The digital asset management agreement in the US Congress is at an impasse

The US cryptocurrency industry is facing a larger-than-expected legislative challenge. Although leading crypto companies like Ripple and Coinbase have united to push H.R. 3633 (The Digital Asset Market Clarification Act of 2025) through the Senate, internal negotiations have revealed deep divisions that may not be reconciled in the short term.

The widening gap between the two sides

The bipartisan meeting on January 6 exposed fundamental disagreements over regulatory approaches. According to key industry figures, the Republican Party wants to accelerate the review of the bill in the Senate Banking Committee on Thursday, January 15, to lock in a legal framework before the legislative window closes at the end of the year.

However, the Democratic Party has presented a long list of strong demands that could significantly alter the bill’s shape. These requirements mainly focus on the decentralized finance (DeFi) sector, where they seek to apply oversight standards similar to those of traditional banking systems.

Disputes over DeFi and control

Pressure from Democrats includes mandatory “compliance with user interface sanctions,” requiring developers to perform user checks at access points, and granting the Department of the Treasury expanded investor protection powers.

Another proposal is to create a new category called “Non-Dispersed DeFi” — a classification intended to cover projects claiming to be decentralized but still maintaining some level of administrative control or centralized storage. This could significantly impact how current protocols operate.

Perhaps the most impactful aspect for fundraising activities is the proposal to cap the amount that issuing organizations can raise at $200 million under certain exemptions. Additionally, protocols would need to proactively contact the SEC (Securities and Exchange Commission) to declare they are not securities, rather than waiting for enforcement.

The real dispute: stablecoin yields

Behind the technical debates lies a real monetary battle between the traditional banking sector and the crypto space. The hottest issue is whether stablecoin issuers will be allowed to transfer yields from reserve assets (such as Treasury bills) to holders.

US banks have lobbied strongly against this, arguing that mechanisms like this would drain deposits from the traditional banking system. However, crypto companies oppose, claiming that the banking industry’s stance is merely protective of their own interests rather than genuine concerns about financial safety.

According to a policy leader at a leading crypto firm, US banks earn about $176 billion annually from deposits at the Federal Reserve (totaling around $3 trillion). They also make an additional $187 billion per year from card fees, equivalent to about $1,440 per household. These figures explain why the banking sector fears competition from stablecoin yields.

Why the crypto industry cannot afford to concede

For Ripple, Coinbase, and other major crypto companies, the Clarification Act is not just about avoiding litigation but about opening entirely new business models currently delayed by regulatory ambiguity.

Ripple has actively invested in this process — the company holds a US national banking license and is seeking access to the Fed related to RLUSD stablecoin. Recently, Ripple acquired the broker Hidden Road, a platform processing about $3 trillion annually for over 300 clients. This deal signals a strategic focus on processes dependent on federal standards — the very standards the Clarification Act aims to provide.

Similarly, Coinbase CEO emphasized that the bill is necessary to “unlock” crypto in the US through clear rules, which will protect consumers and empower builders.

Global pressure to act

The cost of delay is becoming increasingly clear in the global context. Europe has implemented the Markets in Crypto-Assets (MiCA) regulation with standardized market licensing standards. In Asia, hubs like Hong Kong and Singapore are pushing regulations designed to attract global liquidity flows.

If the US continues to be gridlocked, American crypto companies will keep migrating abroad, leaving growth opportunities to international competitors. This is why pro-legislation lawmakers emphasize that “unclear regulations have driven digital asset companies overseas” and that the bill must be passed quickly to “keep the US at the forefront.”

The upcoming deadlock

Despite urgency from both sides, the divisions between Republicans and Democrats over DeFi, stablecoin yields, and compliance requirements seem too deep to reconcile before Thursday’s deadline. Negotiations continue, but the path to an agreement remains fraught with obstacles.

The question is whether the crypto industry can persuade Democratic lawmakers that regulatory certainty will bring more benefits than the risks they fear. If not, this bill could become one of the examples of how competing interests hinder progress in this emerging industry.