Leaked Draft Bill Could Bring Major Changes to the Crypto Industry

Crypto Industry

A 600-page document allegedly proposing a raft of regulations covering the crypto industry has been leaked and is circulating on social media. The document with the watermark ‘EMBARGOED’ and claimed by many to be the original 600+ US Crypto Bill, requires mandatory changes for all crypto entities such as exchanges, DeFi platforms, DAOs and other cryptocurrency projects.

The draft bill seems to offer some regulatory clarity about various aspects of the crypto market. The information in this particular leak also highlights how government agencies would require crypto entities, including stablecoin providers to register as legal companies, while penalizing those who don’t comply. Furthermore, the documents allegedly propose crypto exchanges bearing compliance costs and taxes.

An interesting point that stands out in the 600-page document is the reclassification of several crypto assets as commodities. The proposed change places such assets under the rule of US Commodity Futures Trading Commission (CFTC). Additonally, the bill notes that if an underlying asset has any debt, equity, profit revenue, or dividend, it would no longer be considered as a digital asset commodity.

The draft bill would also categorize any platform trading as little as one token as a crypto exchange. It would also prohibit new crypto projects with anonymous or pseudonymous creators.

Lastly, in the event of bankruptcy, exchanges will be required to file and thereafter refund – not liquidate – all user deposited assets. While this is good news for investors, it remains to be seen how this will be implemented in practice.

It should be noted that the draft bill proposes a number of penalties for failure to comply with the guidelines within it.

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