KYC on outgoing transactions from financial institutions is important to make ransomware payments harder. As much as I like bitcoin, stopping ransoms and extortion is crucial for long term health of world security and finance. I think long term bitcoin gets held in large quantities only by states that can protect it with military power against extortion. I think some more regulation is good for bitcoin to continue to prosper to the next level.
Make financial institutions require signing transactions with the private key of the receiver as well as the sender !
Protecting from the ability to make ransomware payments is by far the most ridiculous excuse I have ever heard for regulating crypto. Protecting idiots from the consequences of their own stupidity by regulating everyone else is not and will never be a strategic policy. It’s just the political excuse used to enact policies which serve other goals.
Brian makes a case about the side effects of self-hosted wallets and decentralized identity (DIDs). However, he doesn't talk about how a hosted wallets (ie, Coinbase) has side effects as well.. people are effectively locked out of Coinbase accounts due to automated verification failures and no support.
This regulation isn’t stifling.
What’s stifling is tdameritrade not enabling options on cme bitcoin futures for retail.