Democrats propose ‘restricted list’ for DeFi protocols, sparking outcry

Democrat Senators have been slammed for pitching a counter-proposal that seeks to give the Treasury Department authority to place risky DeFi protocols on a “restricted list.”

Despite previously supporting a crypto market structure bill, several Democratic Senators have reportedly introduced a counter-proposal that could see decentralized finance protocols placed on a "restricted list” if deemed too risky.

This move, among others, it proposed could “kill DeFi,” according to its critics.

The Senate Banking Committee Democrats sent a proposal to the committee’s Republicans on Thursday seeking to impose Know Your Customer rules on the frontends of crypto apps — including non-custodial wallets — and stripping protections from crypto developers, several industry commentators said on Thursday, citing a report from Punchbowl News.

Read more