Charles Hoskinson Calls Senate Democrats' DeFi Proposal a “Kill Switch”

**Cardano Founder Slams Senate Democrats' DeFi Regulation as Industry "Kill Switch"**

Charles Hoskinson, founder of Cardano (ADA), has joined prominent cryptocurrency leaders in condemning Senate Democrats' leaked decentralized finance (DeFi) regulation proposal, labeling it a potential "kill switch" for the blockchain industry. The controversial regulatory framework has sparked widespread concern among crypto advocates who fear excessive government oversight could stifle innovation in the rapidly growing DeFi sector.

Hoskinson's criticism adds to mounting industry opposition against the proposed legislation, which could significantly impact how decentralized protocols, smart contracts, and cryptocurrency exchanges operate. The regulatory uncertainty comes as the DeFi market continues to evolve, with billions locked in various protocols across Ethereum, Cardano, and other blockchain networks.

This development highlights the ongoing tension between traditional financial regulators and the cryptocurrency ecosystem, potentially affecting Bitcoin, altcoins, and the broader digital asset market. Industry leaders argue that heavy-handed regulation could drive blockchain innovation overseas, undermining America's competitive position in the global crypto landscape. The proposal's final form and implementation timeline remain uncertain as stakeholders await official announcements.