New bill proposes strict rules for DeFi protocols
The U.S. Senate is again preparing to tackle crypto industry regulation through a new bill. The proposed Crypto-Asset National Security Enhancement Act of 2023, backed by bipartisan support, aims to enforce strict anti-money laundering (AML) measures on decentralized finance (DeFi) protocols , mandating them to adopt banking-like controls for their users. Regulating DeFi DeFi protocols , the decentralized applications enabling users to engage in crypto borrowing, lending, and trading through smart contracts, present a unique regulatory challenge due to their operation on permissionless blockchains. However, the proposed bill released on July 18 addresses these concerns by imposing obligations on those who exert control over DeFi protocols or offer user-friendly interfaces for their complex smart contracts, akin to Uniswap Labs facilitating Ethereum’s primary decentralized exchange. You might also like: Dormant whale awakens after 8 years, moves over $116 milli...