“The same intuitive principle that governs our understanding of car manufacturer and driver liability should be the foundation of sensible policymaking in the context of decentralized networks and protocols.”

Today, @a16zcrypto published a piece authored by DEF’s @millercwl & @atuminelli discussing why sound policymaking for crypto should always start from an analysis of “control” in a given system. 🧵

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Chief Legal Officer at DeFi Education Fund @fund-defi. Human to bader the dog. Avid reader of fantasy fiction. Constantly seeking excellent food.

“The same intuitive principle that governs our understanding of car manufacturer and driver liability should be the foundation of sensible policymaking in the context of decentralized networks and protocols.”

Today, @a16zcrypto published a piece authored by DEF’s @millercwl & @atuminelli discussing why sound policymaking for crypto should always start from an analysis of “control” in a given system. 🧵 

https://a16zcrypto.com/posts/article/doj-actions-against-defi/

We do policy and advocacy work to help DeFi flourish. 

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3/ Unfortunately, we’ve already seen examples of how ignoring this intuitive principle leads to “perverse outcomes.” The Department of Justice has flatly ignored this distinction, holding software developers of neutral tools like [Roman Storm] liable for the actions of third-parties. 

This needs to change.

4/ That is why a top policy priority for DEF in 2025 is codifying the legally correct understanding of “control” in law, including in the context of what constitutes “money transmitting” in that case. 

If you care about this issue or want to learn more, we want to hear from you. Shoot us a DM so we can find time to chat.

end/ Be sure to read the full piece to get further insights from Miller and Amanda on this issue.

end/ Be sure to read the full piece to get further insights from Miller and Amanda on this issue.

https://a16zcrypto.com/posts/article/doj-actions-against-defi/

2/ Why?

Because “holding people responsible for systems and activities over which they exercise no agency or control leads to perverse outcomes.”

“It wouldn’t make sense to hold carmakers responsible for the bad driving of their vehicles’ users, just as it wouldn’t make sense to impose car manufacturing obligations on drivers themselves.”

Reminsicent of the “regulatory” landscape at peak Big Horse

Laws included

1. Require all cars have reins and bridles
2. Require drivers to hold horsewhips
3. Require drivers to disassemble and tow cars to town by horse at city limits
4. Require drivers to incessantly sound mechanically-operated bells or whistles