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.

What's going on, guys? It is Tuesday, December 12th, and today we are talking about the latest attack from the anti-crypto army.

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breakdown pod. Hello, friends. Well, we are starting today with a thread from friend of the show

Alex Thorne, the head of firm-wide research at Galaxy Digital, who was writing yesterday about our

main topic, the latest salvo from Elizabeth Warren's anti-crypto army. Alex writes, this bill from Senator Warren

massively expands the Bank Secrecy Act, imposing bank-like K-YC rules on non-custodial software

products, including free and open-source software, and it's gaining steam with five new co-sponsors.

This would be disastrous for Bitcoin and crypto in the USA.

Specifically, the bill calls for dramatically expanding the Bank Secrecy Act to cover open source

software, including non-custodial wallets, miners, and validating nodes. As non-custodial and

decentralized software cannot plausibly perform centralized compliance functions, Warren's bill would effectively outlaw crypto in America.

Take miners or validators as an example.

These entities passively add transaction data to the blockchain.

While they can exclude known-sanctioned addresses,

they are structurally incapable of knowing the identity of every user.

It would be impossible for miners or validators to perform KYC on every public blockchain

transaction. Indeed,

it cannot even be said that these entities even have a customer to know. Warren's bill also seeks

to impose the Bank Secrecy Act on non-custodial wallets, many of which are free and open source.

...