The Senate Democrats' DeFi regulatory proposal faces criticism, being accused of effectively being a "crypto ban" and lacking legislative sincerity

ChainCatcher news, according to The Block, the Democratic Party of the Senate Banking Committee proposed a DeFi regulatory proposal, which faced criticism from Republicans and the industry.

The six-page proposal aims for the U.S. Department of the Treasury and financial regulatory agencies to define what constitutes "control/influence" and to determine whether a protocol is "sufficiently decentralized"; individuals/institutions that "design, deploy, control, operate the front end" or "derive substantial benefits from DeFi protocols" are identified as "intermediaries." The Republican side stated that the proposal is "not a legislative text and lacks clear policy logic," while Jake Chervinsky, legal head of Variant Fund, called it "essentially equivalent to a crypto ban." The Senate is still advancing the crypto market structure bill, which needs to be coordinated with the House version; the Agriculture Committee has yet to release the CFTC draft.