The community of cryptocurrency is attempting to know about the possible consequences as the above 600-pages-long crypto bill of the United States got leaked. The crypto community is doing a lot of debates on the matter on Twitter, pondering over the legal regulations dealing with the respective sector.
This all started after the leakage of the documents’ cache. It appears that the draft’s pages encompass the crypto bill of the United States that is being prepared at the moment. Slam bot (a Twitter user) shared the earliest leak. Several bodies, taking into account Billy Markus (the founder of Dogecoin), examined the respective documents and shared their point of view regarding the subject.
A Twitter thread was sent by Billy in this respect. According to him, the very bill is structured to implement stringent regulations over crypto exchanges, stablecoins, DAOs, DeFi, as well as altcoins. Billy is of the view that a substantial and long-lasting effect would be put on the behalf of the bill on the industry as a whole.
An End to Anonymous Projects
While approaching it from another viewpoint, the bill appears to be attempting to shield the crypto consumers. In the first place, the crypto bodies operating in the field such as Decentralized Autonomous Organizations (DAOs), Exchanges, crypto projects, and DeFi-based projects would be required to have a legal registration.
This indicates that the anonymous creators would no more be able to develop tokens – such as those resembling Bitcoin (BTC). Presently, these circumstances are responsible for mounting the hazard of rug pulls, resulting in the loss of substantial money on the behalf of the common people in scams. The bill provides clarity at the place where there have some gray zones been lingering for a considerable period. If the stablecoins, DAOs, as well as exchanges, remain unsuccessful in being registered with the respective authorities, the tax would be levied on them accordingly.
The bill additionally re-categorized several of the assets as commodities. In this case – under the instructions of CFTC – if profit/revenue, debt, or equity are linked to an asset, it will be categorized as a digital-asset commodity and otherwise, it would not be classified so.
On filing the bankruptcy, it will be required from the exchanges to refund the assets of the customers rather than liquidating them. The respective condition counts to be a remarkable decision in the favor of the customers. The compliance charges would be increased to a great extent however the listing process will be comparatively better. To trade against the customers will be illegal. Along with this, the exchanges are required by the bill to devise Terms of Service to which the customers will give their consent.
Investors to Be Doubly-Burdened
On the contrary, the bill suggests raising compliance charges. As usual, the respective additional costs would be put on the consumers by the businesses, signifying that the transaction charges would be increased by the venues. Apart from this, there would be a requirement for them to recompense taxes from the very charges. Essentially, in the crypto industry’s perspective, the very bill counts to be a sword with double edges for traders which is why it is being opposed by the majority of Twitter users.
