Though having once shown a certain fondness for a crypto market structure bill, it appears several Democratic Senators are now attempting a rather *daring* counter-proposal. This new notion could see decentralized finance protocols banished to a “restricted list,” should they be deemed too perilous for public consumption. A bold step indeed!
Critics, ever the sourpusses, have declared that this move might just be the death knell for DeFi. Oh, how terribly dramatic. 😒
In a rather *unfortunate* turn of events, the Senate Banking Committee Democrats have sent a proposal to their Republican counterparts, demanding that Know Your Customer (KYC) rules be enforced on crypto app frontends – yes, even non-custodial wallets – and suggesting the removal of protections for crypto developers. The audacity! According to those in the know, this proposal may very well doom any attempts to establish a proper crypto market structure. The CLARITY Act, once supported by bipartisan efforts, could be cast aside like a forgotten hat. 🎩
One notable crypto lawyer, Jake Chervinsky, is not holding back. He decries the proposal as not a regulation, but rather a *bizarre* attempt to outright ban crypto. The suggestion to allow the Treasury Department to compile a “restricted list” of DeFi protocols deemed too risky has sparked a firestorm. He claims that this move could criminalize any use of these protocols, painting a picture of a government takeover that seems more like a dystopian novel than a policy. Golly, we do love a good *unprecedented, unconstitutional* twist, don’t we? 😜
Democratic figures such as Mark Warner, Ruben Gallego, and others are behind this proposed chaos. Their efforts come at an intriguing moment, coinciding with a government shutdown. Ah, the timing is simply impeccable! This could be seen as a rather dramatic reversal of the regulatory momentum built during the Trump administration, which, if you recall, had grandly declared its intentions to make the United States the *crypto capital* of the world. What a legacy, eh? 😅
Counter-proposal undermines bipartisan RFIA draft
Adding further intrigue to the drama, this counter-proposal clashes with aspects of the Responsible Financial Innovation Act (RFIA) draft, which has garnered bipartisan support. The RFIA seeks to appoint the Commodity Futures Trading Commission as the overseer of spot markets and aims to reduce the overreach of the Securities and Exchange Commission. It also champions stronger protections for crypto developers, ensuring they may build without fear of legal repercussions. How charmingly progressive!
Good policy doesn’t punish decentralization: Digital Chamber
Zunera Mazhar, the vice president of government and policy affairs at the Digital Chamber, has spoken out, labelling these proposed measures as heavy-handed and *utterly ineffective*. Her point? These measures may very well push innovation offshore rather than address the *real* risks at hand. Innovation? Off to sunnier shores? Not on her watch!
“Good policy doesn’t punish decentralization. It protects consumers, preserves innovation, and fights illicit finance where it actually happens.”
As this story develops, rest assured, more delightful updates shall follow. Stay tuned for the next chapter of this political thriller! 😏
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2025-10-10 03:11