Ladies and gentlemen, I warmly welcome you to the final phase of the Decoding Act, at least when you take the lead. Although at some point someone may select this mailing list to back up, there are currently no plans to do so.
By using the pink goggles, or maybe the polished glasses in this latest newsletter, I will change the format. Since Law Decoded released last week focused on some of the many stories in the cryptocurrency field, I wanted to touch on certain topics this week.
Since I will not tell you about the weekly code changes anymore, I wanted to give you an idea of how I see how the general situation develops. There are many basic laws in force now, and courts are in court, but I will return to these laws to introduce you to what I consider to be three cases that must be dealt with in crypto legislation. These are also predictions and opinions, so remember that they belong to me and not to copy graphics in general. And as always with the future, I can be very wrong.
Trust and securities
Expectation: The role of securities regulators, especially US securities and stock exchanges, will continue to determine the fate of new token issues. And it may take a while, but the SEC and other securities regulators will start going back to some, but not all, DeFi projects when they know how to do it.
Situation: Profiled lawsuits against companies such as Telegram, block.one and Ripple have scared many potential issuers of tokens off the market. Quiet initial successes were less dramatic than this repression. Developers such as the Filecoin Foundation and Blockstack seem to have found ways to not only raise money to develop tokens under SEC exemptions, but to decentralize those tokens to the point where the SEC did not intervene the moment these companies stopped registering. Sentences for these symbols.
Formalizing the symbolic decentralization process will greatly help new developers, whether it’s categorizing icons on the platform or adopting a Hester Pierce-style sanctuary. It is possible that the current chairman of the board, Gary Gensler, will not go into the issuance of securities, and hides as decentralized tokens. We will not see another 2017. But optimistically, Gensler is clearly interested in formalizing the market, which means that there are clear rules of conduct.
Meanwhile, listed companies such as Square, Tesla and Microstrategy are increasingly becoming a bias for stock market investors who may be exposed to changes in bitcoin prices. BTC listed funds in Canada and great market interest in the US means that it is only a matter of time before the SEC shoots one up in the US. Slowly but surely, the coding of the stock continues.
When it comes to DeFi? The committee will divide this over the years. I expect with low confidence, and hopefully error, that there will be an attempt to legally hold programmers responsible for the DeFi code.
Outlook: The central bank’s digital currencies are evolving. Some of them will start faster, but those that are very important as peer-to-peer payment mechanisms will take much longer, if any. Major improvements need to be made for distributed ledger technology to play a role in this transformation, and I’m not sure.
Situation. The central bank’s digital currencies have largely remained in the shadows for quite some time. For crypto-fighters, this was a hypothetical use case. To the money authorities: an extra gigantic technology. Interest fell and fell at various points when technical giants became involved in digital payments, putting immediate pressure on central banks to modernize older systems. But these moments will disappear.
However, the COVID-19 pandemic has shown the fragility of today’s payment methods, and everyone can see it. The need to have money in the hands of citizens, combined with the sudden fear of spreading disease through personal contact and especially the contamination of cash, put the concept of digital currency at the top of the central bank’s agenda. many of the largest central banks in the world.
CBDC development will remain an important topic for discussion and development in the foreseeable future. However, it is full of misunderstandings and unconfirmed assumptions. None of the “big five” monetary powers – issuers of dollars, euros, yen, yuan and pound sterling – have committed themselves to the specific details of their future digitization, even if they are ever launched. Will the central bank’s digital currencies be carriers? How will they be anonymous? Where will the transaction data go? Will it be available to banks, companies, citizens or the world? Will they work with distributed general ledger technology?