Spending Bitcoin From Personal Wallet will be Illegal in the US, Wyoming Bill Criticized
In an otherwise dark room, there is a glimmer of light for Bitcoin and cryptocurrency enthusiast. While Japan, Singapore and other ASEAN countries are leading the way, demonstrating to the world that indeed Bitcoin is just but another disruptive technology that governments as well as private institutions can leverage for efficiency as well as cost savings, the first and second largest economies are ambiversive on blockchain applications as cryptocurrencies.
No kind words for Innovation: While testifying at the House Financial Services Committee, Jerome H. Powell, the chair of the Federal Reserve said Bitcoin as an investment poise serious risks to investors.
“Relatively unsophisticated investors see the asset go up in price, and they think, ‘This is great; I’ll buy this. There are investor and consumer protection issues as well.”
And he’s not alone, Nouriel Roubini, a NY Professor, is a vicious critic (and Crypto Influencer) of cryptocurrencies and specifically Bitcoin. He has been bashing Bitcoin since 2013 and in countless occasions, he has reiterated his stand that Bitcoin is a Ponzi scheme. Recently, he said this about blockchain ideals and Bitcoin’s overall objective:
“Decentralization in crypto is a myth. It is a system more centralized than North Korea: miners are centralized, exchanges are centralized, developers are centralized dictators (Buterin is “dictator for life” ) & the Gini inequality coefficient of bitcoin is worse than North Korea”
Counter Arguments: But if you ignore him and had bought Bitcoin every time he bashes the currency, gains would have been impressive:
“Roubini hasn’t been mocking Bitcoin since it was $600. He’s been mocking it since it was $58. Imagine how short your attention span must be, & how strong your self-delusion, to gloat with vindication during every dip from $58 to $7,000.”
His disdain for crypto was further criticized:
What kind of professional economist wishes death and ruin upon people for investing in something he doesn't like? The fear Bitcoin strikes in the heart of parasites living off government money printers is why it is unlike anything we've ever seen! pic.twitter.com/hEIaSl4Y71
The Wyoming Embrace: Luckily, Wyoming is path finding and with the dedication of Caitlin Long, a 22-year Wall Street veteran and chair of Blockchain forum, the state is laying the rails for the eventual financialization of Bitcoin.
In a step that we can only interpret as the much-needed boost for legitimization of cryptocurrency, legislators lead by Senator(s) Nethercott, Driskill, Perkins and Rothfuss and Representative(s) Harshman, Lindholm, Loucks, Olsen and Wilson are proposing a bill, Digital assets-existing law, that will clarify the position of digital assets and the framework for custodial solutions via banks.
Caitlin Long breaks it down as below:
3/ New bill 2 parts. 1-Digital asset custody via #SEC#CustodyRule wld create first true #QualifiedCustodian for digital assets (for investors who by law can’t self-custody). 2-Defines property rights for digital assets—doing something HUGELY IMPT for #bitcoin/virtual currencies
All the same critics are back saying the bill is in anti-innovation and anti-Bitcoin. Note that at the end of the day, if this bill is approved, spending BTC off personal wallets may be deemed illegal—and this is where clarity is needed.
Unfortunately, this could mean using Bitcoin in your own wallet may be ruled illegal in the USA. This could only be fixex by saying there are two types of Bitcoin users, "investors" who can't "self custody" and ordinary people who can. All of this emerges from a one big error. pic.twitter.com/hOb8lzir55
Caitlin Long clarifies about banks offering custodial solutions saying:
5/ Highlights=Choice of custody as #bailment (consumer still owns coins so isn't forced into debtor/creditor relationship w/ intermediary, as is the case w/ securities), OR consumer can choose pooled custody but wld bear all risk of losses (#NoBailouts). Big consumer protections
9/ #Wyoming banks would have option to OPT INTO an enhanced regulatory regime for digital asset custody which meets #SEC#CustodyRule requirements, incl surprise audits. Why important? This is a #Bank not a #TrustCompany. Banks can do biz in all 50 states but trust cos can’t