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

ChainCatcher news, according to Bitcoin.com, U.S. Congressman Warren Davidson introduced the "Assessing DeFi Opportunities Act" on Tuesday. The bill calls for the U.S. Securities and Exchange Commission (SEC), the U.S. Commodity Futures Trading Commission (CFTC), and the Secretary of the Treasury to jointly study decentralized finance (DeFi). Davidson emphasized that DeFi plays a crucial role in the future of capital markets, but he expressed concerns about the Biden-Harris administration's regulatory approach to the sector. He described, "This legislation ensures that the federal government can implement data-driven financial regulation without interfering with the development of digital markets or jeopardizing the user privacy provided by DeFi."

Lawmakers pointed out that as the number of users continues to grow, the total market capitalization of DeFi has soared to approximately $75 billion. However, Davidson warned that excessive regulation could stifle innovation and lead to investments flowing overseas. The proposed study aims to help regulators understand the benefits of DeFi, such as the operational resilience of blockchain, market competition, and user privacy protection. Davidson stressed that regulators need to "take a cautious approach" to ensure that DeFi can thrive without compromising user privacy or innovation.