This article is a response to "Ethereum 2.0 is an Unexploded Regulatory Bomb," an article from Jordan Atkins on Coingeek. He writes that
The proof-of-stake-focused Ethereum 2.0 has gone live, seemingly without a thought paid to whether the network's new system falls with in the definition of securities for the purpose of the U.S. securities legislation.
He then goes into a normie description of the penalties that the Foundation faces should the Securities and Exchange Commission deem it necessary to punish Ethereum for its innovation.
Loss: Tons of money. Loss: Tons of adoption. Loss: Tons of legitimacy.
The problem is, Mr. Atkins, that the US government does not have the legal or moral authority to levy any sanction on Ethereum or any other part of crypto. What's important is that we, the true believers in decentralization and new governance, stick to our guns and create a defensible stronghold for the inevitable sanctions from normie society.
No Legal Authority
Atkins goes into a discussion of the Securities Act of 1933, something called the Howey test which isn't even law but relies on freaking speeches (he admits this), and the tired discussion of Ethereum being defined as a security vs. a whatever. Because if it falls under the umbrella of these three tests, then it's so fucking dangerous and we the stupid helpless people need big daddy government to protect us from losing our hard-earned money.
I'm so scared that Vitalik is going to rugpull me. I'm scared that Steven Wozniak is gonna rugpull me, guys. I'm shaking in my boots that Andre Cronje is gonna rug me. I need the SEC.
Atkins, not everyone works from the same cynical place as you. Some people understand that there is a greater thing than being rich, and that's being a legend.
Oh yeah, and all the guys I mentioned are rich, too. Because we all believe in them, not in government, and we apparently don't mind if our legends gain some benefit from their hard work and trailblazing innovation.
Speaking for myself, I don't need government's protection from my own financial gain. How about you tell them to protect me from rogue cops, global warming, fiat income inequality, and all the other shit they create?
Atkins is trying desperately to smush crypto into the framework of US law because that, I guess, is the only perspective he sees. Anything outside of normie government regulation must eventually come within it or be smashed by it. He might have a point if he was talking about a gun shop or a grocery store. I could spend all day arguing the merits of Ethereum as a non-security or how the Howey test does or doesn't apply. That, however, is a pointless discussion.
Here's the bigger picture. In no way should any government's court be allowed as arbiter to even levy these charges. The entire point of crypto is to create a new type of decentralized governance arbitrated through immutable, incorruptible code, one that works better than the quite corruptible human arbiters we have now. For this new governance to legitimize itself, it must first recognize itself as a challenger to, not a servant of, the old governance.
So even if this bullshit Howey test was lawful, that law only applies to entities that are under the jurisdiction of US law. And Atkins, shame on you for assuming that traditional government holds a monopoly on the ethical standard here (defining "sufficiently decentralized" on the findings of a non-legal document then anointing government to enact law based on it — how ridiculously stupid and cowardly).
The Real Problem
Now of course the US and other governments will try to force crypto into normie government framework with threats of jail and death so that normie government may judge crypto by normie government standard. The genius of crypto is that we do not have to fight this war offensively. With crypto, the best defense wins.
If the Ethereum Foundation is properly decentralized, there is no one to jail or kill to stop it. Government has no one to target unless it wants to target the entire world. Right now, however, we must admit that the intellectual capital and financial value of the network is centralized. If it is centralized, it can be influenced to shut down through force. I've talked about this many, MANY times using different examples.
https://www.publish0x.com/cryptoinvesting/why-paypal-custodying-and-siloing-crypto-is-bad-xolxqyv
https://www.publish0x.com/cryptoinvesting/why-paypal-is-taking-your-bitcoin-and-litecoin-xwqggwv
https://www.publish0x.com/cryptoinvesting/dont-get-your-bitcoin-from-cashapp-either-xqoggev
There must be a race to decentralize Ethereum and other protocols not to avoid the issue of regulation, but to create the competing system of governance that crypto's roots are built in. As stupid as most people in government are, you have to believe that there are a few who know this. If everyone in government was a complete piece of shit, the hammer would have come down much earlier.
Or perhaps government is so blind that it does not consider Ethereum a threat. Or perhaps they don't understand what Atkins is talking about at all and only act because they get the word in 2022 that their cushy jobs are on the line because everyone is opting out of fiat into some weird digital currency.
The Real Solution
- Help with decentralization. I know I wrote plenty of articles hating on Ethereum, its Beacon Chain launch, and low APY staking. I was wrong to write about it strictly from a profiteer's perspective. If you have the wealth, please consider dropping the 32 ETH directly into the Foundation and starting a node.
- Decentralize intellectual capital. I've said it before — international rock star and software developer are the only two jobs with more open positions than qualified applicants. Learn how to code and take some of the pressure off of the crypto superstars. That way, government cannot lean on any one individual with jail and make that person hit the killswitch.
- Participate in the crypto economy. You do not have to move money back into fiat currency to live a great life. Take the time to research how you can buy assets, travel and acquire services using just crypto. Stay as far away from KYC as possible.
- Take an offensive political stance. I see no reason why crypto enthusiasts can't have lobbyists on Capitol Hill, seeing all the money that is being made. Stop being so selfish and get it together, whales. If you don't have to worry about your life because of crypto, then begin consolidating political power and informing local governments of the power of sovereign currency. Wyoming is open to hear you, and others will follow.
- Make international connections. US citizens: It's not illegal to expand your financial and social portfolio outside of the United States. This is what rich people do all the time, and now with crypto, you don't have to be rich to do it. You can travel using Travala coins. Try it. Get to know businesspeople outside of the US. Own some things outside of the US. Consider a second passport. Give an Axie Infinity scholarship and start seeing how you can make a direct and positive difference in people's lives without government.
Honestly, I can't stand people like Atkins because I don't know whether they are writing out of fear, ignorance or complacency with the status quo. All I know is we don't have to listen to people like him. Crypto was founded as its own governance structure. It was founded to free you. Let's keep it that way.
