• Coin Center slammed the US Senate DeFi Bill, calling it a “messy, arbitrary, and unconstitutional approach” to regulating decentralized finance.
• The bill is titled as the Crypto-Asset National Security Enhancement (CANSEE) Act and seeks to regulate the DeFi sector.
• Coin Center argued that this bill would violate the First Amendment by effectively stifling innovation in the United States.
Coin Center Slams US Senate DeFi Bill
Crypto advocacy group Coin Center has slammed the proposed US Senate DeFi bill titled ‘Crypto-Asset National Security Enhancement (CANSEE) Act’ calling it a “messy, arbitrary, and unconstitutional approach” to regulating decentralized finance.
What Does The CANSEE Act Propose?
The bipartisan legislation introduced earlier this week seeks to tackle money laundering violations in DeFi by putting restrictions on its development and usage in the United States. It is co-sponsored by Senators Reed, Rounds, Warner, and Romney but legal experts remain skeptical of its potential implications.
Coin Centers‘ Criticism Of CANSEE
In a blog post , Coin Center CEO Jerry Brito criticized the bill for lack of inputs from industry stakeholders while also pointing out its potential constitutional issues: “While we appreciate the Senators’ desire to combat the abuse of crypto protocols by criminal and enemy actors, [the] bill unfortunately also would make the development of such protocols in the U.S. and by U.S. persons unfeasible.“ He added that if passed into law it would be “unconstitutional legislation as it would clearly violate the First Amendment“.
Effects On Innovation
By implementing strict regulations on crypto developments within US borders, Coin Center argues that such an approach will hamper innovation opportunities for businesses operating in this space – something which can have far reaching implications on American tech advancements overall.
The Crypto-Asset National Security Enhancement (CANSEE) Act has sparked debate among industry experts with many arguing its potential violation of First Amendment rights while others believing it could go a long way towards tackling money laundering issues prevalent in Decentralized Finance sector today