As the Senate Banking Committee prepares to mark up the new crypto market structure bill, the DeFi Education Fund has released a list of amendments that it strongly urges senators to oppose.
In a recent post on social media platform
Warning signs emerge from crypto market structure bill
In his messageThe DeFi Education Fund highlighted the importance of safeguarding the integrity of the emerging DeFi landscape and called on senators to consider the far-reaching consequences of these proposed changes.
Among the amendments highlighted was Amendment No. 42, proposed by Senators Reed and Kim, which seeks to authorize the Treasury to sanction smart contracts and centralized platforms involved in illicit activities.
This amendment has raised significant red flags for advocates who are concerned about its implications for innovation and operational flexibility within the decentralized finance ecosystem.
Another concerning amendment, Senator Reed’s Amendment No. 45, seeks to create a specific definition of digital assets under the Bank Secrecy Act.
Similarly, Amendment No. 47, also proposed by Senator Reed, seeks to remove a provision relating to the federal criminal offense of transmitting money without a license.
These changes, according to the DeFi Education Fund, dangerously threaten the operational landscape of developers and financial institutions that interact with digital assets.
Stifling DeFi Growth
Additionally, the amendments proposed by Senators Cortez Masto, specifically Amendments 72 and 73, seek to narrow the definition of uncontrolled developers and expand the authority of the Financial Crimes Enforcement Network (FinCEN) alongside Treasury for blockchain-enabled platforms.
Amendments No. 74 and No. 75 further aim to strengthen existing laws related to money transfer and prohibit transactions involving illegal DeFi protocols, which the Fund believes could stifle the growth of the sector.
Amendment No. 104, proposed by crypto-skeptic Senator Elizabeth Warren, also gained attention by removing a key distribution exclusion for crypto offerings.
This follows similar calls from Summer Mersinger, CEO of the Blockchain Association, who recently claimed that the “big bank lobby” is pushing Congress to change key provisions of the already-passed GENIUS Act regarding stablecoin rewards, highlighting the current state of the future of crypto in Congress.
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