The last amendments made in the infrastructure bill of the United States were set to engulf the decentralized finance (DeFi) according to the general counsel of Compound ‘Jake Chervinsky’, who is the DeFi head at Blockchain Association, stated that the crypto industry was targeted to hit via the crypto tax requirements were announced to be included into the infrastructure bill of cryptocurrency.
He added that none of the former discussions regarding the bill had any linkage to the cryptocurrency. He mentioned that the Treasury Department had some evil purposes in putting pressure on the process of legislation. He elaborated that the Department of Treasury was seeking a substitute approach to devise the severe reporting necessities just as Steve Mnuchin (former Secretary of Treasury) had imposed on the crypto wallets, which were self-custodial. He further explained that the new strategy of the U.S. Treasury Department is to take jurisdiction with it against the DeFi as well as increase its unauthorized surveillance for a p2p financial system.
Chervinsky disclosed that, according to his information, the Treasury had firstly negated the exemption of software and network validators from the strict reporting requirements (given in the altered legislation proposal) as it would not assist in properly capturing the DeFi. He concluded by focusing that the Treasury played a critical role in manipulating the language in such a way that any proposed amendment would go back to the Department for approval or dismissal.
The point of view spoken by Chervinsky shows that Treasury got scared for being argued by the industry about the exemption of DEX liquidity providers along with the other DeFi members for being involved in transaction validation. That was the reason, he considered, due to which the competing amendment appeared which only exempted Proof-of-Work miners. Although the Department of Treasury is conceding from its position as it has realized that it was not able to seize the industry. He emphasized that unelected officials of the Treasury have an exceptional influence over the process of legislation.
He revealed that the main troubling factor in all this scenario was not the senators being negotiated. Rather, it was an unknown bureaucrat who made the situation adverse. However, Chervinsky expressed his delight for the accomplishments of the lobby of cryptocurrency to struggle for pushing the provisions back. He further discussed that the bill is, no doubt, a threat, yet the industry’s attempts to defend itself were remarkable.
