U.S. Senate Deadlocks Over DeFi Developer Exemption in Crypto Bill

ChainCatcher report: According to Politico, the cryptocurrency digital assets bill led by U.S. Senate Banking Committee Chairman Tim Scott has become contentious due to provisions protecting DeFi developers, making bipartisan agreement difficult. The disputed provision would exempt non-custodial software developers who do not control user funds from registering as money transmitters or complying with anti-money laundering requirements. Law enforcement agencies, including the National Sheriffs' Association and the National District Attorneys Association, have sent letters to Congress warning that the provision would undermine efforts to combat financial crime; Senate Judiciary Committee Chairman Chuck Grassley has also expressed similar concerns. The crypto industry regards this as a core component of the bill, with DeFi Education Fund Executive Director Amanda Tuminelli explicitly stating that no changes to the language of the provision are acceptable. Democratic Senators Catherine Cortez Masto and Mark Warner are pushing for amendments to the provision. If bipartisan consensus cannot be reached, the bill may proceed without Democratic support, jeopardizing its ability to secure the bipartisan majority required for passage in the full Senate.