U.S. Senate Deadlock on DeFi Developer Exemptions Amid Encryption Bill Stalemate

The U.S. Senate's handling of a proposed encryption bill has hit a roadblock, causing tension among lawmakers on the issue of DeFi developer exemptions.

One key point of contention is whether software developers should be treated differently from intermediaries, with some advocating for broad liability and others pushing for narrower treatment as code publishers.

The debate has sparked concerns about enforcement and potential coalition fractures, which could further stall the bill's progress. With more than 130 amendments proposed, including those related to yield and DeFi sections, the path forward remains unclear.