Representatives from 34 crypto companies, including Coinbase and Kraken, have appealed to the U.S. Congress for clarity on the DOJ's interpretation of a "fund transmitter." This request arises from concerns related to Section 1960 of the Criminal Code.
Crypto Giants Rally for Legislative Clarity
The initiative, led by the DeFi Education Fund, features support from Coinbase, Kraken, and Uniswap Labs. They aim for guidance on legislative intent concerning software development regulation. Accusations against Tornado Cash co-founder Roman Storm under Section 1960 have prompted industry-wide anxieties. The current practice's impact on ordinary developers is alarming, leading to calls for a legislative review.
Tornado Cash Prosecution Fuels Community Concerns
Did you know? The use of Section 1960 against Tornado Cash's Roman Storm has sparked debate about potential overreach and regulatory consistency, highlighting growing tensions within the crypto community. Amanda Tuminelli, Chief Legal Officer of DeFi Education Fund, remarked, 'It's notable that the SEC is formally and publicly closing their investigation into Uniswap Labs. It gives DeFi companies additional comfort to pivot from defending to embracing our right to build decentralized tech.'
Regulatory Consistency and Its Impact
The Coincu research team notes the potential impact of regulatory consistency on crypto sectors. Broader technological repercussions might arise based on regulatory frameworks. Strategic adjustments by firms could mitigate adverse outcomes.
The crypto companies' initiative underscores the importance of clarity and regulatory consistency to foster innovation and security in the crypto industry.
