I believe Gary Gensler views this project and similar ventures as securities under the purview of the SEC. Classification as a security could be extremely disruptive (disclosure, KYC, ect). How would SOVRYN change if classified as a security? Does this project have any lobbying or (at minimum) a general counselor to help in this area. From my perspective this is by far the biggest risk in this area. I do not think this is unique to SOVRYN. Fear of the regulatory impact (sudden, drastic) is my main hesitation to invest more significantly in this project. I a surgeon (in the US), I do not have any particular crypto insights and would like to hear others’ thoughts. We certinaly lobby for our our profession on the state and national level and I hope this venture is doing that as well, but I have no idea if that is the case.
There is no company behind sovryn, there is no one to prosecute. Sovryn is Censorship resistant.
We do not worry about SEC by any means
How can you be so sure? What if they require KYC on FastBTC? How exactly one could buy BTC without KYC CEXs?
fiat on/off ramps are the problems, and the wallets.
But this is unnavoidable imo.
and it is a market wide problem.
we will just have to find other tools to get onto Sovryn and off Sovryn.
Sovryn the protocol can not be censored
At least that is my understanding of it. Check Yago’s interview on Proof of Decentralisation. He speaks in depth about these exact issues. Very good podcast in my oppinion
I think a RSK RBTC 1day peg exists.
If SOV gets big enough we may be able to create our own peg using held BTC balances on each end.
I know when Fast BTC was announced there was tons of discussion on how to make is decentralized, and eliminate a weak point, in the call.
SOV CEX listings in places that don’t recognize SEC authority also helps I think.
Global regulation applies and not US regulation. We play by the lowest regulation available imo.
Though we have a layer/force of regulation with our Bitocracy, which I much prefer.
OK great, thanks for the info. Will look at the podcast. I am sure people here have thought about this, and that a somewhat DIY approach is needed.
My essential question is this: I invested a small amount of money and the price has more than doubled. In a practical sense for me, there is no problem. If I invested a large amount of money and wanted to get a vacation home I would need to explain where I got this money. If Tesla stock or some traditional asset increased in value, Morgan Stanley would send me paperwork to show the CPA and I would pay taxes and get my money. For SOV I’m not sure what the next step would be. I believe that there are people in the community who have made money and used fiat off-ramp to spend it. How did you do it? I could provide my bank statement showing withdrawls and a deposit. Is that suffieceint?
Again, there is not an immediate problem. I have, and I will invest more in bitcoin for sure and likely this project. I am, however, reluctant to recommend this to anyone when I do not understand the “full circle” of the system. If anyone knows an accountant who knows about this stuff I would appreciate any info. I believe the people I have worked with in the past would not have any idea about what to do, but I suppose I could ask.
Again, thanks for the relies.
I appreciate the question and engaging the “community brain”. As a US citizen and someone who is active in payments regulation - I do think it important not to blindly hide behind the protocol argument for protection. While it is correct and, ultimately, may provide enough protection - it is hardly unassailable IMO. There are proposals to go after developers and node processors of protocols if no corporate entity can be targeted. Whether such an approach would be practical or effective is not clear.
The most practical approach is one that has seen the most movement already - CEXs and other access points to DeFi. There is enough pressure from US banking, Wall Street, and real estate lobbies to make progress with crypto overall and industry engagement and education is highly likely (GOOD!!!) and the Chinese example has both informed and cautioned the government. One of the largest miners in the world is now homing in the US. Currency manipulation in China is going digital. So - we cannot ban it without getting behind, we cannot ignore it due to internal pressure, so my biggest concern will be us turning to CBDC as a mandate (vs stablecoins). Large CEX engagement is a hope there.
At the end of the day - SOVRYN is well placed to ride out the storm and if US CEXs all were to ban it tomorrow - I could still wire in money from an overseas CEX.