US Senate Democrats' DeFi Regulation Proposal Criticized by Republicans and Crypto Industry

Jinse Finance reported that U.S. Senate Democrats have introduced a six-page proposal aimed at preventing illegal activities in decentralized finance (DeFi), sparking strong criticism from Republican lawmakers and the crypto industry. The proposal requires regulatory agencies such as the Treasury Department to determine whether a "protocol is sufficiently decentralized," and considers individuals or entities that design, deploy, or operate DeFi front-end services as intermediaries. Crypto industry insiders warn that the proposal is almost equivalent to banning DeFi and wallet development, which could force related development to move overseas. A spokesperson for the Republican committee stated that Democrats have not yet committed to a debate schedule for the proposal, the document is informal, and the policy approach is confused, making it difficult to advance market structure legislation. Experts point out that the final Senate bill will need to gain support from some Democrats and be coordinated with the House version.