Leaked Crypto Blueprint Involves Radical Changes in Crypto Industry

Leaked Crypto Blueprint Involves Radical Changes in Crypto Industry

Investing.com – The leaked documents of the so-called cryptocurrency industry bill circulating on social media platforms turned out to be a development fueling market unease.

The document, which is said to have been created by US lawmakers and appears to consist of 600 pages with an embargo watermark, is a sweeping regulation that will cover cryptocurrencies, the decentralized finance industry (DeFi), decentralized autonomous organizations (DAO ) and covers fixed cryptocurrencies and have crypto exchanges in the frame.

The so-called crypto bill was leaked by a Twitter user as a document Senator Cynthia Lummis and Kirsten Gillibrand were working on.

The first noticeable change in the so-called crypto blueprint includes measures to break the anonymity of the industry. According to the leaked draft, regulatory registrations will be required for crypto exchanges, DeFi platforms, DAOs, and cryptocurrency projects.

While this regulatory clause is positively interpreted to deter developers and fraudulent activity by draining all capital from crypto projects, it also raises concerns that it could pose a barrier to innovative projects, as the details of the Registration procedures are not known.

What does the leaked cryptocurrency draft contain?

While stating that many crypto assets are defined as commodities in the accompanying documents, this is intended to eliminate the confusion as to whether the assets are securities or not. The definition of crypto assets as commodities indicates that the effective regulator in the US will be the Commodity Futures Trading Commission (CFTC).

On the other hand, while there are some regulations for listing crypto assets on exchanges, it seems that crypto exchanges will have important obligations in this regard.

The so-called bill, which includes radical changes in regulation, includes articles on bankruptcy. In the event that crypto exchanges and startups go bankrupt, all users’ funds on the platform will be refunded. Accordingly, after the possible collapse of crypto companies, which must have a financial structure like in Terra, it will prevent savers from being harmed.

DeFi and DAO sector to follow closely

It was determined that there were particular elements within the DeFi and DAO sector in the leaked documents. It remains unclear how these decentralized projects are to be brought under control in practice and brought into line with the law. Additionally, the requirement for US decentralized projects to be registered with fixed crypto issuers and crypto exchanges is seen as a development that will disrupt the industry.

The draft law, leaked on social media, also shows that there will be harsh sanctions such as fines if the rules are not followed. Among the comments made, the prevailing opinion is that many crypto startups may not be able to continue their activities under these strict regulations.

On the other hand, it is clear that these strict regulations are generally aimed at protecting crypto investors. Passing a crypto law in the US is extremely important to address and provide clarity to the lack of regulation that is a major problem for the industry. In addition, these regulations have the advantage of serving as a reference for other jurisdictions.

Author: Günay Caymaz

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