As the announcement of the Digital Assets Transparency Act (CLARITY) in the U.S. Senate Banking Committee has been indefinitely postponed, decentralized finance leaders are using the delay to pressure lawmakers about concerns about the bill.
Before Republican leaders on the Banking Committee made the decision tardy Wednesday to set aside the margin, cryptocurrency industry groups raised concerns about regulations related to tokenized stocks, stablecoin rewards and their potential impact on DeFi platforms. DeFi Educational Fund he said on Wednesday that some proposed fixes could “seriously harm DeFi technology and/or worsen market structure legislation for software developers.”
Cryptocurrency venture capital firms have said regulations will need to change to address concerns about DeFi and developer protections.
Alexander Grieve, vice president of government affairs at the investment firm Paradigm, he said protecting developers and DeFi was a top priority, adding that “significant changes” were needed to the bill. Jake Chervinsky, Variant’s chief legal officer, he said on Thursday that his “primary concern” is DeFi, noting that the bill is substandard.
“The latest bill leaves some ambiguity as to whether developers and infrastructure providers of all kinds could be forced to use KYC users, register with the SEC, or follow other rules that don’t fit DeFi,” Chervinsky said at X.
Related: Goldman Sachs CEO says CLARITY Act ‘has a long way to go’
The bill’s fees were scheduled after months of delays as lawmakers debated decentralized finance, potential conflicts of interest and stablecoin regulations. However, Tim Scott, chairman of the U.S. Senate Banking Committee, announced “short break” after Brian Armstrong, CEO of Coinbase, said on X that the exchange cannot support the bill in its wording.
What is the anti-DeFi bill about?
Unlike banks lobbying for CLARITY to ban interest-bearing stablecoins, many industry advocates, including Armstrong, said the current version of the bill would restrict the activities of DeFi platforms, potentially moving companies outside the US.
“I have confidence that we will be able to solve some of the problems associated with DeFi,” Cody Carbone, CEO of cryptocurrency advocacy organization The Digital Chamber, told Cointelegraph. “I think right now some of the [focus is] on narrowing some definitions. However, I am sure that in the next two weeks, or at least before the next ticks, we can achieve a good level with DeFi.
“[DeFi and crypto developers] “They don’t really care about the struggle for crops.” he said Todd Phillips, assistant professor of law at Georgia State University’s Robinson College of Business, in Friday’s post
Some Democratic senators reportedly lifted up concerns over a bill allowing DeFi platforms to facilitate illegal transactions, insisting on restrictions on amendments, including those identified by the DeFi Educational Fund.
No new sale date has been set for Friday.
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