Democrats Propose ‘Restricted List’ for DeFi Protocols, Sparking Outcry

A new proposal from US Senate Democrats has sparked controversy within the crypto industry. The move aims to restrict decentralized finance (DeFi) protocols on a “restricted list” if deemed too risky by regulators. This counter-proposal, which comes alongside a previously supported bill for crypto market structure regulation, could potentially derail any progress towards establishing a regulatory framework and even push DeFi offshore from US jurisdiction.