JavaScript is not available.

Dec 22, 2022

I was flattered to be asked by

@CoinDesk

to write about something, anything about crypto and the year ahead. I couldn’t think of a topic that deserves more attention than user safety on-chain. Innovators who make strides here will lead the ecosystem and bolster adoption. HNY

Quote Tweet

CoinDesk

@CoinDesk

Dec 22, 2022

If crypto does not prioritize user safety, then regulators will on the industry's behalf. @ConsenSys' @BillHughesDC writes about the technological and social changes that could keep users funds safe. #crypto2023, presented by @bitstamp trib.al/oirfz3x

Feb 4

Feb 4

The single greatest achievement in the history of man. IYKYK

Feb 4

If it was all on chain we wouldn’t be so easily gaslit. One can dream.

Quote Tweet

Fred Wszolek

@FredWszolek

Last month US *unadjusted* payrolls dropped by 2.5 million jobs. After a "seasonal adjustment" of +3 million, the economy is booming! Woo hoo! These economic numbers now produce more noise than signal -- like everything else out of Washington, DC.

GIF

read image description

ALT

Quote Tweet

Erik Voorhees

@ErikVoorhees

This is pretty big... Digital asset itself in secondary sale is not a security, even when original sale constituted a security. "Deaton persuaded the judge that LBC’s secondary market transactions were not securities." cointelegraph.com/news/sec-settl via @cointelegraph

If you want evidence that blockchain analytics and well trained sleuths get results going after criminals, look no further than Zach.

Quote Tweet

ZachXBT

@zachxbt

1/ I am very happy to share the FBI seized crypto, BAYC 9658, AP watch, and Doodle 3114 from the phishing scammer known as Horror (HZ) aka Chase Senecal as a result of my thread.

Show this thread

GM. Blockchain protocol parameters that rely on community norms rather than code make my skin itch.

The only balloon related incident that history will remember.

Would be shocking if they weren’t. Does NOT mean that criminal conduct will be found, mind you.

Quote Tweet

Jesse Hamilton

@jesseahamilton

Feb 2

From ace Bloomberg reporter, Tom Schoenberg: US prosecutors in the Justice Department’s fraud unit are looking into Silvergate’s dealings with FTX and Alameda Research bloomberg.com/news/articles/ @Tschoenberg22

Staking "Income" Should Not be Taxed - Marginal REVOLUTION

Staking "Income" Should Not be Taxed -

marginalrevolution.com

Staking income from tokens should not be taxed. Since staking income is generated by inflation it doesn’t create new wealth but simply lowers the total value of the token. Thus staking income is...

@abesutherland

! Pretty cool.

Quote Tweet

Alex Tabarrok

@ATabarrok

Staking "Income" Should Not be Taxed - marginalrevolution.com/marginalrevolu

Feb 2

Who cares

Quote Tweet

The Block

@TheBlock__

Feb 2

'Crypto Voldemort' Charlie Munger calls for U.S. ban, again theblock.co/post/208136/cr

To sum up, I'm kinda impressed with this. It's early and there are a lot of details to be worked out, but this looks promising in light of how some other regulators in other jurisdictions have been inclined to act. Now, we all know what we got to do. [END THREAD]

GIF

read image description

ALT

The below table summarizes the process

The consultation accepts there are also some novel cryptoasset activities that existing regulations cannot cover, and industry views are actively being sought in these greyer areas.

The consultation makes clear that the ecosystem includes various activities and business models with different risks and opportunities with no single approach to regulation that can fit all types. To tackle this, the principle of "same risk, same regulatory outcome" is applied.

This proposed regulatory framework is designed to regulate financial activities as opposed to the asset itself. Activities include issuance, trading, custody, lending.

The Treasury seeks written input by April 2023 but will run an engagement group over the course of 2023 to ensure key ecosystem participants are offering insights in support of the gov't aim to establish clear, productive regulation.

The Treasury also states that the proposed reg framework is not intended to impose regs on any underlying non-financial services activity which a cryptoasset might be used for. If the activity is non-financial it may be covered by other laws or regs, e.g. fraud statutes.

The government has already confirmed that non-fungible tokens (NFTs) will not be in scope of the cryptoassets financial promotions regime, since NFTs can represent a wide array of different assets which might constitute non-financial services products. (Precisely 👏👏👏)

They say the “objective is not to regulate the activity of developing software, but if software developers go on to maintain, run and operate systems used for regulated financial activities (e.g. exchange, lending) then they should be subject to financial services regulation.”

Overall, Treasury is proposing the same regulatory *outcomes* across comparable "DeFi" and "CeFi" activities, but likely through a different set of regulatory tools, and different timelines. (Ed. note: that's the right framing, although the devil is in the details re "outcomes")

HM Treasury acknowledges that, due to the rapidly evolving nature of the ecosystem, the way this can be achieved may differ and take longer to clarify. (Ed note: That's correct)

The consultation contains a call for evidence on #DeFi. The Treasury is pushing for a tech neutral approach and is of the view that the regulatory outcomes should apply to cryptoasset activities regardless of the underlying technology, infrastructure, or governance mechanisms.

Future financial services regulatory regime for cryptoassets

🇬🇧🚨🚨🚨HM Treasury of the United Kingdom published its much anticipated consultation on cryptoasset regulation. The plans seek to regulate a broad range of cryptoasset activities. TLDR: generally👍 🧵👇

gov.uk

This consultation sets out proposals for the UK’s financial services regime for cryptoassets, and marks the next stage of the UK’s phased approach

So we are clear, the court’s analysis PRESUMES that all the tokens at issue ARE securities. So no ticker tape parade, people.

Quote Tweet

Lawtoshi

@lawtoshi

Big victory for @coinbase today. The court has dismissed all claims (fed w/ prejudice, state w/o) in a putative class action alleging Coinbase offered unregistered securities w/o registration as a securities exchange or broker dealer. storage.courtlistener.com/recap/gov.usco

Show this thread

👀

Quote Tweet

CoinDesk

@CoinDesk

A U.S. district court judge has dismissed a proposed class action suit alleging that Coinbase sold unregistered securities and improperly failed to register as a broker-dealer. By @NelWang trib.al/AUOwn9e

Alameda wallet connected to Russian arms dealers? This just gets better and better.

So the 3400 ETH that was moved out of that sanctioned address on Feb 7, 2022 came to rest in another wallet on July 8, 2022. The total of 5,462 ETH in that wallet is just sitting there. That wallet isn't sanctioned. I don't hope to understand

That ETH address has zero coins and hasn't been used since February 2022. 🤷‍♂️

Two BTC and ETH addresses added to the SDN list: home.treasury.gov/policy-issues/ What did you do Mr. Zimenkov?

home.treasury.gov

Civil = pay $ and ordered not to violate again Criminal = prison/pay $ DOJ -> all federal criminal prosecutions all enforcement agencies -> all civil cases

The SEC doesn't accuse people of crimes and doesn't bring prosecutions. I'm failing to see what is confusing about that. The vast majority of laws are NOT criminal laws. Most regulators enforce civil laws - it is not even close in terms of civil v. criminal.

Very exciting news: We’re thrilled to announce that MetaMask Learn is here! 🎉🦊🧠 What is web3? Why is it important? Wait, what’s a wallet?? Hop on our foxy tail and we’ll show you👇 learn.metamask.io

0:06

60.2K views

159

576

1,909

I am anxious that I do not understand MEV well enough. I'm now going to voraciously read

@bertcmiller

to learn what he is putting out there for anyone to consumer. God bless CT.

Quote Tweet

@bertcmiller

Jun 9, 2021

A thread of all my MEV related threads in chronologic order

Show this thread

It is just WILD that a handful of basically unknown people make semi educated guesses about the future on which they base the availability of money which dictates whether entire economies expand or contract, and everyone is just like “Cool. Well, tell us what you guys decide.”

Quote Tweet

Nick Timiraos

@NickTimiraos

Fed deliberations over how much more to raise rates will hinge on how much they expect the economy to slow. I.E. how long are the policy lags? “We're in a different world... The last several cycles haven’t had pandemics and land wars in Europe in them.” wsj.com/articles/how-q

Show this thread

Literally “running” Bitcoin.

Feels good.

Quote Tweet

Relai

@relai_app

You're OG if you recognize these legs

Show this thread

Abe is on the forefront of the staking taxation issue. The position he has been advocating for is one the entire staking space needs to understand and support. Staking taxation will be a real challenge for everyday US users otherwise.

Quote Tweet

Abraham Sutherland

@abesutherland

The IRS is wrong. New cryptocurrency tokens from staking are not taxable income. Congress can and should fix the tax code to make this clear. Keep taxation fair -- end overtaxation and the compliance nightmare. My latest in @taxnotes – taxnotes.co/3DllssT

Show this thread

“Thanks for your email. I’m away on vacation right now (w/Katy Perry on a yacht in the Seychelles) so will be unfortunately delayed in responding. If it is an emergency, please . . .”

Quote Tweet

@tier10k