Compound Labs General Counsel Jake Chervinsky warned that the US Treasury wants to “cover” the DeFi sector with provisions added to the infrastructure bill.
In a State of the Nation podcast, Compound Labs General Counsel and DeFi Chair of the Blockchain Association, Jake Chervinsky, said the industry has been “hit hard” by the infrastructure bill, which became known only nine days after it was passed by the US Senate. …
While acknowledging that he may have come up with a “conspiracy theory”, Chervinsky said the Treasury Department was looking for an alternative way to leverage the stringent reporting requirements with this bill, which former Treasury Secretary Steve Mnuchin tried to impose on industry participants through the regulation of non-custodial wallets.
“It’s all about DeFi […]… Treasury Department Tries To Decide How To Get Control Of DeFi […]and expand its supervision of the P2P financial system. ”
Chervinsky said the Treasury Department was initially opposed to exempting network validators and software developers from strict third-party reporting requirements under the bill, as it was concerned that such amendments would prevent “adequate control of DeFi.”
“That is why the amendments to the bill were not passed. We found out very quickly that this was not just a misunderstanding on the part of the senator who rejected the amendments. The Treasury has been instrumental in developing the language and also ensuring that any changes we have proposed are returned to the Treasury for approval or rejection. ”
Chervinsky believes that the Ministry of Finance was wary of an attempt by the developers of the DeFi protocols to state that applications are involved in confirming transactions and, therefore, should be exempted from reporting requirements. At the same time, Chervinsky noted the achievements of the cryptocurrency lobby in opposing the provisions and wording of the infrastructure bill:
“The entire industry, without exception, has come together to fight. Yes, this bill is a threat, but […] more important was how effectively the industry was able to rally and defend itself in Washington. ”
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