Democrats propose ‘restricted list’ for DeFi protocols, sparking outcry
Democratic senators have been criticized for pitching a counter-proposal to the market structure bill that could effectively “kill DeFi.”
Despite previously supporting a crypto market structure bill, several Democratic US senators have reportedly introduced a counter-proposal that could see decentralized finance protocols placed on a “restricted list” if deemed too risky.
This move, among others they proposed, could “kill DeFi” or move it offshore from the US, according to critics.
The Senate Banking Committee Democrats sent a proposal to the committee’s Republicans on Thursday seeking to impose Know Your Customer rules on the frontends of crypto apps — including non-custodial wallets — and to strip protections from crypto developers, Punchbowl News reported on Thursday.