This would outlaw the cryptocurrency industry in the USA. Anyone running a miner or proof-of-stake validator would be a money services business, meaning they would have to collect personal identity information on anyone submitting transactions to the network. This is technically impossible.<p>This bill will not pass, but if in some universe it did, the blockchain industry would move entirely offshore. It will not kill the industry, but certainly set it back and make the US a non-entity. This is a very reactionary, "don't let a crisis go to waste" situation following the FTX debacle.
"shall promulgate a rule that prohibits financial institutions from— (1) handling, using, or transacting business with digital asset mixers, privacy coins, and other anonymity-enhancing technologies, as specified by 6 the Secretary"<p>Essentially, Warren and other privacy violating nutters want the identity of every crypto transaction. One can argue this is to curtail "laundering" at the tradeoff of privacy violation. Should every cash transaction also involve some receipt or the government will deem the transaction illegal? Will "cash only" businesses become illegal?<p>It seems like Warren still has similar views to many privacy violating politicians and administrators in the Bush administration...
She really hates "anonymity-enhancing technologies". It's not your money, it's a tool for leverage. Anything outside of the CBDC system is a threat.
Is money laundering with crypto even a large percentage of it? A public fully traceable blockchain isn’t great at that…<p><a href="https://cryptoslate.com/money-laundering-0-05-of-all-crypto-transactions-in-2021-chainalysis-report/" rel="nofollow">https://cryptoslate.com/money-laundering-0-05-of-all-crypto-...</a><p>Every exchange has kyc rules. Sure people can fake the kyc but we are splitting hairs here.<p>We absolutely have to have crypto to avoid the dark maelstrom that is CBDCs.<p><a href="https://www.finextra.com/blogposting/21584/the-risks-to-society-of-central-bank-digital-currencies" rel="nofollow">https://www.finextra.com/blogposting/21584/the-risks-to-soci...</a>
Proposed bills usually don't come to much, so generally it's better to wait for a more substantial story for a thread.<p><a href="https://hn.algolia.com/?dateRange=all&page=0&prefix=true&query=by%3Adang%20bills%20propos&sort=byDate&type=comment" rel="nofollow">https://hn.algolia.com/?dateRange=all&page=0&prefix=true&que...</a>
I did not read the bill, either, but I am very worried that all those contributions by SBF haven't swayed the Democrats at all! Does she hate all red blooded Americans or just cryptocurrency enthusiasts, I can't decide! Either way, I'm upset and you should be too.
I did not read this bill, but I am vey worried that regulating it will bring crypto into the fold of regular financial markets/constructs and the government will bail out any perpetrators of fraud or mismanagement, like SBF, going forward. We have collectively lost the ability to say you screwed up and so you suffer the consequences and instead bail out collective failures of corporations. The larger the failure the higher the chance of bail out. I honestly don't see any value in crypto, am not alone in that, and unless that changes I don't want it to brought up to par with USD based constructs.<p>I should add that I would like to be educated if I am wrong in this thought process.
Warren should propose a bill that outlaws government workers stealing from taxpayers ... and paying their salaries through letting the Fed inflate away the value of the US dollar.
I don't see how this is being spun as a bad thing. The devil is in the details, but this has been a long time coming.<p>You don't get to do business with Americans but not follow American law. If companies don't want to abide by the new regulations, they're free to continue doing business offshore. If you don't want to play by the rules by all means setup shop in another country that will accept you.<p>Story as I understand it so far<p><pre><code> - Gullible Americans invest in shady "line-go-up" businesses that exist outside of established legal framework
- Gullible Americans lose massive amounts of money due to systemic fraud and have no recourse for legal action
- Gullible Americans complain to US government
- US Government, doing it's job, passes laws setting up new rules and regulations for safely doing crypto business with Gullible Americans (KYC etc)
- Gullible Americans now have legal recourse, but find that the crypto space isn't nearly as magical as it was before.
- Many of these Gullible Americans now decide go to the casino instead, or get in on that traditional MLM scheme their friend kept pitching them that now sounds great.
- A smaller number continue to send $$$ to shady overseas entities, hoping that more $$$ eventually come back, and complaining to everyone when it doesn't, but no one listens this time.
</code></pre>
A fool and his money are soon parted. Meet me in the back alley at midnight, I have a bridge to sell you. Unregulated finance should be treated the same as a back alley deal, good luck to you.<p>What's the issue here?