Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Cryptocurrencies

A16z calls on DOJ to stop holding DeFi protocols accountable for user actions

Source Cryptopolitan

Venture capital firm a16z has called on prosecutors from the US Department of Justice to cease targeting decentralized finance (DeFi) protocols for users’ mistakes, as the protocols lack control over users’ actions.

The firm warned through a blog post that holding people responsible for systems and actions over which they don’t have jurisdiction leads to obstructive outcomes.

Part of the statement read:

Unfortunately, the Department of Justice (DOJ) has ignored this distinction and is attempting to do just that by holding software developers responsible for the actions of third parties that use neutral tools the developers created but no longer control.
A16z

Trump’s biggest policy priority should be decoding the legally correct meaning of control

A16z further asked the new administration to prioritize “codifying the proper and legally correct understanding of ‘control’ in law” as it would help users, DOJ, and software developers understand control in a legal context.

In past legal actions, US prosecutors have targeted cryptocurrency developers for activities conducted on their platforms by others. A16z compared this to holding a car manufacturer accountable for actions by a careless driver that led to a crash.

They pointed out that the action doesn’t make sense: You can’t blame the carmaker for the accident when someone crashes a car he bought from them. That analogy is quite obvious for vehicles, but cryptocurrency handles it differently.

In recent cases like United States v. Storm and Rodriguez, the DOJ has prosecuted the blockchain developers and compared them to unlicensed money transmitters. Critics counter that this approach misunderstands the fundamental nature of control in decentralized systems since developers typically have no direct control over the software once it has been deployed.

The move to unpack “control” is critical to determining whether crypto firms qualify as money-transmitting entities guided by specific rules and regulations.

According to its website, A16z’s portfolio of venture investments includes over 100 crypto companies, including decentralized exchanges (DEXs) such as Uniswap.

Fed’s stance on crypto is bound to change during Trump’s administration

During the tenure of former President of the United States Joe Biden, federal agencies were very strict with crypto cases. The Securities and Exchange Commission, the financial regulator, has opened more than 100 cases against companies and people who have raised money through crypto, claiming they broke US laws.

However, things are expected to change during President Trump’s administration. The president seems accommodating toward crypto and promised to make the US the world’s crypto capital. So far, Trump has replaced SEC leadership with more crypto-friendly appointees.

Cryptopolitan Academy: Are You Making These Web3 Resume Mistakes? - Find Out Here

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Bitcoin falls below $75,000 as the CLARITY Act fails in the Senate — what the vote means for crypto The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Author Suzie

Sep 16, Wed

The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks in The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Author Irene Q.

Sep 17, Thu

The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Gold ends three-week slide at the $4,400 line — eight straight days of ETF inflows vs a 5% 10-year and a 100 dollar Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.

Author Suzie

Sep 20, Sun

Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.

Gold Price Forecast: Gold Eyes Key $4,400 Resistance as Falling Oil Prices Ease Inflation Pressure As of the Asian session on September 21, gold prices (XAUUSD) maintained high-level consolidation intraday today following a strong rebound last week, with the latest price trading around

Author TradingKey

Sep 21, Mon

As of the Asian session on September 21, gold prices (XAUUSD) maintained high-level consolidation intraday today following a strong rebound last week, with the latest price trading around

Dollar holds above 100 near a 3-month high — three Fed speakers and a $69 billion auction land tonight The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

Author Suzie

20 hours ago

The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

Popular Symbols