In the latest draft circulating secretly across Washington, DC, regulations on Bitcoin and Ethereum appear to not favor ‘Decentralization’ in decentralized finance (DeFi).
A copy of draft language for the Digital Commodities Consumer Protection Act (DCCPA), a bill in the US Congress, was uploaded to GitHub by crypto attorney Gabriel Shapiro.
Others have regarded this draft to be harmful to DeFi, precisely an aspect of blockchain-based solutions that aims to improve finance by replacing central third parties with software code.
The bill lashes out at what constitutes digital commodities, brokers, custodians, dealers and platforms. And in addition, rules and core principles that apply to players in the digital commodities sphere.
Shapiro stated that the draft excludes individuals who develop or publish software from the term “digital commodity trading facility” — a move he said could benefit the cryptocurrency industry by protecting software engineers.
However, he eventually demonstrated his doubt about the point of the bill and urged other commentators to express their side about the content of the draft. The Attorney general of Delphi Labs said the bill was shared in the interest of ‘’transparency and open discussion of the future of cryptolaw.’’
Sam BankMan-Fried Expresses Support For The Draft Bill
Following the draft upload, FTX CEO Sam Bankman-Fried took to his Twitter to express his support for the content of the bill, saying he is optimistic that the ‘’Stabenow-Boozman’s bill will provide customer protection on centralized crypto exchanges without endangering the existence of software’ blockchains, validators, DeFi, etc.’’
He also added his comments in a blog post by FTX on what crypto regulations are supposed to look like. He said it is essential for ‘’on-chain code and decentralized finance remain free and open, and uncensored.’’
However, despite Sam Bankman-Fried’s thoughts and explanations, he is still being fried by critics for being in support of the bill that appears to be a threat to DeFI protocols.
Others’ Thoughts On The Bill
Web3 startup accelerator Alliance DAO condemned the DCCPA bill, saying it ‘’threatens DEFi innovation, gives CFTC new powers to regulate spot markets, forces human intermediation, forces projects to sacrifice decentralization, and favors centralized incumbents and kills startups.’’
Other head executives in the industry, such as Framework Ventures’ Vance Spencer, also commented, saying, ‘’Famework opposes the DCCPA and the shadow cabal that is trying to make it a reality.’’
