The Democratic Party is set to hold a high-profile meeting with the leaders of major crypto companies on October 22, 2025, to discuss the future of cryptocurrency regulation in the United States. This closed-door roundtable comes amid growing tensions over a leaked Democratic proposal that aims to tighten control over decentralized finance (DeFi) platforms as part of the controversial CLARITY Act.
According to journalist Eleanor Terrett, the invite list includes some of the most influential figures in the industry — Coinbase CEO Brian Armstrong, Galaxy Digital CEO Mike Novogratz, Kraken CEO Dave Ripley, and Ripple Labs’ chief legal officer Stuart Alderoty, among others. The meeting will be led by Senator Kirsten Gillibrand, who has been actively shaping the Democrats’ stance on digital asset policy.
The backdrop to this discussion is a recently leaked document titled “Preventing Illicit Finance and Regulatory Arbitrage Through Decentralized Finance Platforms”, which outlines strict measures aimed at curbing illegal financial activity through DeFi systems. The proposal includes mandatory registration for DeFi service providers, expanding the U.S. Treasury’s enforcement powers, and imposing KYC/AML compliance obligations even on non-custodial wallets and developers.
These provisions have sparked strong backlash from the crypto community, who see them as an existential threat to innovation and privacy. Summer Mersinger, CEO of the Blockchain Association, criticized the proposal, arguing that such regulation would effectively ban DeFi operations in the U.S. and push innovators abroad. Similarly, Jake Chervinsky, general counsel at Variant, accused Democrats of attempting to derail the CLARITY Act — a Republican-led framework approved by the House of Representatives earlier this year.
The CLARITY Act was initially designed to create a clear legal framework for digital assets and promote transparency in the crypto market. However, the introduction of a separate Democratic counterproposal, reportedly co-authored by Senator Gillibrand, has deepened the political divide on how to regulate blockchain and DeFi technologies.
This upcoming meeting could determine whether a bipartisan compromise is still possible or if the U.S. is headed toward an even more fragmented regulatory landscape that could hinder innovation and investment in the digital asset sector.
At the time of writing, none of the invited participants have publicly commented on the upcoming discussion, leaving the crypto industry watching closely for signals on what might come next for DeFi, regulation, and innovation in America.
