for crypto exchanges Crypto Exchanges Warn of “Unworkable Obligations” in New DeFi Bill


The Crypto Council has released a statement noting that the US Senate’s Anti-Money Laundering and Illicit Finance bill fails to provide an effective framework for DeFi Space. The bill was introduced by Senators Jack Reed, Mike Rounds, Mark Warner, and Mitt Romney. It includes AML obligations on DeFi protocols, crypto ATMs, and other devices.

CoinJournal reported on the new DeFi bill’s proposals earlier today. The Council claims that the legal obligations outlined in the bill are “arbitrarily placed on persons”. They point to the duty placed on alleged “Digital Asset Protocol Backers” and “Digital Asset Transaction Facilitators”. These obligations are vague and offer “no actual guidance”.

The CCI is collaborating with industry experts and regulators from the US and other leading jurisdictions to draft a framework for the appropriate regulation of the sector. They acknowledge that the bill is still in its early stages and that its authors are open to dialogue on the best way forward.

The Council stresses that it is crucial that regulations strike a careful balance between creating safeguards and encouraging innovation. They continue to work hard to ensure policymakers are provided with accurate information about DeFi protocols and crypto-ATMs.

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