Leaders across decentralized finance are voicing growing concern after the US Senate Banking Committee postponed the markup of the Digital Asset Market Clarity Act (CLARITY) with no new timeline announced. The delay has intensified industry scrutiny over how the proposed legislation could reshape crypto market structure and directly affect DeFi platforms.
DeFi Developer Protections at the Center of the Debate
Crypto advocacy groups and venture firms argue that the current draft includes provisions that could undermine DeFi innovation and expose software developers to regulatory obligations designed for centralized intermediaries. Industry representatives have warned that ambiguous language may require DeFi developers or infrastructure providers to implement KYC measures or register with regulators, a move seen as incompatible with decentralized systems.
DeFi Education Fund said on Wednesday ;
Disagreements over interest-bearing stablecoins, tokenized equities, and compliance responsibilities have further complicated negotiations. While traditional financial institutions favor stricter limits, DeFi advocates say the bill could push innovation offshore if revisions are not made. Several stakeholders emphasized that clear definitions and safe harbors for developers remain a top priority.
The markup was paused after mounting opposition from major crypto firms, prompting Senate leadership to take what was described as a brief pause for revisions. Lawmakers are also weighing concerns raised by some Democrats about potential misuse of DeFi platforms for illicit activity.
As of now, no date has been set for the next markup, leaving the future of US crypto market structure legislation uncertain while DeFi leaders continue to press for meaningful changes.
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