Despite the earlier support of a crypto market structure bill, many democratic senators have reportedly introduced a counter-proposal that may see decentralized financial protocols placed on a “restrained list” if considered too dangerous.
This step, among others, suggested it could “kill Defi,” according to its critics.
The Senate Banking Committee Democrats sent a proposal to Republicans of the Committee on Thursday that seek to impose knowing your customer policies in the frontes of crypto apps-including non-custodial wallets-and the removal of protections from crypto developers, many commentators in the industry said Report From Punchbowl News.
Among the commentators were crypto lawyer Jake Chervinsky, who Says Counter-Proposal can kill any chance of promoting a framework of crypto market structure, noting that it can break bipartisan support Law of Enlightenment was secured at home in July, where it passed 294-134.
“It’s so bad. It doesn’t control the crypto, it forbids crypto,” said Chervinsky, pointing to a proposed proposal that allows the Treasury department to create a “restrained list” for defi protocols that are considered to be too dangerous, making it a crime for anyone who uses them.
Chervinsky added: “This proposal is less than a regulation framework and more than an unprecedented, unconstitutional government acquisition of an entire industry. Not only is it anti-crypto, it is anti-harmony, and a dangerous preceding for the entire tech sector.”
Democrats behind the counter-proposal include Mark Warner, Ruben Gallego, Andy Kim, Reverend Raphael Warnock, Angela Alsobrooks, and Lisa Blunt Rochester, according to Chervinsky.
The move, which will come in the middle of a Government shutdown, It can be seen as the reversed momentum of regulation built under the Trump administration, who has promised to make the United States the “Crypto Capital of the World.”
The counter-proposal slows down the RFIA bipartisan draft
It also talks about aspects of the Responsible Financial Innovation Act of the Senate Banking Committee on September 9, an effort of Bipartisan aimed at appointing Commodity Futures Trading Commission Oversight of Spot Markets and reducing the Security and Exchange Commission’s Overreach.
RFIA also aims to offer more stable protection to crypto developers to ensure they can build without fear of being accused, in the middle of Tornado Cash and Samaurai Wallet Devs in recent months.
Good policy does not punish Decentralization: Digital Chamber
Vice president of the government’s digital chamber and policy policy, Zunera Mazhar, described steps as heavy and ineffective, increasing that risk they Pushing a change in shore Instead of addressing the real risks involved.
Related: Democratic Press Bank Regulators in Trump Stablecoin Conflicts
Instead, Mazhar said Democrats should target “true chokepoints” in which illicit finance occurs with a risk-based approach that does not crush change and create uncertainty in regulations.
“Good policy does not punish decentralization. It protects consumers, maintains change, and fights forbidden finances where it really happens.”
This is a story development, and further information will be added as it is available.
Magazine: Delayed
