1/ Always jealous of the lawyers/policy folks that do monster threads, so going to try to 🧵 for the President's WG Report (it's a 🐉 = 160 pp). Big kudos to @davidsacks47 and @BoHines for their tireless efforts on this. I think I start with "Let's dive in" 🪂

@fund_defi 3/ Some overall recs in the intro (but more in the end, so will get there). Most relevant today (based on Storm case & Samourai plea): "Congress should codify principles regarding how control over an asset impacts BSA obligations, particularly for money transmitters."

@fund_defi 4/ pp. 45-61 gives a "taxonomy" -- something that people have been begging for for quite a long time: "Security Tokens", "Tokenized Securities", also digital assets that are the subject of an investment contract (this is to be able to sell!), & even "commodity tokens".

@fund_defi 5/ Main rec here for "immediate" action: SEC should consider using rulemaking & exemptive authority under securities laws to allow for transactions involve digital assets, including investment contracts.

@fund_defi @m_mosier_ 7/ Going back for a sec, p.6 -- good overview of how to think about control & DeFi - both the topic itself as well as technological capability of being modified, operating w centralized structure & logistical capability of complying w current reg.

@fund_defi @m_mosier_ 8/ Onward to *banking* which obviously is a big deal post-CP2.0 & all the @USOCC @federalreserve & @FDICgov have done to rollback Biden era restrictions on crypto w banks. "Under the Trump Admin[], Operation Choke Point 2.0 is dead-not just in spirit but in substance" (p.64)

@fund_defi @m_mosier_ @USOCC @federalreserve @FDICgov 9/ tl;dr on banking: "[r]elaunch agency crypto innovation efforts--as appropriate--to address outstanding banking activities." We have seen this already with massive pushes to rollback the negative reputational implications of crypto w banks. {quick break brb}

@fund_defi @m_mosier_ @USOCC @federalreserve @FDICgov 10/ What of the best parts that may be overlooked is the nod on insurance & digital assets. It has been *brutal* to get insurance as a crypto software dev co (enormous costs for v little insurance) & the Report recognizes "[t]here are various steps Treasury & state regulators...

@fund_defi @m_mosier_ @USOCC @federalreserve @FDICgov 11/ could take to help improve regulatory certainty and develop a more robust market for digital asset insurance." (p.86) Opinion: Better insurance regimes can help attract more crypto businesses to the U.S., esp w state protections

@fund_defi @m_mosier_ @USOCC @federalreserve @FDICgov 12/ Stablecoins & Payments (begins p.88). Props for the Satoshi quotes throughout the Report: "With e-currency based on cryptographic proof, w/o the need to trust a 3rd party middleman, $ can be secure & transactions effortless." ◀️ kicks off the section

@fund_defi @m_mosier_ @USOCC @federalreserve @FDICgov 13/ Obviously the report kills CBDCs (the issue that held up GENIUS), recommending "[d]iscourage, oppose and prohibit the ability of any agency from undertaking any action to establish, issue, or promote any CBDC in the United States or abroad."

@fund_defi @m_mosier_ @USOCC @federalreserve @FDICgov 14/ Now a biggie -- "Countering Illicit Finance". Assume this will be 🌶️🌶️🌶️🌶️ so going to do a more detailed dive on this. (p. 100) Starts well: recognizes FinCEN's great work to date (cc @m_mosier_ again 🦸‍♂️ thankful for the great 2019 FinCEN Guidance: )

@fund_defi @m_mosier_ @USOCC @federalreserve @FDICgov 15/ & commits to the DOJ "ending Biden Admin's strategy of regulation by prosecution in the digital asset space". Focus going forward is those who "victimize digital asset investors or use digital assets in furtherance of criminal offenses".