USDT Tether Being Investigated by New York Attorney General

[johnarb]

https://www.financemagnates.com/cry...dent-freezes-proposed-crypto-kyc-regulations/

I agree with you, I am against crypto regulation, but this can be bad for the market

As someone hodling most of the crypto digital assets in local wallets, this is the best news I've seen in a very long time on cryptos, even better than all the news about Goldman Sachs, Blackrock, and Guggenheim getting into bitcoin

The kyc on self-hosted wallets would have destroyed DeFi in the US as smart contracts cannot possibly comply with it

 

[Cuddles]

As someone hodling most of the crypto digital assets in local wallets, this is the best news I've seen in a very long time on cryptos, even better than all the news about Goldman Sachs, Blackrock, and Guggenheim getting into bitcoin

The kyc on self-hosted wallets would have destroyed DeFi in the US as smart contracts cannot possibly comply with it

I don't know if DeFi will survive the eventual regulatory measures. I do believe a while back when they went after the exchanges, only one didn't make the eventual cut being decentralized. Dems tend to take a soft approach so hopefully they remain gray ala online music downloads years back.

 

[johnarb]

I don't know if DeFi will survive the eventual regulatory measures. I do believe a while back when they went after the exchanges, only one didn't make the eventual cut being decentralized. Dems tend to take a soft approach so hopefully they remain gray ala online music downloads years back.

Yea, don't know if DeFi will eventually survive. It just means that the progress, development and adoption will move away from US and explicitly prevent Americans (US) from participating.

If this particular fincen rule never gets passed, it is a huge win we can celebrate until the next regulatory threat comes up.

 

[Trader Curt]

As someone hodling most of the crypto digital assets in local wallets, this is the best news I've seen in a very long time on cryptos, even better than all the news about Goldman Sachs, Blackrock, and Guggenheim getting into bitcoin

The kyc on self-hosted wallets would have destroyed DeFi in the US as smart contracts cannot possibly comply with it

It's good news I guess, but this goes against everything Bitcoin was made for. Decentralization and privacy.

I was hoping to see a crypto that the people controlled, not the government. But it looks like that ship has already sailed away!

 

[tsznecki]

Old news. Where was this thread in 2019 when NY AG first broke the suit against USDT?

You are 2 years late, and USDT is still alive.

 

[johnarb]

It's good news I guess, but this goes against everything Bitcoin was made for. Decentralization and privacy.

I was hoping to see a crypto that the people controlled, not the government. But it looks like that ship has already sailed away!

I think we're having a misunderstanding which is why me and Here4money are saying it's good news and you think it's bad news.

Before his departure, Mnuchin submitted a proposal for a Fincen rule that would require KYC/AML reporting on crypto transactions ($3K/$10K value) for exchanges, centralized entities and self-hosted wallets (local wallets like what you and I have). Pause here. Would you agree that this is "against everything Bitcoin was made for, decentralization and privacy"?

If you answer "yes" then basically the news states that Biden administration has "frozen" it along with all other regulations proposed by previous administration. Twitter is saying it will die. I'm not an expert and I do not want to celebrate too soon, but as my reply shows, I'm extremely happy about this latest news.

 

[AbbotAle]

Yea, don't know if DeFi will eventually survive. It just means that the progress, development and adoption will move away from US and explicitly prevent Americans (US) from participating.

Land of the Free!

One country's loss is anothers gain so the rest of the world will run likely run with it, and run hard.

The US has to be very careful re regulations in the crypto sphere. Too much will be to their detriment.

Asia has been eating the US for lunch over the last decade+ and much of that has been due to their technology and associated businesses. The stakes are too high for both parts of the world for the US to start imposing their heavy boot of regulation. If they're so worried about bad guys using crypto (which they hardly are, but it makes a great story for clicks/FUD) they can use their massive Police/spy/legal apparatus to catch them and NOBODY can escape that group if they want you especially those using a public blockchain...

 

[johnarb]

Land of the Free!

One country's loss is anothers gain so the rest of the world will run likely run with it, and run hard.

The US has to be very careful re regulations in the crypto sphere. Too much will be to their detriment.

Asia has been eating the US for lunch over the last decade+ and much of that has been due to their technology and associated businesses. The stakes are too high for both parts of the world for the US to start imposing their heavy boot of regulation. If they're so worried about bad guys using crypto (which they hardly are, but it makes a great story for clicks/FUD) they can use their massive Police/spy/legal apparatus to catch them.

Agree 100%, bitcoin/cryptos are decentralized and global, anyone who has an internet connection can participate.

Below is a screenshot of AAVE, one of the biggest DeFi projects (deposit/lend). Anyone can deposit $50K worth of USDC and get that nice yield. It cannot meet the KYC/AML requirements, it's a smart contract platform.

So, the haterz may say, well, the US government can shut the website down. Sure, but that's just a front end. The website can be hosted on IPFS, or they can merely circulate instructions on Twitter on websites on how to interact with the AAVE smart contract on the Ethereum blockchain. It will continue to function as long as Ethereum keeps producing new blocks.

What the rule would do is that if you're an American, you will be in violation of the rule if you participate in this DeFi project and others like it. You cannot perform KYC on the parties on the smart contracts. You'd have to give up your US citizenship/legal residence status to participate even if you're not in the US. I heard Singapore is a nice place.

 

[AbbotAle]

I'm with ya J-arb.

DeFi has a long way to go though, it's still experimental to a certain degree but the seeds have very much been planted and they're looking VERY healthy.

No doubt there will be some monkey business and upsets over the coming years (they always are when money is involved) but over the next decade the DeFi annual growth rate is likely to be spectacular.

How do you spell p-r-o-g-r-a-m-m-a-b-l-e m-o-n-e-y?

Amazing to think about what the developers of the world will be able to achieve in the coming years. And still people think Bitcoin and what it spawned is a ponzi tulip pyramid scam...But then muh tether, it's going to be the final end of the world!