A16z argues that the US Department of Justice (DOJ) should not hold decentralized finance (DeFi) protocols responsible for actions they cannot control, as stated in a blog post. The firm highlighted the absurdity of blaming software developers for third-party misuse of their tools, likening it to holding car manufacturers accountable for reckless driving. A16z emphasized the necessity of establishing a clear understanding of ‘control’ under the law to clarify whether crypto companies are classified as ‘money transmitting businesses.’ This clarification is critical, especially given the regulatory landscape under former President Biden’s administration, where over 100 regulatory actions were taken against cryptocurrency firms. A16z also noted that newly appointed President Donald Trump aims for a more crypto-friendly regulatory environment. The blog reiterated that decentralized exchanges (DEXs) such as Uniswap lack the control necessary to dictate user actions, highlighting the importance of delineating responsibilities in the digital finance realm.

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