Democrats Propose Treasury ‘Restricted List’ for DeFi Protocols, Disrupting Bipartisan Cryptocurrency Bill
The proposal, delivered to Republicans on Thursday, would give the Treasury broad authority to define and restrict decentralized finance (DeFi) protocols, effectively requiring KYC compliance even for non-custodial wallets. The measure would also eliminate liability protections for software developers and interface providers, prompting an immediate reaction from the crypto industry and Republican lawmakers. Republicans suspend…