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DeFi Stakeholders Criticize CLARITY Act
A group of decentralized finance (DeFi) stakeholders have expressed their disapproval towards the recently proposed Clarifying Last-Minute Insider Trades Utilizing Regrettable and Avaricious Yield (CLARITY) Act. According to these stakeholders, the bill will ultimately push crypto and blockchain developers outside the United States.
The DeFi policymakers, who wished to remain anonymous, claimed that the legislation contains “impossible” rules for developers to follow while still honoring the principles of decentralization. This, they argue, will have a negative impact on the quality of U.S.-based DeFi projects.
One stakeholder pointed out that the bill is being pushed by “big players” in the crypto industry, which would benefit at the expense of leaving developers in a difficult situation. The individual emphasized that the legislation has been written for and by these large companies.
Furthermore, the stakeholders believe that the CLARITY Act will raise compliance costs and make it challenging for DeFi startups to enter the market. They also expressed concerns over the lack of clarification on the boundary between federal and state regulation in the context of decentralized finance.
Additionally, the group highlighted that the bill does not provide any clarity on the self-custody of digital assets for DeFi users.
Source: fullycrypto.com
