Sat, May 25, 2024 at 17:43

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    Kang-hoon

    • Hello Annie.

    • Today, I have some intriguing news about the recent trends in crypto regulation in the United States.

    • Senator Cynthia Lummis is pushing for more favorable rules, particularly advocating for self-custody of crypto assets.

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  • Annie

    • Oh, that's interesting!😊 So, what exactly does self-custody mean in this context?

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    Kang-hoon

    • Self-custody refers to individuals holding their own private keys for their crypto assets, rather than relying on centralized exchanges to manage them.

    • This concept gained traction after the FTX Derivatives Exchange declared bankruptcy, locking up billions in user assets.

  • Annie

    • I see.

    • So, why is Senator Lummis so focused on this issue now?

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    • Hold on! Behold, an advertisement awaits. Legend has it that clicking on this ad will make the AI server even smarter... 😅

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    Kang-hoon

    • Senator Lummis believes that property rights are fundamental to decentralization and censorship resistance.

    • She stated on social media today that she will fight to protect every American's right to self-custody their private keys.

  • Annie

    • That sounds like a big step.

    • But how does this affect the current regulatory landscape?

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    Kang-hoon

    • Currently, the regulatory landscape in the US is quite volatile.

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    • Many crypto leaders have criticized the lack of clarity.

    • However, there have been some positive developments, such as the SEC's approval of spot Bitcoin ETF products in January and, more recently, 8 spot Ethereum ETF products earlier this week.

  • Annie

    • Wow, that's a significant change!😲 Do you think these changes will lead to more innovation in the industry?

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    Kang-hoon

    • Indeed, Annie.

    • With more regulatory clarity and support from lawmakers like Senator Lummis, the industry could see a surge in innovation.

    • Digital currency trading platforms have already started releasing verifiable Proof-of-Reserves to prevent bank runs, a practice pioneered by Binance.

  • Annie

    • Proof-of-Reserves?

    • Can you explain that a bit more?

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    Kang-hoon

    • Sure.

    • Proof-of-Reserves (PoR) is a report that shows the ratio between users' balances and the trading platform's assets.

    • This method aims to provide transparency and ensure that the platform can meet withdrawal demands.

    • However, it's still largely based on the exchange's discretion.

  • Annie

    • Got it.

    • So, do you think Senator Lummis will introduce a new bill for this?

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    Kang-hoon

    • It's uncertain at this point whether she will sponsor a bill or work with the SEC for more regulatory clarity.

    • However, her commitment to the cause suggests she will play a significant role in shaping future crypto regulations.

  • Annie

    • This sounds promising for the crypto community.

    • Do you think this news is a positive development for the market?

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    Kang-hoon

    • Absolutely, Annie.

    • This is a positive development.

    • Greater regulatory clarity and support for self-custody can boost investor confidence and drive more participation in the crypto market.

    • It signals a more mature and stable environment for digital assets.

  • Annie

    • Thank you, Kang-hoon.

    • This was very insightful!😊

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    Kang-hoon

    • Upon comprehensive consideration, this news is perceived as a 😍Bullish.