U.S. legislators propose the "Assessing DeFi Opportunities Act", stating that DeFi is "crucial to the future of capital markets"

On September 26, U.S. Representative Warren Davidson introduced the "Assessing DeFi Opportunities Act" on Tuesday. The bill calls for a joint study of DeFi by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Secretary of Treasury.

Davidson emphasized that DeFi plays a crucial role in the future of capital markets, but he expressed concern about how the Biden-Harris administration is regulating this area. Davidson warned that excessive regulation could stifle innovation and lead to investment flowing overseas.

Regulators need to take a "prudent approach," ensuring that DeFi can thrive without jeopardizing user privacy or innovation.