Democrats counter US crypto framework; bill grinds to a halt
The crypto framework law in the Senate is now on pause as lawmakers debate possible new amendments.
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.”