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Lawmakers Move to Finalize US Crypto Regulations Before Year-End

The United States is on the verge of establishing comprehensive regulations for the cryptocurrency industry.

David Sacks, the White House's AI and Crypto Czar, has expressed optimism regarding the impending passage of the crypto market structure legislation.

Sacks noted that bipartisan support is growing, with productive meetings facilitated by lawmakers and key industry leaders.

This new regulatory framework aims to provide clarity for both investors and developers, addressing a long-standing demand within the crypto sector.

Coinbase CEO Brian Armstrong highlighted that around 90% of the regulatory framework has been agreed upon, with Thanksgiving emerging as a possible deadline for finalization.

While enthusiasm runs high, some critics, such as Blockchain Association's Summer Mersinger, warn that the proposed regulations could inadvertently hamper innovation in decentralized finance (DeFi).

Concerns about rushing the legislative process have also been voiced, including by Senator John Kennedy, who cautioned against hastily creating a flawed framework.

Despite these challenges, the momentum for regulation in Washington appears strong, with major players from the crypto space actively involved in discussions.

The outcome of this legislation could significantly shape the future of digital assets in the U.S., potentially solidifying its position as a leader in the crypto market.

Looking ahead, there is a palpable sense of urgency among lawmakers and industry executives to bring clarity and stability to the burgeoning digital asset ecosystem.