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Editorial: It Sure Looks Like the U.S. Is Trying to Kill Crypto

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Summary

This article is an opinion piece about the U.S. government's recent actions against cryptocurrency, which are widely perceived as a coordinated attempt to maim digital assets. The author argues that the U.S. government needs to make it clear that cryptocurrency has a future in the U.S. and provide more clarity on the regulations around the industry. He also argues that the current crackdown on cryptocurrency may be an attempt to circumvent due process and may be pushing innovation and technological progress overseas. The article also discusses how the government's actions are impacting the industry, such as banks becoming less willing to speak publicly on cryptocurrency, and the possibility that crypto may become politicized. The author concludes by calling on the government to be transparent in their efforts and make it clear that they are not out to kill crypto.

Q&As

What are the federal government's recent actions against crypto that are perceived as a coordinated attempt to maim digital assets?
The federal government's recent actions against crypto include a series of enforcement actions by the Securities and Exchange Commission (SEC) against regulated U.S. crypto entities including Kraken and Coinbase, while the Commodity Futures Trading Commission (CFTC) sued Binance. The Biden administration also released its “Economic Report of the President,” which made the case that cryptocurrency is not a useful technology.

What are the impacts of the US government's crackdown on crypto?
The impacts of the US government's crackdown on crypto include firms looking at moving overseas, banks declining invitations to speak at crypto gatherings, and the debate over the future of the industry becoming a pro-crypto echo chamber.

What is Operation Choke Point 2.0?
Operation Choke Point 2.0 is an apparent sequel to an Obama-era campaign to de-bank legal but politically undesirable businesses including gun manufacturers and payday lenders.

What kind of framework have been proposed to give the digital-asset industry the clarity it has been begging for?
Proposed legislation such as the Lummis-Gillibrand Responsible Financial Innovation Act in the Senate has laid out a framework for a more appropriate framework for the regulated issuance of digital assets.

What are the potential benefits of cryptocurrency and why is it important to maintain open collaboration?
The potential benefits of cryptocurrency include serving as a financial alternative for those facing repression and violence around the world, allowing $100 million in aid to quickly reach Ukraine in the wake of Russia’s invasion, and becoming a nexus of advocacy for tools that resist the dangerous concentration of digital power in the hands of companies whose hoards of data make surveillance and censorship their primary stock in trade. It is important to maintain open collaboration to ensure that the debate over the future of the industry is not politicized.

AI Comments

👍 This article by Kevin Reynolds provides a comprehensive and highly informative analysis of the US government's recent actions against crypto and the potential implications of these actions.

👎 This article by Kevin Reynolds ignores the potential benefits of the US government's actions against crypto and fails to provide a balanced view of the situation.

AI Discussion

Me: It's about how recent actions taken by the U.S. government against cryptocurrency are widely perceived as a coordinated attempt to cripple the industry. It could result in the industry moving overseas, without actually protecting investors.

Friend: That's really concerning. It sounds like the government is trying to limit the power of crypto and the freedom it offers people.

Me: Yes, exactly. The article argues that this could have a chilling effect on innovation, and even lead to the industry becoming politicized. It could also limit access to financial services for those in need, and stifle the potential of crypto to empower individuals and increase human flourishing.

Action items

Reach out to your local representatives and urge them to support the Lummis-Gillibrand Responsible Financial Innovation Act.
Educate yourself on the current regulations and enforcement actions taken by the SEC, CFTC, and other government agencies.
Join the conversation in crypto and Web3 taking place in Austin, Texas, April 26-28. Secure Your Seat.

Technical terms

Crypto: Short for cryptocurrency, a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
FTX: A cryptocurrency exchange founded in 2019 that offers spot and derivatives trading services.
SEC: The U.S. Securities and Exchange Commission, a federal agency that regulates the securities markets and protects investors.
CFTC: The U.S. Commodity Futures Trading Commission, an independent federal agency that regulates commodity futures and options markets.
Binance: A cryptocurrency exchange founded in 2017 that offers spot and derivatives trading services.
Bitcoin: A digital asset designed to work as a medium of exchange that uses cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
Ether: A cryptocurrency created on the Ethereum blockchain.
Operation Choke Point: An Obama-era campaign to de-bank legal but politically undesirable businesses including gun manufacturers and payday lenders.
FDIC: The Federal Deposit Insurance Corporation, an independent agency of the United States government that protects the funds depositors place in banks and savings associations.
NYDFS: The New York Department of Financial Services, a state agency that regulates the financial services industry in New York.
Surveillance Capitalism: A term coined by Shoshana Zuboff to describe the use of data and technology to monitor and control human behavior for economic gain.