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Developers Excluded From Broker Label in New DCCPA Bill Draft
Stakeholders say that this latest draft of the bill tempers language that would be detrimental to DeFi.
By Sam Reynolds
Updated May 9, 2023, 4:00 a.m. Published Oct 20, 2022, 2:50 a.m.
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A new draft of the Digital Commodities Consumer Protection Act (DCCPA), which the Commodities Futures Trading Commission (CFTC) would use to regulate the industry, has been uploaded to GitHub, and many crypto stakeholders are relieved.
- New language added to the bill would specifically exclude software developers from being counted as digital commodity brokers.
- Being classified as a broker would entail specific tax reporting requirements, which software developers would not be able to do without centralized management of their platforms.
- “This version contains a limited exception to the term 'digital commodity trading facility' which would exclude persons who solely develop or publish software – this could be a boon to DeFi/crypto,” crypto attorney Gabriel Shapiro tweeted.
I have long been a believer in transparency and open discussion of the future of cryptolaw.
— _gabrielShapir0 (@lex_node) October 19, 2022
Accordingly, I have obtained a copy of a draft of the notorious DCCPA circulating secretly in D.C. and am hereby making it available to the public. https://t.co/JdyomquQi6
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- Previous bills have defined broker broadly to include node operators and wallet manufacturers, which this bill specifically excludes.
- The draft also includes new language that would order the CFTC to provide a report on the decentralized finance (DeFi) market size and protocols within 180 days of the enactment of the bill. It would also order the CFTC to liaise with foreign regulators to ensure that U.S. rules harmonize with international regulations.
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