Nearly 600 pages of the US crypto bill have leaked to social media. The crypto community is also trying to understand the repercussions of this situation in the market. The crypto community on Twitter is currently debating and talking about the regulations pertaining to the space. One of them was Billy Markus, co-founder of Dogecoin (DOGE).
DOGE founder commented on the bill
Many Twitter users in the cryptocurrency space are trying to deduce what the 600-page clause alleged to be part of the crypto bill means. Apparently, more than 600 pages of the draft are said to cover the US crypto law currently in preparation. The first leak was published by the “slam bot”. Various organizations, including Dogecoin co-founder Billy Markus, had the opportunity to review the documents and shared their views.
Billy shared a series of tweets for this purpose. According to Markus; It is designed to be challenging for altcoins, DeFi, DAO, stablecoins and crypto exchanges. On this, Billy thinks being tough on the exchanges will have a lasting impact on the industry, adding the following statements:
The leaked new US cryptocurrency law looks tough after shitcoins DAOs, DeFi, stablecoins and exchanges. All they really need to do is go after the exchanges. Then the party ends.
No more anonymous projects?
From another angle, the bill seems to be trying to protect crypto users. First, DeFi platforms require all crypto assets operating in the space, such as crypto projects, exchanges, and DAO, to be legally registered. This means that the industry in the US can no longer see tokens developed by anonymous creators. According to some, it may not be a BTC-like coin. Anonymity is thought to increase the risk of rug pull, which results in people losing money due to fraud. The main points in the bill are:
- The law requires DAOs to be US-registered entities.
- Cryptocurrencies will not be counted as disregarded assets.
- If not registered in the US, the US considers it personally taxable. (980710)
- Requires all exchanges and stablecoin providers to be registered.
The bill brings clarity where gray areas are concerned. Exchanges, DAOs and Stablecoins will have to be registered, otherwise they will be taxed. A number of assets were also reclassified as commodities. For example, under the CFTC’s guidelines, if any token-related profit/income, dividends, equity or debt is involved, the asset ceases to be a digital asset. If there is any debt, equity, profit income or dividends of any kind, it is clearly no longer a digital asset property.
Stricter measures will be taken to eliminate further possibilities of projects created by anonymous characters. The bill also proposes an increase in exchange for compliance costs. According to many experts, the new disclosure requirements will make ongoing projects nearly impossible to comply with the law. In the event of bankruptcy, exchanges will be required to repay users’ assets rather than liquidate them. This is a huge win for users. The bill also requires exchanges to have Terms of Service that users agree to. Users will have to confirm their contracts each time the exchange updates its source code.
wanted regulation in cryptocurrencies
On the other hand, the bill proposes an increase in compliance costs. As always, businesses tend to pass these extra costs on to the consumer, which means crypto exchanges will increase transaction fees on their platforms. They will also have to pay taxes on these wages. Basically, in the eyes of the crypto industry, this law is a double-edged sword. According to the DOGE founder, the crypto market is littered with garbage and is highly populated by scammers. For this reason, as we have also reported as Kriptokoin.com, he previously said that the cryptocurrency space requires regulation.
At this point, it should be noted that the bill is still in draft form. It is not yet clear when the bill will be put up for discussion or whether it will be passed by lawmakers. It is also unclear who leaked the documents.
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