Florida & Texas Need To Be DeFi Sanctuary States Because The Gov Wants Global DeFi KYC

Most of the lawyers have suggested that the heavy regulations for defi are coming this summer based on timing, election cycles, etc. Polymarket just got slapped by the CFTC and it sets really bad precedent.

There is only one silver lining in that suit, and it is that the CFTC hates company owned front ends, which implies open source IFPS HNS based template paramaterized front ends could be made.

There are so many more ways the the gov can force KYC on us, and for now in the US, KYC is a de facto ban, because nothing is capable of compliant. The Gov is making it clear they will hunt devs and foundations with lawsuits globally.

Most normal KYC breaks DeFi in ways that make it bad for middle class and poor people, in ways that reintroduce monopolies. Without very tailored legislation for privacy and zero knowledge proofs mechanisms for very secret very private very limited kyc aml mechanisms forced into state legislation in FL and TX, there would be no way for Defi to even begin to comply and exist in the US.

Moreover, there would also need to be very aggressive state level regs to protect truly decentralized backend and decentralized front end from security and commodity obligations. I cannot stress this enough people, if there isn't some sort of sanctuary state, the US gov is going to tank the entire global defi market, because they are fully committed to the custodial KYC model.

There are several aspects to this that will ultimately go before the supreme court, but that is a long way away. Like your kyc identity should not exist on most blockchain applications, only perhaps a certificate that proves your wallet is american and has funds from a CeFi exchange, and then they should have to get a warrant to get further information from Coinbase.

Most people would be shocked at how much they know without kyc just using chain anaylsis. We are already at the point of warrantless surveillance which needs to be challenged in court.