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Crypto Lobby Pushes for DeFi Deregulation in U.S. Congress

Coin WorldThursday, Feb 20, 2025 3:08 pm ET
1min read

The Blockchain Association, a leading advocacy group for the cryptocurrency industry, has called on the U.S. Congress to support the Cruz bill, which aims to repeal the decentralized finance (DeFi) brokerage rules. The association argues that the current regulations, implemented by the Commodity Futures Trading Commission (CFTC), stifle innovation and hinder the growth of the DeFi sector.

The CFTC's rules, which were finalized in December 2021, require DeFi platforms to register as brokers and comply with various regulations, including capital requirements and reporting obligations. The Blockchain Association contends that these rules are overly burdensome and may force many DeFi platforms to shut down or relocate overseas, leading to a brain drain of talent and capital from the U.S.

The Cruz bill, introduced by Senator Ted Cruz (R-TX), seeks to amend the Commodity Exchange Act to exclude DeFi platforms from the definition of "broker." This would exempt them from the CFTC's regulations, allowing the industry to continue operating in a more decentralized and innovative manner. The Blockchain Association has praised the bill as a crucial step towards promoting the growth and development of the DeFi sector in the U.S.

The association's advocacy efforts come as the cryptocurrency industry faces increasing scrutiny from regulators worldwide. In the U.S., the Securities and Exchange Commission (SEC) and the CFTC have been engaged in a turf war over which agency should oversee the cryptocurrency market. The Blockchain Association has called for clear and consistent regulation, arguing that the current regulatory uncertainty is hindering the industry's growth and potential.

The Blockchain Association's call for support of the Cruz bill is part of a broader effort by the cryptocurrency industry to shape the regulatory landscape in the U.S. The association has been actively lobbying Congress and engaging with regulatory agencies to promote a more favorable environment for the industry's growth and innovation. As the cryptocurrency market continues to evolve, the industry's advocacy efforts will play a crucial role in determining its future in the U.S.

Comments

Post
Arturs727
02/20
Anyone else think the CFTC's rules might be the new "dot-com bubble" regulators trying to pop innovation?
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LarryFromNYC
02/20
Deregulate DeFi? Sounds like a trader's dream!
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Arturs727
02/20
SEC vs. CFTC drama is so 2023. Can we just have clear rules already? Industry's growth hangs in the balance.
0
maxckmfk
02/20
CFTC rules might choke DeFi. Deregulation could boost innovation, but is it responsible? Tough call.
0
magenta_placenta
02/20
@maxckmfk True, deregulation's a gamble.
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Ecstatic_Book4786
02/20
Let crypto breathe, man. Deregulate for innovation.
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xcrowsx
02/20
@Ecstatic_Book4786 👌
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SuperRedHulk1
02/20
Diversifying into DeFi feels risky with these regs. I'm holding $ETH, but hedging with $AAPL for safety. Play safe, y'all.
0
TheMushroomGuy
02/20
Blockchain Association pushing for DeFi deregulation. 🚀 Hope it doesn't backfire. What's next, deregulating $TSLA?
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HJForsythe
02/20
Cruz bill might save DeFi from CFTC's grip. Let's see if politicians play along or just pocket the crypto donations.
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Virtual_Information3
02/20
Cruz bill could be a game-changer. Let's see.
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waterlimes
02/20
Hope this deregulation hype pumps 🚀 my DeFi bags.
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