Anarchy, crime and stablecoins

Key Points

1. The CLARITY Act applies Bank Secrecy Act and KYC/AML rules to crypto intermediaries but preserves the right to anonymous contracts.

2. Crypto-related crime has risen to $21.8 billion, with 12% attributed to North Korean hackers and 20% of money laundering involving cross-chain transactions.

3. Stablecoins are argued to have 'no impact on the dollar’s status as a global reserve currency' and may cannibalize existing USD usage rather than save it.

4. Industry negligence in self-policing risks inviting tighter government regulation, as highlighted by slow responses to hacks and security breaches.

5. The GENIUS Act aims to level the playing field for banks in the crypto space, a move that would likely be opposed by crypto anarchists like Timothy May.