A digital assets bill was introduced by U.S. lawmakers yesterday to address regulatory shortcomings, but some experts are worried about its vague language and a provision that could threaten the DeFi market. While the bill exempts certain digital assets, liquidity staked tokens may still be classified as securities by the SEC.

The bill establishes a registration standard based on a legal definition of "decentralization," but it still leaves room for the SEC to make this determination. Despite being seen as favorable to the crypto industry, the bill still faces political hurdles and opposition from House Agriculture Committee Democrats who view it as too favorable to the industry. Jeffrey Blockinger, chief legal counsel at Vertex Protocol, believes that the bill faces significant political obstacles and may not pass.