‘It is a very comprehensive bill. It will be filed on June 7. It includes coins that are commodities and coins that are securities. It includes stable coins. It includes a discussion of CDBC’s and is consistent with what we heard earlier and a small nod to NFTs. It includes algorithmic as well as asset-backed stable coins. It includes definitions, consumer protection, privacy, taxation, and several other components of the discussion as it relates to all this using the existing regulatory framework. So as you can see, it’s a long bill, it’s comprehensive, and we’ve had it vetted for months. Michael Saylor was one of our first sets of eyes on it, of course, because his expertise is long-standing and we want to make sure that we have lots of input before we file it.’ – Senator Cynthia Lummin.
Michael Saylor says:
‘It’s going to accelerate good regulation. Not all regulation is bad regulation. If you go to coinmarketcap.com, there are 19,500 cryptos out there. There’s massive confusion and a shakeout in the industry would be advantageous because the average mere mortal doesn’t have time to study 19,500 cryptocurrencies.’
June 7th Crypto Bill Could Be HORRENDOUS For Altcoins
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If you hold altcoins, this is information you need to know about one of the largest pieces of crypto legislation that will be introduced this Tuesday, June 7th. So, it is monumental:
This legislation will probably be very good for bitcoin. This legislation might be good for crypto in general. However, this legislation might be horrendous for altcoins.
Who has helped craft this bill? Why are they BTC Maxi bias?
First of all, the senator who’s introducing this bill and spearheading this bill is Senator Cynthia Loomis, a Republican from Wyoming. She’s introducing the legislation on Tuesday. The plan is to integrate crypto into the financial system. This sounds bullish, right?
I would say Senator Cynthia Loomis of Wyoming has largely been very positive towards bitcoin and crypto thus far. She seems to really understand bitcoin, she seems to be a big bitcoin bull, and she seems to be taking a rather hands-off or more libertarian-ask approach to crypto, which I think is smart. We should not over-regulate at this time.
However, it’s not just Cynthia Loomis who is introducing this bill. A lot of different hands have touched this bill and helped with the wording. Recently, the Heritage Foundation hosted a panel with everyone who worked on or influenced the legislation for Ted Cruz. Cynthia Loomis, Caitlyn Long, and Michael Saylor, the issue is that every person on this panel heavily favors bitcoin, which in itself isn’t necessarily a problem. But if you’re more of a bitcoin maximalist, this might not be very good for altcoins and crypto. The legislation being written and introduced is by a group of bitcoin maximalists and is horrendous for other L1s. So let’s dive into the panel so you can understand which hands touched this legislation, and then we’ll actually look at parts of the legislation that got leaked.
The first person on the panel, everybody’s favorite DJEN, the earliest set of eyes on the language, was Michael. There is no second best sailor. Need I say more? His opinion on crypto is very clear; it’s security and bitcoin is the most ethical and whatever.
The second set of eyes we have is on Ted Cruz, a Texas Republican. To understand where Ted Cruz is coming from… And again, I think up until this point, Ted Cruz has been very positive about bitcoin and crypto, understanding that he doesn’t really understand it and trying to get other politicians to understand that they don’t understand it. Again, he doesn’t want to over regulate it, which is good, but is he more biased towards bitcoin? A quick history lesson:
Again, I don’t necessarily think Ted Cruz is bad for altcoins in itself, but if everybody on the panel starts talking in a bitcoin maximalist direction and starts taking it in that direction, Ted Cruz is going to go with the flow.
Moving on to another person who touched this legislation. Caitlyn Long, Block Chain Consultant from Wyoming Caitlin is a 22-year Wall Street vet and now the CEO of Custodia bank.
Much like Cynthia Loomis and Caitlyn Long, in my opinion, a little libertarian-esque, kind of doesn’t want to over regulate the crypto space. So, is it in her best interests to slow down to DeFi? But again, we don’t have a lot of pro-DeFi, pro-ethereum, pro-crypto people who are touching this bill.
Of course, we have Senator Loomis, who has her own incentives to pump bitcoin rather than any other L1s or altcoins. At one point in a quick 15-second plug, she says in the video discussing altcoins, “burn it all down, bitcoin will be the phoenix that rises.”
Ethereum & Crypto to be deemed securities
Well, if you want a head start, the block was able to obtain a copy of the Loomis legislation prior to next week’s final copy. By the outlined definition below, nearly every cryptocurrency, including ETH, is defined as a security:
So my takeaway from all this is that the hands and minds that touched this legislation are all very bitcoin-oriented and bitcoin-centric people. We don’t have a lot of Ethereum maximalists; there’s no DeFi or NFT type people. It is the bitcoin people who have basically a more libertarian mindset towards crypto at best. This is not a time to panic. not necessarily. We actually don’t know if it’s going to be in the final bill. It wouldn’t be good if ETH, NFTs, and crypto were classified as securities. That’s the biggest risk. And also, by the way, if this gets introduced, it doesn’t necessarily mean it will pass. There are a lot of scams in crypto. There are a lot of unregistered securities. That does not mean that everything is a scam or that everything is an unregistered security.
In my opinion, Ethereum has already passed the point of no return. It’s a commodity at this point and has already been talked about as such by the CFTC chair and SEC Chair, but we’ll see what this crypto legislation actually says on Tuesday. Unfortunately for you and me, there’s not a lot we can do in between now and Tuesday except to get this information out there to as many people as possible. There will be a lot we can do in between Tuesday and when this bill eventually passes, there is going to be a lot we can do, so make sure you’re staying informed.
[This article is a transcription of a video made by Altcoin Daily]
Original video: https://youtu.be/gTsAxDoxBYA ]
