The United States is moving towards crypto regulation, but clarity on DeFi remains lacking.

The Senate draft of the market infrastructure bill for digital assets seeks to advance the regulation of crypto assets, but omits key definitions on DeFi and AML, raising concerns in the industry.

The U.S. Senate Agriculture Committee this week released a bipartisan draft of the cryptocurrency market structure bill. While it represents an important step toward regulating digital assets, the text has been met with reservations by industry players, who warn about significant gaps in critical areas such as decentralized finance (DeFi) and the fight against money laundering (AML). 

According to Eleanor Terrett, a Crypto in America journalist, the document "leaves much to be desired" and it still requires work before it can receive solid support from the crypto ecosystem.

A draft law that seeks to move forward, but is still incomplete

The text presented by the senators John Boozman y Cory Booker It references the House CLARITY Act and proposes basic definitions of digital commodities, consumer protection, oversight by the Commodity Futures Trading Commission (CFTC), and self-custody rights. However, much of the technical language remains in parentheses, indicating that it is still incomplete. There is no legislative consensus on several key points, reported Terrett.

One of the most criticized aspects is the absence of comprehensive sections on DeFi and anti-money laundering measures. For the crypto community, these omissions are significant, as the DeFi ecosystem represents a substantial part of the digital market, with billions of dollars locked in smart contracts that offer financial services without intermediaries or banks. Therefore, the lack of clear definitions on how to regulate these decentralized environments is generating uncertainty for developers, users, and investors alike.

Amanda Tuminelli, executive director of the DeFi Education Fund, expressed her hope that the pending language on DeFi “include strong protections for developers” and that a clear distinction be made between centralized intermediaries and software developers who have no control over third-party funds. For Tuminelli, this distinction is crucial to prevent purely technological actors from being treated as financial institutions under traditional regulations.

The crypto industry demands clarity as new laws are negotiated in the Senate

The aim of draft law It's about opening a space for discussion with stakeholders, but the crypto industry has made it clear that it needs more precision before committing its support. Cody Carbone, CEO of Digital Chamber, stated that they are willing to collaborate with lawmakers to improve the text, but that much remains to be defined.

Some analysts suggest the Agriculture Committee may be waiting for the Senate Banking Committee to handle the more complex aspects of DeFi. According to Terrett, the latter has already released two drafts of the market structure bill, primarily led by Republican lawmakers, though current negotiations are bipartisan. Furthermore, the Blockchain Regulatory Certainty Act (BRCA), which aims to protect developers, node operators, and wallet providers, falls under the Banking Committee's jurisdiction, adding another layer of fragmentation to the legislative process.

On the other hand, the draft bill in question includes a proposal for the CFTC to have at least two commissioners nominated in consultation with the minority party on the Committee, which could institutionalize political representation within the regulatory body. This clause, while technical, could have implications for the CFTC's future governance, especially in a regulatory environment as dynamic as that of digital assets.

A regulatory path that still needs key definitions

The publication of the draft bill represents a step forward in the United States' intention to lead crypto regulation globally. However, the lack of definitions regarding DeFi and anti-money laundering measures highlights the challenges Congress faces in legislating on emerging technologies that do not easily fit into traditional frameworks.

DeFi, in particular, has become an essential component of the crypto ecosystem, with platforms enabling loans, asset exchanges, and returns without intermediaries. Its growth has been exponential, but it has also attracted the attention of regulators concerned about the security of funds, consumer protection, and the misuse of these systems for illicit activities. The lack of a clear framework not only affects developers but also users seeking to operate with confidence in these environments.

Meanwhile, the industry continues to await more concrete signs. The nomination hearing for the new CFTC chairman, Mike Selig, scheduled for next week, could offer clues about the direction the agency will take. But without clear legislative consensus and robust definitions of DeFi, the path to effective regulation remains uncertain.

The United States: Between Innovation and Protection

The Senate's intention to move toward more structured crypto regulation is clear, and the draft market infrastructure bill introduced by the Agriculture Committee demonstrates this. However, the omission of key issues such as DeFi and AML reflects both internal tensions within Congress and the complexity of legislating on decentralized technologies. 

For the United States to position itself as a global leader in regulating digital assets, lawmakers will need to listen to the industry, precisely define technical concepts, and build a framework that protects users without stifling innovation. According to experts, collaboration among the various committees, expert participation, and regulatory clarity will be essential for making significant progress in the coming months.

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Asia is taking the lead in crypto regulation

However, while the United States is still debating the terms of comprehensive regulation for the cryptocurrency market, several Asian countries are moving forward with more defined and agile regulatory frameworks. South Korea, Malaysia, and Indonesia have presented concrete initiatives in recent weeks to oversee digital assets, implementing a more proactive strategy in response to the sector's evolution.

On one hand, South Korea has promoted the development of exchange-traded products (ETPs) based on crypto assets and is exploring tokenization schemes that could be integrated into its traditional financial infrastructure. Malaysia, for its part, has begun to transition to a more autonomous exchange regime, with an emphasis on institutional custody, seeking to strengthen the security and traceability of transactions. In Indonesia, the financial authority OJK has revamped its regulatory approach with stricter risk controls and pilot tokenization programs within sandbox environments to test the potential of these innovations under controlled supervision.

All these advances contrast with the pace of US legislation, where drafts are still under discussion and many key definitions remain open.

Given these advances, experts have emphasized that the speed difference could have strategic implications for the global competitiveness of the crypto ecosystem, especially if Asian frameworks manage to attract investment and talent before the United States consolidates its regulatory position in this emerging industry.