Could OFAC compliance hinder Ethereum staking?
1/ Since #Ethereum's transition to Proof of Stake, emerging themes suggest that Ethereum staking has the potential to grow exponentially.
— Messari (@MessariCrypto) October 20, 2022
Could OFAC compliance hinder this potential? pic.twitter.com/jvviAfUCqE
2/ Let's look at staking performance since the transition.
— Messari (@MessariCrypto) October 20, 2022
With $ETH inflation nearing 0%, real returns for validators have reached 6% from 0% at the start of The Merge. pic.twitter.com/jspNZ4VH6M
3/ With the execution risk of The Merge behind and greater demand for staked ETH with higher real returns, the stETH discount has all but vanished.
— Messari (@MessariCrypto) October 20, 2022
This has meant an increase in average daily deposits for October at 13,500 $ETH, compared to 7,300 for August. pic.twitter.com/oBCklq6ypm
4/ Of the ~800,000 ETH added since September 2022, most of the growth comes from outside the key players.@Rocket_Pool grew at 31%, the fastest among known entities, with 67,000 new $ETH staked since September. pic.twitter.com/WZPh6EfXf1
— Messari (@MessariCrypto) October 20, 2022
5/ On top of these metrics, a number of emerging themes show potential for increased $ETH staking.
— Messari (@MessariCrypto) October 20, 2022
Acceptance as crypto's collateral of choice, restaking, and DAOs staking ETH held in their treasury are a few growth avenues moving forward.
Reactions on SBF banning DAI and Uniswap
SBF wants to ban DAI and Uniswap and you guys still think he's on your side? Lol
— Spreek (@spreekaway) October 19, 2022
on a side note, it's amazing how fast his story changed from "this won't change defi at all" to "I think 50%+ of the defi industry by TVL should be made completely illegal" when someone leaked the actual bill
— Spreek (@spreekaway) October 19, 2022
To give some more substantive feedback, an app level blacklist in real time seems totally unworkable to me. It would presumably have to be maintained by keepers constantly updating it and the bad guys can simply move their funds to a new address and swap in the same block. pic.twitter.com/nxyq7nFqbJ
— Spreek (@spreekaway) October 19, 2022
Not to mention the fact that you could be griefed by people frontrunning you with dusting attacks and causing you to repeatedly get put back onto the blacklist (automatically!). Even if you can get off it by burning, it still makes the chain functionally unusable
— Spreek (@spreekaway) October 19, 2022
So, totally ineffective at stopping bad guys, but very effective at making defi useless for everyone else. Almost like there might be an ulterior motive here.
— Spreek (@spreekaway) October 19, 2022
Centralized exchange proprietor proposes regulations that moat his own position. https://t.co/QwpMNMe10f
— Matt Ahlborg (@MattAhlborg) October 20, 2022
SBF thought on crypto regulation
1) As promised:
— SBF (@SBF_FTX) October 19, 2022
My current thoughts on crypto regulation.https://t.co/O2nG1VrW1l
2) At a high level:
— SBF (@SBF_FTX) October 19, 2022
a) we need regulatory oversight and customer protection
b) we need to ensure an open, free economy, where peer to peer transfers, code, validators, etc. are presumptively free
c) we should establish regulation–and until then standards–to ensure (a/b)
3) First, it means that we have blocklists and not allowlists for illicit financial activity.
— SBF (@SBF_FTX) October 19, 2022
We need fast, reliable lists of addresses associated with illicit finance.
But peer to peer transfers should generally be free as long as they're not going to sanctioned actors.
4) This can simultaneously enforce sanctions compliance effectively while also making sure that you don't need a passport and social security number to buy a bagel from 7-11.
— SBF (@SBF_FTX) October 19, 2022
5) Second, we need something to reduce the impact of security breaches and hacks in crypto.
— SBF (@SBF_FTX) October 19, 2022
One way we could do that is with a community standard that required attackers to return the vast majority of assets and prioritize customer protection, in return for settling the dispute.
6) Third, we should work towards public disclosures and transparency for assets.
— SBF (@SBF_FTX) October 19, 2022
For non-securities, we have a framework we've rolled out for FTX US Derivatives: https://t.co/SSQriZVAQN.
7) Fourth, we should develop a regulatory structure that allows the settlement benefits of blockchains to protect the profits made by retail investors in equities: https://t.co/gT97VoFDfe
— SBF (@SBF_FTX) October 19, 2022
8) Fifth, we should develop standards to help inform and protect customers.
— SBF (@SBF_FTX) October 19, 2022
At its core, I think this means:
a) disclosures
b) safer clearing models
c) suitability based on knowledge, not wealthhttps://t.co/ManjPFa3QC
9) Sixth, DeFi.
— SBF (@SBF_FTX) October 19, 2022
This is, frankly, one of the trickiest areas to get right. The most important thing is that we not jump the gun: that industry, regulators, and lawmakers work collaboratively and thoughtfully together.
10) But we should make sure that code, peer to peer transfers, validators, etc. are free while also ensuring that retail-facing platforms and marketing build in customer protection.
— SBF (@SBF_FTX) October 19, 2022
11) Finally, stablecoins.
— SBF (@SBF_FTX) October 19, 2022
They make payments better: https://t.co/r1FnTNQyX5.
We need regulatory oversight and up to date public information and audits to confirm that dollar backed stablecoins are, in fact, backed by the dollar.https://t.co/fb7J82GDpv
12) All of these are just suggestions, and I would love feedback on them.
— SBF (@SBF_FTX) October 19, 2022
It would be ideal if some industry group(s) took the lead in publishing what they felt were appropriate standards.
And ultimately, we need sound regulatory frameworks.
13) I'm optimistic that we're making progress on that last point.
— SBF (@SBF_FTX) October 19, 2022
I'm optimistic, for instance, that the Stabenow-Boozman bill would protect customers while also protecting economic freedom; and that federal regulators are making progress towards thoughtful frameworks.
14) But my support for any particular bill, framework, etc. is absolutely contingent on those points–contingent on them actually protecting customers, and them actually protecting economic freedom.
— SBF (@SBF_FTX) October 19, 2022
Anyway, here's the blog post link once again: https://t.co/O2nG1VrW1l.
15) And, finally:
— SBF (@SBF_FTX) October 19, 2022
NONE OF THIS IS LEGAL, REGULATORY, OR INVESTMENT ADVICE.
