An updated draft of a cryptocurrency bill has leaked, which the industry previously said would ‘kill DeFi’. One commentator says the US is ‘finally taking action’.
“It is possible that this will be a boon for DeFi!”
A new draft of the Digital Commodity Consumer Protection Act (DCCPA) bill has started circulating online. Some comments suggest this could be positive for decentralized finance (DeFi) and cryptocurrency. A previous draft of the bill included a broad definition for a ‘digital commodity platform’ that could be interpreted as a ban on DeFi. For this reason, it received very heavy criticism from organizations representing the sector.
The biggest DeFi altcoin projectsIn a newly released 31-page bill shared by Delphi Labs general counsel Gabriel Shapiro, the lawyer says he made the bill public because he believes in “transparency and open discussion.” Shapiro points to a section that changes the meaning of “digital commodity trading facility”, which excludes people who develop or publish software. He comments that this “could be a boon” for DeFi and cryptocurrency. In this context, Shapiro shared the following:
Specifically, this release contains a limited exception to the term “digital commodity trading facility”, which excludes only those who develop or publish software. It’s possible that this will be a boon for DeFi.
Notably, this version contains a limited exception to the term "digital commodity trading facility" which would exclude persons who solely develop or publish software–this could be a boon to DeFi/crypto. pic.twitter.com/0pa843RJ9h
— _gabrielShapir0 (@lex_node) October 19, 2022
“USA finally moves together on cryptocurrencies”
UpHold crypto exchange research head Dr. Martin Hiesboeck says the newly published draft complies with similar regulations in the European Union and the United Kingdom. Thus, he suggests that the US is ‘finally acting together’. Hiesboeck makes the following statement on the subject:
First impression: the leaked CFTC bill closely follows the UK/EU regulation, although similarly uses different terminology. I will prepare a detailed report by tomorrow. The US is finally acting together. All good.
The comments are a tone change to the previous version of the bill, described by the Web3 incubator and advocacy group Alliance DAO as “killing DeFi”. The bill also describes the decentralized autonomous organization (DAO). In this context, he defines, “It creates a compliance architecture that precludes the concept of a system of smart contracts running decentralized infrastructure with little or no reliance on human activity.”
As you follow on Kriptokoin.com, there have been long calls for regulatory clarity regarding digital assets in the US. Some are urging the US Congress to pass laws defining commodities and give jurisdiction to the CFTC. First introduced in August, the DCCPA expands the regulatory power of the Future of Commodities Trading Commission (CFTC) over the cryptocurrency industry. It tries to define certain cryptos like Bitcoin and Ethereum as commodities rather than securities.
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