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The Draft DCCPA Bill has Created a Stir in Digital Asset Industry

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The Draft DCCPA Bill
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  • Several cryptos and digital assets experts review the bill draft of DCCPA. 
  • Many personalities believe that DCCPA will be a boon for the DeFi industry.   

A preliminary version of the Digital Commodities Consumer Protection Act(DCCPA) has been widely circulated on social media by several users and popular crypto enthusiasts with their suggestion on the recent draft that it will prove to be positive for decentralized crypto finance(DeFi).   

The earlier draft version of the bill enticed a serious objection from industry representative bodies for having a too wide definition of a “digital commodity platform,” which could be interpreted as a “ban on decentralized finance (DeFi).”    

The freshly drafted bill is comprised of 31-pages shared by Delphi labs general counsel Gabriel Shapiro; the attorney expressed he made the draft bill publicly accessible as he believes in “transparency and open discussion.”    

Shapiro commented on a clause amending the meaning of “digital commodity trading facility,” which excluded persons who develop or publish software, commenting that it “could be a boon” for decentralized finance and other cryptos.  

The head of research at crypto exchange UpHold, Dr. Martin Hiesboeck, posted on Twitter that the newly released draft appears to follow similar rules in the European Union and the United Kingdom indicating that the United States is “ultimately getting their act together.”  

On 18 October 2022, Sam Bankman Fried, Chief Executive Officer and founder of FTX, posted on his Twitter handle that he still believes DCCPA will functionally create a regulatory structure for centralized exchanges “without affecting the existence of software, blockchains, Validators, DeFi, etc.”   

On 19 October, Sam posted a detailed blog on the official website of FTX, highlighting his thoughts on the regulations digital asset industry. In the same, Bank-Man noted that DeFi is “one of the tickier things” to account for in a regulatory framework.   

In mid of September 2022, Jake Chervinsky, head of policy at the Blockchain Association, posted on Twitter regarding DCCPA.   

He also noted, “The bill could be interpreted as a ban on DeFi. The “digital commodity platform” definitions are all designed for centralized custodial markets.”

Earlier on 17 September 2022 TheCoinrepublic reported that CFTC (Commodity Future Trading Commission) chair Rostin Behnam supported the proposal of the U.S Senate bill 4760, the Digital Commodities Consumer Protection Act of 2022(DCCPA), to order its agency to regulate cryptocurrency assets the similar way they do other derivatives markets.  

Views of  AllianceDao on DCCPA 

The official Twitter handle of AllianceDAO also Stated their beliefs on the draft of the DCCPA “The DCCPA is a bill in the US Congress that may become eligible to pass as part of an end-of-year omnibus bill.” 

Why is this bill problematic? 

First, it gives the CFTC power to regulate spot digital commodity markets, whereas it never had the power to regulate spot markets before. Historically, it only regulates derivatives markets.

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