The state of Illinois have submitted a new bill titled the Digital Assets Regulation Act (DARA) which is meant to make notable regulation in the “digital asset” space.
In terms of the bill itself, they have targeted blockchain technology as their primary focus. Should this bill pass, then there will be strict compliance requirements on digital assets, a ban on DeFi protocols, and a ban on the industry from NFTs, GameFi, trading, mining, and staking.
The proposal has gained pushback, most notably Alliance, a company which focuses primarily on Web3 development.
According to them, many blockchain businesses who reside in Illinois oppose the bill and had not been consulted on the matter.
Last night in Illinois, a bill advanced that would make unlicensed “digital asset business activity” (i.e., most blockchain activities) a felony.
If the House passes the bill, it could become law in a matter of weeks.
Alliance opposes the Digital Assets Regulation Act (DARA).
— Alliance (@alliancedao) March 8, 2023
Another concern comes from the compliance requirements, which have been called “impossible” by Alliance. They also wish to create a licensing agency with power over the “digital asset business activity” that is “defined broadly as exchanging, transferring or storing a digital asset”.
This current discussion mainly surrounds digital assets that have grown popular in the past couple of years. These include cryptocurrency, NFTs, blockchain, and much more.
When it comes to the gaming industry, giants in that space have begun to create plans utilizing this technology. Most famously is Square Enix, who has games based on blockchain set to come out later this year. Ubisoft, Konami, and Sega have also dabbled or mentioned plans for its use.
Finally, a small factor likely missed my many when it comes to gaming is how digital has become a dominate force. Most video games are purchased digitally for many companies and storefronts such as Steam or GOG only sell digital video games.
So while the bill isn’t targeted or focused on this part, the broad terminology could lead to concerns for many in the future depending on how the law is interpreted.