Senate Dems’ Crypto Proposal Would Drive Crypto Development Overseas, Blockchain Association CEO Says

Blockchain Association CEO Summer Mersinger expressed her disappointment with Senate Democrats’ DeFi market structure proposal in a statement on October 9.

Senate Dems’ Proposal Is Disappointing, Blockchain Association CEO Says

According to a statement published on the Blockchain Association’s official X account, Mersinger alleged that the newly proposed legislation from Democrats would drive digital asset development overseas.

“The disappointing proposal outlined by Senate Democrats would effectively ban decentralized finance, wallet development, and other applications in the United States—an outcome that’s neither workable nor consistent with American innovation,” Mersinger said. “The language as written is impossible to comply with and would drive responsible development overseas.”

“We urge our policymakers to stay at the table, continue to engage each other across the aisle, and ensure this critical piece of legislation supports—rather than hinders—our nation’s leadership in financial technology,” she added.

No End in Sight to U.S. Government Shutdown

On Thursday, Punchbowl News reported that Republicans had “halted crypto talks” since Senate Democrats brought forth the market structure proposal.

In part, the proposal would impose Know Your Customer rules on the frontends of crypto apps, remove developer protections, and enact a “restricted list” of high-risk DeFi protocols.

“The proposal is an unserious attempt to restrict DeFi instead of embracing legitimate safeguards to allow decentralized innovations to flourish in the US,” The Digital Chamber CEO Cody Carbone said in an October 9 X post.

News of the proposal comes as the U.S. braces for another week under a government shutdown following lawmakers’ failure to agree on government spending bills on October 1.

U.S. President Donald Trump has long claimed that the shutdown would lead to federal layoffs, with Trump administration budget chief Russell Vought writing in a Friday X post that “reductions in force” have officially begun.

The RIFs have begun.

— Russ Vought (@russvought) October 10, 2025

With no end in sight to the crisis, it is still unclear if Democrats and Republicans can find a resolution to the shutdown, let alone differing views on crypto policy.