Senator Cynthia Lummis defended the Senate Market Structure Bill’s approach to decentralized finance, arguing that the legislation does not automatically impose Know Your Customer requirements on DeFi developers. A report by NS3.AI indicates she dismissed such concerns, framing the bill as a measure that targets regulated activity rather than on-chain protocols.
Lummis emphasized regulatory clarity and targeted oversight, noting that the bill seeks to modernize market structure without blanket KYC mandates for developers. She argued that DeFi actors would be subject to existing compliance standards only if they engage in regulated activities.
Industry observers will watch how regulators interpret the measure as it progresses through Congress, with DeFi builders seeking clarity on compliance expectations. The discussion underscores the tension between consumer protections and financial innovation in the evolving DeFi landscape.
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