Blockchain Association Slams US DeFi Regulation Bill as Industry-Incompatible

The Proposed US DeFi Legislation Condemned by Blockchain Association

The Blockchain Association, a nonprofit organization advocating for the web3 economy, has criticized the recently introduced Crypto-Asset National Security Enhancement Act of 2023. The bipartisan bill aims to implement strict anti-money laundering rules on DeFi protocols, but the Blockchain Association contends that it is an unworkable solution incompatible with the decentralized finance industry. They argue that fraudulent transactions in crypto are minimal compared to traditional finance and that federal law enforcement agencies are already equipped to handle these crimes. The proposed legislation would require DeFi platforms to collect user data, report suspicious transactions, and prevent sanctioned entities from using their services.

Key Points:

The Blockchain Association condemns the proposed US DeFi legislation.
The legislation aims to implement anti-money laundering rules on DeFi protocols.
The Association argues that the legislation is incompatible with the decentralized finance industry.
Fraudulent transactions in crypto are minimal compared to traditional finance.
Federal law enforcement agencies already have the resources to tackle crypto-related crimes.

The regulatory climate for crypto in the US has been harsh, with the Securities and Exchange Commission (SEC) pushing for more enforcement-style regulation. Blockchain Association CEO Kristin Smith has criticized the proposed bill, stating that it is redundant and unnecessary. Senator Kennedy Jr. has also questioned the authority and competency of the SEC in tackling crypto-related fraud, citing the FTX scandal as evidence of the agency’s incompetence.

Hot Take:

The proposed US DeFi legislation has received criticism from the Blockchain Association, who argue that it is incompatible with the decentralized finance industry. They contend that federal law enforcement agencies already have the necessary resources to handle crypto-related crimes, making the proposed legislation redundant.