As the cryptoverse debated a U.S. bill Wednesday that would “kill DeFi,” crypto mogul Sam Bankman-Fried floated a set of self-imposed industry standards to “create clarity and protect customers.”
Gabriel Shapiro, general counsel at Delphi Labs, leaked a draft of the Digital Commodities Consumer Protection Act of 2022, or DCCPA.
A Draft of the Digital Commodities Consumer Protection Act of 2022, or DCCPA
A Ban on DeFi
The DCCPA would designate the Commodity Futures Trading Commission to police the spot crypto market, a move many favor, as the CFTC is perceived to be a more lenient enforcer than the U.S. Securities and Exchange Commission.
Many crypto influencers and moguls say that “This bill could be interpreted as a ban on DeFi”
In a blog post, Bankman-Fried, the head of centralized crypto exchange FTX, suggested building regulatory compliance into DeFi protocols themselves.
Such a move, which is common in self-regulatory market organizations such as Finra, the Financial Industry Regulatory Authority, can be costly and painstaking processes that take years to implement.
Several prominent crypto-focused accounts on Twitter speculated that Bankman-Fried is secretly lobbying for the bill’s passage.
https://docs.google.com/spreadsheets/d/1p_rCrwhLidMeRsiHZzXsjM6eEwMSlpTLyNB6SxDqaBc/edit#gid=0
https://www.fec.gov/data/receipts/individual-contributions/?contributor_name=Sam+Bankman+Fried
“FTX is spending money to push a law thru congress that may force defi protocols to operate like centralized exchanges,” scott, the mononymous founder of DeFi Pulse, tweeted.
“The proposal is called the Digital Commodities Consumer Protection Act. a better name would be the Digital Commodities FTX Protection Act.”
According to Alliance(Crypto lobbying group The Blockchain Alliance), the bill “forces human intermediation,” “forces projects to sacrifice decentralization” and, ultimately, “kills DeFi.”
SBF has made big fortune through non-regulation crypto time and with non-KYC and non cutomer protection operation.
But now he seems to push the regulator freindly bill for several crypto power groups such as FTX, Alameda etc.
The bill is not final, and will be revised continuously having so much lobby battles among different groups who pursue its own benefits.
Through this discussion and controversal issues, we could think about many upcoming crypto environment and what would be better for all and crypto industry.
It is required to keep in mind that the bill or any policy would not be 100% frinedly for recent investors or public.
Source: thedefiant.io, fec.gov