FATF states centralized elements frequently persist in DeFi and require regulation, extending FATF DeFi regulation recommendations history and FATF crypto guidance 2019 vs 2023 updates.

According to the source, Galaxy said DeFi-related provisions in a US crypto bill resemble Patriot Act-style surveillance; source: Galaxy Digital. This characterization signals regulatory overhang risk for DeFi protocols and tokens from Galaxy’s perspective; source: Galaxy Digital.

According to @EleanorTerrett, advocacy group Investors For Transparency is airing prime-time ads on Fox News urging viewers to oppose DeFi provisions in the forthcoming U.S. crypto market structure bill; source: @EleanorTerrett on X, Jan 10, 2026. She reports that senators are scheduled to vote in relevant committees next week and that the Senate Banking Committee will release its portion of the bill ahead of Thursday's markup, which will clarify the current DeFi language; source: @EleanorTerrett on X, Jan 10, 2026. The treatment of DeFi is described as one of the most hotly contested elements among lawmakers, TradFi, and the crypto industry, with the exact language still unclear until the committee release, establishing a defined regulatory timeline for DeFi market participants next week; source: @EleanorTerrett on X, Jan 10, 2026.

According to @AltcoinDaily, the U.S. SEC has ended its probe into Aave after four years. Source: twitter.com/AltcoinDaily/status/2001145765801156694. The post does not provide an SEC order, litigation release number, or an official statement from Aave for verification. Source: twitter.com/AltcoinDaily/status/2001145765801156694. Traders seeking confirmation should check the SEC enforcement and press pages and Aave’s official channels before repositioning around AAVE exposure. Sources: sec.gov/litigation/litreleases, sec.gov/news/press, x.com/AaveAave, aave.com. Based on the four-year duration cited, the purported probe would date to roughly 2021. Source: twitter.com/AltcoinDaily/status/2001145765801156694. For execution readiness, monitor AAVE spot liquidity, perpetual funding rates, and open interest around any official confirmation. Sources: binance.com, bybit.com, coinglass.com.

According to Jake Chervinsky, Sen. Cory Booker has committed to protecting software developers in ongoing crypto policy discussions. Source: Jake Chervinsky on X, Dec 9, 2025. Chervinsky argues the only durable path is clarifying that “money transmission” under 18 U.S.C. § 1960 requires custody and control of user assets. Source: Jake Chervinsky on X, Dec 9, 2025; 18 U.S.C. § 1960 (U.S. Code). He states that without this custody-based definition, the current U.S. market structure bill should be a dealbreaker. Source: Jake Chervinsky on X, Dec 9, 2025. For traders, this highlights custody vs. non-custody as the core regulatory line shaping compliance exposure for DeFi front-ends, non-custodial wallets, and other software-only services. Source: Jake Chervinsky on X, Dec 9, 2025.

According to @jchervinsky, the US Senate is working intensively on the crypto market structure bill, but growing complexity makes a December markup unlikely. Source: @jchervinsky, Dec 4, 2025. He states three unresolved issues are holding up the bill: stablecoin yield, conflicts of interest, and DeFi. Source: @jchervinsky, Dec 4, 2025. For trading, this indicates near-term regulatory clarity is not expected this month and that current policy debate centers on yield-bearing stablecoins, exchange conflict rules, and DeFi oversight, which define the immediate regulatory catalysts to track. Source: @jchervinsky, Dec 4, 2025.

According to @jchervinsky, many of the highest-demand crypto products are or may be derivatives regulated by the CFTC, but most cannot comply with the Commodity Exchange Act because it was not written for DeFi or onchain finance (source: Jake Chervinsky on X, Nov 21, 2025). According to @jchervinsky, harsh penalties under current law lead most crypto derivatives products to geofence the United States (source: Jake Chervinsky on X, Nov 21, 2025). According to @jchervinsky, the CFTC can fix this by adopting new rules that allow DeFi and onchain derivatives to compete in the free market, asserting there is no legitimate policy reason to ban crypto-powered derivatives in the United States (source: Jake Chervinsky on X, Nov 21, 2025). According to @jchervinsky, these products address key CFTC risk concerns with better technology than TradFi, U.S. taxpayers show strong demand for access, and outcomes depend on policy choices by CFTC leadership, with him expressing hope that Mike Selig will take the seat soon (source: Jake Chervinsky on X, Nov 21, 2025).

According to @EleanorTerrett, the US Senate Agriculture Committee released a bipartisan market structure draft that left the DeFi section blank; source: @EleanorTerrett on X, Nov 10, 2025. According to @EleanorTerrett, fund_defi Executive Director @amandatums issued a statement welcoming the committee’s progress and acknowledging the open DeFi section; source: @EleanorTerrett on X, Nov 10, 2025. According to @EleanorTerrett, for traders this confirms that no new DeFi-specific statutory language is included in the current draft, keeping DeFi provisions to be determined in future text; source: @EleanorTerrett on X, Nov 10, 2025.

According to the source, Patrick Witt said decentralized finance remains a difficult concept for some U.S. senators to grasp, while noting progress is being made toward meaningful legislation during remarks at Ripple's Swell 2025, source: remarks by Patrick Witt at Ripple's Swell 2025. According to the source, his update signals ongoing Senate-level work on DeFi policy that traders should monitor within their regulatory news flow, source: remarks by Patrick Witt at Ripple's Swell 2025.