Coin Center Slams US Senate DeFi Bill: Unconstitutional Approach

• Coin Center slams the US Senate’s DeFi Bill, calling it a “messy, arbitrary, and unconstitutional approach”.
• The Crypto-Asset National Security Enhancement (CANSEE) Act seeks to regulate the decentralized finance (DeFi) sector.
• Advocates argue that such an approach would stifle innovation in the US and violate the First Amendment.

Coin Center Slams US Senate’s DeFi Bill

The advocacy group Coin Center has voiced objection to the new bipartisan legislation introduced earlier this week – titled the Crypto-Asset National Security Enhancement (CANSEE) Act – that seeks to regulate the decentralized finance (DeFi) sector. Calling it a “messy, arbitrary, and unconstitutional approach” to DeFI, Coin Center’s CEO Jerry Brito said that if passed, it would make developing protocols in the U.S. and by U.S. persons unfeasible and violate the First Amendment.

What is CANSEE?

The CANSEE bill is aimed at tackling money laundering violations in DeFi, but industry experts remain skeptical about its efficacy due to lack of input from stakeholders in formulating it.

Will CANSEE Stifle Innovation?

Advocacy groups are worried that such an approach would stifle innovation in the United States as developers may be put off from innovating due to fear of prosecution or civil liability for any protocol they create or customize for use by others.

Why Does It Violate The First Amendment?

Brito explains that such regulation violates freedom of speech as protected by the First Amendment since protocols can also be seen as code which conveys messages between participants on a network – making them analogous with written words or symbolic expressions like flags or logos – all of which are guaranteed protection under free speech laws in US courts until now..

What Happens Next?
It remains to be seen whether any amendments will be made before passing this bill into law, given how controversial it has become even before being voted on officially.