a16z Calls on the US Department of Justice to Stop Requiring DeFi Protocols to Censor User Activity

BlockBeats News, February 5th, venture capital firm a16z published an article stating that the U.S. Department of Justice (DOJ) should stop holding DeFi protocols responsible for their non-inciting and uncontrollable illegal activities.

The article points out: "Holding people accountable for systems and activities they have no power over or control of leads to adverse outcomes. Unfortunately, the Department of Justice has overlooked this distinction and has attempted to hold software developers accountable for the actions of third parties using a neutral tool they originally created but no longer control."

The firm stated that the U.S. government's "primary policy focus" on cryptocurrency should be to "compile the correct and legal understanding of 'control' in the law." a16z believes this is particularly important for determining whether cryptocurrency companies qualify as "money services businesses," as this business is required to comply with specific rules and obligations.