TL;DR
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Elizabeth Warren has just found new support from 9 senators, for what’s being referred to as an ‘anti-crypto’ bill.
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There’s a bunch of stipulations in it, but the hot button issue is adding Know Your Customer (KYC) requirements to all crypto wallets (including self custody).
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Enforcing KYC on self custody wallets reads as an almost impossible task. All in all, the whole thing reads as a long term ‘lose/lose’ situation.
Full Story
We have the urge to take a very clear side in this moment…but we’re going to try our best to keep things balanced.
(Wish us luck).
Elizabeth Warren has just found new support from 9 senators, for what’s being referred to as an ‘anti-crypto’ bill.
There’s a bunch of stipulations in it, but the hot button issue is adding Know Your Customer (KYC) requirements to all crypto wallets (including self custody).
What the hell does that mean?
Basically, adding proof of identity via government ID to crypto wallets (whether they’re managed by an exchange like Coinbase, or an individual, like yourself).
The real world equivalent of this would kind of be like the government asking to track how much cash you carry in your physical wallet at all times.
Which would be a massive overreach.
But we can also see the other side of this!
There’s only so much physical cash you can carry/trade. But with crypto, you can carry billions of (hard to trace) dollar equivalents with you in your pocket.
KYC standards exist to protect against fraud, money laundering and the trade of dangerous/illicit materials (rhymes with shmrugs and shmeapons).
That said, we can’t help but feel this bill is doomed to fail, whether or not it passes.
Enforcing KYC on self custody wallets reads as an almost impossible task.
All it would take is a VPN for users to skirt the requirement, while simultaneously restricting the growth of crypto within the US, with a bunch of red tape.
All in all, the whole thing reads as a long term ‘lose/lose’ situation.
(For the US economy, its people, and the broader crypto market).
