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rules
In the wake of tighter regulations and the leaked Digital Commodities Consumer Protection Act (DCCPA), the crypto community debates how and whether DeFi should be regulated, while preparing for the worst.
Sam Bankman-Fried, CEO of US-based crypto exchanges Coinbase and FTX – better known as SBF – voiced his support for new regulations that could potentially treat decentralized exchanges like centralized entities and this Types require licensing and compliance with various KYC/AML regulations. While it is unclear how such rules might be enforced at a protocol level, most users interact with DeFi through websites such as sushi.com or aave.com, which are hosted on centralized servers. are and can thus be regulated.
In a 2-hour-long debate with SBF on the Bankless Podcast, Erik Voorhees, an early bitcoin adopter and founder of ShapeShift, compared the current situation to the early days of the internet. Voorhees pointed out that the community fought many battles to ensure that the Internet remained permissionless and that websites such as email service providers were not obliged to authenticate the identity of their customers to prove their eligibility to access services.
Ethereum co-founder Vitalik Buterin shared His thoughts on the subject, saying that the crypto community should not chase institutional capital at full speed, as this will lead to more regulations. According to Buterin, the ecosystem is not mature enough for such attention, which is similar to Satoshi Nakamoto’s opposition to Bitcoin adoption by WikiLeaks in 2010 due to similar concerns.
A poll conducted by the Crypto Council for Innovation showed that a majority of 1,200 US voters polled want stricter crypto regulations. Only 13% of respondents own cryptocurrencies and 1% own NFTs.
On that note, the amount of OFAC-compliant blocks has increased by over 66% since Ethereum converted to proof-of-stake (PoS), according to MEV Watch.
Earlier in August, the Office of Foreign Assets Control (OFAC) – a financial intelligence and enforcement agency of the US Treasury Department – approved addresses associated with Ethereum-based DeFi mixer Tornado Cash and the protocol.
dao
DAOs adjust to a hostile regulatory environment
MakerDAO (MKR) – a decentralized autonomous organization behind the US dollar-pegged stablecoin DAI – confirmed restructuring plans to make the protocol resilient to blacklisting. The plan seeks to split the organization into smaller MetaDAOs such as the Real-World Finance Core Unit, the Events Core Unit, and the Happiness Core Unit. However, this move created two opposing factions within the organization: the Metadaoists and the Constitutionalists.
According to the opposition, Rune Christensen, the founder of MakerDAO, used his immense influence to influence the outcome of the vote in favor of MetaDAO. The crucial governance vote saw very low turnout, with only 15% of the MKR supply participating in the vote and only 15% of the votes cast by Christensen-backed delegates, according to MakerDAO’s asset-liability manager. sebastien derivaux,
Another big name in the DeFi space, Sushi DAO — the community behind one of the largest decentralized exchanges by trading volume — has voted overwhelmingly to create three entities in the Cayman Islands and Panama to oversee the core functions of the protocol. . The move comes a month after the US regulator charged Okie DAO with an unprecedented offering of unlicensed derivatives.
in other news
According to Pali Bhat, Reddit’s chief product officer, more than 3 million users have opened crypto wallets — known as “vaults” — with 2.5 million created for the purpose of receiving Reddit’s polygon-based collectible avatar NFTs. , some of which have been airdropped on the platform. Most Loyal User first in August.
Following the recent package of EU sanctions on Russian citizens, US-based crypto exchange Kraken has joined the long list of crypto companies that stopped providing services to Russians. Earlier in February, Kraken CEO Jesse Powell refuse to freeze all Russian accounts, saying that if their business model included freezing assets of residents of countries that unjustly attack other sovereign nations, American accounts would be first in line.
Dogecoin (DOGE) has more than doubled in price as Elon Musk’s long-awaited $44 billion acquisition of Twitter became official. Binance, the world’s largest crypto exchange by trading volume, has contributed $500 million to Musk’s takeover bid and has also created an internal team to brainstorm how blockchain and crypto can help Twitter solve various issues such as spam bots. can help.
