"High-Risk DeFi Regulation from the US: Altcoins are in Danger"

Recently, the cryptocurrency market in the US has been shaken by the leak of a new regulatory draft. This draft requires all parties earning income on decentralized finance (DeFi) platforms to obtain licenses as "intermediaries." In particular, leading DeFi protocols such as Uniswap (UNI), Aave (AAVE), Lido (LDO), Curve (CRV), Balancer (BAL), and SushiSwap (SUSHI) are under significant threat.

According to the draft, the US Department of the Treasury could identify which DeFi protocols are considered "high risk" and add them to a banned list. This situation could negatively affect US citizens who earn regular income from the protocols on the list. In addition, there are plans to impose identity verification (KYC) requirements on the front ends of non-custodial wallets. Blockchain Association CEO Summer Mersinger stated that the draft effectively aims to ban DeFi and said, “Compliance with this text is impossible. Innovation in the US will flee to other countries.”

Some industry representatives emphasize that this regulation could negatively impact not only DeFi projects but also other altcoins connected to the Ethereum (ETH) ecosystem. Digital Chamber Vice President Zunera Mazhar expressed that the draft chooses "punishment over innovation," stating, “Good policy does not penalize decentralization; it protects consumers and fosters innovation.”

At this point, it is noted that the regulation that could kill DeFi contradicts the Digital Asset Market Clarity Act, which was approved by the House of Representatives in July. If the draft becomes law, the US's goal of being a global crypto hub could suffer significant damage. As investors closely follow developments, they should consider the implications of this regulation and which altcoins are at risk.