Latest 275 page Treasury Proposal on Taxes for Digital assets is essentially a Threat To The Network

What we really need to talk about are several things here, a) incentives, b) international treaties for law enforcement cooperation, c) actual feasibility of play whack a mole with front end technology and the language vocabulary to describe interacting with smart contracts

I actually think Ethereum is dangerously close to failing and being hijacked by america and its Trad Bank surveillance "Suits" and Wallstreet/DC more or less. Not that anyone here believes that.

I'll explain to you why you're wrong, and what you're overlooking.

First off, we're at the point where no venture capital in the western world can afford to hire or invest to do a startup in crypto without complying with international KYC laws, and they will also lose their banking partners.

The United States has international law enforcement cooperation agreements with 140 different countries to help them do extradition for criminal offenses, and aiding US tax evasion is one such.

They did this to forex and poker online in 2010, and then they forced 160 different countries to basically stop offering bank accounts to 98% of american expats. --Why? because banks don't think the compliance cost are worth serving american customers, neither do forex.

So here's the thing, america *DID* force 150 different countries Forex Brokers and Banks and Poker sites to do mandatory KYC doxxing so they can't be sued.

So guess what's going to happen to crypto,. guess what's going to happen to validators, miners, nodes, government token holders, operators, forum admins, development teams, sequencers, the people running LIDO, Dao voters,.

​

I spoke to Rohan Gray just yesterday, and he told me validators are "institutions that own property". This is how Lawyers in DC think. The american prosecutor are not going to treat the ethereum network like a public global commons, they are looking for custody and control over the transmission of money that does not exist and cannot be complied with, without onchain KYC and whitelist clearlist systems, and that's ultimately what they want, they want doxxed licensed validators and sequencers and dao's governance.

​

Developers are going bankrupt, no one can eat, no one can make money, they have the incentive, and VC has the incentive to basically capitulate and comply with the SEC and onchain and web app based KYC for DeFi globally, because there is no other way for them to make money, without losing banking access. This industry is going to capitulate to global KYC on DeFi.

Under this new Treasury Proposal, nearly 300 pages long, etherscan would be required to collect KYC merely because it allows you to hit a button that calls a smart contract function.

You have to look beyond the mere wording of the law, you must look at the intent, the intent is onchain kyc and doxxing of validators and sequencers and dev teams and dao admins, clearly.

​

If you put everything on urbit, desktop apps, distributed storage schemes, local host client based and run distributed front end interfaces for connecting to smart contracts, they will simply create new language to ban this, some of it already is more enforceable than the web based version. Sticking things that fall under money service business and FinCen regs into a desktop app published on github, run client side, doesn't escape legal risk, it just shifts it, and they will act accordingly.

​

Consensys, Metamask, and Infura are bad for the industry, Chainlinks multisig is bad, numerous countless centralized L2 with multisigs, ethereum is riddled with ticking timebombs like this where you do not have enshrined rollups and fully decentralized sequencers and validators.

US prosecutors will not treat multisigs kindly, and if non-multisig's tell people to move to new contracts, even the "intent" to "manage" a code base this way will be recast in the language as a form of "active management", which is fyi how Rohan Gray sees it.

​

I would say at a bare minimum Ethereum must get rollups enshrined, and at least 3 major L2s must go fully decentralized onto fully decentralized sequencers with no multisig, for this network to have even a snowballs chance in hell of not being hijacked by america. That lastest stunt by Starkware, is how you wind up with a fully american-chain onchain KYCed fedcoin fedchain fedbankchain version of ethereum, that's exactly how federal prosecutors will see the level of control over Starkware as, the appearance of decentralization is purely imaginary.

​