The Digital Commodities Consumer Protection Act (DCCPA) bill could be positive for decentralized finance and the crypto industry. The first draft had drawn criticism from industry representative bodies for too broad a definition for a digital commodity platform which could be interpreted as a ban on DeFi.
Gabriel Shapiro, Delphi Lab’s general counsel who made the new draft publicly available, said the definition has been amended. He believes it could be a boon to DeFi and crypto. Shapiro outlined that the new draft contains a limited exception to the term “digital commodity trading facility” which would exclude persons who solely develop or publish software. Dr. Martin Hiesboeck, head of research at UpHold, said the new draft follows similar regulations in the EU and the United Kingdom, suggesting that the U.S is finally getting its act together.
Sam Bankman-Fried believes the DCCPA will effectively create a regulatory framework for centralized exchanges without endangering the existence of software, blockchains, validators, DeFi, etc. He, in a blog post, said DeFi is one of the trickier things to account for in a regulatory framework. The Blockchain Association, a crypto lobbyist group, has been quite vocal about the DCCPA needing some changes. It doesn’t want the bill to create a de facto ban on DeFi. Jake Chervinsky, the head of policy at Blockchain Association, highlighted the language in the bill. He said it would treat the crypto industry like centralized entities. Chervinsky outlined that it would make it difficult for DeFi protocols no more than code to comply with regulations.