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The Blockchain Association has condemned the proposed US DeFi legislation as an unworkable solution incompatible with the industry.
<a href="https://crypto.news/tag/blockchain/" rel="noopener noreferrer nofollow">Blockchain</a> Association, a nonprofit organization that promotes a pro-innovation policy environment for the web3 economy, has condemned the recently introduced Crypto-Asset National Security Enhancement Act of 2023.
The bipartisan <a href="https://crypto.news/new-bill-proposes-strict-rules-for-defi-protocols/" rel="noopener noreferrer nofollow">bill</a> proposed by senator Jack Reed (D-RI) and co-sponsored by Mike Rounds, Mitt Romney, and Mark Warner aims to implement strict anti-money laundering (AML) rules on decentralized finance (DeFi) protocols.
The lawmakers hope the legislation will curb crypto-related crimes and make it impossible for bad actors to circumvent sanctions via the DeFi route.&nbsp;
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.
You might also like: <a href="https://crypto.news/new-bill-proposes-strict-rules-for-defi-protocols/" rel="noopener noreferrer nofollow"> New bill proposes strict rules for DeFi protocols </a>
Blockchain Association CEO Kristin Smith has criticized the proposed bill, arguing that such legislation is incompatible with the workings of decentralized finance.&nbsp;
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.&nbsp;
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.”
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 Blockchain Association CEO <a href="https://twitter.com/KMSmithDC?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@KMSmithDC</a> released the following statement following today's introduction of the Crypto-Asset National Security Enhancement Act of 2023: “The Crypto-Asset National Security Enhancement Act of 2023, introduced today by Sen. Jack Reed (D-RI), is an… <a href="https://t.co/S65XSUheTW" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/S65XSUheTW</a>— Blockchain Association (@BlockchainAssn) <a href="https://twitter.com/BlockchainAssn/status/1681689788225650689?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">July 19, 2023</a>
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Despite a <a href="https://crypto.news/bitcoin-trading-activity-surges-during-us-market-hours-research-shows/" rel="noopener noreferrer nofollow">high level</a> of digital asset adoption by US residents, the regulatory climate for crypto has been quite <a href="https://crypto.news/sec-generated-record-confiscated-income-in-2022-why-it-is-crucial-for-crypto/" rel="noopener noreferrer nofollow">harsh</a> for market participants, with the Gary Gensler-led Securities and Exchange Commission (SEC) recently demanding more funding from the government to fuel its incessant enforcement-style regulation.
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As <a href="https://crypto.news/senator-kennedy-jr-confronts-secs-gary-gensler-on-crypto-regulation/" rel="noopener noreferrer nofollow">reported</a> by crypto.news on June 20, senator Kennedy Jr. has raised concerns over Gensler’s authority and the SEC’s competency in tackling crypto-related fraud.&nbsp;
During a July 19 Senate Committee hearing, the senator argued that Sam Bankman-Fried’s high-profile <a href="https://crypto.news/ftx-to-clawback-71-5-million-from-bankman-frieds-ngo/" rel="noopener noreferrer nofollow">FTX scandal</a> is evidence of the agency’s gross incompetence.
Read more: <a href="https://crypto.news/senator-kennedy-jr-confronts-secs-gary-gensler-on-crypto-regulation/" rel="noopener noreferrer nofollow"> Senator Kennedy Jr. confronts SEC’s Gary Gensler on crypto regulation </a>

Blockchain Association criticizes new US DeFi regulation bill

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