The crypto market structural bill is set to pass by the end of the year! White House Tsar: Bipartisan support for regulatory clarification.

David Sacks, the White House artificial intelligence and Crypto Assets czar, stated that he believes the United States is in a “great position” to pass the crypto market structure bill by the end of the year. Sacks mentioned that he believes the U.S. could pass the long-awaited crypto legislation “with bipartisan support” by the end of 2025.

David Sacks optimistic declaration of bipartisan support to break the deadlock

(Source: X)

David Sacks expressed strong confidence in the passage of the crypto market structure bill in an X post on October 23. He stated that the United States may pass the long-awaited encryption legislation “with bipartisan support” before the end of 2025. This optimistic statement is significant because Sacks, as the White House's artificial intelligence and cryptocurrency czar, holds a key position in communicating with both parties in Congress.

Sacks also pointed out that while U.S. lawmakers convene meetings to find ways to advance encryption policies, he “had productive conversations with key Democratic members.” This bipartisan dialogue is crucial for whether the crypto market structure bill can pass. Over the past few years, crypto regulation has been mired in partisan gridlock, with Republicans favoring looser regulation to promote innovation, while Democrats are more focused on consumer protection and financial stability. Sacks' “productive conversations” with key Democratic members suggest that both sides are seeking acceptable compromises.

Sacks wrote: “This will ultimately bring much-needed regulatory clarity to the crypto industry to solidify the success of the 'Genius Act' signed by President Trump earlier this year.” This statement reveals the connection between the crypto market structure bill and the Trump administration's broader technology innovation policy. The 'Genius Act' aims to attract and retain the world's top tech talent, while the crypto market structure bill provides a clear regulatory framework for these talents, complementing each other.

Regulatory clarity has been a core demand of the encryption industry for a long time. During the Biden administration, the SEC adopted a strategy of “regulating through enforcement” against crypto companies, filing lawsuits against major firms like Ripple Labs, but did not provide clear compliance guidance. This uncertainty has led many crypto companies to leave the United States or scale back their operations. The passage of the crypto market structure bill will fundamentally change this situation, providing businesses with a predictable legal environment.

Senate Democrats Meeting Encryption Executives Seek Consensus

Senate Democrats met with top digital asset executives on Wednesday, aiming to draft a crypto market structure bill. The roundtable was hosted by Senator Kirsten Gillibrand, and attendees included key figures from the crypto assets industry, including Galaxy CEO Mike Novogratz, Chainlink CEO Sergey Nazarov, and Solana Policy Research Institute Director Kristin Smith.

This list of participants deserves in-depth analysis. Mike Novogratz is a seasoned Wall Street professional turned crypto entrepreneur, and Galaxy is an institution-level crypto financial services provider. His participation represents a bridge between traditional finance and the crypto world. Led by Sergey Nazarov, Chainlink is a leader in the blockchain oracle space, providing real-world data for smart contracts. His participation indicates Congress's attention to DeFi infrastructure.

Market leader Brian Armstrong told CNBC: “The good news is that both parties strongly support and are willing to get this crypto market structure bill done.” He also added that Thanksgiving could become the deadline for the crypto assets bill. Armstrong's remarks carry dual significance: first, it confirms Sacks' statement about bipartisan support; second, it provides a specific timeframe—Thanksgiving, which is at the end of November.

Key Crypto Executives Participating in the Roundtable:

Mike Novogratz (Galaxy CEO): A perspective on institutional-grade crypto financial services.

Sergey Nazarov (Chainlink CEO): Represents the DeFi infrastructure and oracle domain.

Kristin Smith (Director of the Solana Policy Research Institute): Represents the policy demands of emerging public chain ecosystems.

This high-level industry dialogue shows that Congress is taking the crypto market structure bill seriously, rather than merely viewing it as symbolic legislation. When senators are willing to spend time engaging in in-depth discussions with industry leaders, it usually indicates that the legislative process has entered a substantive phase.

Democratic Party version controversy: Ban on DeFi sparks industry backlash

The Senate Democrats announced their own proposal for a crypto market structure bill earlier this month, but not everyone is satisfied with the bill. Blockchain Association CEO Kristin Smith stated at the time in a statement: “The disappointing proposal put forth by Senate Democrats would effectively ban decentralized finance, wallet development, and other applications in the United States—this outcome is both impractical and contrary to America's innovation.”

This intense criticism reveals the core challenge facing the crypto market structure bill: how to find a balance between consumer protection and innovation incentives. The Democratic version of the crypto market structure bill may include strict KYC/AML requirements, which might not be compatible with the decentralized features of DeFi protocols. For example, if the bill requires all DeFi protocols to identify user identities, then automated market makers (AMM) based on smart contracts will not be able to operate.

Critics from the blockchain association point out that the Democratic version would “effectively ban” the development of decentralized finance and wallets. While this statement may contain exaggeration, it reflects the industry's concerns about overregulation. DeFi is at the forefront of crypto innovation, with the total locked value (TVL) of DeFi protocols exceeding $100 billion in 2024. If the U.S. crypto market structure bill makes DeFi unworkable in the U.S., it would be a significant blow to America's technological leadership.

However, criticism does not mean the end of dialogue. On the contrary, it may be part of the negotiation process. When industry groups publicly criticize legislative proposals, they are often signaling to lawmakers that these terms need to be amended. The meeting between Senate Democrats and crypto executives is precisely to hear this feedback and look for acceptable compromises.

Thanksgiving deadline and the dual challenge of government shutdown

Despite much of Washington remaining stagnant due to the government shutdown, Sacks indicated that the crypto market structure bill could still make progress before the end of the year, which could be a positive step forward for supporters of the bill. This optimistic outlook faces real challenges, as government shutdowns typically freeze all non-emergency legislative activities.

The Thanksgiving deadline mentioned by Brian Armstrong has strategic significance. After Thanksgiving (the end of November), Congress will enter the year-end holiday season, and legislative activities will significantly slow down. If the crypto market structure bill is to pass in 2025, it is almost essential to complete the Senate vote before Thanksgiving. This puts clear time pressure on lawmakers, which may prompt them to accelerate negotiations and compromises.

However, advancing the crypto market structure bill against the backdrop of a government shutdown is no easy task. Government shutdowns are often caused by budget disputes, meaning that Congress's attention is focused on fiscal issues such as the budget and debt ceiling. In this environment, the crypto market structure bill may be seen as a “secondary priority” and set aside.

However, Sacks' optimistic statement may be based on two factors. First, the crypto market structure bill has gained broad bipartisan support, which is rare in a highly polarized Congress. When both parties support a piece of legislation, it is more likely to make progress in a political stalemate. Second, the Trump administration views crypto regulation as a key component of technological competitiveness, and the White House may pressure Congress to prioritize this legislation.