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