Amendments to the bill on consumer protection of digital goods exclude software developers from the definition of a cryptocurrency broker and do not require centralized management of platforms.
After the updated draft of the Digital Consumer Protection Act (DCCPA), which the Commodity Futures Trading Commission (CFTC) will use to regulate the industry, was uploaded to GitHub, many software developers breathed a sigh of relief. Classification as a broker entails specific tax reporting requirements that software developers will not be able to meet without centralized management of their platforms.
“This version of the bill contains restrictions on the term “digital goods trading facility”, which excludes individuals solely engaged in the development or sale of software – this can be a boon for DeFi and cryptocurrencies in general,” said Attorney Gabriel Shapiro, who specializes in on the protection of cryptocurrency companies.
The previous version of the bill included blockchain node operators and cryptocurrency wallet producers among brokers. The DCCPA now includes new wording and also directs the CFTC to report on DeFi market size and protocols within 180 days of passing the bill. In addition, the bill would require the Commission to liaise with foreign regulators to ensure that US regulations comply with international norms.
Recall that last year, US President Joe Biden (Joseph Biden) signed an infrastructure bill that establishes reporting requirements for brokers and tightens rules for cryptocurrency companies.
