Democratic US senators have introduced a counter-proposal that could restrict DeFi protocols deemed risky, potentially “killing DeFi.” The proposal seeks to impose KYC rules on crypto app frontends and strip protections from developers, sparking criticism. The move could undermine bipartisan support for the CLARITY Act and hinder crypto market structure. Source: Jake Chervinsky

The counter-proposal, led by Democratic senators, could reverse regulatory momentum in the US, opposing efforts to make the country the “crypto capital of the world.” This move clashes with the RFIA draft, seeking CFTC oversight of spot markets and stronger protections for developers. Source: Zack Shapiro

Digital Chamber criticizes the heavy-handed, ineffective measures proposed by Democrats, warning they could drive innovation offshore. The focus should be on addressing real risks without stifling innovation or creating regulatory uncertainty. Compliance in the US would become impossible under the proposed rules. Source: Summer Mersinger

EU’s privacy-killing Chat Control bill faces delays, but the fight is ongoing. Germany opposes the bill, which aims to scan messages for illegal content, raising concerns about privacy violations. The outcome of this controversial legislation remains uncertain. Source: Cointelegraph Magazine

Read more at Cointelegraph: Democrats Implement Counter-Measure to Restrict DeFi Protocols