The proposed US Senate bill aiming to regulate the decentralized finance (DeFi) sector has faced criticism from two crypto industry advocacy groups, Coin Center and the Blockchain Association.
The bill called the Crypto-Asset National Security Enhancement Act (CANSEE), aims to combat money laundering in DeFi by imposing penalties on those who control or provide applications for digital asset transactions.
However, Coin Center and the Blockchain Association argue that the bill is confusing, unworkable, and potentially unconstitutional. Coin Center stated “The bill gives virtually unbounded discretion to the Secretary to decide what it would take to designate one as having “control” of a protocol.”
They also claim that the bill overstates the extent of money laundering in DeFi and that existing law enforcement tools are sufficient to address the issue.
While crypto organizations are critical of the bill’s broad scope, a previous report from the US Treasury found that some DeFi protocols are more centralized than claimed, which could influence the debate around the bill’s regulation efforts.
Also Read: US House Financial Services Committee Unveils Bipartisan Stablecoin Bill
