a16z calls on the U.S. Department of Justice to stop holding DeFi protocols accountable for user behavior

2025-02-05 14:53:42

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ChainCatcher news, venture capital firm a16z stated that the U.S. Department of Justice (DOJ) should stop holding DeFi protocols accountable for unlawful activities that they did not instigate and cannot control.

It stated that holding people accountable for systems and activities over which they have no power or control can lead to negative consequences. Unfortunately, the DOJ has overlooked this distinction and is attempting to do so by making software developers responsible for the actions of third parties using neutral tools that they originally created but no longer control.

The agency stated that the new presidential administration in the U.S. should focus its primary policy on cryptocurrency on codifying the correct and legal understanding of "control" in law. a16z believes this is particularly important for determining whether cryptocurrency companies qualify as "money transmission businesses," as such businesses are required to comply with specific rules and obligations.

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