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Kristin Smith
@KMSmithDC
# of congressional hearings on DeFi: 0 # of CFTC public meetings on DeFi: 0 # of fed reports with focus on DeFi: 0 We need open discussion and debate before locking in a framework that regulates the next generation of financial infrastructure. #DeFi
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SBF
@SBF_FTX
Replying to
@KMSmithDC
100% agree that we should not lock in the future of DeFi! ...and I don't think anything is going to do that, but if DCCPA language comes out such that it does prescriptively lock in DeFi then that's bad. (But I don't think it will!)
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Jake Chervinsky
@jchervinsky
Replying to
@SBF_FTX
and
@KMSmithDC
The concern is that the current DCCPA language *does* do that by giving the CFTC total authority over DeFi via overbroad "digital commodity platform" definitions, while at the same time the CFTC expresses an untenable anti-DeFi view in the Ooki DAO case.
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Jake Chervinsky
@jchervinsky
9/ Second, the bill could be interpreted as a ban on DeFi. The “digital commodity platform” definitions are all designed for centralized custodial markets. Yet, as @SenGillibrand sharply pointed out, they also might capture DeFi protocols—no more than code—which can't comply.
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Jake Chervinsky
@jchervinsky
Replying to
@jchervinsky
@SBF_FTX
and
@KMSmithDC
So the question is whether the next draft of the DCCPA adequately addresses these concerns such that the DeFi community can feel good supporting it. We appreciate your help advocating for changes to the bill to make sure these issues get fixed!
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Jake Chervinsky
@jchervinsky
Replying to
@SBF_FTX
and
@KMSmithDC
I hesitate to read a leaked draft too closely and prefer to wait for the bill authors to publish real text... ...but I generally view an exemption for developers as "necessary but not sufficient." The definitions could still capture front-ends, LPs, DAOs, regular users, etc.
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