On Monday, the ‘EMBARGOED’ watermark appeared on several sheets. The crypto community began scrutinizing its technicalities—mostly how it may damage their wallets—shortly after Twitter user ‘bot slam’ shared images of it on their account.
The United States Crypto Bill, a 600-page document, appears to have been leaked.
here you go
(plz RT) pic.twitter.com/UOVhIUiUBu
— slam (@bot_slam) June 7, 2022
The Cryptocurrency Bill provides statutory certainty and dispels any remaining doubts. The answers to previously unanswered questions have finally been provided. On the other hand, some of the snags could grow into nightmares for investors and businesses if not solved.
There are a few positives to be won from this development. To begin complying with legislation, DAOs, exchanges, and stablecoin suppliers would all need to be registered businesses. They were supposed to be taxed if they weren’t registered.
New Definitions for Bankruptcy
Many security regulations have been clarified, and a slew of assets have been reclassified as commodities by the Commodity Futures Trading Commission.
The provision that stuck out among all the others was that if there is any debt, equity, profit revenue, or dividend, the underlying asset will no longer be designated as a digital asset commodity.
The laws governing transparency have been tightened, making it nearly difficult for anonymous initiatives to thrive.
The measure also includes separate restrictions for cryptocurrency exchanges. It is proposed that compliance expenses be increased. Investors may have to suffer indirectly because exchanges will try to recoup the costs through higher fees.
In addition, the bankruptcy definitions have been altered. According to the measure, deposited assets would be restored to users rather than liquidated. If passed, this straightforward plan might be a win-win situation for users.
Fee offsetting requirements also mean that exchanges would have to pay the government out of fees, certainly driving up expenses.
Users would have accepted terms depending on the source code version in the bill’s separate section dedicated to Terms of Service. Any changes to the source code would also necessitate a new agreement.
In addition, a slew of new regulators has been given broad powers to investigate and offer to advise on new legislation. Depository institutions will also be permitted to produce stablecoins under the idea. In addition, the bill spells forth other compliance obligations and penalties.
Response from people
Wow, so first read some good stuff that moves us forward, but a lot of rough stuff.
Overall this gives US crypto clarity but it will have a huge cost and growing pains.
Here's what I noticed in the first read. https://t.co/Cb1TM0DVJs
— Adam Cochran (adamscochran.eth) (@adamscochran) June 7, 2022
Cinneamhain Ventures’ Adam Cochran tweeted his thoughts on the regulatory aspects:
“They’re all higher than we’d want, but at least they’re clear, rather than regulations enforced.”
Furthermore, the bill aims to harmonize a few state-by-state money transmission legislation. Furthermore, the information-sharing landscape across agencies is expected to improve.
The majority of people on Crypto Twitter emphasized the grey zones and predicted that the crypto environment would become even more restrictive in the future.
looks like the new US crypto bill that has been leaked goes hard after shit tokens, DAOs, DeFi, stablecoins, and exchanges pic.twitter.com/wjcAUSi3RS
— Shibetoshi Nakamoto (@BillyM2k) June 7, 2022
The aforementioned leaked documents are most likely the first draft of the law. When presented, lobby organizations would rush in and try to bend the curves. Cochran, commenting on the same, stated,
PS- Because this is only the first draft of a law, lobbyists will begin to get involved to help shape it and iron out some of the clunky languages that will be problematic so all is not lost. There’s a noble intention at work here.
He did, however, add, that if it is, and if it passes in this form, I would say it is a practical *LONG* term for big corporations but extremely painful in the short time for 99 percent of crypto.
Because the validity of the leaked documents and the guidelines mentioned above has yet to be established, they should be treated with a grain of salt.