DeFi Regulation Proposal Sparks Backlash and Fears
A leaked Senate proposal targeting decentralized finance (DeFi) has ignited fierce opposition in Washington. Democratic lawmakers face mounting criticism as industry advocates warn the draft legislation could stifle innovation and derail ongoing market negotiations.
The contentious plan, still in preliminary form, reflects growing regulatory scrutiny of DeFi's rapid expansion. Lobbying groups and protocol developers argue the framework's broad language risks creating compliance impossibilities for truly decentralized systems.