US Government Officials Misunderstand DeFi

In a podcast, Jake Chervinsky said that the US government officials misunderstand DeFi.

According to Chervinsky, senators are not the only people to cause the misunderstanding. Also, the Treasury Department played a vital role by describing the language. This is because the department makes sure that any recommended revision made goes back to the treasury board for rejection or approval.

US Government Officials Misunderstand DeFi
Jake Chervinsky | Image: Coinjournal

Chervinsky added that from the initial report that the department previously resisted sparing software developers and network validators from strict third-party reporting conditions under the bill since the amended legislation may not capture DeFi adequately. He resolved that it is the reason it is impossible to develop the DeFi language and can only get centralized exchanges.

Based on Chervinsky opinion, the treasury department is afraid to affirm that DeFi members and DEX liquidity providers enrolled in approving the transactions. Thus, they should be saved from this law.

Following this, Chervinsky said,

“From my understanding, that is what brought about the competing amendment, which clearly states that proof-of-work miners are exempted. It makes no sense that you can create and Exclusion for horrible things. Ocean-boiling Proof-of-work mining, bad climate change-causing, but can’t Exempt Proof-of-Stake validators.”

Furthermore, Chervinsky stressed that he is "afraid that treasury executives who are not elected are powerful in the legislative process," adding that the senators are not the major mediators here. But some unknown secret negotiators are hidden within the treasury department. Therefore, it is an alarming situation.