Overview

• Furloughed agency advisors have halted technical drafting, and the SEC has paused reviews of roughly 90 digital‑asset ETF filings.
• A leaked Senate Democratic outline would treat DeFi front‑end operators as regulated intermediaries that must register with the SEC or CFTC.
• The draft extends KYC/AML duties to interfaces, validators and node operators, and contemplates Treasury authority to place risky protocols on a restricted list.
• Republicans and industry figures criticized the approach as unworkable and likely to push activity offshore, prompting committees to pause markups.
• Senate Agriculture staff continue limited work on the commodities side, but a tightening calendar increases the likelihood that comprehensive market‑structure legislation slips into 2026.