DeFi Regulation: A Big Change is Coming!
Guess what? The White House is trying to change a rule that was making life tough for something called decentralized finance, or DeFi for short. This rule was like a strict teacher who wanted to know everything about everyone in the DeFi classroom. But now, the White House is saying, “Let’s give these kids some space to learn and grow!”
What’s the Fuss About?
The rule, approved just before the last change of government, wanted DeFi projects to share lots of information about their transactions and the people using them. This was like asking every kid in the class to hand in their diary for the teacher to read! Some people thought this was too much and not fair on privacy.
Also, DeFi projects are often small and new, like startups or open-source projects. They don’t have lots of money or time to spend on filling out forms and keeping records. This rule was making it hard for them to do their thing and innovate.
Who’s Against the Rule?
Lots of people in the crypto world don’t like this rule. They think it’s like trying to teach a class using rules made for a different kind of school. The Blockchain Association, for example, thinks it could stop the American digital asset industry from growing.
Privacy is also a big worry. The rule wants people to share sensitive information, which some people think is not right.
Can We Change the Rule?
Yes, we can! There’s something called the Congressional Review Act (CRA) that lets Congress change rules made by the government. Some people in Congress, like Senator Ted Cruz and Representative Mike Carey, want to use the CRA to get rid of this rule.
The White House says it’s okay to do this. If Congress votes for it, the President will probably sign it into law.
What Happens if the Rule Goes Away?
If the rule gets changed, it will be easier for DeFi projects in the U.S. to do their thing without having to spend lots of time on paperwork. This means they can focus on making cool new stuff instead!
It will also be better for privacy because there won’t be so much need to collect and share personal information.
So, What’s Next for DeFi?
The White House saying it’s okay to change this rule is like a big green light for DeFi projects. It means they can keep doing what they do best – innovating and making cool things – without too much interference from strict rules.
But remember, even as rules change, it’s important for people making the rules to listen to what others think. That way, we can find the best balance between making sure everything is fair and safe, and letting new ideas grow and thrive.
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Sources:
– cointelegraph.com
– cryptobriefing.com
– chaincatcher.com