After being criticised for his support of the DCCPA bill uploaded to the internet, Sam Bankman-Fried, CEO of FTX, has taken to Twitter again to address the issue.
Gabriel Shapiro, crypto attorney, uploaded a copy to a draft bill Digital Commodities Consumer Protection Act, (DCCPA). According to Shapiro, the main purpose of sharing the bill was in the interest of “transparency and open discussion of the future of cryptolaw.”
The bill is said to be detrimental for DeFi. It concerns primarily DeFi’s sector of blockchain-based solutions, which aim to improve finance through replacing central intermediaries by software code.
Sam Bankman Fried uploaded the bill expressed support For the framework of the bill, he took to Twitter last Wednesday to say he was thrilled to see a bill which addresses customer protection with crypto. Adding that the bill would not jeopardize “the existence of software, blockchains, validators, DeFi, etc.”
Others are not in agreement with the DCCPA bill
However, others, including Web3 startup accelerator Alliance DAO and Framework Ventures’ co-founder Vance Spencer didn’t seem to buy the idea of what the bill constitutes.
Alliance DAO bashed the bill saying the DCCPA is only trying to “threaten the Defi innovation, give CFTC new powers to regulate spot markets, force human intermediation, force projects to sacrifice decentralization, favour centralized incumbents and kill startups.’’
Despite Sam Bankman-Fried initially supporting the bill, others did not like him and began to support it. criticizing him. Following these criticisms and pushbacks from FTX, the CEO took to Twitter to continue explaining the DCCPA bill to the DeFi sector.
FTX CEO explains more about the bill
Sam Bankman-Fried noted The DCCPA bill’s main goal is precisely to answer this question: “How can an regulated, central entity interface With DeFi?”
He noted in particular that the bill was “*not* to make claims about what DeFi devs, smart contracts, and validators must do,” but to eventually “establish guidelines about how, e.g. FTX’s platform–or Fidelity’s–could interface with DeFi contracts.”
Sam Bankman-Fried further stated that he would only support a version that clarifies that validators and developers are not platforms (and should not be).
Notably, the fear concerning the DCCPA bill is that it portrays that developers won’t be allowed to build whatever interfaces they want — at least, not without centralized entities benefiting from it.
Reactions on FTX CEO elaboration about the bill
ApeWorX Ltd. builder with the pseudonymous “señor doggo,” quoted Sam Bankman-Fried’s elaborative Twitter thread noting that “it should *never* be the case that there is a mandate to access DeFi through a centralized intermediary’s interface.” Adding that, “Devs should be allowed to build whatever interfaces they want.”
Despite FTX CEO’s additional explanations, reactions reveal that people still have a problem understanding the DCCPA bill. Tweep commented on the thread saying, “@SBF_FTX my damage control much? You’ve got so many points wrong, but the gist of it is that you are advocating for the complete opposite of what DeFi is. People do not want to be regulated by corrupt financial systems that have failed.”
Sam Bankman-Fried is the CEO of FTX. He recently stated that his brand is “totally aboard with regulation” and will accept any regulations pushed forward by legislators to help guide innovation in the cryptocurrency ecosystem.