U.S. Congress has delayed consideration of the Digital Asset Market Clarity Act (CLARITY), reigniting debate over regulation of cryptocurrencies and decentralised finance (DeFi), Cointelegraph reported on Jan. 23.
The DeFi industry said the bill lacks provisions to protect developers and criticised efforts to apply regulations designed for centralised platforms as they are.
Executives at Paradigm and Variant said the current draft fails to address ambiguity over whether DeFi developers and infrastructure providers must conduct know-your-customer (KYC) checks, register with financial regulators or comply with rules designed for centralised platforms.
The delay follows growing criticism across the crypto industry, including public opposition from Coinbase CEO Brian Armstrong. Senate Banking Committee Chairman Tim Scott announced a "pause" as a result.
Chi-gyu Hwang
delight@d-today.co.kr