‘Clandestinely circulating’ crypto bill could bring ‘benefits’ to DeFi

A new draft of the Digital Goods Consumer Protection Act (DCCPA) bill is starting to circulate online, with some comments suggesting it could be a boon for decentralized finance (DeFi) and cryptocurrencies.

Earlier drafts of the bill were heavily criticized by industry representatives for overly broad definitions of “digital commodity platforms,” which “could be construed as a ban on decentralized finance (DeFi).”

In the newly posted 31-page draft bill shared by Delphi Labs general counsel Gabriel Shapiro, lawyers said they released the bill to the public because they believed in “transparency and open debate.”

Shapiro noted a section amending the meaning of “digital commodity trading establishments” that excludes those who develop or publish software, commenting that it “could be a boon” for DeFi and crypto.

In particular, this version includes a limited exception to the term “digital commodity trading establishment” that excludes persons who develop or publish software solely. This could be a boon for DeFi/crypto. pic.twitter.com/0pa843RJ9h

— _gabriel Shapir0 (@lex_node) October 19, 2022

Dr. Martin Hiesboeck is the Head of Research at UpHold, a cryptocurrency exchange. murmured The newly released draft appears to follow similar regulations in the European Union and the UK, suggesting the US is “finally getting their act together.”

First impression: Leaked #CFTC Bill seems to follow the UK/EU reg loosely, despite using similar but slightly different terminology. I will prepare a detailed report by tomorrow. The US finally got their act together. all good.

— Dr. Martin Hiesboeck (@MHiesboeck) October 19, 2022

The comment is a change of tone from previous versions of the bill, which advocacy group Alliance DAO described at the Web3 incubator as “killing DeFi.”

The Decentralized Autonomous Organization (DAO) has created a bill that “creates a compliance architecture that eliminates the notion of a system of smart contracts that operate a decentralized infrastructure with little or no reliance on human activity.”

Related: ‘Time Is Not On Our Side’ To Clarify Regulations On Cryptos — US Congressman

There have long been calls for clarity in regulation of digital assets in the United States, with some calling for the US Congress to pass legislation defining commodities, giving jurisdiction to the CFTC.

First introduced in August, the DCCPA expands the Commodity Futures Trading Commission’s (CFTC) regulatory authority over the cryptocurrency industry, allowing certain cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) to be treated as commodities rather than securities. I am trying to define as