Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

The breakdown is sponsored by nexo.io, chain aliasis, and FtX, and produced and distributed by CoinDes.

What's going on, guys? It is Saturday, July 2nd, and that means it's time for the weekly recap.

Before we get into the recap, however, if you are enjoying the breakdown, please go subscribe to it,

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breakdown pod. Also a disclosure as always, in addition to them being a sponsor of the show,

I also work with FTX. Now, yesterday was effectively the weekly recap when it came to the macro side of the house,

and today we are doing a weekly recap on the crypto side.

We're going to kick off with an update on European crypto legislation, and really there are two

parts going on.

Firstly, there is the transfer of funds regulation, or TFR, which deals specifically with

anti-money laundering provisions, and is the regulation dealing with self-hosted wallets, something

that we talked about earlier this week.

Then there is the Markets and Crypto Assets Regulatory Framework, or MECA, which is the overarching

set of regulations that the crypto industry will operate under in Europe.

Both pieces of legislation had their parameters finalized

in negotiations at the EU this week, and they will now move on to being drafted and signed into law.

So first up, the TFR. Negotiations wrapped up Wednesday night, and the final terms were that

custodians will be required to comply with the travel rule for all transactions between

custodied wallets. This means sending identifying information together with transaction data.

...