A16z Urges DOJ To Reconsider Accountability In DeFi Protocols

According to Odaily, venture capital firm a16z has expressed that the U.S. Department of Justice (DOJ) should cease holding DeFi protocols accountable for unlawful activities they neither incited nor controlled. The firm emphasized that imposing responsibility on individuals for systems and activities beyond their control could lead to adverse outcomes. Unfortunately, the DOJ has overlooked this distinction, attempting to hold software developers accountable for third-party actions using neutral tools they initially created but no longer control. A16z suggests that the new U.S. presidential administration's primary policy focus on cryptocurrency should be to legally define and understand 'control' accurately. This understanding is crucial for determining whether cryptocurrency companies qualify as 'money transmission businesses,' which are subject to specific regulations and obligations. According to its official website, a16z's investment portfolio includes over 100 cryptocurrency companies, such as decentralized exchanges like Uniswap.