Leaked copy of US bill shows DeFi and DAO from regulatory perspective

A leaked copy of a US cryptocurrency bill began making the rounds on Twitter earlier on Tuesday. The 600-page copy of the leaked bill highlights some of the major areas of concern for regulators, including decentralized finance (DeFi), stablecoins, decentralized autonomous organizations (DAOs), and crypto exchanges.

User protection seems to be the primary focus of regulators, with policies aimed at requiring any crypto platform or service provider to legally register in the US, whether it’s a DAO protocol or DeFi.

This could greatly reduce the chances of progress for anonymous crypto projects in the United States. Any unregistered crypto platform in the country would be liable for taxes, and the definition of DeFi still seems unclear.

The leaked bill also attempts to offer more clarity on securities laws as they relate to digital assets, a persistent request from the crypto community and lawmakers. According to the definition of a commodity given by the Commodity and Futures Trading Commission, if there is debt, equity, profits or dividends of any kind, it is expressly not an asset. digital.

Related: 30% Crypto Tax Becomes Law in India After Approval of Finance Bill

The new bill proposes to increase exchange compliance costs, which could lead to higher exchange fees. Any protocol or platform that trades a single digital asset would be classified as an exchange, meaning automated market makers would fall under the same category.

The bill further ensures that exchanges cannot liquidate users’ funds in the event of bankruptcy and adds that they must issue terms of service that consumers must agree to before using their services.

The leaked bill offers clear policies to bring the nascent crypto market under the law. Many experts have pointed out that while the policies listed seem to encourage strict oversight, it is only a draft.

Dogecoin co-founder Billy Markus also commented on the leaked bill and suggested the new policies would be tough on DeFi, DAOs, and anonymous projects.

About Arla Lacy

Check Also

Are refiners to blame for your pain at the pump?

Refining inventories have jumped this year. Unsung Oil Refiners PBF Energy (NYSE: PBF) and Delek …