Senate Democrats' Proposed DeFi Regulation Bill Criticized as a De Facto "Crypto Ban" and Lacking Legislative Sincerity

ChainCatcher news, according to The Block, the US Senate Banking Committee Democrats have proposed a DeFi regulatory proposal, which has been criticized by Republicans and the industry.

This six-page proposal intends for the US Treasury Department and financial regulatory agencies to define what constitutes "control/influence" and to determine whether a protocol is "sufficiently decentralized." It would classify individuals/institutions who "design, deploy, control, or operate the front end" or "derive substantial benefits from DeFi protocols" as "intermediaries." The Republican side stated that the proposal is "not legislative text and lacks policy logic," while Variant Fund's Head of Legal, Jake Chervinsky, said it is "essentially equivalent to a crypto ban." The Senate is still advancing the crypto market structure bill, which needs to be coordinated with the House version; the Agriculture Committee has not yet released the CFTC draft.