Thread by @StylesGrant

as usual people lack the legal background to understand 6050I. This will do what I kept saying on reddit for 2 years....It forces non us citizen owner operator dev to force mandatory kyc on all people in the world who use the defi app, if they do not, the US will prosecute and

extradite them on banking secrecy charges like they did Bitmex and Helix. Since the US has horrific regulations, it's a defacto ban on NFT and all of DeFi because nothing can be approved or marketed in the united states, our regulatory system is broken, everyone has to

offer things in an unregulated grey market that avoids kyc to avoid regulation.....This will destroy american retail, and american angel investing, and the profit and utility premise of DeFi which will.....cause a bear market. United states venture capital funding DeFi tokens

*IS* what drove this new bull market, it *is* what ended the last bear market.

IRS Forms to comply with 6050I are called 8300's and require KYC information from BOTH Parties, even in a TWO Party system, or a smart contract or automated market maker, *with this new bill*.

8300's cannot be autofilled much less filled at all for every DeFi transaction, and certainly not without kyc, and not on a permissionless anonymous system where neither person interacting with the smart contract has any idea who the other human being is, thus you are a felon

because you *literally cannot* fill out 8300 form. The argument against it simply wouldn't work, and wouldn't allow smart contracts to remain permissionless and open. Let me repeat that one more time, you cannot fill out an 8300 if you do not know who the other person you are

trading with is, even if that is an automated market maker script in a smart contract. Your kyc information will be used to deny you service, because US citizen are not allowed to use anything but coinbase.

If a crypto is not open, permissionless, unconfiscatable, and

uncensorable, it is not crypto. This is boomer surveillance regime surveilance capitalism surveillance imperialism. It is not crypto. They want a surveillance regime.

Censorable, confiscatable white listed backdoors on USDC and Tether, felony fines for any overseas operator

offering Terra Stable coin or algo coins without KYC (which will ban US citizen from holding UST or Dai unless Dai is CFTC licensed)

What part of "using wasabi and taproot and mining pools and lightning network without kyc makes you a felon" do you not get?

This is what 6050I IRS provision, the other infra bill amendment provisions, and Fatf do. Everything that isn't bitcoin get's censored, and bitcoin get's pushed into a corner where if you move wrong to the right or left by 1 inch, you're a felon.
Past interpretations and supreme

court challenges against the banking secrecy act were aimed at the "Three party doctrine" i.,e you have a middle man. Well the fatf has created a massive framework against crypto trying to get passed rules that basically hold coders and developers as regulated middlemen.

This means they are being accused of being a third party, which means they have to report KYC to not be a felon. The *other* provisions besides 6050I in the bill can be used to make this claim because of the broad sweeping vagueness. Thus the US government has both a Two party

and Three party argument against smart contracts and Defi.
Moreover every transaction from one crypto to another crypto counts as a cash out, and the 6050I IRS provision in the reconciliation is an *amendment* to the existing 6050I irs which does not *mention crypto*.

That means the amendment explicitly makes 6050I directly apply to crypto, crypto vasps, two party and three party transactions, not just cash or cash equivalent.
*If the entire transaction takes place outside the united states* Well that requires a global kyc regime for DeFi to

prove, and by then we will be in a bear market because you kicked the US out of DeFi. as I've stated for 2 years on Reddit, over 2 years. The US can extradite and prosecute any non us citizen over violation of the bsa and Treasury sanction regimes that interfere with us commerce

and taxes, the US is the only country powerful enough to force global kyc on DeFi.

Just because complex international US tax, anti money laundering, and counter terrorism financing, and derivative and security law is above your understanding does not mean you get to dismiss it

off hand as fud that won't put people in prison and obliterate innovation in the United States, it certainly doesn't excuse contempt and ignorance towards the severe legal challenges every single DeFi team is facing currently.

If you asked around to developers and their general council you would be very aware of how oppressive these laws are and how worried the industry is.

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