Democrats Pause Republican Proposed Crypto Framework Bill

By Anthony • October 15, 2025 9:45 am • Comments

It seems like lawmakers are unable to agree on anything.

But what else is new!

As the government shutdown has entered its 15th day of being shutdown and are unable to come to an agreement on a new spending bill, Democrats have also stalled a new crypto framework bill prosed by Republicans.

Trending: DOJ Seizes $15 Billion Worth Of Bitcoin!

The Responsible Financial Innovation Act (RFIA) which was first introduced to the senate in 2023 by Senator Cynthia Lummis (R-WY), has once again been paused after Democrats have offered a counter proposal to the bill.

Cointelegraph provided more details on the Democrats counter proposal:

Senate Democrats submitted a counterproposal to the crypto framework bill last week. Industry advocates are concerned that this will stall progress on the legal clarity for the blockchain industry.

The proposal, which has not yet been released publicly, would reportedly impose a number of rules for decentralized finance (DeFi) protocols. Among these is a supposed “restricted list” for DeFi protocols deemed too risky.

Industry commenters are concerned that the measures are made in bad faith. Digital Chamber vice president of policy and government affairs Zunera Mazhar said that the law gives “sweeping authority, narrowly defines decentralization, and treats front ends like financial intermediaries.”

Following the proposal, Senate talks on the bill have reportedly halted until Democrats and Republicans can agree on a markup session. Amid an industry outcry, further work on the crypto framework bill has slowed to a crawl.

The recent proposal from Democratic senators in the Senate Banking Committee has put a pause on the Responsible Financial Innovation Act (RFIA), which has already been beset with delays.

The committee initially released a draft of the RFIA in July. Committee Chair Tim Scott said in August that he expected the law to pass by the end of September. In August, Scott noted nominal bipartisan support for the bill, which he said was necessary for it to pass.

The deadline has come and gone, and now it looks like making the RFIA a reality will only get more difficult. Each side has accused the other of holding up negotiations as the issue descends into partisan mudslinging.

According to Punchbowl News, which first acquired a copy of the Democrats’ proposed amendments, further meetings regarding RFIA are now on hold. Catherine Fuchs, Scott’s staff director, reportedly said, “Until we have an agreed upon date for markup we are going to pause any further meetings.”

Crypto DNES also reported on the Democrats stalling the crypto framework bill:

Progress on a major U.S. crypto framework bill has hit a roadblock as Senate Democrats submitted a counterproposal that has raised concerns across the blockchain industry.

The move comes amid ongoing partisan disputes over the Responsible Financial Innovation Act (RFIA), which aims to provide legal clarity for cryptocurrency and decentralized finance (DeFi) protocols.

Though the full details of the Democratic amendments have not been released publicly, reports suggest they include a “restricted list” of DeFi platforms deemed too risky, effectively imposing strict oversight via the U.S. Treasury. Industry advocates warn that such measures could stifle innovation, drive development offshore, and undermine the decentralized nature of blockchain applications.

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