The Blockchain Association has condemned the proposed US DeFi legislation as an unworkable solution incompatible with the industry. Blockchain Association, a nonprofit organization that promotes a pro-innovation policy environment for the web3 economy, has condemned the recently ...
The Blockchain Association has condemned the proposed US DeFi legislation as an unworkable solution incompatible with the industry.
The lawmakers hope the legislation will curb crypto-related crimes and make it impossible for bad actors to circumvent sanctions via the DeFi route.
If enacted, the legislation will make it mandatory for DeFi platforms to collect and compile user data, alert authorities to suspicious transactions, and prevent sanctioned entities from using their solutions.
Blockchain Association CEO Kristin Smith has criticized the proposed bill, arguing that such legislation is incompatible with the workings of decentralized finance.
The body has clarified that fraudulent transactions represented only a meager fraction of the total volume of crypto transactions last year compared to the traditional finance sector.
The Association further stated that federal law enforcement agencies are already equipped with the necessary resources and skills to tackle these crimes. As such, the proposed “additional punitive revaluations outlined in the bill are redundant.”