Legal experts in the crypto industry are doubtful about a new Senate bill called the Crypto-Asset National Security Enhancement (CANSEE) Act, which aims to address money laundering and sanctions violations in the decentralized finance (DeFi) ecosystem. The proposed legislation would impose penalties on anyone who "controls" a DeFi project if they fail to comply with anti-money laundering and financial reporting requirements.

However, the definition of who "controls" a DeFi service will be determined solely by the Secretary of the Treasury, which could give the department excessive authority. Coin Centre, a crypto policy think tank, has expressed concern that the bill could penalize software developers, who have a first amendment right to publish code as freely as speech.