Several Democratic senators in the United States have proposed anti-DeFi measures aimed at imposing restrictions on high-risk protocols

ChainCatcher news, according to Cointelegraph, several Democratic senators in the United States have proposed opposition measures against DeFi, intending to allow the Treasury to list "high-risk" DeFi protocols on a "restricted list" and impose penalties on U.S. users who earn recurring income from related protocols.

The proposal also requires the enforcement of KYC regulations on crypto application frontends such as non-custodial wallets and removes legal protections for crypto developers. The Digital Chamber of Commerce and the U.S. Blockchain Association have both warned that this measure will hinder innovation and could push the industry overseas.