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U.S. Senate Vote in Favor of Amendment That Threatens Crypto Industry

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Re: U.S. Senate Vote in Favor of Amendment That Threatens Crypto Industry

#11

Post by vc9999 »

gameswithgo wrote: post #6
vishakh82 wrote: post #4

If you think all cryptocurrencies are scams or think blockchains do nothing useful, please skip this comment. If you think things like decentralized finance, storage and identity have the potential to improve our lives and offer some of the only genuine alternatives to an increasingly privacy-hostile status quo, please look into the shambolic legislative process that threatens the entire blockchain industry in the Un…

you have artificially tried to divide people into one of two extreme camps! cryptocurrency is either totally useless or the savior of the world! Most of us do not believe either of those things. At the moment I apllaud any legislation that outs the brakes on current crypto currencies. The damage they have been doing to the world so people can gamble/speculate has been immense, its a tragedy. Money transferring to the…

You do understand that nobody forces anyone to gamble or speculate with cryptocurrencies, right?

Re: U.S. Senate Vote in Favor of Amendment That Threatens Crypto Industry

#12

Post by [deleted] »

gruez wrote: post #9
nomoreplease wrote: post #2

Everything in the article leads me to believe this only threatens the “cryptocurrency” industry, but I don’t have the actual text to the amendment. Is anything threatening “crypto” itself?

comment from a previous discussion: https://news.ycombinator.com/item?id=28075226 >the following categories do not count as brokers: >(A) validating distributed ledger transactions >(B) selling hardware or software for which the sole function is to permit a person to control private keys which are used for accessing digital assets on a distributed ledger, or >(C) developing digital assets or their cor- responding pro…

[deleted]

Re: U.S. Senate Vote in Favor of Amendment That Threatens Crypto Industry

#13

Post by jcranmer »

gruez wrote: post #9
nomoreplease wrote: post #2

Everything in the article leads me to believe this only threatens the “cryptocurrency” industry, but I don’t have the actual text to the amendment. Is anything threatening “crypto” itself?

comment from a previous discussion: https://news.ycombinator.com/item?id=28075226 >the following categories do not count as brokers: >(A) validating distributed ledger transactions >(B) selling hardware or software for which the sole function is to permit a person to control private keys which are used for accessing digital assets on a distributed ledger, or >(C) developing digital assets or their cor- responding pro…

That's Wyden's amendment to this amendment. The amendment in question here is saying that a "broker" now includes anyone

> responsible for and regularly providing any service effectuating transfers of digital assets

(incidentally, I don't see how category (B) or even category (C) from Wyden's amendment could be reasonable construed as being included in the original text--those are products not services. I will concede that I can see how category (A) can be construed, although I doubt it would be so construed).

[Also note that "digital assets" is defined elsewhere in the amendment, although the news media didn't report on the precise text for digital asset, so I don't have it handy. But it's basically a reasonable definition.]

Re: U.S. Senate Vote in Favor of Amendment That Threatens Crypto Industry

#14

Post by dcolkitt »

gameswithgo wrote: post #6
vishakh82 wrote: post #4

If you think all cryptocurrencies are scams or think blockchains do nothing useful, please skip this comment. If you think things like decentralized finance, storage and identity have the potential to improve our lives and offer some of the only genuine alternatives to an increasingly privacy-hostile status quo, please look into the shambolic legislative process that threatens the entire blockchain industry in the Un…

you have artificially tried to divide people into one of two extreme camps! cryptocurrency is either totally useless or the savior of the world! Most of us do not believe either of those things. At the moment I apllaud any legislation that outs the brakes on current crypto currencies. The damage they have been doing to the world so people can gamble/speculate has been immense, its a tragedy. Money transferring to the…

If your primary concern is the superfluous waste of energy you should be vehemently opposed to this amendment. It specifically exempts proof-of-work blockchains, while essentially outlawing alternatives.

It will drastically slow down innovation, and keep the majority of crypto activity on electricity guzzling proof of work chains. Already major Ethereum community members are discussing delaying or canceling the transition away from proof-of-work scheduled for the end of the year.

Re: U.S. Senate Vote in Favor of Amendment That Threatens Crypto Industry

#15

Post by verdverm »

vc9999 wrote: post #11
gameswithgo wrote: post #6

Earlier quoted context omitted.

you have artificially tried to divide people into one of two extreme camps! cryptocurrency is either totally useless or the savior of the world! Most of us do not believe either of those things. At the moment I apllaud any legislation that outs the brakes on current crypto currencies. The damage they have been doing to the world so people can gamble/speculate has been immense, its a tragedy. Money transferring to the…

You do understand that nobody forces anyone to gamble or speculate with cryptocurrencies, right?

Same can be said for stocks, yet the crash of 1929 still happened and laws were written to help protect consumers and the economy

Re: U.S. Senate Vote in Favor of Amendment That Threatens Crypto Industry

#16

Post by dcolkitt »

meepmorp wrote: post #3
nomoreplease wrote: post #2

Everything in the article leads me to believe this only threatens the “cryptocurrency” industry, but I don’t have the actual text to the amendment. Is anything threatening “crypto” itself?

No, and I hate that people shorten cryptocurrency to crypto.

The term “derivatives” is widely used for financial derivatives like options and swaps. It’s gained such widespread adoption that it by far dwarfs the original meaning of the instantaneous rate of change in calculus.

I think the simpler answer is that when a word has two meanings, one a widely used category of financial instruments and the other a narrowly defined branch of advanced mathematics, the former will almost always dominate everyday discussion.

Re: U.S. Senate Vote in Favor of Amendment That Threatens Crypto Industry

#17

Post by dcolkitt »

verdverm wrote: post #15
vc9999 wrote: post #11

Earlier quoted context omitted.

You do understand that nobody forces anyone to gamble or speculate with cryptocurrencies, right?

Same can be said for stocks, yet the crash of 1929 still happened and laws were written to help protect consumers and the economy

The response to 1929 wasn’t to functionally outlaw the existence of stocks.

Re: U.S. Senate Vote in Favor of Amendment That Threatens Crypto Industry

#18

Post by JediWing »

What are the reporting requirements? Will they lead to taxation? Overhead computing resource per block/transaction validated?

Is this reporting only, or will it result in additional taxes?

This seems light on details, and I really don't know what opinion to have on this without understanding what the requirements are. Nothing I've read succinctly explains this.

Re: U.S. Senate Vote in Favor of Amendment That Threatens Crypto Industry

#19

Post by IMTDb »

vc9999 wrote: post #11
gameswithgo wrote: post #6

Earlier quoted context omitted.

you have artificially tried to divide people into one of two extreme camps! cryptocurrency is either totally useless or the savior of the world! Most of us do not believe either of those things. At the moment I apllaud any legislation that outs the brakes on current crypto currencies. The damage they have been doing to the world so people can gamble/speculate has been immense, its a tragedy. Money transferring to the…

You do understand that nobody forces anyone to gamble or speculate with cryptocurrencies, right?

You do understand that everyone is forced to endure the consequences of people gambling or speculate with cryptocurrencies, right?

See: Nvidia ship shortage, Bitcoin CO2 emissions, tons of ASICS destruction because miners are literally stealing electricity, ....

It's the same reason why psychoactive drugs are forbidden: no one forces you to use them, but everyone has to deal with the negative consequences of their usage. I don't think we should put drug users in prison, but I d'ont want to see a meth store at every street corner either.

Re: U.S. Senate Vote in Favor of Amendment That Threatens Crypto Industry

#20

Post by Retric »

dcolkitt wrote: post #16
meepmorp wrote: post #3

Earlier quoted context omitted.

No, and I hate that people shorten cryptocurrency to crypto.

The term “derivatives” is widely used for financial derivatives like options and swaps. It’s gained such widespread adoption that it by far dwarfs the original meaning of the instantaneous rate of change in calculus. I think the simpler answer is that when a word has two meanings, one a widely used category of financial instruments and the other a narrowly defined branch of advanced mathematics, the former will almos…

Possibility, I have heard “derivatives” most commonly used as a math term not a financial one. But it’s got plenty of other meanings: https://www.merriam-webster.com/dictionary/derivative
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