On October 20, 2025, senior crypto executives are scheduled to meet with Senate Democrats on October 22 to address concerns over a leaked DeFi proposal and revive stalled bipartisan market structure legislation, per The Crypto Times. Led by Senator Kirsten Gillibrand (D-NY), the roundtable includes Coinbase CEO Brian Armstrong, Chainlink CEO Sergey Nazarov, Galaxy CEO Mike Novogratz, Kraken CEO David Ripley, Uniswap CEO Hayden Adams, Solana Policy Institute President Kristin Smith, Circle CSO Dante Disparte, Ripple CLO Stuart Alderoty, Jito CLO Rebecca Rettig, and a16z Crypto GC Miles Jennings. Journalist Eleanor Terrett noted on X that additional attendees may join, signaling broad industry involvement.
The meeting follows the October 9, 2025, leak of a Democratic DeFi framework, titled “Preventing Illicit Finance and Regulatory Arbitrage Through Decentralized Finance Platforms,” which proposes KYC mandates for DeFi frontends, including non-custodial wallets, and a Treasury “restricted list” for high-risk protocols, pIt would classify entities profiting from DeFi interfaces as brokers requiring SEC or CFTC registration, while removing legal protections for developers, potentially exposing them to lawsuits or arrests, per. Coinbase’s Brian Armstrong called it “unviable,” warning it could stifle U.S. innovation, per. Uniswap’s Hayden Adams stated it would “kill DeFi in the U.S.,” per. The proposal halted bipartisan talks, with Republicans pausing negotiations over perceived overreach.
The leaked document contrasts with Republican drafts in the Responsible Financial Innovation Act (RFIA), which offer developer protections and clearer SEC/CFTC jurisdiction. Democrats, led by Senator Mark Warner (D-VA), defend it as addressing illicit finance. Still, industry groups like the Blockchain Association warn it could push DeFi offshore, undermining U.S. leadership. The House-passed CLARITY Act in July 2025 aimed for balanced rules, but Senate delays risk pushing legislation to 2026, per. President Trump’s pro-crypto administration adds pressure, though specifics are unclear. X posts from @EleanorTerrett emphasize the meeting’s role in reconciling differences.
The proposal’s fallout contributed to Ethereum (ETH) dipping to $4,070 and Bitcoin (BTC) to $113,234, with DeFi TVL holding at $167B amid uncertainty, per CoinMarketCap. Approval of a balanced bill could unlock $1T in institutional capital by 2026, boosting ETH to $7,500, per Standard Chartered. Investors should monitor SEC filings on sec.gov and CFTC updates at cftc.gov. Dollar-cost average into ETH or BTC with stop-losses below $4,000 and $112,000, respectively, or diversify into USDC, per TradingView. Follow @TheBlock__ on X for live updates. The October 22 meeting could salvage the bill, fostering DeFi growth, but unresolved tensions risk prolonged regulatory limbo.
