According to PANews, U.S. Congressman Warren Davidson introduced the "Assessing DeFi Opportunities Act" on Tuesday. The bill calls on the SEC, CFTC and the Secretary of the Treasury to jointly study decentralized finance (DeFi).

Davidson stressed that DeFi plays a crucial role in the future of capital markets, but expressed concerns about the Biden-Harris administration’s approach to regulating the space.

Lawmakers noted that the total market value of DeFi has surged to about $75 billion. Davidson warned that excessive regulation could stifle innovation and cause investments to flow abroad.

The study aims to help regulators understand the benefits of DeFi, such as blockchain’s operational resilience, market competition, and user privacy protection.