US Democrats propose adding high-risk DeFi protocols to restricted list

According to Foresight News, according to Cointelegraph, Democratic members of the U.S. Senate Banking Committee proposed authorizing the Treasury Department to add DeFi protocols deemed to be too risky to a restricted list, and the use of these protocols would be considered a crime. The proposal also calls for implementing KYC rules on crypto application front-ends, including non-custodial wallets, and weakens legal protections for crypto developers.


"This is just terrible. Instead of regulating cryptocurrencies, it bans cryptocurrencies," said crypto lawyer Jake Chervinsky. Zunera Mazhar, vice president of government and policy affairs at the Chamber of Digital Commerce, called the measures crude and ineffective, noting that they could lead to an outflow of innovation rather than address real risks.

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