A recent proposal from U.S. Senators on the Banking Committee has sparked debate about the future of decentralized finance (DeFi). The proposal grants the Treasury Department power to classify high-risk DeFi protocols as restricted, potentially criminalizing their use. Additionally, the proposal calls for implementation of Know Your Customer (KYC) rules across cryptocurrency platforms, including non-custodial wallets. This measure also seeks to reduce legal protections for crypto developers. 🎧 Crypto attorney Jake Chervinsky has voiced his concerns about the proposal’s effectiveness and potential impact on innovation, arguing that this legislation could be considered a ban on crypto rather than regulation.