By Shelly Melancon (Switzerland)
With the United States infrastructure bill constantly on the news, many have taken opposing stances on the controversial law with some saying its provisions are necessary while others state that it needlessly attacks the cryptocurrency sphere to milk it of its cash flow. Recently popular trader and analyst Scott Melker, also widely known as “wolf of all streets” was said that regardless of the bills immediate negative effects on the cryptocurrency sphere, it would be positive in the long run as the amount of publicity it was bringing to the space would attract an unprecedented amount of investors.
Jake Chervinsky Kicks Against US Treasury
General counsel to Compound Labs and crypto commentator, Jake Chervinsky seems to be of the opposing stance to Melker. Chervinsky has multiple times in the past year been strongly against government interference in the crypto space. In December of last year, he made a Twitter thread in which he maintained a strong stance against the U.S Financial Intelligence agency’s proposed regulations to custodial wallets in which he called it “terrible rule in both process and substance” and eventually praised its cessation following President Biden’s freezing of it on his first day of appointment in the office.
His stance on the new infrastructure bill is not much different. Chervinsky states that with the sudden additions to the infrastructure bill, the Treasury Department is aiming to capture DeFi. His statements do hold some measure of truth to them as the bill previously had nothing to do with crypto and was primarily aimed at the development of the country’s infrastructure until nine days prior to its expected appearance in the US Senate when a sudden provision regarding cryptocurrency was added to it. Chervinsky believes that the Treasury Department is seeking an alternative way to implement the provisions of the previously nullified regulations that targeted custodial wallets.
Treasury Plays A Prominent Role In Drafting Legislation
Chervinsky appeared in a podcast on August 17th where he made his stance on the bill clear. Speaking on the podcast he stated that contrary to previous beliefs that the wording of the bill was due to misunderstanding by the lawmakers, the United States Treasury strongly wanted to capture not just the centralized exchanges but DeFi as well. He further supported this by explaining that in the crypto community’s efforts to get the wording of the bill changed to only target centralized exchanges, he was informed that the inclusion of DeFi in the bill was intentional by the Treasury as they wanted to expand their “warrantless surveillance” to the DeFi space. He further stated that the Treasury Department had played a key role in drafting the law to suit their intentions and had positioned themselves such that any amendment to it would have to pass through them for approval or rejection.
In the end, the Treasury did eventually concede and accept the loss but Chervinsky is not completely satisfied. This is due to the fact that we now know that the Treasury seems to play a role in drafting these legislations and that could lead to significant problems.
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