The crypto industry is recoiling from a document reportedly outlining a U.S. Senate Democratic pitch on handling decentralized finance (DeFi) as a component of the wider effort toward regulating crypto in the U.S.

The proposal — a detailed outline describing an approach to DeFi, first reported by Politico — suggests that a firm or individuals that handle customer needs on the front end of a DeFi operation should have to register with the Securities and Exchange Commission or the Commodity Futures Trading Commission and be regulated as a broker.

The language defining who would be roped into regulation as an intermediary would seem to include “everyone in crypto,” according to a take posted on social media site X from Jake Chervinsky,…