U.S. Congress Reboots DeFi Regulation Bill: Treasury Department's Authority Sparks New Controversy

【Crypto World】In the past week, U.S. lawmakers have once again turned their attention to legislation in the cryptocurrency market. A bill that has been shelved for a long time has been brought back to the negotiation table, with the most controversial part being the clause regarding the powers of the Treasury Department.

This clause allows the Treasury Department, in conjunction with the SEC, CFTC, and Federal Reserve, to directly list certain DeFi protocols on a “restricted list,” making these platforms inaccessible to U.S. users. On the surface, it sounds like a measure for national security, but opponents have raised concerns—arguing that this effectively gives the Treasury Department sanction-level authority without proper due process. Once listed, American individuals and institutions are prohibited from interacting with these protocols.

The bill requires an annual report on DeFi risks and decentralization assessments, but the standards for evaluation have not yet been established. Many cite the Tornado Cash case as an example, fearing that such powers could be abused, leading to innocent infrastructure and ordinary users suffering, and even open-source developers being implicated.

Interestingly, the two parties have quite different stances on this issue. Republicans want to relax restrictions and encourage innovation, while Democrats seek stricter measures against illegal financial activities, even holding developers accountable. This overlap and lack of checks on these powers naturally raise concerns across the entire ecosystem.