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100 sats \ 5 replies \ @Scoresby OP 15h \ parent \ on: Tether promoting their wallet dev kit again bitcoin
Maybe the reference is to this very short section on "Protection of Self Custody" which, to non-legal mind, seems incredibly limited (no self custody protection if you aren't going to follow sanctions law...well how is that going to be enforced?)
From what I get out of this section, and yes there is always room for improvement this did manage to get bipartisan support though so naturally sacrifices had to be made, gives a user essentially how all other rights are promised... as long as you follow the law you are fine. I mean even the Second Amendment has limitation for violent offenders for what its worth (not saying it is right or wrong just what it is if that makes sense).
The Sec. of Treasury ie the Treasury Department is in charge of enforcement and would likely just follow the transactions. Think of it this way they are able to track and black list various terror org wallet addresses and so if you send money from your hardware wallet to fund ISIS then essentially your self-custody isnt protected anymore cause you just ya know funded ISIS.
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Think of it this way they are able to track and black list various terror org wallet addresses and so if you send money from your hardware wallet to fund [sanctioned party A] then essentially your self-custody isnt protected anymore cause you just ya know funded [sanctioned party A].
[sanctioned party A] coinjoins, so does Bob. Bob opens a lightning channel to your node with joined coins and spends the entire balance over a couple of months on zaps. Closes the channel because someone else offers better ppm fees.
The cyberspook company that we shall not name will now report coin in your wallet as linked to [sanctioned party A]. Do you lose your right to self custody? All you did was run a lightning node.
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I edited it, not SN. It is synonymous for those big players. Read
[Sanctioned party A] as any address on the OFAC sanctions list, including any particular big player you want to mention but I don't wanna.The problem is that your wallet will be associated with these sanctioned big players by the preferred blockchain analytics vendor of every US 3 letter agency in the scenario I just wrote for you. Most exchanges will confiscate your coin and close your account.
Let me write you an easier scenario: you sell Bob a brick of gold for bitcoin. On-chain. Bob sends you coinjoined funds. Your funds ARE tainted. Do you lose your right to self custody?
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Thanks for your insights here. I'm sure no bill gets this far without a lot of wrangling and changes.
My concern is not so much with the qualification, but with the door it opens for implementation.
It feels to me like this law leaves it pretty wide open for law makers to interpret this as: citizens may self custody if they do it the way we tell them (so we can ensure they aren't sending it to ISIS).
Finally, I'd note that neither the first nor second amendments felt the need to say that their respective rights were protected...except when people committed crimes with speech or guns.
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