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Senate Democrats’ Leaked Crypto Proposal Sparks Industry Backlash
Senate Democrats’ Leaked Crypto Proposal Sparks Industry Backlash
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BTCCSquare news:
U.S. Senate Democrats are pushing a regulatory framework for decentralized finance that could impose broker registration requirements on front-end DeFi operators. The proposal, obtained by Politico, WOULD mandate SEC or CFTC oversight for entities interfacing with users—a move industry leaders warn would effectively outlaw DeFi development domestically.
Jake Chervinsky of Variant called the language impossibly broad, suggesting it could rope in "everyone in crypto." Former CFTC commissioner Summer Mersinger cautioned the rules would force innovation offshore while failing to address operational realities. The debate comes as lawmakers grapple with balancing consumer protection against stifling blockchain innovation.
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