'The area where we repeatedly see regulators blur the line between technical reality and their regulatory objectives is around control of a decentralized protocol.' Opinion.
Daniel M. Barabander is an associate in Cravath, Swaine & Moore’s corporate department.
David J. Kappos is a partner in Cravath, Swaine & Moore’s corporate department and co-chair of the firm’s intellectual property practice. Evan Mehran Norris is a partner in Cravath, Swaine & Moore’s litigation department and a member of the firm’s investigations and regulatory enforcement practice. Daniel M. Barabander is an associate in Cravath, Swaine & Moore’s corporate department.
The bZx enforcement action demonstrates how at least one key regulator is thinking about control of Web3 protocols in order to hold operators accountable: by examining both technical and business control to draw the line between identifiable persons and autonomously run protocols.Technical control refers to technical mechanisms protocol developers use to control their protocol on the smart contract level, often by defining “admin-only” functions that can be called solely by specific parties.
In response to the breach, the DAO exerted its control over treasury funds, by “vot[ing] to utilize funds from the bZx DAO Treasury to compensate certain bZx DAO members and other users of the bZx Protocol who lost funds in connection with” the incident. The commission focuses most clearly on the fact that the respondents “designed, deployed, marketed and made solicitations” concerning the bZx protocol.
Third, active participation in a DAO is seen as a form of business control. The CFTC finds in the settlement order that the co-founders were active on Ooki DAO governance matters.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Facebook became Meta one year ago: Here's what it’s achievedFacebook was rebranded as Meta on Oct. 28, 2021 to reflect its ambitions to adopt Web3 tech and enter the Metaverse, the company has since unveiled several crypto-related services for users.
Read more »
Tech talent migrates to Web3 as large companies face layoffsThe Web2 workforce takes an interest in joining Web3 firms as tech giants face layoffs, but will Web3 companies reign supreme given market conditions and hiring strategies?
Read more »
DAO Philosophy and Business: My Experience With the Joystream DAO | HackerNoonIn taoism the balance is summarised in Yin and Yang principles. But what about the DAO, a well-balanced organization which is like a self-evolving organism? - dao blockchain
Read more »
Musk’s inner circle worked through weekend to cement Twitter layoff plansMembers of Elon Musk’s inner circle huddled with Twitter’s remaining senior executives throughout the weekend, conducting detailed discussions regarding the site’s approach to content moderation, as well as plans to lay off 25 percent of the workforce.
Read more »
Inside EmpireDAO, New York’s New Web3 Coworking Space Headquartered Above SupremeInside EmpireDAO, New York’s new Web3 coworking space headquartered above Supreme's 190 Bowery HQ.
Read more »
Current Web3 Development is Similar to the Internet Boom of the Late 90s | HackerNoonSIMBA Chain started working on its first blockchain projects for organizations like the US Navy, Boeing, and other defence contractors. - web3 startup
Read more »