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AAVE $96.52 -1.04%
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uniswap

DeFi community jointly writes to the SEC requesting the establishment of rules to clarify the regulatory framework

The DeFi Education Fund, along with Aave Labs, Uniswap Labs, Paradigm, Andreessen Horowitz, and other organizations, has sent a letter to the U.S. SEC in response to the recent statement released by the trading and markets division regarding the registration of "non-custodial user interface" brokers for crypto asset securities.The signatories support the statement that the "non-custodial user interface," which only provides a technical entry point and allows users to manage their assets independently, should be excluded from broker registration. They also urge the SEC to establish clearer and more sustainable definitions of "broker" through formal rulemaking, to avoid incorrectly categorizing neutral software tool providers, validators, RPC/API, oracles, cloud services, and other infrastructure under broker regulations. This would provide long-term legal certainty for blockchain infrastructure innovation while ensuring investor protection.Previously, the SEC's trading and markets division indicated that some DeFi trading interfaces do not need to register as brokers, allowing for policy space for related applications. Supporters believe that the new regulations could cover infrastructure participants such as validators, APIs, and oracles. Currently, the U.S. crypto market legislation, the CLARITY Act, is stalled in the Senate.

European Central Bank document questions whether DeFi DAOs are sufficiently decentralized

On March 26, the European Central Bank published a working paper studying the governance concentration of four major DeFi protocols: Aave, MakerDAO, Ampleforth, and Uniswap.The paper, based on holding snapshot data from November 2022 and May 2023, found that although governance tokens are distributed across tens of thousands of addresses, the top 100 holders in each protocol control over 80% of the supply, and a large number of governance tokens can be linked to the protocols themselves or centralized and decentralized exchanges, with Binance being the largest identified centralized exchange holder among the four protocols.In terms of voting participation, the paper noted that actual voters are mainly representatives who obtain proxy voting rights from small holders. The top 20 voters in Ampleforth control 96% of the proxy voting rights, the top 10 voters in MakerDAO hold 66%, and the top 18 voters in Uniswap hold 52%. About one-third of the main voters cannot be publicly identified.The paper argues that these findings challenge the assumption of inherent decentralization in DAOs, making it more difficult to determine regulatory anchors under the EU MiCA framework. MiCA currently excludes "fully decentralized" services from its scope. The paper also points out that it is impossible to determine from public data whether the holdings associated with the protocols belong to founders, developers, or treasuries, nor can it be determined whether exchange wallets are voting on behalf of themselves or their clients. The paper represents the authors' views and does not represent the official position of the European Central Bank.
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