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"But individuals who own stablecoins are exposed to significant counterparty risk from both the coin issuers and the companies offering" Great. Let people pick

"But individuals who own stablecoins are exposed to significant counterparty risk from both the coin issuers and the companies offering" Great. Let people pick the risk they are willing to take. If companies holding the wallets steal money, prosecute them for theft. "well as concerns about money laundering and terrorist financing" You forgot the children, think of the children. See, I'm just not scared enough at this point to give in to more laws than any human can possibly read. Maybe if you threw in there some drug dealer buying guns or child molesters it would have worked

screye 5y ago
Given what we know about terror financing, it is hilarious to think that the money's coming from individual actors. Almost all terrorists are funded by opposing nation's state actors and drugs. Both of which have well established pipelines well before crypto was a thing.
vineyardmike 5y ago
> Let people pick the risk they are willing to take. The (perceived) issue is that most people don't understand the actual risk, either due to marketing, or due to lack of due diligence (potentially made impossible by lack of transparency). A great example is the "interest bearing crypto accounts" that get 8% back. They're advertised as a savings account type product, but because they're not a insured back account, they're actually a security. Securities typically have big warnings like "THIS IS A SECURITY. MAY LOSE WHOLE INVESTMENT. NOT GOVERNMENT INSURED". We don't know how safe the funds are, because we don't always know how the company/smartcontract/whatever are generating those yields, and how at risk that is. Sometimes we could know the risk, and the info is just buried in hard to read smart contracts, but sometimes we can't know the risk because the company doesn't disclose.
- landemva 5y ago
  You seem concerned about the custodial companies. Companies are staffed by people who make mistakes. Simply withdraw your funds to your own wallet and interact with the chain yourself. Not your keys not your coins.
  - vineyardmike 5y ago
    Ok, but then you're not "investing"... you're storing. Unless you use one of these services, you miss out on all the possibilities for yield (beyond coin value rising).

screye 5y ago

Given what we know about terror financing, it is hilarious to think that the money's coming from individual actors. Almost all terrorists are funded by opposing nation's state actors and drugs. Both of which have well established pipelines well before crypto was a thing.

vineyardmike 5y ago

> Let people pick the risk they are willing to take. The (perceived) issue is that most people don't understand the actual risk, either due to marketing, or due to lack of due diligence (potentially made impossible by lack of transparency). A great example is the "interest bearing crypto accounts" that get 8% back. They're advertised as a savings account type product, but because they're not a insured back account, they're actually a security. Securities typically have big warnings like "THIS IS A SECURITY. MAY LOSE WHOLE INVESTMENT. NOT GOVERNMENT INSURED". We don't know how safe the funds are, because we don't always know how the company/smartcontract/whatever are generating those yields, and how at risk that is. Sometimes we could know the risk, and the info is just buried in hard to read smart contracts, but sometimes we can't know the risk because the company doesn't disclose.

landemva 5y ago
You seem concerned about the custodial companies. Companies are staffed by people who make mistakes. Simply withdraw your funds to your own wallet and interact with the chain yourself. Not your keys not your coins.
- vineyardmike 5y ago
  Ok, but then you're not "investing"... you're storing. Unless you use one of these services, you miss out on all the possibilities for yield (beyond coin value rising).