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

With regards to #2 there is a global conflict of interest. For example, someone in Texas might be pro gun, and therefore release STL files for a firearm under a FOSS license. Whereas in my country, the possession of a firearm is heavily restricted to people with a proper license (which I am a proponent of, but my bias is my cultural background growing up in said country). Likewise, I might be pro cryptocurrency for a country like Venezuela, while the government/establishment of Venezuela might feel otherwise.

One nice thing with regards to #2 is that targeted surveillance can still exist even with cryptocurrency, E2EE, etc. If someone who works in an average 9to5 job suddenly owns a Porsche, that could be suspicious to warrant an investigation. Just because the data isn't available via OSINT or via coercion of platform/data owner, doesn't mean it cannot be obtained. It just costs more resources, and that's a tricky sunk cost for e.g. law enforcement. That's why they don't like either; it increases their workload which costs society money. Its not they cannot work around it; they can. Just not via previously (ab)used mass surveillance tactics. Like I said, I believe that's a nice thing, but it has cons (such as indeed the increased cost/workload).

Now, I believe we need to discuss all these pros and cons with an open mind, but unfortunately there are too many personal interests involved which skew a proper discussion. For example, cryptocurrency adapts have an interest in their asset remaining relevant.

Please read what I am actually writing. I will try a different format. Perhaps you can respond POINT BY POINT to show that you have read it and have a substantive argument about it, rather than about your personal feelings about what a name du jour should mean:

1. End-to-end encrypted communication opens the barn door, you can conceal any anonymous cryptocurrency transactions in there, as well as darknets, smart contracts for silk road, etc. If you allow one, you allow the other.

2. Conversely, as the EFF often points out, making a backdoor in any crypto means effectively backdooring all of it. According to their stance, you either allow all of it, or nothing. (I happen to disagree with that, but there it is.)

3. There are more countries in the world than "America" (you meant USA, I am sure). Many of those countries take a much more dim view of freedom of expression online, than we do here. We need to design our software for people around the world, not just care about the USA. Many people on HN are not in the USA. Here is just a small list of things that currently go wrong when we don't have "unhosted" communication (https://qbix.com/blog/2019/03/08/how-qbix-platform-can-chang...)

4. Contrary to your statement, the USA's courtrooms would not "laugh" the parallels out of the room. I will post just a small sampling of bills with the same intent in spirit, to restrict end-to-end encryption. I want to be clear that this is only the stuff done in the open, and doesn't include the secret actions by the NSA, or agencies that serve national security letters, etc.

4a. The MPAA and RIAA lobbied Congress to implement "reasonable" reporting measures to ban access to many sites that provide end to end encryption: https://en.wikipedia.org/wiki/Stop_Online_Piracy_Act

4b. After success in shutting down Craigslist and Backpage sex personals, Congress wanted to go further, and require every site to do this: https://en.wikipedia.org/wiki/Stop_Enabling_Sex_Traffickers_...

4c. Section 230 protections repeal: https://www.cbsnews.com/news/what-is-section-230-and-why-do-...

4d. The EARN IT act, just recently: http://cyberlaw.stanford.edu/blog/2020/01/earn-it-act-how-ba...

4e. LAED act, even more recent: http://cyberlaw.stanford.edu/blog/2020/06/there%E2%80%99s-no...

4f: Trump's attorney general was vocally against encryption, and lauded the proposed bill banning it: https://apnews.com/article/ny-state-wire-technology-ap-top-n...

https://apnews.com/article/ny-state-wire-technology-ap-top-n...

PLEASE address 1, 2, 3, and 4a - 4f

> payment processors are _right now_ acting as extrajudicial legislators. many LEGAL business, like porn and weed, are restricted from operating on major payment networks.

The thing is, at least for weed companies, that they technically are not legal on federal level where banks are regulated. The Obama, Trxmp and Biden admins simply have chosen for now to ignore the issue on executive level since Congress is completely and utterly dysfunctional, which is something the next admin/President can easily turn over and prosecute everyone involved, even for actions years past.

For porn (as well as, where legal, sex work and gambling), the problem is the immense amount of fraud associated with it. Horny people caught by their s/o's or company expense teams stumbling on CC bills or plain old "post nut clarity" has led to many fraudulent "card has been stolen" chargebacks, as did actual fraud by people using stolen CCs to sign up for porn sites and resell these accounts on the Internet, and additionally to that there are lots of legitimate chargebacks (dark patterns in account signup aka pre-checked "recurring" options, low quality content). And add to that the various issues regarding legality of services rendered (which may be different depending on where the seller and/or the buyer are located and where the service takes place).

And if that wasn't enough, the US likes to enforce their laws on companies based in the US also abroad... which means even here in Europe where sex work, porn and (in sometimes utterly incomprehensible ways) gambling are legal in most our states, we still have the problem that the US companies export their morality codes onto us Europeans (see also: facebook's nipplegate).

The result is legitimate businesses and mixed-content businesses (reddit, onlyfans) being struck by obscene merchant fees or being denied service altogether since it's frankly infeasible for non-local services, especially in physical sex work, to be in compliance with the myriad of rules ranging from global international agreements against drug usage and human trafficking over federal and state law to county/town ordinances.

I agree that these businesses deserve access to banking (alone to reduce the incentive to rob them of their physical cash!), but seriously the solution to that is a reform of banking, sex work and gambling legislation - not cryptocoins.

Not solely for the point of evading government regulation. I said it's useful to get around oppressive governments. Governments usually become tyrannies so gradual you don't notice. But it's faster than you think.

When they cash it in for dollars, they have to report it their gains. That's already built in. This bill pushes further into the crypto space.