CBE Blockchain Governance and Regulatory Compliance 2

Question 1

What US executive order, issued in 2022, directed federal agencies to coordinate on digital asset regulation?

Accepted Answer

EO 14067 — Ensuring Responsible Development of Digital Assets

Answer

EO 14067, signed by President Biden in March 2022, directed agencies to study risks and develop a coordinated US digital asset strategy.

Question 2

Which concept describes a blockchain protocol where stakeholders can delegate their voting power to trusted representatives?

Accepted Answer

Delegated Proof of Stake (DPoS)

Answer

DPoS allows token holders to delegate their stake to elected delegates who validate transactions and vote on protocol changes on their behalf.

Question 3

What is the Travel Rule requirement as applied to cryptocurrency transactions in the US?

Accepted Answer

VASPs must share sender and recipient identifying information for transfers above $3,000

Answer

FinCEN's Travel Rule requires Virtual Asset Service Providers (VASPs) to transmit identifying information on transfers of $3,000 or more.

Question 4

Which type of DAO structure gives voting weight proportional to the number of governance tokens held?

Accepted Answer

Token-weighted voting

Answer

Token-weighted voting means larger token holders have proportionally more influence, which is common but criticized for plutocratic tendencies.

Question 5

What regulatory challenge is unique to decentralized finance (DeFi) compared to centralized exchanges?

Accepted Answer

Lack of a central intermediary that can be held legally responsible

Answer

DeFi protocols operate via autonomous smart contracts with no central party, making it difficult for regulators to enforce compliance obligations.

CBE - Certified Blockchain Expert Practice Test