The leaked new U.S. bill on crypto reveals restrictions on DAOs new regulations for exchanges and a new phase of crackdown on crypto
After reviewing the document, seasoned cryptocurrency analyst Adam Cochran, founder of Cinneamhain Ventures and contributor to Yearn.Finance, said it appears to be a draft of an upcoming US bill on digital assets.
Regulation for DAOs, uncertainty for DeFi
Mr. Cochran took to Twitter to discuss what the new restrictions will mean for the cryptocurrency industry. To begin with, it mandates that all decentralized independent entities register or become individually taxed.
In addition, many assets would be regulated as commodities by the CFTC. Every platform that facilitates the conversion of assets will be regulated as a cryptocurrency exchange.
The status of AMM-powered protocols, noncustodial exchanges, and other DeFi protocols is yet unknown in this regard. It will be considerably more difficult for them to maintain their anonymity.
The general level of regulatory scrutiny rises, which will increase compliance expenses on the one hand but will also put an end to insider trading and listing fraud on the other.
New U.S. Crypto Bill To Give Regulators More Control
In terms of requirements and penalties, the proposed bill will greatly increase regulators’ ability to control and regulate market participants’ activities.
Depositary institutions will be able to create their own stablecoins, and any changes to a crypto product’s coding will be subject to changes in the Terms of Service.
Overall, the initiative is a significant step forward in regulatory clarity. It would, however, make the crypto scene more dominated by whales:
If it passed in this form its good *LONG* term for big entities, super painful near term for 99% of crypto.
