SBF may be getting purged from crypto, but unfortunately, we are not yet free from his shadow.
Industry experts are not a fan of the bill. Let’s look at why.
The bill, authored by Sens. Debbie Stabenow (D-Mich) and John Boozman (R-Ark), seeks to give the Commodity Futures Trading Commission (CFTC) oversight over the crypto spot market.
At first glance, this sounds pretty good. We’d definitely rather have the CFTC regulating crypto than Gensler and the SEC.
Unfortunately, the bill has many in DeFi concerned:
- The bill applies only to tokens that are deemed digital commodities, which currently only include Bitcoin and Ethereum. What happens to every other DeFi token?
- The bill treats centralized and decentralized exchanges (DEXs) the same way. If DEXs complied with every regulatory requirement, it wouldn’t be DeFi anymore.
At best, the DCCPA leaves DeFi and every token not named Bitcoin and Ethereum out in the cold. At worst, it bans decentralized finance.
Is It Happening?
In a bout of true tragic irony, it appears that the collapse of FTX has actually hardened the resolve of the bill’s sponsors to see it through.