The A16Z Investment Capital has called on the US Department of Justice to stop targeting decentralized financing protocols (Defi) for user errors, as the protocols lack control of user procedures.
The company warned through Blog post To bear the people responsible for the regulations and procedures that do not have their competence leads to the results of the blockage.
Read part of the statement:
Unfortunately, the Ministry of Justice (Doj) ignored this distinction as it tries to do this through the program developers campaign responsible for the actions of the third parties that use the neutral tools established by the developers, but they no longer control.
A16Z
Trump’s greatest policy should be the legally deciphering the correct meaning of control
The A16Z also asked the new administration to give priority to “codify the correct and correct understanding of” law “in the law” because it will help users, doj, and program developers to understand control in a legal context.
In previous legal procedures, American prosecutors targeted the developers of the cryptocurrency of the activities conducted on their platforms by others. Compare A16z this by holding the car manufacturer accountable for the procedures taken by a neglected driver that led to a failure.
They indicated that the procedure does not make sense: You cannot blame the car maker in the accident when someone collides with a car he bought from it. This measurement is completely clear for vehicles, but the cryptocurrency deals with it differently.
In recent cases such as The United States against the storm and RodriguezThe Ministry of Justice sued Blockchain developers and compared them to unlicensed money. Critics contradict that this approach misunderstood the basic nature of control of decentralized systems because developers usually do not have direct control of the program as soon as it is published.
The transition to “control” emptying is very important to determine whether the encryption companies are qualified as money transportation entrepreneurs, guided by specific rules and regulations.
According to its website, the A16Z portfolio of investments includes more than 100 encryption companies, including dexes (Dexs) such as UISWAP.
The Fed’s position on encryption must change during the Trump administration
During the period of the former President of the United States, Joe Biden, federal agencies were very strict with encryption issues. The Securities and Stock Exchange Committee, the financial organization, has opened more than 100 cases against companies and people who raised money by encryption, claiming that they broke American laws.
However, things are expected to change during President Trump administration. It seems that the president accommodates encryption and promised to make the United States the capital of the world’s encryption. To date, Trump has replaced SEC with more friendly appointments.
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