A major executive from a compliant exchange recently expressed strong opposition to the draft Cryptocurrency Market Structure Act proposed by the Senate Banking Committee. According to their public statements, this version of the legislation contains several serious flaws that could significantly impact the entire industry ecosystem.

Specifically, the executive pointed out four core issues. First is the substantial restriction on tokenized stocks—this directly affects the future of on-chain traditional assets; second is the clear prohibition clauses on DeFi, which will undoubtedly stifle decentralized financial innovation; third is the government's expanded access to individuals' financial records, raising concerns about user privacy and data security.

Additionally, the draft bill involves major adjustments to the regulatory authority structure—CFTC's powers are being weakened, and its subordinate relationship is redefined as subordinate to the U.S. SEC. More worryingly, the amendment restricts stablecoin yields and implicitly gives traditional banking institutions room to suppress competition.

Together, these provisions effectively reshape the regulatory framework for cryptocurrencies and DeFi, covering asset tokenization, decentralized protocols, stablecoin issuance, and personal asset management with comprehensive constraints.