ConsenSys attorney critiques Senate proposal: lacks protection for DeFi operators

The Senate’s proposed draft could delay the crypto market structure bill until 2026, primarily due to unresolved issues surrounding decentralized finance (DeFi). Bill Hughes, an attorney at ConsenSys, emphasized that the proposal fails to provide legal protections for DeFi operators.

The draft raises significant legal risks for DeFi operators, particularly regarding financial transactions. While it offers some protection for self-custody wallets, it leaves operators liable to lawsuits, highlighting the need for clearer regulations from the Senate Banking Committee.

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