Earlier on Tuesday, a copy of United States draft bill related to cryptocurrency and other digital assets was leaked. The draft bill is a 600-page copy that calls attention for crypto tokens, digital assets, decentralized finance sector (DeFi), altcoins, stablecoins, decentralized autonomous organizations (DAOs), and related crypto exchanges.
It is interpreted that many assets will be regulated through Commodity Futures Trading Commission (CFTC) as commodities. Whereas each platform related to the trading of cryptocurrencies and digital assets will be regulated a cryptocurrency exchanges. However, future of DeFi protocols and non-custodial exchanges remained ambiguous to many of the experts.
The bill has a primary focus on user protection through regulators. According to the drafted policies and regulations, each crypto service provider must be a legally registered entity in the U.S. Moreover, the overall levels of scrutiny has been increased with higher compliance costs. No wonder this cost will be added to the end user pocket.
Although the registering process will devour the listing scams, inside trading practises, false news, and many other unethical related activities within the organization.
Increased Protocols with stringent rules
Further, the bill states that no exchange can liquidate user’s funds during a bankruptcy phase. Also, a terms of services for the customers must be issued before using the services of any digital assets platform.
However, it is clear that the drafted bill will bring the crypto and digital assets under the duly consideration of law enforcements.
The dogecoin founder Billy Markus commented on the leakes bill and suggested that DAOs, DeFi might have to go through a rough patch. Moreover, if the bill is passed it will be helpful for big institutional entities while a small retail investor have to shed his pockets for high compliant fees.