Protocols, self-custody software and validators are outside the term
What the document says“does not include-- (i) a distributed ledger protocol; (ii) developing, operating, or engaging in the business of developing distributed ledger protocols or self-custodial software interfaces; (iii) an immutable and self-custodial software interface; (iv) developing, operating, or engaging in the business of validating transactions or operating a distributed ledger; or (v) participating in a liquidity pool”
Paragraph (7)(B). Five things are excluded from the term digital asset service provider: a distributed ledger protocol; developing, operating or engaging in the business of developing such protocols or self-custodial software interfaces; an immutable and self-custodial software interface; developing, operating or engaging in the business of validating transactions or operating a distributed ledger; and participating in a liquidity pool or other similar mechanism for the provisioning of liquidity for peer-to-peer transactions.
What the document actually says“does not include-- (i) a distributed ledger protocol; (ii) developing, operating, or engaging in the business of developing distributed ledger protocols or self-custodial software interfaces; (iii) an immutable and self-custodial software interface; (iv) developing, operating, or engaging in the business of validating transactions or operating a distributed ledger; or (v) participating in a liquidity pool”
Some work is left out of the term. Writing the code is left out. So is running it. So is checking and recording trades. So is putting funds in a shared pool.
Paragraph (9) says a protocol is public code put on a shared ledger. Smart contracts count as that code. A tool that lets people hold their own coins is also left out.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.