Several U.S. Democratic senators propose anti-DeFi bill, aiming to impose restrictions on high-risk protocols

ChainCatcher news, according to Cointelegraph, several U.S. Democratic senators have proposed an opposition bill targeting DeFi, which would allow the Treasury Department to place "high-risk" DeFi protocols on a "restricted list" and penalize U.S. users who earn recurring income from using these protocols.

The proposal also requires KYC regulations to be enforced on the front ends of crypto applications such as non-custodial wallets, and removes legal protections for crypto developers. Both the Chamber of Digital Commerce and the Blockchain Association have warned that this measure would hinder innovation and could push the industry overseas.