What is the Proposal for a ‘Restricted List’ for DeFi Protocols?
Recently, a group of Democratic Senators proposed creating a “restricted list” for decentralized finance (DeFi) protocols they consider too risky. This has stirred significant controversy and backlash, as the plan seeks to enforce Know Your Customer (KYC) regulations on crypto applications, even on non-custodial wallets. Critics warn that this might effectively ban certain DeFi protocols and deprive developers of essential protections, raising alarms about the future of decentralized finance.
How Could This Proposal for a ‘Restricted List’ Limit Innovation in the Crypto Space?
The potential stifling of innovation within the crypto space could stem from this proposed list. By enforcing strict regulations, the initiative may deter the…
