Bitcoin
$66,596.76+0.42%
Ethereum
$3,221.40+1.21%
Binance Coin
$610.14+2.32%
Solana
$158.34+2.85%
XRP
$0.55228948+0.51%
Dogecoin
$0.16092868+0.65%
Toncoin
$5.68-4.60%
Cardano
$0.50302995-2.51%
Shiba Inu
$0.00002701+0.80%
Avalanche
$38.71-0.94%
Wrapped Bitcoin
$66,647.48+0.31%
Polkadot
$7.36-1.13%
PlayIconNav
Crypto Prices CoinDesk 20 Index CoinDesk 20 Index
Countdown to Consensus 2024The largest and longest running event that covers all sides of Crypto and Web 3
35
DAYS
16
HR
27
MIN
26
SEC
Finance

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
AccessTimeIconOct 20, 2022 at 2:50 a.m. UTC
Updated May 9, 2023 at 4:00 a.m. UTC
(Mark Van Scyoc/Shutterstock)
(Mark Van Scyoc/Shutterstock)
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.
VolumeMuteUnmute

NEAR Launches Multichain Access

  • Crypto Market Leaders and Laggards in 2023
    01:50
    Crypto Market Leaders and Laggards in 2023
  • Why Injective's INJ Has Surged 3,000% in 2023
    00:52
    Why Injective's INJ Has Surged 3,000% in 2023
  • DeFi Market Rebounds to $50B as Speculators Hunt for Yield
    01:11
    DeFi Market Rebounds to $50B as Speculators Hunt for Yield
  • How Spool Is Aiming to Help Institutions Enter DeFi
    11:05
    How Spool Is Aiming to Help Institutions Enter DeFi
    • 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.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.