Gabriel Shapiro, general counsel of Delphi Labs, wrote that the encryption bill proposed by the House of Representatives has great ambiguity, re-empowers the SEC to enforce law, and may cause serious damage to DeFi.
He explained that the bill expands the current SEC’s regulatory scope and applies to non-contractual agreements such as DeFi, and each Token, LST, etc. will be strictly regulated by this clause.
In my opinion, this is a DeFi backdoor ban.
According to previous news, the U.S. House of Representatives proposed an encryption regulatory bill on Thursday. The revised bill excludes a series of traditional securities from the definition of digital assets, including stocks, bonds, transferable equity, proof of rights and so on.