DeFi and DAOs are being evaluated in a leaked copy of a US new bill.
DeFi and DAOs are being evaluated in a leaked copy of a US new bill.
The draught bill intends to end anonymous crypto initiatives by requiring DAOs, DeFi, and exchanges to register legally in the US.
On Tuesday, a leaked copy of a US draught bill relating to bitcoin began making the rounds on Twitter. Decentralized financing (DeFi), stablecoins, decentralised autonomous organisations (DAOs), and crypto exchanges are among the primary areas of concern for regulators highlighted in the 600-page leaked law.
Regulators appear to be prioritising user protection, with laws requiring any crypto platform or service provider, be it a DAO or DeFi protocol, to register lawfully in the United States.
This might severely limit the advancement of anonymous crypto initiatives in the United States. Taxes would be levied on any crypto platform that was not registered in the country, yet the definition of DeFi remains ambiguous.
The leaked draught bill also aims to provide more clarity on securities regulations as they apply to digital assets, which has been a long-standing desire from both the crypto community and policymakers. If a commodity contains any debt, equity, profit revenue, or dividend of any kind, it is not a digital asset commodity, according to the Commodity and Futures Trading Commission's definition.
The current draught bill proposes raising exchange compliance expenses, which could result in higher exchange fees. Any protocol or platform that trades a single digital asset is classified as an exchange, and automated market makers are included in this category.
The measure also stipulates that exchanges cannot liquidate users' funds in the event of insolvency, and that they must publish terms of service that consumers must accept before utilising their services.
The leaked draught bill provides explicit principles for bringing the embryonic cryptocurrency business under the law's jurisdiction. Many experts have noted that, while the policies outlined appear to encourage stringent control, they are simply a draught.
Billy Markus, a co-founder of Dogecoin, also spoke out over the leaked law, claiming that the new policies would be harsh on DeFi, DAOs, and anonymous initiatives.
