Severe sanctions for DAOs, less anonymity, new rules for exchanges: a new phase of crypto crackdown in the US
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- Regulation for DAO, uncertainty for DeFi
- kui bono
Seasoned cryptocurrency analyst Adam Cochran, founder of Cinemahn Ventures firm and Eir. Reviewing the document, the Finance contributor said that it appears to be a draft of an upcoming US bill on digital assets.
Regulation for DAO, uncertainty for DeFi
Mr Cochran has shared a source on Twitter about what new regulations will bring to the cryptocurrency segment. First, all decentralized autonomous entities need to either register or be individually taxable.
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Wow, so first read some good stuff that moves us on, but a lot of raw stuff.
Overall this gives US crypto clarity but will have a huge cost and growing pains.
Here’s what I first noticed when I read. https://t.co/Cb1TM0DVJs
— adam cochran (adamscochran.eth) (@adamscochran) 7 June 2022
In addition, many assets will be regulated as commodities by the CFTC. Each platform designed to facilitate asset conversion will be regulated as a cryptocurrency exchange.
In this regard, the status of AMM-powered protocols, non-custodial exchanges, and other DeFi protocols is unclear. However, it will be more difficult for them to remain anonymous.
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The overall level of regulatory scrutiny increases, which, on the one hand, will increase compliance costs, but it will also eliminate insider trading and listing scams.
kui bono
The proposed regulation would significantly advance the power of regulators to control and regulate the activity of market participants in terms of requirements and penalties.
Depository institutions will be allowed to issue their own stable coins, while each change to the codebase of the crypto product will be subject to changes in the Terms of Service.
Overall, the project is a big step forward in terms of regulatory clarity. However, this will make the crypto landscape dominated by more whales:
If it passes as such then its good *long* tenure for large entities, super painful near term for 99% of crypto.
As U.Today previously reported, New York State could ban proof-of-work operations this month; Industry representatives strongly oppose this idea.
