. A key provision in the current draft is the explicit protection offered to decentralized finance (DeFi) protocols. The bill seeks to distinguish genuine DeFi platforms from centralized entities, potentially shielding them from certain regulatory burdens. This move is seen as a proactive attempt to foster innovation while addressing concerns around consumer protection and financial stability within the crypto sector. The draft also outlines roles for both the CFTC and SEC in overseeing different types of digital assets, marking a pivotal moment for the future of crypto regulation in the United States.