US Congressman Proposes DeFi Opportunities Act For Regulatory Study

According to PANews, U.S. Congressman Warren Davidson introduced the 'Assessing DeFi Opportunities Act' on Tuesday. The bill calls for a joint study on decentralized finance (DeFi) by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Secretary of the Treasury. Davidson emphasized the crucial role DeFi plays in the future of capital markets but expressed concerns over the Biden-Harris administration's regulatory approach to the sector. He stated, 'This legislation ensures that the federal government can implement data-driven financial regulation without disrupting the digital market's development or compromising the privacy offered by DeFi.' Lawmakers noted that as the number of users continues to grow, the total market value of DeFi has surged to approximately $75 billion. However, Davidson warned that excessive regulation could stifle innovation and drive investment overseas. The proposed study aims to help regulators understand the benefits of DeFi, such as blockchain's operational resilience, market competition, and user privacy protection. Davidson stressed that regulators need to 'take a measured approach' to ensure DeFi can thrive without jeopardizing user privacy or innovation.