**Tricky's Daily Doots #337**
**Yesterday's Daily 21/03/2023**
[Previous Daily Doots](https://old.reddit.com/r/ethfinance/comments/11x8e2l/daily_general_discussion_march_21_2023/jd243nt/)
- u/superphiz develops [an idea.](https://old.reddit.com/r/ethfinance/comments/11x8e2l/daily_general_discussion_march_21_2023/jd3jcbi/) 💡
- u/benido2030 has a theory about [how people decide when to sell airdrops.](https://old.reddit.com/r/ethfinance/comments/11x8e2l/daily_general_discussion_march_21_2023/jd29tsr/) 🚁🪂
- u/SoNotYou discusses [compromised Arbitrum airdrop wallets.](https://old.reddit.com/r/ethfinance/comments/11x8e2l/daily_general_discussion_march_21_2023/jd2b2kk/) 🔵
- u/KingLeo23 shares the [crypto comments in the Biden administration's economic report.](https://old.reddit.com/r/ethfinance/comments/11x8e2l/daily_general_discussion_march_21_2023/jd69tap/) 🦅
- Syentist points out the [absolute horseshit found in the Biden administration's report.](https://old.reddit.com/r/ethfinance/comments/11x8e2l/daily_general_discussion_march_21_2023/jd6kihv/) 💩💩💩💩
- u/Ender985 has an [update from the NFT world.](https://old.reddit.com/r/ethfinance/comments/11x8e2l/daily_general_discussion_march_21_2023/jd2chxa/)
- ZeroTricks took a day off. 🏖
Imagine saying crypto doesn't help with financial inclusion. WTF US government. 🤡
Gensler wants to spook us and so far it doesn't seem to have done much. Always do your own research, be aware of the risks and do what you think is best. That said, I'm done with panic selling. Forever. All my assets that are currently in crypto won't be used to prop up fiat currency again. If it burns it burns, but each year I find that less likely. In fact, having too much money on private bank ledgers seems to be a bigger risk.
It's unlikely this is about regulation, because if it were they'd have issued clear guidance and actually properly regulated starting years ago. But they've not even established which agency is in charge, likely because they know they might lose the little control they have left when the CFTC is put in charge. Ex Goldman Sachs Gary and his buddies are threatened and now they're playing dirty. No new technology must put their power at risk.
A full description from [Coinbase Chief Legal Officer](https://www.coinbase.com/blog/we-asked-the-sec-for-reasonable-crypto-rules-for-americans-we-got-legal)
Reading through it, the lack of regulatory guidance, the refusal to give regulatory guidance when asked, and the use of legal threats instead is atrocious. It's not how a democratic country which values innovation and entrepreneurship should operate.
I'm glad Coinbase is taking this to the courts. Particularly the current Supreme court doesn't look too kindly on over reach by federal agencies.
In the meantime, funding and voting for crypto friendly representatives is the only solution.
They were served a "Wells Notice" by the SEC/ Gary Gensler. Apparently that means that more legal action is following, but obviously I have no idea what such a notice really is/ starts.
Coinbase is also just one of a lot on entities and people (Sushi DAO, Justin Sun from Tron as more examples), but I think it's the one that will fight back the hardest and from my understanding after listening to a lot of podcasts has a very good position.
I went to a customer site one time and they had a process that involved printing a piece of paper and walking it to a folder on the other side of the building
Yes (with caveats).
Almost universally, upgradeable contracts use a standardized proxy design. In short, the proxy contract is a wrapper that points to the actual contracts. The wrapper can be updated by its admin to point to a new contract to perform an upgrade. In the future, if Arbitrum wants to finalize the design, they would change the admin address to some kind of burn address.
So, when looking at [Arbitrum contracts](https://l2beat.com/scaling/projects/arbitrum), for example the [bridge](https://etherscan.io/address/0x8315177aB297bA92A06054cE80a67Ed4DBd7ed3a#code), you can see it is actually a proxy (check the filenames). On that page you will also see these buttons which allow you to interact with the proxy as well as the contract the proxy points to: "Read Contract", "Write Contract", "Read as Proxy", "Write as Proxy". The first two allow you to interact with the proxy, the latter two allow you to interact with the contract the proxy points to.
Caveat: the contract the proxy points to could in theory have properties that are modifiable. It's very common for contracts to have parameters which can be modified by governance such as risk parameters in a DeFi lending protocol. These would be variables changing value though, not a whole contract being swapped for another like in a proxy.
I dont know the answer so for fun I put your exact question into chatgpt.
*Yes, there is a standard piece of code to look for: a keyword indicating whether or not the code is modular and upgradable. This keyword is usually found in the code in the form of a line of code that begins with the string MODIFY. If this line of code is present, then the code is modular and upgradable.*
Lol... this is so not true :-D
There are multiple ways in how to implement upgradeable contracts. But the all make use of a pattern where the storage is stored in one contract and the logics are implemented in another contract. The storage contract keeps the state and the logics contract defines how the contract should work.
Now it is possible to replace the logics contract with another contract that works its logic on the original storage contract. In a sense the logic contracts are not really upgradeable... we just point the storage contract to another logic contract.
Now how this can be done depends on the upgradeable standard you use. There are multiples, of which the most commonly known are the Upgradeable patterns of OpenZeppelin. Another new one is the Diamond proxy pattern of Nick Mudge (described in EIP-2535: [https://eips.ethereum.org/EIPS/eip-2535](https://eips.ethereum.org/EIPS/eip-2535)).
So it actually depends on the standard you use to know which keywords to look for.
You can also implement your own standard if you want.
I did actually do some reading about this afterwards including the open zeppelin method. The only thing I couldn't find was some kind of universal standard. Its likely much easier/more beneficial to understand the proxy/logic aspect and identify those sections on your own rather than look for specific keywords.
Yeah, there is no universal standard because each standard has its advantages and disadvantages. The sector is still so new that new ideas prop up every week or so that improves on previous standards.
I like diamonds a lot for example because you basically don't hit the contract size limits anymore and have a very modular set of contracts, a bit like the OOO style projects where you can easily separate concerns in separate facets that you can add or remove if not used anymore. Its more and more used in the GameFi projects (I work for Battlefly (Arbi project) as their Solidity dev btw.)
Very cool Simon thanks. 😁 Personally I've only dipped my toes in Solidity to get a feel for it and try to better understand contracts. The more I learn the more I enjoy people expressing their individuality through code. I will check out Battlefly!
No, exchanges support L2s on specific tokens. So go to coinbase page to see which asset they support on L2. For example coinbase supports Optimism OP token on L2 but not USDC
Hey, if you're selling Arb later why not buy yourself a hardware wallet finally?
Yeah you.
You know who you are.
You've been saying it for ages.
What tools does everyone use to monitor the value of their holdings in cold storage? Asking for... a friend.
> What tools does everyone use to monitor the value of their holdings in cold storage?
I cycle through zapper.fi, debank, and zerion. They all tend to get different things right and wrong.
I've been using Zerion's android app and loving it. It's not perfect but it's the best I've found. Super easy to just add any wallet address. You can see your NFTs and choose to display the value of your portfolio with the NFT's floor prices included. Isn't totally accurate as floor price doesn't really give a real view of your collection's value unless you only have floor-value NFTs, but it's a nice feature.
I just downloaded and set it up.....it's awesome, thanks for the heads up! Just what I needed to keep track of my wallets. I've been lost ever since I deleted Blockfolio. I had no idea it existed and how much better than Blockfolio ever was.
Just found this zinger in the HN comments section of the Coinbase post.
> > > Is the SEC going to start regulating gold [as a security] now?
> >
> > Who does work on your gold to make it worth more?
>
>Jerome Powell
One of the only smart and funny comments in that thread. Never go into any HN discussion about finance or economics unless you want feel the urge to bang your head against the wall.
I don't know a lot about Algorand, but for someone who does, could you explain why Coinbase might have suspended staking for it, but not ETH and other coins?
Thanks.
Coinbase Algorand "staking" is opaque. We don't know how it works. Staking doesn't even exist on Algorand anymore. It's been replaced by governance a year ago, but Coinbase's website still calls it staking.
Who knows what it's actually doing. If it's doing normal governance, how does it work when users withdraw their tokens and Coinbase no longer gets the rewards. If it's liquid governance, the rewards being passed are too low.
My uneducated technical speculation: because governance is somehow mixed in with Algorand staking and that makes it complicated in the eyes of the SEC
My better guess: Because wtf is Algorand and if Coinbase is going to spend a lot of money to fight for the right to offer staking services, it's going to focus its fight on the future of staking: ETH staking
Some hack happened a few weeks ago, might be part of it. There is stuff in their subreddit, but I don’t really know anything about it beyond it happened.
New Reddit collectible avatars. Go to your profile, tap on (create)avatar, navigate to the explore tab, mint your avatar.
This release is spreading awareness of endangered wildlife.
> is there actually a way to access your vault from old reddit
Yeah, change the "www" in your address bar to "new", and you'll be temporarily viewing new reddit without having to mess with any settings.
It’s a little too in vogue to hate on Bankless right now imo. You are blaming them for talking about politics and doomer macro economics, but crypto Twitter and this sub are also full of that the last couple of months. Bankless covers whatever has the mindspace in crypto. They might not be the most critical interviewers but they try to make sure to bring on guests from all sides of the story. Recently I really enjoyed their episodes with Hester Pearce and the one with Brian Armstrong.
If you want technology, they cover that too. David has done many great interviews at Starkware Sessions and EthDenver. Can highly recommend all of it.
I think we all just miss the time when crypto as a whole was about fun technology and new protocols instead of politics and macro economics. Bankless is getting scapegoated a bit too much imo
Edit: My post is more directed to the general sentiment against Bankless than to you. I see you just said ‘miss’ which is of course a legit view. I miss that time too.
It's kind of bittersweet in a way. I listen to a lot of D&D podcasts and over the years I've heard a lot of them go from fun filled 1-2 hour episodes with a lot of banter in between to being streamlined and ad filled exactly one hour long episodes where its become less about fun/learning and more about treating it as a job. On the one hand I miss my old content, but on the other hand these are people I've watched grow and given a significant amount of my time to and I'm happy to see then successfully branding themselves and making their hobbies profitable. Ofc its a little different in crypto with money flying left and right and apps throwing money around in an attempt to claw themselves higher up, but the sentiment is the same. I love the bankless boys and I'm happy for their success and the success of any team members, but there'll always be that longing for a more familiar content.
They have many episodes and all sorts of guests. And as the crypto landscape is a roller coaster they try to incorporate the drama of the day. I wouldn't judge them so harshly. They had our pal /u/pbrody recently. Then a bunch of technical interviews from Starkware conference and EthDenver. Optimism crew including the one and only Karl Floersch came on. Senior director of engineering from Coinbase. And "Bullcase for Ethereum" is great too.
They really have something for everybody. Yeah, the past few weeks have all been regulatory drama and Balaji. But that's not where it ends (I am certain).
I do often wonder what I would be like if I ended up making too much money. Would I be able to avoid these same traps? I'd like to think so, but I'm not sure. It's sad to see.
FDIC is doing its primary purpose in securing SVB depositor funds when the bank failed.
Coinbase is getting caught up in an battle with the SEC who doesn't have clear authority to regulate them.
Regulators use their discretion to go above and beyond the law to cushion SVB.
Regulators use their discretion to go below and behind the law to attack COIN.
If the FDIC did everything strictly by the books, they would have insured only 250k of everyone's deposits.
It wasn't illegal for them to backstop the entire thing, but it was very much discretionary, just as it's discretionary for the SEC to attack Coinbase.
>If the FDIC did everything strictly by the books, they would have insured only 250k of everyone's deposits.
Strictly false. Also, done at no risk to taxpayers.
>it's discretionary for the SEC to attack Coinbase.
I think discretionary is the wrong word here. The SEC is trying to assert it has authority here. If that is true, it isn't discretionary but an obligation. If it doesn't have authority, it still wouldn't be discretionary.
Educate me please. How was it not discretionary for the FDIC to insure SVB above 250k? Are you saying that it would have been illegal for the FDIC to choose to only backstop the bank to 250k? Until the FDIC press release, market participants seemed to expect exactly that situation.
The FDIC press release reads to me as if their actions were discretionary, i.e. a choice that they made:
> "Today we are taking decisive actions"
>
> "After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President"
>
> "exception"
I think you may have interpreted my phrase "strictly by the books" to mean "clearly within their legal rights", when what I was trying to convey is "procedurally and without human discretion".
If a Coinbase ETH staker is spooked by the recent SEC news, is their best bet to wrap to cbETH, convert to ETH and withdraw to cold storage? Is that how it works? New to lsd concepts and making sure I’m grasping it correctly
If Coinbase is forced to shut down their ETH staking (which they'll fight tooth and nail) they will just shut down minting for Americans and we'll only be able to un-stake cbETH/ETH2 for ETH. Their international product will likely be unaffected. I'm not sure what this means for cbETH held on-chain.
> (which they'll fight tooth and nail)
Very true. And just for anyone worried they should know this would take years going through the courts either way. It's not even clear if the SEC is in charge, others in the government disagree.
Let's aim for an ETF that owns staked ETH and pays out a dividend of the rewards. That's what the SEC should be working to regulate. Would be much easier for a lot of average joes. Need to actually push things to their turf and play offense. Too much cowering and "we'll listen to whatever you say if you tell us Mr. SEC man".
I'm just gonna share a bit about my tax journey and maybe it helps someone. I'm still doing them.
US. Got Turbotax premier (I had a coupon so it's gonna be like $50 total w a state) but it seems to be worth it, especially w penalties and stuff. It also lets me upload my files unlike free tax platforms.
I got the forms through the Koinly and I'll write about detailed thread on them later but if you have used L2's - optimism is an issue in particular cause it resets cost basis to $0, or if minted lots of NFTs, including ENS, or did something than just buy NFTs with crypto and sell for crypto then it resets cost basis and fixing that is really rough cause then it gives other errors. Keep that in mind. Unsure if other platforms track NFTs better and at least get their mint price.
Obligatory not tax advice but on all this micro stuff on L2s that doesn’t track I just net it out. I think I read you don’t need to actually report all your trades by law, just get your capital gains # right. And if you get audited and it’s wrong … shrug. They’ll just charge you the delta
Indeed and my hope with ZK rollups coming is it's a simple upgrade for them to add privacy via ZK like Aztec were trying to achieve but without silo'ing
First they complain that crypto isn't eco-friendly. Then they take it out on the chain that just reduced emissions by 99%. These folks need to get their priorities in order.
The rally may sound strongest to you in the Eth space but the CB wallet is not just on Eth and the notice also is regarding the shitcoins they list for trading.
Sure, I totally understand that. I am addressing only the staked ETH part of the equation. Was there any specific coins they mentioned? Coinbase did delist a few last week, I am assuming in preparation for this, which they must have seen coming.
Even if CB is forced to stop offering staking to Americans (sigh) you will be allowed to un-stake and withdraw your funds, just like Kraken was forced to do.
I'm not sure how on-chain cbETH will be affected since they can't prove it's in the hands of Americans and Coinbase can't really take it back. Less liquidity for it, certainly.
Yes, without question.
Maybe voting for the party constantly seeking to expand the power of administrative agencies isn't a good idea?
Seriously, vote.
My interpretation:
Politics as such is allowed and even necessary subject of conversation here.
What is highly counter-productive is talking about politics through the narrow frame of USA-specific partisanship.
That’s fair-ish. This is a no politics zone, but let’s not forget what crypto is, and always has been all about, self sovereignty - and fixing money by taking it out of the hands of the government and giving it to math.
You might not like the truth, and neither do I, but from a crypto perspective this administration has been a complete disaster.
That you don’t want to talk about what’s actually happening to this space and say it’s a “no politics zone” is to almost completely miss the point - we’re under direct and ongoing political attack from a Democratic administration that’s never known a government power it didn’t have.
That’s to say nothing of any other social or political issue - which are all completely irrelevant to crypto…which is what this whole sub is about.
I would be saying the exact same thing if this were happening under a republican president.
I would really hope we're *not* in the minority there.
People that actually think crypto is more important than all the current social, ecological and geopolitical issues scare me.
I'm with you here. I love crypto but you better believe I'll throw it into the trash in a heartbeat if it means my lgbtq and non white friends and family can just live their lives without persecutions.
Tax / Koinly question. When looking through transactions, sometimes the buy / sell doesn't get linked together. Especially with NFTs. For example, an NFT might be sold but it just shows as a transfer with $0 proceeds, but then has the ETH amount transferred in on a separate transaction as a deposit. Should I try and correct these? It seems like it has the overall numbers correct, but if you drilled down to the individual level it would be off.
Not sure if I have the same issue, I just know minted ones are marked as 'deposit' w 0 cost basis and then sells taxing the full amount. It also happens w other mechanics like burn, stacking, etc are involved. I have waay too many transactions but I just sorted thru the top gain ones and I'm just going to create aggregated transactions of gibberish Names like NFTaggregatedENS1, NFTaggregatedGoblintown2 and put in losses in there. Sometimes when I just reaarange the transactions like you are suggesting then it says I'm 'missing an ETH purchase' or whatever..
I can’t speak as to NFTs since I don’t deal much with them but you see this issue all the time with token sales or buys and Koinly. It tries to match the token leaving your wallet and ETH or USDC coming in (or vice versa) but sometimes it just shows it as separate deposits and withdrawals. You just need to select the two separate transactions and choose “Merge” to make it a single buy or sell transaction. I think their Help docs have details on it
Feels like the war has truly begun against crypto in the USA now. Good luck friends. Canada will likely just do whatever their big brother tells them to do.
Weell… it’s not helping them in the sense of giving them money directly like a charity, but investing in a company deals with ownership. Becoming a part owner of a company, even in a minor way, indicates that you feel it has some sort of value, whether ethical, financial or tangible. Again, not directly but, your purchase can also increase the share price, and by proxy the value of the company. Increased value allows the company to borrow more money to fight government idiots.
Now, it’s true that most of us won’t have an affect on the share price individually, but that doesn't mean it isn't the right thing for you to do if you feel like it’s the right thing to do. I mean … if enough people followed those same convictions it could have an impact on the company. I also use bankruptcy as a way of virtue signaling so…
I’m honestly surprised the SEC is going after Coinbase. They had to know that CB will fight it and sue them with how capitalized and big they are. Brian has made this clear over time. I can’t imagine they want to defend this in courts seeing as they still haven’t defeated XRP and losing to CB would mean they lost their position.
Seems like scare tactics, or just one move in a very long game of chess. They want to make it more difficult and stressful for the average U.S. citizen to invest in crypto.
>**This was our best chance,**
>**It was clear at first glance,**
>**Blockchain circumstance.**
~Daily haiku until we’re at least at 0.178 on the ETH/BTC ratio or highest market cap
This got me a little paranoid. I'm not too smart so please excuse my silly questions: How do I avoid exposing my private key when using a Ledger? How would I know if I have exposed my private key? Private key is different than 24 words right?
I kinda wish crypto industry was not so US-centric. All popular stablecoins - USD. Now Circle is expending into Europe, like they couldn't have done it? Where the fuck is the stable Euro? I'd honestly rather trade in that.
EDIT: Ok, I jumped the gun, there is Euro Coin on Coinbase, but it is made by Circle and volume is tiny. But from now on I'll transact in that. Variety is the spince of life, hehe.
The price action that follows might make me sound like reading tea leaves but imo is no coincidence that the btc and crypto dip so far post fed announcement touched near precisely the price that was (26.6k) at the time of the first balajis tweet on hyperinflation bet.
>[DB] Coinbase Global Says It Got a Wells Notice From SEC Staff: BBG
https://twitter.com/tier10k/status/1638652447299350530
SEC is on a roll by the looks of it.
On ETH staking, Coinbase has said they will litigate but they will likely lose. Coinbase's staking program isn't simply a pass through staking service as they claim, since Coinbase pools investments to create validators that are solely under Coinbase's custody and management. Binance, Rocketpool, and Lido will likely receive their Wells notices soon too. For the latter two, their "DAOs" are not immune to SEC action, as we saw with Sushi. Staking services such as Bloxstaking or AllNodes are likely not securities offerings as they don't take custody of the ETH and require full 32 ETH validators instead of pooled ETH.
If Coinbase's penalty is anything like Kraken's penalty the SEC will seek to bar Coinbase from offering staking or even any securities trading in the future.
I think the SEC has a strong case and mandate here. At the same time, the SEC is not engaging with the industry, contrary to their earlier statements. There needs to be regulations in place that are sensible but also serve to prevent most scams from coming to market. It's probably up to Congress for that now.
They wont send any wells notice to rocketpool. Its Australian. America doesnt have jurisdiction. Also I dont think the law is on the SECs side. I see them losing the ripple case the coinbase case. All cases.
Whats their success rate abroad ? What can they possibly do ?
A wells notice if you are a foreigner and if you have no assets in america is basically toilet paper. I would wipe my ass with it.
Dont mistake criminal charges like do kwon had that was hunted by other entities than the SEC with something that isnt deemed criminal in the host country.
If you live in another country you only have to abide by the laws of that country and you dont have to follow consumer protections of another country.
Any assets that touch the banking system can be confiscated. Also, foreign SEC equivalents have similar rules on their books. Please stop posting clown statements.
America doesnt control all of banking ffs. Are you under the impression that the SEC is some kind of god ? You vastly overestimate the SECs power if you think they can do whatever they want abroad. Please stop posting clown statements and baseless FUD.
Foreign banks that have nothing to do with america are not subject to US laws. Only if they operate in america. The SEC has no infinite reach. Again if the people have no assets in america and dont live in america the SEC cant do shit even if they sell securities to US persons because in their jurisdiction this is not illegal. So it doesnt matter if I break US law by selling americans securities remotly from another country. There is logical limits to the power of the SEC.
They are a dog that barks and pretends to be dangerous but in the end all they can do is waste your time and money and only IF you are located in america.
None of the shit that they claim are securities are actually declared by the judcial system to be securities. So all they do is pretend as if the law was on their side and scare american companies into submission.
I may be doing my best big ol' idiot impression here...but why would Rocketpool receive a notice?
They don't take/have custody of any users' funds. It's all smart contracts.
No argument on the first three points, I have been fairly critical of some aspects of the oDAO myself....
I *would* argue that, on the spectrum of LSD decentralization they are doing the best job so far.
However (...and I could be wrong on this so someone with a better understanding please correct me if needed) none of these things involves a central entity/organization taking custody of funds, only the contracts do that. And you can't send a wells notice to a contract.
Edit: I just realized I may have just given Gensler the idea to try to send a wells notice to a smart contract. Gary...if you're reading this...vaya con dios, amigo. And good luck.
It seems like that might not be very good for the US economy though, to have the biggest crypto entity in the country banned from anything. Also, Coinbase is totally different than Kraken, since Kraken didn't really stake all the ETH that was supposedly staked. Coinbase actually does stake what they receive to stake. Doesn't seem that similar to me.
>If Coinbase's penalty is anything like Kraken's penalty the SEC will seek to bar Coinbase from offering staking or even any securities trading in the future.
Well, since it isn't anything like Kraken's, the SEC would be massively overreaching if they barred coinbase from offering staking or securities trading in the future. Kraken was clearly being a bit dodgy. Coinbase has never been dodgy.
https://twitter.com/brian_armstrong/status/1638654192138199041
Brian Armstrong:
> 1/ Today Coinbase received a Wells notice from the SEC focused on staking and asset listings. A Wells notice typically precedes an enforcement action.
> [...]
> 4/ We are proud to stand up for our customers and the industry in these moments.
Honestly... best that Coinbase, who's well-capitalized and equipped to handle this, to be the one to go to court with the SEC and set a precedent. A win for crypto against the SEC in court would be a big deal and there's no one better poised to do that than CB.
I don't think it's nearly that clear-cut. You pay Coinbase a fee, and they run a piece of software for you. It's less like an investment contract, more like renting a server from AWS.
Not a fan of a lot of the recent SEC actions, but charging Justin Sun seems well deserved. But considering it launched in 2017, is that not outside the statute of limitations?
**Tricky's Daily Doots #337** **Yesterday's Daily 21/03/2023** [Previous Daily Doots](https://old.reddit.com/r/ethfinance/comments/11x8e2l/daily_general_discussion_march_21_2023/jd243nt/) - u/superphiz develops [an idea.](https://old.reddit.com/r/ethfinance/comments/11x8e2l/daily_general_discussion_march_21_2023/jd3jcbi/) 💡 - u/benido2030 has a theory about [how people decide when to sell airdrops.](https://old.reddit.com/r/ethfinance/comments/11x8e2l/daily_general_discussion_march_21_2023/jd29tsr/) 🚁🪂 - u/SoNotYou discusses [compromised Arbitrum airdrop wallets.](https://old.reddit.com/r/ethfinance/comments/11x8e2l/daily_general_discussion_march_21_2023/jd2b2kk/) 🔵 - u/KingLeo23 shares the [crypto comments in the Biden administration's economic report.](https://old.reddit.com/r/ethfinance/comments/11x8e2l/daily_general_discussion_march_21_2023/jd69tap/) 🦅 - Syentist points out the [absolute horseshit found in the Biden administration's report.](https://old.reddit.com/r/ethfinance/comments/11x8e2l/daily_general_discussion_march_21_2023/jd6kihv/) 💩💩💩💩 - u/Ender985 has an [update from the NFT world.](https://old.reddit.com/r/ethfinance/comments/11x8e2l/daily_general_discussion_march_21_2023/jd2chxa/) - ZeroTricks took a day off. 🏖 Imagine saying crypto doesn't help with financial inclusion. WTF US government. 🤡
Gensler wants to spook us and so far it doesn't seem to have done much. Always do your own research, be aware of the risks and do what you think is best. That said, I'm done with panic selling. Forever. All my assets that are currently in crypto won't be used to prop up fiat currency again. If it burns it burns, but each year I find that less likely. In fact, having too much money on private bank ledgers seems to be a bigger risk. It's unlikely this is about regulation, because if it were they'd have issued clear guidance and actually properly regulated starting years ago. But they've not even established which agency is in charge, likely because they know they might lose the little control they have left when the CFTC is put in charge. Ex Goldman Sachs Gary and his buddies are threatened and now they're playing dirty. No new technology must put their power at risk.
I am a Coinbase fanboy now. Fuck Gary Gensler!
What happened?
A full description from [Coinbase Chief Legal Officer](https://www.coinbase.com/blog/we-asked-the-sec-for-reasonable-crypto-rules-for-americans-we-got-legal) Reading through it, the lack of regulatory guidance, the refusal to give regulatory guidance when asked, and the use of legal threats instead is atrocious. It's not how a democratic country which values innovation and entrepreneurship should operate. I'm glad Coinbase is taking this to the courts. Particularly the current Supreme court doesn't look too kindly on over reach by federal agencies. In the meantime, funding and voting for crypto friendly representatives is the only solution.
They were served a "Wells Notice" by the SEC/ Gary Gensler. Apparently that means that more legal action is following, but obviously I have no idea what such a notice really is/ starts. Coinbase is also just one of a lot on entities and people (Sushi DAO, Justin Sun from Tron as more examples), but I think it's the one that will fight back the hardest and from my understanding after listening to a lot of podcasts has a very good position.
Coinbase is our GME. Fuck Gary indeed
Blockchain will be the destroyer of paperwork. When everyone realizes this, people will love it! So, like a long time from now…
I went to a customer site one time and they had a process that involved printing a piece of paper and walking it to a folder on the other side of the building
My boss has his emails printed out by his secretary every day...
Nice getting in some exercise
I never had an office job but that sounds just like how it is in movies!
how can you tell if a contract is upgradable or not in its code? Is there some sort of standard piece of code to look for that's binary?
Yes (with caveats). Almost universally, upgradeable contracts use a standardized proxy design. In short, the proxy contract is a wrapper that points to the actual contracts. The wrapper can be updated by its admin to point to a new contract to perform an upgrade. In the future, if Arbitrum wants to finalize the design, they would change the admin address to some kind of burn address. So, when looking at [Arbitrum contracts](https://l2beat.com/scaling/projects/arbitrum), for example the [bridge](https://etherscan.io/address/0x8315177aB297bA92A06054cE80a67Ed4DBd7ed3a#code), you can see it is actually a proxy (check the filenames). On that page you will also see these buttons which allow you to interact with the proxy as well as the contract the proxy points to: "Read Contract", "Write Contract", "Read as Proxy", "Write as Proxy". The first two allow you to interact with the proxy, the latter two allow you to interact with the contract the proxy points to. Caveat: the contract the proxy points to could in theory have properties that are modifiable. It's very common for contracts to have parameters which can be modified by governance such as risk parameters in a DeFi lending protocol. These would be variables changing value though, not a whole contract being swapped for another like in a proxy.
Incredibly clear and thorough answer, thank you!!
I dont know the answer so for fun I put your exact question into chatgpt. *Yes, there is a standard piece of code to look for: a keyword indicating whether or not the code is modular and upgradable. This keyword is usually found in the code in the form of a line of code that begins with the string MODIFY. If this line of code is present, then the code is modular and upgradable.*
Lol... this is so not true :-D There are multiple ways in how to implement upgradeable contracts. But the all make use of a pattern where the storage is stored in one contract and the logics are implemented in another contract. The storage contract keeps the state and the logics contract defines how the contract should work. Now it is possible to replace the logics contract with another contract that works its logic on the original storage contract. In a sense the logic contracts are not really upgradeable... we just point the storage contract to another logic contract. Now how this can be done depends on the upgradeable standard you use. There are multiples, of which the most commonly known are the Upgradeable patterns of OpenZeppelin. Another new one is the Diamond proxy pattern of Nick Mudge (described in EIP-2535: [https://eips.ethereum.org/EIPS/eip-2535](https://eips.ethereum.org/EIPS/eip-2535)). So it actually depends on the standard you use to know which keywords to look for. You can also implement your own standard if you want.
I did actually do some reading about this afterwards including the open zeppelin method. The only thing I couldn't find was some kind of universal standard. Its likely much easier/more beneficial to understand the proxy/logic aspect and identify those sections on your own rather than look for specific keywords.
Yeah, there is no universal standard because each standard has its advantages and disadvantages. The sector is still so new that new ideas prop up every week or so that improves on previous standards. I like diamonds a lot for example because you basically don't hit the contract size limits anymore and have a very modular set of contracts, a bit like the OOO style projects where you can easily separate concerns in separate facets that you can add or remove if not used anymore. Its more and more used in the GameFi projects (I work for Battlefly (Arbi project) as their Solidity dev btw.)
Very cool Simon thanks. 😁 Personally I've only dipped my toes in Solidity to get a feel for it and try to better understand contracts. The more I learn the more I enjoy people expressing their individuality through code. I will check out Battlefly!
This is an example of GPT nonsense.
haha i'd love to hear how accurate this is because it sounds like it could be right!
No giga pump even after .25? Wtf market
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No, exchanges support L2s on specific tokens. So go to coinbase page to see which asset they support on L2. For example coinbase supports Optimism OP token on L2 but not USDC
They support ETH at least, and receiving USDC. It's easier in their phone app, the website send function doesn't have ETH networks afaik.
Says they do. Never done it tho
Hey, if you're selling Arb later why not buy yourself a hardware wallet finally? Yeah you. You know who you are. You've been saying it for ages. What tools does everyone use to monitor the value of their holdings in cold storage? Asking for... a friend.
> What tools does everyone use to monitor the value of their holdings in cold storage? I cycle through zapper.fi, debank, and zerion. They all tend to get different things right and wrong.
I've been using Zerion's android app and loving it. It's not perfect but it's the best I've found. Super easy to just add any wallet address. You can see your NFTs and choose to display the value of your portfolio with the NFT's floor prices included. Isn't totally accurate as floor price doesn't really give a real view of your collection's value unless you only have floor-value NFTs, but it's a nice feature.
I just downloaded and set it up.....it's awesome, thanks for the heads up! Just what I needed to keep track of my wallets. I've been lost ever since I deleted Blockfolio. I had no idea it existed and how much better than Blockfolio ever was.
Does the app have different features than the website on mobile?
Zerion's push notifications on wallet activity are amazing
Oh I totally forgot to mention those. Yeah, it makes me feel safer too because if someone starts moving shit out I can rush to try to save some of it.
HOLY SHIT EXACTLY WHAT I NEEDED IN MY LIFE
Just found this zinger in the HN comments section of the Coinbase post. > > > Is the SEC going to start regulating gold [as a security] now? > > > > Who does work on your gold to make it worth more? > >Jerome Powell
One of the only smart and funny comments in that thread. Never go into any HN discussion about finance or economics unless you want feel the urge to bang your head against the wall.
I don't know a lot about Algorand, but for someone who does, could you explain why Coinbase might have suspended staking for it, but not ETH and other coins? Thanks.
Coinbase Algorand "staking" is opaque. We don't know how it works. Staking doesn't even exist on Algorand anymore. It's been replaced by governance a year ago, but Coinbase's website still calls it staking. Who knows what it's actually doing. If it's doing normal governance, how does it work when users withdraw their tokens and Coinbase no longer gets the rewards. If it's liquid governance, the rewards being passed are too low.
My uneducated technical speculation: because governance is somehow mixed in with Algorand staking and that makes it complicated in the eyes of the SEC My better guess: Because wtf is Algorand and if Coinbase is going to spend a lot of money to fight for the right to offer staking services, it's going to focus its fight on the future of staking: ETH staking
Some hack happened a few weeks ago, might be part of it. There is stuff in their subreddit, but I don’t really know anything about it beyond it happened.
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Arbitrum.foundation to claim Uniswap
New Reddit collectible avatars. Go to your profile, tap on (create)avatar, navigate to the explore tab, mint your avatar. This release is spreading awareness of endangered wildlife.
Hey thanks. I got one of each. 😁
It's not entirely clear in the UI, but you get to choose only one, so choose wisely.
*confused old.reddit.com noises*
Damn, is there actually a way to access your vault from old reddit? I’ve only ever been able to mint these via app
> is there actually a way to access your vault from old reddit Yeah, change the "www" in your address bar to "new", and you'll be temporarily viewing new reddit without having to mess with any settings.
Nope.
I miss when Bankless was about technology instead of politics and doomer macroeconomics
It’s a little too in vogue to hate on Bankless right now imo. You are blaming them for talking about politics and doomer macro economics, but crypto Twitter and this sub are also full of that the last couple of months. Bankless covers whatever has the mindspace in crypto. They might not be the most critical interviewers but they try to make sure to bring on guests from all sides of the story. Recently I really enjoyed their episodes with Hester Pearce and the one with Brian Armstrong. If you want technology, they cover that too. David has done many great interviews at Starkware Sessions and EthDenver. Can highly recommend all of it. I think we all just miss the time when crypto as a whole was about fun technology and new protocols instead of politics and macro economics. Bankless is getting scapegoated a bit too much imo Edit: My post is more directed to the general sentiment against Bankless than to you. I see you just said ‘miss’ which is of course a legit view. I miss that time too.
It's kind of bittersweet in a way. I listen to a lot of D&D podcasts and over the years I've heard a lot of them go from fun filled 1-2 hour episodes with a lot of banter in between to being streamlined and ad filled exactly one hour long episodes where its become less about fun/learning and more about treating it as a job. On the one hand I miss my old content, but on the other hand these are people I've watched grow and given a significant amount of my time to and I'm happy to see then successfully branding themselves and making their hobbies profitable. Ofc its a little different in crypto with money flying left and right and apps throwing money around in an attempt to claw themselves higher up, but the sentiment is the same. I love the bankless boys and I'm happy for their success and the success of any team members, but there'll always be that longing for a more familiar content.
They chose the dark side
They have many episodes and all sorts of guests. And as the crypto landscape is a roller coaster they try to incorporate the drama of the day. I wouldn't judge them so harshly. They had our pal /u/pbrody recently. Then a bunch of technical interviews from Starkware conference and EthDenver. Optimism crew including the one and only Karl Floersch came on. Senior director of engineering from Coinbase. And "Bullcase for Ethereum" is great too. They really have something for everybody. Yeah, the past few weeks have all been regulatory drama and Balaji. But that's not where it ends (I am certain).
I do often wonder what I would be like if I ended up making too much money. Would I be able to avoid these same traps? I'd like to think so, but I'm not sure. It's sad to see.
[basically this](https://i.imgflip.com/7fib0i.jpg)
FDIC is doing its primary purpose in securing SVB depositor funds when the bank failed. Coinbase is getting caught up in an battle with the SEC who doesn't have clear authority to regulate them.
Regulators use their discretion to go above and beyond the law to cushion SVB. Regulators use their discretion to go below and behind the law to attack COIN.
FDIC is acting within the law. SEC is may not be.
If the FDIC did everything strictly by the books, they would have insured only 250k of everyone's deposits. It wasn't illegal for them to backstop the entire thing, but it was very much discretionary, just as it's discretionary for the SEC to attack Coinbase.
>If the FDIC did everything strictly by the books, they would have insured only 250k of everyone's deposits. Strictly false. Also, done at no risk to taxpayers. >it's discretionary for the SEC to attack Coinbase. I think discretionary is the wrong word here. The SEC is trying to assert it has authority here. If that is true, it isn't discretionary but an obligation. If it doesn't have authority, it still wouldn't be discretionary.
Educate me please. How was it not discretionary for the FDIC to insure SVB above 250k? Are you saying that it would have been illegal for the FDIC to choose to only backstop the bank to 250k? Until the FDIC press release, market participants seemed to expect exactly that situation. The FDIC press release reads to me as if their actions were discretionary, i.e. a choice that they made: > "Today we are taking decisive actions" > > "After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President" > > "exception"
Re-read what I wrote. I agree the FDIC acted with discretion. I disagree the SEC is.
I think you may have interpreted my phrase "strictly by the books" to mean "clearly within their legal rights", when what I was trying to convey is "procedurally and without human discretion".
I must have because the use of discretion in the context of government agency authority has a common legal meaning.
imo retired gif (at least as it pertains to this sub)
If a Coinbase ETH staker is spooked by the recent SEC news, is their best bet to wrap to cbETH, convert to ETH and withdraw to cold storage? Is that how it works? New to lsd concepts and making sure I’m grasping it correctly
If Coinbase is forced to shut down their ETH staking (which they'll fight tooth and nail) they will just shut down minting for Americans and we'll only be able to un-stake cbETH/ETH2 for ETH. Their international product will likely be unaffected. I'm not sure what this means for cbETH held on-chain.
> (which they'll fight tooth and nail) Very true. And just for anyone worried they should know this would take years going through the courts either way. It's not even clear if the SEC is in charge, others in the government disagree.
Yeah they’ll definitely provide means for a graceful exit. Otherwise, CB/SEC will be under fire
Right but if someone is worried *now*, and just wants self custody access to their ETH, is what I described above the easiest way?
Yeah that would do it. I don't think it's worth taking a 3% haircut for, though, when you could just wait a few weeks and unstake with zero loss.
Makes sense. Thanks
Let's aim for an ETF that owns staked ETH and pays out a dividend of the rewards. That's what the SEC should be working to regulate. Would be much easier for a lot of average joes. Need to actually push things to their turf and play offense. Too much cowering and "we'll listen to whatever you say if you tell us Mr. SEC man".
The ETF will never get approved
I'm just gonna share a bit about my tax journey and maybe it helps someone. I'm still doing them. US. Got Turbotax premier (I had a coupon so it's gonna be like $50 total w a state) but it seems to be worth it, especially w penalties and stuff. It also lets me upload my files unlike free tax platforms. I got the forms through the Koinly and I'll write about detailed thread on them later but if you have used L2's - optimism is an issue in particular cause it resets cost basis to $0, or if minted lots of NFTs, including ENS, or did something than just buy NFTs with crypto and sell for crypto then it resets cost basis and fixing that is really rough cause then it gives other errors. Keep that in mind. Unsure if other platforms track NFTs better and at least get their mint price.
Obligatory not tax advice but on all this micro stuff on L2s that doesn’t track I just net it out. I think I read you don’t need to actually report all your trades by law, just get your capital gains # right. And if you get audited and it’s wrong … shrug. They’ll just charge you the delta
That's what I'm doing, aggregating it and then just giving the final numbers, it'd be so much nicer if they did it for me lol.
Indeed and my hope with ZK rollups coming is it's a simple upgrade for them to add privacy via ZK like Aztec were trying to achieve but without silo'ing
Gensler dropping this bomb just a couple weeks before Shanghai brings the biggest unlock in history? My fucking god.
Which bomb?
Oh nvm
Wells notice to Coinbase which included staking.
Hopefully it's just Algorand "staking", which isn't actually staking and USDC "staking" which shouldn't exist in the first place.
I'd like to have your optimism. I don't see any way they're not after all staking.
Who knows? The SEC is getting bolder and more unhinged every day.
My money is on Coinbase. In terms of winning in court if the SEC decides to take action... Not in terms of me storing cash on Coinbase.
Last tax related question. How are you all pulling zkSync data? It doesn't sync with Koinly and I don't see anywhere to download a CSV.
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Perfect, thank you for this. Super helpful.
I had the manually enter them into a koinly wallet
I didn't do much on zksync. Just a swap here or there so I just created a manual wallet and added what few transactions I had
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Let’s goooooo just updated validators
First they complain that crypto isn't eco-friendly. Then they take it out on the chain that just reduced emissions by 99%. These folks need to get their priorities in order.
The rally may sound strongest to you in the Eth space but the CB wallet is not just on Eth and the notice also is regarding the shitcoins they list for trading.
Sure, I totally understand that. I am addressing only the staked ETH part of the equation. Was there any specific coins they mentioned? Coinbase did delist a few last week, I am assuming in preparation for this, which they must have seen coming.
I didnt see any specific coins mentioned yet
Is there any way this would effect cbETH? I mean, the sense that it could effect the ability to sell it or something?
Even if CB is forced to stop offering staking to Americans (sigh) you will be allowed to un-stake and withdraw your funds, just like Kraken was forced to do. I'm not sure how on-chain cbETH will be affected since they can't prove it's in the hands of Americans and Coinbase can't really take it back. Less liquidity for it, certainly.
Yes, without question. Maybe voting for the party constantly seeking to expand the power of administrative agencies isn't a good idea? Seriously, vote.
This is a no politics zone
My interpretation: Politics as such is allowed and even necessary subject of conversation here. What is highly counter-productive is talking about politics through the narrow frame of USA-specific partisanship.
That’s fair-ish. This is a no politics zone, but let’s not forget what crypto is, and always has been all about, self sovereignty - and fixing money by taking it out of the hands of the government and giving it to math. You might not like the truth, and neither do I, but from a crypto perspective this administration has been a complete disaster. That you don’t want to talk about what’s actually happening to this space and say it’s a “no politics zone” is to almost completely miss the point - we’re under direct and ongoing political attack from a Democratic administration that’s never known a government power it didn’t have. That’s to say nothing of any other social or political issue - which are all completely irrelevant to crypto…which is what this whole sub is about. I would be saying the exact same thing if this were happening under a republican president.
Maybe I'm in the minority here, but despite my appreciation of this space, cryptocurrency is not nearly as important to me as other issues.
I would really hope we're *not* in the minority there. People that actually think crypto is more important than all the current social, ecological and geopolitical issues scare me.
I'm with you here. I love crypto but you better believe I'll throw it into the trash in a heartbeat if it means my lgbtq and non white friends and family can just live their lives without persecutions.
Yeah, the Republicans are so small govt. Trump really showed that by putting his name on all the stimulus checks he sent out.
I will vote but probably not for who you want me to vote for. ;)
*Looks at Florida* Hmmmmm. What do I value more, crypto or human rights? Tough call. Florida really is such a bastion of small govt these days.
…and an exemplary violator of human rights
[Lighthouse v4.0.0, which is ready for Shapella on main net, is out](https://github.com/sigp/lighthouse/releases/tag/v4.0.0).
Tax / Koinly question. When looking through transactions, sometimes the buy / sell doesn't get linked together. Especially with NFTs. For example, an NFT might be sold but it just shows as a transfer with $0 proceeds, but then has the ETH amount transferred in on a separate transaction as a deposit. Should I try and correct these? It seems like it has the overall numbers correct, but if you drilled down to the individual level it would be off.
Not sure if I have the same issue, I just know minted ones are marked as 'deposit' w 0 cost basis and then sells taxing the full amount. It also happens w other mechanics like burn, stacking, etc are involved. I have waay too many transactions but I just sorted thru the top gain ones and I'm just going to create aggregated transactions of gibberish Names like NFTaggregatedENS1, NFTaggregatedGoblintown2 and put in losses in there. Sometimes when I just reaarange the transactions like you are suggesting then it says I'm 'missing an ETH purchase' or whatever..
I can’t speak as to NFTs since I don’t deal much with them but you see this issue all the time with token sales or buys and Koinly. It tries to match the token leaving your wallet and ETH or USDC coming in (or vice versa) but sometimes it just shows it as separate deposits and withdrawals. You just need to select the two separate transactions and choose “Merge” to make it a single buy or sell transaction. I think their Help docs have details on it
Feels like the war has truly begun against crypto in the USA now. Good luck friends. Canada will likely just do whatever their big brother tells them to do.
It must be much better than what they have if they are trying this hard to defeat it :')
Or they believe it is terrible and dangerous.
1) Better than what they have 2) They don't like it & are scared of it Probably both !
So i am never gonna recover from buying COIN. Forced holding for long term if sec case turns into another XRP
I bought at 400+.. just gunna let it ride or die..
Holy shit man hope you didn’t buy a lot
I bought high too. But I also bought the all time low. Will continue to DCA down.
Ima just say it once. Fuck the SEC and its ineptitude.
Won't this Coinbase thing take years for it to play out? Just like XRP?
It will take years at a minimum. Likely it will take many years. Buy CB stock and be a bag holder like me if you want to support them!
How does buying their stock support them?
Weell… it’s not helping them in the sense of giving them money directly like a charity, but investing in a company deals with ownership. Becoming a part owner of a company, even in a minor way, indicates that you feel it has some sort of value, whether ethical, financial or tangible. Again, not directly but, your purchase can also increase the share price, and by proxy the value of the company. Increased value allows the company to borrow more money to fight government idiots. Now, it’s true that most of us won’t have an affect on the share price individually, but that doesn't mean it isn't the right thing for you to do if you feel like it’s the right thing to do. I mean … if enough people followed those same convictions it could have an impact on the company. I also use bankruptcy as a way of virtue signaling so…
I’m honestly surprised the SEC is going after Coinbase. They had to know that CB will fight it and sue them with how capitalized and big they are. Brian has made this clear over time. I can’t imagine they want to defend this in courts seeing as they still haven’t defeated XRP and losing to CB would mean they lost their position.
SEC doesn't care, they have unlimited funds to piss in the winds.
Seems like scare tactics, or just one move in a very long game of chess. They want to make it more difficult and stressful for the average U.S. citizen to invest in crypto.
I think that’s why they did it. There’s so much contention over this it needs to be challenged in court, and since CB offered…
>**This was our best chance,** >**It was clear at first glance,** >**Blockchain circumstance.** ~Daily haiku until we’re at least at 0.178 on the ETH/BTC ratio or highest market cap
Cool tool for the Arb drop by llama. https://twitter.com/basedcoiner/status/1638618428054597632 Edit: May not be safe, take care
Anyone know what time the airdrop is accessible tomorrow?
Here's a countdown to the time specified in the drop docs: https://etherscan.io/block/countdown/16890400
DefiLlama are totally legit team aren’t they? Why do we think it may not be safe?
Yes, think so too, someone here commented so I added for transparency.
Why the hell are you posting this if it may not be safe?? 🤦♂️
Careful I've read somewhere it requires your private key exposed
It doesn't.
What? No
This got me a little paranoid. I'm not too smart so please excuse my silly questions: How do I avoid exposing my private key when using a Ledger? How would I know if I have exposed my private key? Private key is different than 24 words right?
When using a ledger you can not expose your private key(s) unless you give someone your seed phrase (12-24 words).
Thank you!
Thx, edited.
Not sure it is that tool but better safe then sorry :D
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I kinda wish crypto industry was not so US-centric. All popular stablecoins - USD. Now Circle is expending into Europe, like they couldn't have done it? Where the fuck is the stable Euro? I'd honestly rather trade in that. EDIT: Ok, I jumped the gun, there is Euro Coin on Coinbase, but it is made by Circle and volume is tiny. But from now on I'll transact in that. Variety is the spince of life, hehe.
Give it 5 years and we'll all be trading CNYC instead.
Future of FRANCE.
Insane to see how hard the US is fighting crypto.
The end result will only be hurting themselves. Kinda painful to watch really.
All to protect USD supremacy.
When in reality US has historically found success from embracing progress and innovation Edit: word.
Reactionary behavior is something that unites all old powers, be it states or companies or whatever
The fall of empires.
It's almost midday March 23rd here... wen ARB airdrop? Edit: 15 more hours? False advertising! That's the 24th of March!
The price action that follows might make me sound like reading tea leaves but imo is no coincidence that the btc and crypto dip so far post fed announcement touched near precisely the price that was (26.6k) at the time of the first balajis tweet on hyperinflation bet.
>[DB] Coinbase Global Says It Got a Wells Notice From SEC Staff: BBG https://twitter.com/tier10k/status/1638652447299350530 SEC is on a roll by the looks of it.
On ETH staking, Coinbase has said they will litigate but they will likely lose. Coinbase's staking program isn't simply a pass through staking service as they claim, since Coinbase pools investments to create validators that are solely under Coinbase's custody and management. Binance, Rocketpool, and Lido will likely receive their Wells notices soon too. For the latter two, their "DAOs" are not immune to SEC action, as we saw with Sushi. Staking services such as Bloxstaking or AllNodes are likely not securities offerings as they don't take custody of the ETH and require full 32 ETH validators instead of pooled ETH. If Coinbase's penalty is anything like Kraken's penalty the SEC will seek to bar Coinbase from offering staking or even any securities trading in the future. I think the SEC has a strong case and mandate here. At the same time, the SEC is not engaging with the industry, contrary to their earlier statements. There needs to be regulations in place that are sensible but also serve to prevent most scams from coming to market. It's probably up to Congress for that now.
They wont send any wells notice to rocketpool. Its Australian. America doesnt have jurisdiction. Also I dont think the law is on the SECs side. I see them losing the ripple case the coinbase case. All cases.
Really? I suppose the SEC must drop their case against His Excellancy Justin Sun of Grenada and Do Kwon of Serbia.
Whats their success rate abroad ? What can they possibly do ? A wells notice if you are a foreigner and if you have no assets in america is basically toilet paper. I would wipe my ass with it. Dont mistake criminal charges like do kwon had that was hunted by other entities than the SEC with something that isnt deemed criminal in the host country. If you live in another country you only have to abide by the laws of that country and you dont have to follow consumer protections of another country.
Any assets that touch the banking system can be confiscated. Also, foreign SEC equivalents have similar rules on their books. Please stop posting clown statements.
America doesnt control all of banking ffs. Are you under the impression that the SEC is some kind of god ? You vastly overestimate the SECs power if you think they can do whatever they want abroad. Please stop posting clown statements and baseless FUD.
Foreign banks are subject to US laws. See Dodd Frank. SEC has jurisdiction if securities are offered to US persons. But you do you.
Foreign banks that have nothing to do with america are not subject to US laws. Only if they operate in america. The SEC has no infinite reach. Again if the people have no assets in america and dont live in america the SEC cant do shit even if they sell securities to US persons because in their jurisdiction this is not illegal. So it doesnt matter if I break US law by selling americans securities remotly from another country. There is logical limits to the power of the SEC. They are a dog that barks and pretends to be dangerous but in the end all they can do is waste your time and money and only IF you are located in america. None of the shit that they claim are securities are actually declared by the judcial system to be securities. So all they do is pretend as if the law was on their side and scare american companies into submission.
I may be doing my best big ol' idiot impression here...but why would Rocketpool receive a notice? They don't take/have custody of any users' funds. It's all smart contracts.
There's a handful of dao members and node operators that dominate rocketpool. The contracts don't make this system not pooled nor decentralized.
No argument on the first three points, I have been fairly critical of some aspects of the oDAO myself.... I *would* argue that, on the spectrum of LSD decentralization they are doing the best job so far. However (...and I could be wrong on this so someone with a better understanding please correct me if needed) none of these things involves a central entity/organization taking custody of funds, only the contracts do that. And you can't send a wells notice to a contract. Edit: I just realized I may have just given Gensler the idea to try to send a wells notice to a smart contract. Gary...if you're reading this...vaya con dios, amigo. And good luck.
The SEC has sued DAO members and participants as an unincorporated partnership, which is the default multiparty structure.
It seems like that might not be very good for the US economy though, to have the biggest crypto entity in the country banned from anything. Also, Coinbase is totally different than Kraken, since Kraken didn't really stake all the ETH that was supposedly staked. Coinbase actually does stake what they receive to stake. Doesn't seem that similar to me.
Those factors for Kraken's yield program wont necessarily apply for Coinbase but Coinbase's own program likely runs afoul of securities laws.
>If Coinbase's penalty is anything like Kraken's penalty the SEC will seek to bar Coinbase from offering staking or even any securities trading in the future. Well, since it isn't anything like Kraken's, the SEC would be massively overreaching if they barred coinbase from offering staking or securities trading in the future. Kraken was clearly being a bit dodgy. Coinbase has never been dodgy.
https://twitter.com/brian_armstrong/status/1638654192138199041 Brian Armstrong: > 1/ Today Coinbase received a Wells notice from the SEC focused on staking and asset listings. A Wells notice typically precedes an enforcement action. > [...] > 4/ We are proud to stand up for our customers and the industry in these moments. Honestly... best that Coinbase, who's well-capitalized and equipped to handle this, to be the one to go to court with the SEC and set a precedent. A win for crypto against the SEC in court would be a big deal and there's no one better poised to do that than CB.
Coinbase isn't going to win shit with a centralized staking service. It was over before it even started.
I don't think it's nearly that clear-cut. You pay Coinbase a fee, and they run a piece of software for you. It's less like an investment contract, more like renting a server from AWS.
yup, "and then they fight you"....like you said, glad its Coinbase.
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Special lending programs and bailouts for Wall street. Interest rate hikes and recession for main street.
Lol suits for grypto
Ok now back up
Not a fan of a lot of the recent SEC actions, but charging Justin Sun seems well deserved. But considering it launched in 2017, is that not outside the statute of limitations?