New U.S. Senate Bill Wants to Regulate DeFi Like a Bank

A new bipartisan bill in the US Senate, the Crypto-Asset National Security Enhancement Act of 2023, is seeking to impose bank-like money laundering controls on DeFi protocols. Aimed at curbing crypto-associated crime and tightening regulation on digital currencies, the bill focuses on entities controlling DeFi protocols and those investing more than $25m into developing them. The regulations mandate client vetting, enforcing AML programs, reporting suspicious activity, and blocking sanctioned individuals' access to protocols. It will also bolster the Treasury's authority to oversee alleged money laundering.