LogicallyMinded on Nostr: I’m not seeing much uproar about the #GENIUSAct. Instead people are having fun ...

I’m not seeing much uproar about the #GENIUSAct. Instead people are having fun memifying Warren. You would think that a regulation attempting to force on-chain #KYC (as I understand it) would get more attention.

This could backfire for regulators though. Instead of KYCing their users, #DeFi protocols may choose to ditch USD-backed #stablecoins and adopt alternatives instead. That said, USD-backed stablecoins are largely adopted so this would require some significant changes from DeFi protocols. Implementing KYC may be the path of least resistance.

Also, it’s unclear to me to what extent wrapped versions of #USDC or #USDT could be frozen by the issuer. There will probably be some workaround but using those non-KYCed wrapped versions in their protocols would certainly exposed the protocols to some form of retaliation.

#Crypto #Stablecoin