US Democrats propose a "list of restrictions" for DeFi protocols, sparking a wave of criticism in the crypto industry

13.10.2025

Democrats in the U.S. Congress came up with an initiative to create a so-called "restricted list" for decentralized financial protocols (DeFi), which caused a wave of discussion and concern among representatives of the crypto industry. The bill, submitted for consideration in October 2025, suggests establishing a list of DeFi platforms that will be prohibited from providing services to U.S. citizens without strict regulatory requirements. According to the authors of the initiative, the aim of the measures is to strengthen the fight against money laundering and terrorist financing, as well as to increase the level of transparency of operations in the DeFi sector. Democrats note that the annual volume of transactions in DeFi exceeded $150 billion, and the share of suspicious transactions, according to analysts' estimates, increased by 18% compared to last year. However, industry representatives express concerns that the introduction of a "restricted list" could lead to a decline in innovation and the relocation of projects outside the US. Major associations of DeFi note that such measures may hinder access to financial services for millions of users and reduce the competitiveness of the U.S. market against the background of stricter regulation in other regions. Discussions on the bill are currently ongoing, and experts expect that it may be amended in the coming weeks to take into account the views of all stakeholders. The question of the balance between regulation and support for innovation in DeFi remains one of the key issues for the future of the industry.