According to reporter Eleanor Terrett, an incomplete draft of the U.S. Senate Banking Committee's market structure bill has begun circulating, with the official version expected to be released within hours. The current draft omits a key section on stablecoin yield, but includes two ethics-related provisions addressing felony convictions (page 72) and insider trading (page 270). Notably, a compromise on protecting software developers has been reached between DeFi and traditional finance (TradFi) under Section 601. According to insiders close to the negotiations, this outcome was achieved after a tense closed-door meeting last week. Traditional finance participants, particularly organizations like the Securities Industry and Financial Markets Association (SIFMA), have primarily been concerned that DeFi protocols could be used to circumvent regulations. Previously, the issue of stablecoin yield had been considered the most contentious part of the bill, with multiple parties engaging in heated discussions.
U.S. Senate Banking Committee Market Structure Bill Draft Leaked, DeFi and TradFi Reach Compromise
TechFlowShare
Summary
Market news breaks as a leaked draft of the U.S. Senate Banking Committee's market structure bill reveals that DeFi and TradFi have reached an agreement in Section 601 regarding developer protections. The document, circulating through TechFlow, omits details on stablecoin yields but includes provisions for felony charges and insider trading regulations. SIFMA and other groups had previously warned that DeFi could be used to evade regulations. A DeFi-related security breach had been a major point of contention earlier, but the final language seems to have satisfied both sides.
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