Today, a version of the Digital Commodities Consumer Protection Act (DCCPA), which describes how the Commodities Futures Trading Commission (CFTC) would regulate the cryptocurrency industry, was posted on GitHub.
This could be a “boon” for DeFi/crypto, according to Gabriel Shapiro, a crypto attorney and general counsel at Delphi Labs, who tweeted on Wednesday that his version of the definition of “digital commodity trading facility” contains a restricted exception that would exclude people who only develop or publish software.
Shapiro claimed that he released the document to the public out of respect for honest dialogue and transparency in developing crypto laws. In addition, he made public a version of the infamous DCCPA that was circulated discreetly in Washington.
Sens. John Boozman (Republican) and Debbie Stabenow (Democrat) introduced the DCCPA in August. Since then, it has received open support from FTX CEO Sam Bankman-Fried and Coinbase. It has also garnered popularity since it provides an alternative to the SEC’s “regulation by enforcement” model.
On the other hand, centralized organizations like Coinbase and FTX have come under fire for their backing of a measure seen as a danger to the decentralized systems used in the industry, such as those that drive decentralized exchanges like Uniswap.
The CEO of FTX is certain that the DCCPA will successfully establish a regulatory framework for centralized exchanges without putting software, blockchains, validators, DeFi, etc., in peril.
The DCCPA requires some adjustments, according to the crypto activist group Blockchain Association, because it might effectively put a “ban on decentralized finance,” as they have stated.
The Blockchain Association’s head of policy, Jake Chervinsky, summarised his testimony from a hearing on September 15 on Twitter. He claimed that the bill’s text would approach the whole cryptocurrency business as though it were a single, centralized entity. However, that would make it challenging for DeFi protocols, which are “no more than code,” to adhere to rules.
Numerous lawmakers, including John Boozman, Cory Booker, Debbie Stabenow, and John Thune, have favored the CFTC regulating the cryptocurrency market, particularly Bitcoin and Ethereum. Kristin Smith, the executive director of the Blockchain Association, has also said that the Commodity Futures Trading Commission or the Securities and Exchange Commission should be the primary regulators of the bitcoin spot markets.
US Senators Cynthia Lummis and Kristen Gillibrand sponsored a similar bill in June called the “Responsible Financial Innovation Act,” which grants the CFTC regulatory oversight over the spot markets for digital assets. According to the proposed legislation, the CFTC will regulate digital assets that meet the criteria for commodities, such as bitcoin and ether, which account for more than half of the market.