The document, which is allegedly prepared by US lawmakers and appears to consist of 600 pages with an embargoed watermark on it, has a wide regulatory framework covering cryptocurrencies, the decentralized finance (DeFi) sector, decentralized autonomous organizations (DAO), and fixed cryptocurrencies and crypto exchanges.
The so-called crypto bill was leaked by a Twitter user as documents that Senator Cynthia Lummis and Kirsten Gillibrand were working on.
The first noticeable change in the so-called crypto draft includes actions to be taken to remove the anonymity of the industry. According to the leaked draft, regulatory registrations will be required for crypto exchanges, DeFi platforms, DAOs and crypto projects.
While this regulatory clause has been interpreted positively to thwart scamming developers and fraudulent activities by withdrawing all capital from crypto projects, it also raises concerns that it could pose a stumbling block to innovative projects as the details of registration procedures are unknown.
While it is stated in the relevant documents that many crypto assets will be defined as commodities, it is aimed to eliminate the confusion about whether the assets are securities or not. The definition of crypto assets as commodities indicates that the effective institution in regulation in the USA will be the Commodity Futures Trading Commission (CFTC).
On the other hand, while there are some regulations in the listing of crypto assets on exchanges, it seems that crypto exchanges will have important obligations in this regard.
The so-called bill, which includes radical changes in regulation, includes articles on bankruptcy. In the event that crypto exchanges and startups go bankrupt, the funds of all users on the platform will be returned. Accordingly, after the possible collapse of crypto companies, which will be required to have a financial structure, as in Terra, savers will be prevented from being harmed.
In the leaked documents, it was seen that there were special items within the DeFi and DAO sector. It remains unclear how these decentralized projects will be brought under control and harmonized with the law in practice. In addition, the requirement for decentralized projects to be registered in the USA with fixed crypto issuers and crypto exchanges is seen as a development that will disrupt the industry.
The bill, which was leaked to social media, also shows that there will be harsh sanctions such as fine payments if the rules are not followed. Among the comments made, the opinion that many crypto startups may not be able to continue their activities within the framework of these strict regulations predominates.
On the other hand, it is clear that these strict regulations are aimed at protecting crypto investors in general. The enactment of a crypto law in the US is extremely important in terms of eliminating the lack of regulation, which is a big problem for the industry, and providing clarity. In addition, these regulations will have the advantage of being a reference for other jurisdictions.