Paradoxically, the #GENIUSAct and #STABLEAct may be counterproductive in asserting the dominance of the U.S. dollar within the #crypto ecosystem. The adoption of the U.S. dollar in crypto is already pervasive. Many decentralized #stablecoin protocols rely to some extend on dollar-backed assets. By wanting to increase the control U.S. authorities have over the usage of US-backed #stablecoins, the legislators take the risk of undermining this dominant position. #DeFi protocols can’t be stopped and they will seek alternatives to US-backed assets. This is a perfect example of how a bad regulation can accelerate innovation that goes against the intent of the regulation.

May 15: #Coinbase announced that customers’ data collected via #KYC procedures leaked, highlighting the danger of KYC to consumers. 5 days later: the U.S. Senate passes the #GENIUSAct that will mandate systematic KYC checks to transact in #stablecoins. Poor timing to pass the bill, but still it passed. #Stablecoin #crypto #USpol

The #GENIUSAct, an anti-innovation, #CBDC-like enabler bill has passed the US Senate today. I don’t know all the details of the bill it looks to me that, it puts US devs and companies working on #DeFi protocols at risk of being sued by US authorities for using decentralized #stablecoins or integrating fiat-back stablecoins without #KYC procedures. Below is #AaronDay summary of the bill: These are the current KYC/AML implications of the GENIUS Act and STABLE Act. Note, it will likely get worse as the bills move towards reconciliation and final passage (they never become more freedom oriented). If you read this and the bills, and still think this is pro-freedom and pro-crypto, I am sorry, I can’t help you. STABLE Act KYC/AML Implications: - Stablecoin issuers classified as financial institutions under the Bank Secrecy Act, subject to AML obligations. - Issuers must implement KYC processes, including customer identification, due diligence, and transaction monitoring. - Federal regulators can supervise issuers, investigate violations, and impose penalties up to $100,000 per day. - Asset segregation mandated to protect customer funds, supporting AML transparency. - Two-year moratorium on algorithmic stablecoins to limit unregulated entities bypassing KYC/AML. GENIUS Act KYC/AML Implications: - Stablecoin issuers classified as financial institutions under BSA, requiring AML programs and customer due diligence. - Annual AML compliance certifications required, with criminal liability for false certifications. - U.S. jurisdiction extended to foreign issuers serving U.S. customers, enforcing AML/KYC compliance. - Regular audits and public disclosure of reserve holdings to ensure AML traceability. - KYC/AML rules may limit anonymous DeFi transactions, raising privacy concerns. Key Differences: - GENIUS Act applies AML/KYC to foreign issuers and DeFi, STABLE Act focuses on U.S. issuers. - STABLE Act bans algorithmic stablecoins for two years, GENIUS Act requires Treasury study. - GENIUS Act allows state regulation for smaller issuers, STABLE Act emphasizes federal oversight. - GENIUS Act prohibits marketing stablecoins as FDIC-insured, reducing AML misrepresentation risks. Broader Implications: - Increased compliance costs for issuers like Tether and Circle, potentially excluding smaller players. - Stricter rules may enhance consumer confidence but limit DeFi innovation and privacy. - GENIUS Act aligns with global frameworks like EU’s MiCA, STABLE Act focuses on domestic control. - Democrats raise concerns about GENIUS Act’s AML protections, suggesting stronger enforcement. #stablecoin #crypto #USpol

The #Coinbase data breach is the perfect example as to why #KYC applied to #crypto is a major security risk for crypto users. Wealthy crypto users are prime targets for criminals conducting wrench attacks due to the irreversibility of crypto transactions. Although the use of crypto #privacy tech can minimize the risk by making you a less attractive target, they still don’t fully remove the risk because once you’ve been KYCed, your data is forever at risk of being leaked. Regulators claim that KYC is necessary to fight criminals laundering money but they always omit to mention that it is at the cost of the safety of all cryptos users and to the profit of violent criminals. #Coinbasehack

Going after the creators of a #privacy tech because someone has used it for illegal activities is like going after the creators of the web because someone has used it for illegal activities. #FreeSamourai #TornadoCash

Interesting take on the #OP_RETURN debate. After watching this video, I’d like to know what are the arguments of the proponents for removing the OP_RETURN limit on using rules to filter non-financial data as an alternative solution? It seems to me that non-financial data is an issue in itself for which #Bitcoin wasn’t purpose built in the first place. They should be considered as spam. If the only good technical solution is to filter those data then so be it. That doesn’t prevent those who disagree to run software that doesn’t filter this data. #BTC

Here is an update on #Bitcoin price. The previous path 2 was invalidated although a variant of this path has a low probability (5%) of playing out (not in the chart). 35% probability: Path 1 is now the most likely. I made some slight adjustments to it but the final timeline and price target remain the same with a top at around $135k by the end of this summer. 30% probability: New path 2 is the most bearish case with the top already and the start of a downtrend that could send us as low as $13k. 25% probability: Path 3 is now the most bullish with good odds of playing out but less likely than path 1 & 2. This one would follow a parabola. That would send us to around $240k by the end of 2026. #BTC #Trading #Tradestr View quoted note →