US Senators are divided over DeFi developer protection as they race to markup crypto legislation on January 15. Trump demanded bipartisan framework shortly after returning to the White House. Legislation would end regulatory turf war between SEC and CFTC, giving SEC oversight of ancillary assets and CFTC jurisdiction once decentralized.

Republican senators make “closing offer” to Democrats with new language on investor protections and illicit finance. Unresolved issues include “ethics” and a provision barring Trump and family from crypto businesses. Outstanding issues include software developer protections and self-custody, nearing resolution.

Prosecutors charge Storm and other developers for unlicensed money transmission. DeFi proponents argue legal theory threatens decentralized finance premise. DOJ attempts to limit prosecutors’ use of money transmission law. Storm found guilty, Samourai Wallet developers plead guilty and sentenced to five years in prison.

Senate Republicans discuss issues, including Blockchain Regulatory Certainty Act. Progress unclear as of Thursday afternoon. Representatives for senators involved in negotiations did not respond to comments. Cracks within Republican ranks over stablecoin yields, Kennedy and Tillis side with bank lobby.

American Bankers Association warns of stablecoin rewards exploiting loophole in last year’s stablecoin law. Rewards could threaten bank deposits, causing loss of billions in customers’ deposits. Crypto companies cite research showing stablecoins pose little threat to bank deposits.

Read more at Yahoo Finance: As Senators race towards market structure vote, DeFi devs remain a sticking point