Yahoo Financeยท2025-10-23 12:05Core Viewpoint - The U.S. crypto market structure debate has intensified, with Democrats and Republicans at odds, leaving the crypto industry caught in the middle [1] Group 1: Political Dynamics - Senate Democrats have accused Republicans of politically exploiting the crypto industry, urging industry leaders not to align with the Republican Party [2] - The divide between the two parties is growing, with both sides expressing a desire for a market structure bill but lacking trust in each other [3] Group 2: Regulatory Control - The primary contention is over regulatory authority: Republicans favor classifying most digital assets as commodities under the CFTC, while Democrats prefer maintaining broad SEC authority [4] - There is disagreement on whether tokens can be treated as non-securities, with Republicans advocating for clear on-ramps and safe harbors, while Democrats prioritize investor protections [4] Group 3: DeFi Regulation - Republicans propose a light-touch regulatory framework for DeFi, whereas Democrats advocate for stricter compliance requirements for front-ends and developers [5] Group 4: AML and KYC Regulations - Republicans support targeted improvements to AML regulations, believing current rules are manageable, while Democrats call for stronger AML/KYC and sanctions controls to be integrated into market structure from the outset [7]