Article Summary

**Senate Document Reveals Major DeFi Regulation Plans as Crypto Markets React** A leaked Senate document has exposed comprehensive plans to heavily regulate the decentralized finance (DeFi) sector, potentially requiring front-end service providers to register as traditional brokers. This regulatory bombshell threatens to fundamentally reshape the cryptocurrency landscape and could significantly impact blockchain-based financial services. The DeFi regulation news comes amid broader crypto market volatility, with Binance Coin (BNB) dropping 2.5% as it continues declining from its recent all-time high achieved earlier this week. The cryptocurrency markets are showing increased sensitivity to regulatory developments as institutional adoption grows. Meanwhile, Bitcoin-focused investment firm Metaplanet has announced a halt to its common stock sales, adding another layer of uncertainty to the current market environment. The proposed DeFi regulations could force major protocol developers and interface providers to comply with traditional financial intermediary requirements, potentially stifling innovation in the decentralized cryptocurrency ecosystem. These developments highlight the ongoing tension between regulatory oversight and the foundational principles of decentralized finance, as lawmakers seek greater control over the rapidly expanding crypto sector.