Decentralized finance represents one of the areas that crypto regulation must address in the United States. The latter is also not without relevance given the rapid progress of this sector for some time.
A project to regulate DeFi in the same way as CeFi
In the United States, the US Senate introduced a new bill regarding decentralized finance (DeFi). The initiative clearly aims to regulate the operation of this sector. This, on the same model of rules that govern centralized finance (CeFi).
To do this, The law project plans to impose strict controls on users of DeFi protocols operating in the United States. The measure implies that crypto firms would be required to implement identity verification devices.
The project carried by the Senate has another unacknowledged ambition. By regulating DeFi, it intends to implement anti-money laundering requirements. Provisions that incorporate any crypto-related offense deemed to threaten national security.
To achieve its goal, the proposed legislation will hold accountable those who control a DeFi protocol. Or at the very least, those who provide apps promoting their use.
For example, if the entity controlling a given DeFi protocol is clearly not identifiable, the investor is held liable. Concretely, anyone investing more than $25 million in its development will assume responsibility for regulatory obligations.
Ultimately, this bill aims to establish a framework guaranteeing the responsible and transparent operation of DeFi protocols. All this, by fighting against illicit financial activities in the crypto ecosystem.
For now, we can say that the latter are prospering. Because, they are essentially carried out on open source blockchains. Which makes them a bit more difficult to regulate. Unlike centralized crypto companies like Coinbase.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
