Treehouse Profile picture
Jun 8 13 tweets 5 min read
A bipartisan #crypto bill was introduced yesterday, 7 June 👀📝

Also known as the Responsible Financial Innovation Act, @SenLummis and @SenGillibrand proposed a regulatory framework for digital assets in the bill. Here are the key takeaways in case you missed it:

🧵👇
1️⃣ Definitions

The bill recognizes #crypto as digital assets and makes a clear distinction between tokens that are considered securities vs. commodities. The class a token falls into will be evaluated by its purpose and the rights conveyed to its holders.

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Based on the legislation, most #cryptocurrencies like #Bitcoin and #Ether are defined as "ancillary assets" which fall under commodities.

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2️⃣ Regulation

Crypto assets classified as commodities will fall under the Commodity Futures Trading Commission’s (CFTC) jurisdiction. #CFTC will have full authority over digital asset spot markets.

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On the other hand, crypto assets that fall under securities will be regulated by the Securities and Exchange Commision (#SEC).

The CFTC and SEC have also been directed to create a self-regulatory organization (SRO) for more structured and efficient supervision of crypto.

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3️⃣ Taxation

Crypto transactions under US$200 will be tax-free, paving the way for virtual currencies to be used as a medium of exchange in everyday life.

Miners and validators will not be taxed on their rewards as income until their assets are sold for fiat.

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4️⃣ Stablecoin regulation ⚖️

The bill establishes that #stablecoins must be fully backed by one or more liquid non-digital financial assets, and issuers must meet detailed disclosure requirements.

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There will also be a new regulatory framework set up for banks and credit unions to issue their own stablecoins.

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5️⃣ Disclosure requirements ✍️

Crypto projects are to disclose the scope of permissible transactions that may be undertaken with users' digital assets, including material source code updates, treatment of assets in insolvency, and applicable fees.

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6️⃣ Energy consumption ⚡

The Federal Energy Regulatory Commission is tasked to analyze and report on crypto's energy consumption levels and determine the best ways to use renewable energy and reduce energy waste.

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7️⃣ DAOs

Decentralized Autonomous Organizations (#DAOs) will be classified as businesses under the tax code and will have to be legally incorporated.

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If you found this summary of the #CryptoBill useful, like, retweet, and comment below.

Try Harvest to see which of your assets may be affected by the released bill! 🌳👇
harvest.treehouse.finance/connect
What are your thoughts on this? 🤔

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More from @TreehouseFi

Jun 7
Many assume that successful investing comes from picking winners during bull markets. However, it is during bear markets that life-changing wealth is created.

Here’s our playbook on how to navigate this Crypto Winter!
🧵👇

#WebTr3e 🌳 #DeFi #BearMarket Image
As we navigate #CryptoWinter together, here are some principles that can help you endure this bear market.

1️⃣ Downside Management & Capital Preservation
2️⃣ Asset Selection & Accumulation
3️⃣ Liquidity Optimization & Capital Efficiency

/1
1️⃣ Downside Management & Capital Preservation

Hedging, sizing, and dollar-cost averaging (DCA) can help you mentally prepare for stressful market movements and generate positive expected returns in the long-term.

/2
Read 13 tweets
Mar 11
#DeFi Daily 11/03/22

#Bitcoin pulled back on Thursday, falling by 8.54%. It found support below the key $39.5k level. Price retested the downward channel which it broke out of on Wednesday during US trading hours.

Read more: 🧵👇 BTCUSD Graph
#Ethereum’s $ETH has hit through the trailing stop loss at $2577 yesterday afternoon. We suggest observing retest of the $2350-2550 base area + trendline since Feb 2021 on a daily chart which also serves the lower bound of the wedge.

/1
#DeFiTVL sits at 200.6b today as it has remained relatively flat throughout the week. Overnight, there were more rotations out of the #Fantom ecosystem, driven by outflows from #Solidex and #Solidly.

/2
Read 7 tweets
Mar 10
#CryptoBytes

So you’ve heard about Proof-of-Work (PoW) 🔨 being used in #Bitcoin and #Ethereum, what about Proof-of-Stake (PoS) 💰? Read on!

If you’re unfamiliar with PoW, read our previous thread here:

🧵👇
Proof-of-Work and Proof-of-Stake are both consensus mechanisms or algorithms that ensure the security of the #blockchain. 🔒

In simple terms, they are used to select which participants/nodes should be given the chance and authority to add a block to the chain.

/1
This ensures security because it helps to filter participants who may not be genuine or committed to the #network.

In both mechanisms, chosen participants have to contribute a certain resource such as money or energy. This prevents bad actors from overtaking the network. 😇

/2
Read 10 tweets
Mar 10
#DeFi Daily 10/03/22

$BTC saw a breakout yesterday during Asian trading hours. Price cleanly broke above the $39.5k resistance line, while the hourly RSI moved into overbought levels, revealing a renewed short term #bullish momentum.

Read more: 🧵👇 BTCUSD Graph
$ETH had a similar move yesterday as it broke out of its inverted head and shoulders pattern. Looking at the daily time frame, ETH is forming a wedge pattern where the level to break above would be around the $2.85k level.

/1 ETHUSD Graph
#DeFiTVL rose about 10bn overnight to 204.5bn currently. This was again led by @terra_money and @wavesprotocol, with TVLs sitting at 26.4bn and 2.4bn respectively. #Terra’s #TVL has grown by 12.2% over the past 7 days while #Waves has grown by 48.5%.

/2
Read 7 tweets
Mar 9
#CryptoBytes

#Cryptocurrency like #Bitcoin are known for being volatile. Here's an overview of how $BTC price fluctuated over the years:

Read our previous thread about Bitcoin here:

🧵👇
#Bitcoin has seen significant growth since its start in 2009 with some major price drops. $BTC price remained below US$2, for the first few years but in June 2011, the price shot up to US$31, before it plummeted down to a single digit. 📈📉

/1
In April 2013, #Bitcoin’s price grew to US$200, and by November, it was valued at more than US$1000!
From this, the price skyrocketed to US$10,000, in November 2017 and in just 4 years, $BTC price rose to around US$68,990, in November 2021.

/2
Read 5 tweets
Mar 9
Andre Cronje, dubbed ‘Godfather of DeFi”, will be exiting the space according to a tweet by his long-time colleague Anton Nell on 6th March, who will also be joining him.

Out of the loop? Here’s a thread explaining the incident:

🧵👇
Who is Andre Cronje?

If you’re new to the space: Cronje is one of the most influential and prolific developers in #DeFi. Having held the position of Technical Advisor at @FantomFDN, Cronje’s knowledge in #blockchain technology is profound.

/1
The experienced developer worked in numerous organizations within the space, contributed to the development of significant projects like @CurveFinance, @FantomFDN, @SushiSwap and founded the widely successful @iearnfinance along with @thekeep3r.

/2
Read 17 tweets

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