DeFi bill introduced in Senate would hold major investors responsible for illegal use | Headlines | News | CoinMarketCap
07/20/2023 02:54
Senators Jack Reed (D-RI) and Mark Warner (D-VA) have introduced a new bill that aims to combat illicit financial activity like money laundering and …
CryptoSlate8 minutes ago
United
Published on July 19, 2023 19:43 GMT+00:00edited on July 19, 2023 19:49 GMT+00:00
Senators Jack Reed (D-RI) and Mark Warner (D-VA) have introduced a new bill that aims to combat illicit financial activity like money laundering and terrorism financing in decentralized finance (DeFi), Bloomberg News reported on July 19.
The legislation stipulates that any violations or illegal transactions on a DeFi protocol should be punished to discourage such activity. However, due to the inherent anonymity of DeFi users, the bill wants to make the person controlling the platform liable for any violations.
If a DeFi platform does not have a discernible controller or owner, then the proposed legislation asserts that the liability falls upon those who have heavily invested in the platform. This basket would include venture-capital firms and other notable investors that have invested …