Discussions within the U.S. Senate Banking Committee on the Responsible Financial Innovation Act (RFIA) have stalled. Last week, Democratic lawmakers submitted a counterproposal that included strict restrictions on decentralized finance (DeFi) protocols, specifically a "restricted list" mechanism overseen by the U.S. Treasury Department to label "excessively risky" DeFi protocols. The blockchain industry reacted strongly, with Summer Mersinger, CEO of the Blockchain Association, warning that the proposal would "effectively ban the development of decentralized finance, wallet development, and other decentralized applications in the United States" and push innovation overseas. Jake Chervinsky, chief legal officer of investment fund Variant, was even more blunt, calling the Democratic proposal "nonsense" and essentially "an unprecedented and unconstitutional government takeover of an entire industry." Currently, Republicans and Democrats are blaming each other over the bill revisions, and negotiations have been suspended. (Cointelegraph)