from talking to lawyers and devs for the last two weeks re: sanctions stuff, I think USGoV has won Andre Cronje's prediction that DeFi will divide into "regulated DeFi" and "badlands DeFi" has come true and most blue-chip projects will embrace the former

I think base-layer privacy, threshold encryption, etc. so that most players have no idea what txs they're processing or addresses they're serving is the only thing that can reverse this trend, but we'll need some cypherpunk spirit to defend that too, and it seems to be gone.

It seems pretty clear that as soon as a lawyer says "prison" to vast majority of devs, even if prison is highly unlikely, they are eager to add all kinds of dumb censorious quarter-measures to "show good faith attempt at compliance." Death by 1,000 cuts this will be.

This is the likely reality we are moving towards, sad. But not all is lost, from conversations this past week there are several elegant and relatively straightforward base layer privacy implementations under advanced exploration.

I say shame/sue/stigmatize american companies away from using the word DeFi disingenuously, fud the bags, dump it. If they won't amend Frank & Dodd, & the investment company act, then they can't just think this space will let US companies dupe people dishonestly.

The US lobbyist/lawyers/SEC/CFTC/anticrypto hit piece people, will unequivocally allow crypto in the US to be onchain FedFi backdoored Fintech banking security products portrayed as crypto if they get their way. It's frankly fraud to call it so. It's not crypto not permissionless

Davos and the US gov are basically using Circle and PoS on eth to do a hostile takeover of most of DeFi and Eth. It's america chain and a fully censorable USDC token.

We wanted to do fair trading, these people are literally the Nestle Congo blood diamond people concern trolling people with 30 year prison sentences for the DPRK. It's so clearly mendacious on their part, so clearly not about KYC/aml.