Crypto Market Structure Bill Will Kill DeFi in the US, Industry Leaders Say

Key Points

1. The CLARITY Act could decimate the DeFi sector in America by forcing developers overseas and imposing compliance requirements deemed impossible without sacrificing decentralization.

2. DeFi experts argue the bill would require decentralized exchanges like Uniswap to behave like centralized entities, monitoring all tokens traded on their platforms, which is technologically infeasible.

3. House Democrats are divided on how to approach the CLARITY Act and other crypto-related measures during 'Crypto Week,' with some urging party leadership to oppose the bill.

4. DeFi leaders warn that gaps in the legislation could allow future regulators hostile to crypto, like SEC Chair Gary Gensler, to cripple the industry through lawsuits.

5. The bill includes some crypto-friendly provisions, such as enshrining self-custody of digital assets, but DeFi startups may not receive the same protections as other U.S. companies.