Draft Stablecoin Legislation in US - Impacts to Celo Protocol?

Protocol
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It’s been discussed before, and @marek has publicly described the obvious differences between stablecoins like UST, for example, and cStables. Nonetheless, legislators don’t have a good track record of understanding important nuance in novel technologies.

See: Amid Terra Luna Fallout, Stablecoin Legislation May Become Law By 2022

What are we doing as a protocol to prepare for any unfavourable legislation getting passed in the US?
Will this only affect US-based entities?
As a global protocol, is Celo even exposed to whatever laws are passed in the US?

Technically the draft says:

…moratorium on endogenously collateralized stablecoins (ECS)

and then explains:

An ECS is currently defined in the draft as a stablecoin “in which its originator has represented will be converted, redeemed, or repurchased for a fixed amount of monetary value and that relies solely on the value of another digital asset created or maintained by the same originator to maintain the fixed price.”

I note that it says relies solely on another digital asset created by the same originator, so technically cStables should be fine given the reserves contain other assets. I wonder if there could be some percentage substantive clause, so in-breach stables don’t just add 1% BTC to their reserves and call it a day?

Anyway, just thought I would reopen this important topic for thoughts.

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Head for the EU maybe

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Thanks, decent watch. But wondering more about what Celo as a community / protocol / Foundation / and engineering team (cLabs) is think about?

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I’m interested in that too.

Was listening to a guy talking about tax shelters, loopholes, and other such stuff used to avoid taxation. He made a few a really interesting points.

  • The tax code is, as he put it, ‘is an incentive system’. It’s intent is what’s important, not the letters used in writing it.

  • In general, the costs of finding, maintaining, and eventually unwinding and paying the piper for most tax shelters negates any savings.

And

  • The powers that be always catch-up, it may take a few years, but they do.

IMO his thoughts can be applied in a wider sense, well beyond tax code, they can be applied to all financial regulation.

Secure distributed ledgers aren’t magic, they are just accounting tools.

The question for me and I think regulators is what the heck are they being used to account for?

The answers seem really nebulous.

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