On June 7, a leaked draft of the United States crypto bill began making the rounds on Twitter. The 600-page leaked draft of the bill covers a wide range of concerns raised by regulators over stablecoins, decentralised autonomous organisations (DAOs), decentralised finance (DeFi), and crypto exchanges.
The leaked draft bill also clarifies securities legislation as they pertain to digital assets, which has been requested by both the crypto community and policymakers. The major emphasis of regulators appears to be on user protection. It aims to specify the requirement for any crypto platform or service provider, whether a DAO or DeFi protocol, to legally register in the US. This might severely limit the ability of anonymous crypto initiatives to progress in the US. Any crypto platform that is not registered in the country will be subject to taxation, and the definition of DeFi remains ambiguous.
The new draft bill proposes raising exchange compliance expenses, which might lead to higher exchange fees. An exchange is any protocol or platform that exchanges a single digital asset, which includes automated market makers.
The measure also prohibits exchanges from liquidating customers’ assets in the event of insolvency and requires them to publish terms of service for consumers to agree to before utilising their services.
The leaked draft bill offers specific rules to bring the embryonic crypto business into compliance with the law. Many experts have pointed out that, while the regulations outlined appear to promote stringent control, they are simply a draft.
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