Washington will be the heart of the crypto world this week. Executives from Coinbase, Chainlink, Circle, Ripple, Uniswap, and many other giants will sit down with Senate Democrats. The agenda is clear: defusing the political tensions that have escalated over DeFi regulation and shaping the laws that will determine the future of the crypto market.
A major cryptocurrency meeting will be held in the US: All eyes are on October 22nd.
The tension between the crypto industry and politics in the US is entering a new phase. Executives from leading crypto companies will meet with Senate Democrats this week to discuss market structure legislation. It's also noteworthy that the meeting follows the leak of a controversial draft regulation for DeFi (decentralized finance).
According to Fox Business correspondent Eleanor Terrett, the meeting will be chaired by Senator Kirsten Gillibrand on Wednesday, October 22nd. Because the meeting is being held on US time, it is likely to be extended to the evening of Turkey time or October 23rd. Gillibrand has long been a proponent of creating a clear and balanced framework for crypto regulations. In 2023, he co-authored the "Responsible Financial Innovation Act" with Republican Senator Cynthia Lummis and spearheaded the GENIUS Act, a bill designed for the stablecoin market.
Who is attending the meeting?
Among those expected to attend are Coinbase CEO Brian Armstrong, Chainlink CEO Sergey Nazarov, Galaxy Digital CEO Mike Novogratz, Kraken CEO David Ripley, Uniswap founder Hayden Adams, Circle Chief Strategy Officer Dante Disparte, Ripple Legal Director Stuart Alderoty, Jito CLO Rebecca Rettig, Solana Policy Institute President Kristin Smith, and Andreessen Horowitz (a16z) Legal Counsel Miles Jennings.
The meeting follows the recently leaked proposal, "Preventing Illicit Financing and Regulatory Arbitrage Through Decentralized Finance Platforms," drafted by Democrats in the US Senate. The proposal defines anyone operating in or generating revenue from DeFi protocols as an “intermediary.” It also mandates that all DeFi interfaces and non-custodial wallets require user identity verification (KYC).
Another criticism of the proposal is that it grants the Treasury Department the authority to ban any protocol based on “influenced individuals or entities.” Industry representatives likened this provision to a “direct government takeover of the industry.”
Jake Chervinsky, legal director of the Blockchain Association, called this approach “unprecedented and unconstitutional.” Cardano founder Charles Hoskinson similarly criticized the Democratic Party for stifling the industry with an overly statist stance.
For the crypto industry, this meeting is seen as a significant opportunity to re-establish communication between the legislature and the industry. However, experts believe it is unlikely that a concrete agreement will emerge from the meeting in the short term. The political climate in Washington remains highly polarized, and crypto legislation has become an ideological battleground between the two parties. However, it's hoped that this meeting, led by Gillibrand, could spark new dialogue, particularly regarding the future of the DeFi sector and how regulatory boundaries will be drawn. The industry will be closely watching this crucial meeting on Wednesday.
