U.S. Senate Proposes Regulatory Changes for DeFi

A new proposal from the U.S. Senate outlines a regulatory approach aimed at decentralized finance (DeFi) operations, sparking concerns about potential impact on innovation within the sector. The document introduces plans to compel entities handling customer interactions in DeFi platforms to register with either the SEC or CFTC, mirroring regulations applied to traditional brokers. This broad definition raises apprehensions about the scope of regulation for participants across the cryptocurrency ecosystem. Experts warn that this change could have far-reaching implications for anyone involved in developing, deploying, or benefiting from DeFi technologies.