Jesse Powell

Jesse Powell @jespow

@brian_armstrong 5 minutes later https://t.co/J62jMTydLT — PolitiTweet.org

Jesse Powell @jespow

@WarrenDavidson Operation Chokepoint 2.0 is in full effect. It's no coincidence that every financial regulator in the country is attacking mundane, respectable, domestic crypto businesses in the past week. There is no interest in supervising crypto. Everything being done is to shut it down. — PolitiTweet.org

Jesse Powell @jespow

@hobdaydesign First version better, IMO. Second version tooltip covers too much of the chart. — PolitiTweet.org

Jesse Powell @jespow

@IsraelBitton Matches my experience. It seems to try to interpret what you want and then give you an answer to that secret interpretation which fits its agenda. It won’t tell you it’s doing it so you have to constantly be on your toes. You can’t trust anything it says. — PolitiTweet.org

Jesse Powell @jespow

@tqlemd @lex_node @0xcyp I like your style but I'm only one small shareholder. — PolitiTweet.org

Jesse Powell @jespow

@0xcyp @lex_node It might but the SEC won't say. There is zero guidance, zero collaboration, zero interest in helping anyone develop a compliant product. Maybe we'll be able to reverse engineer their logic based on who else they go after. — PolitiTweet.org

Jesse Powell @jespow

@0xcyp @lex_node And the program is also not allowed to charge a variable fee for this service? Not allowed to pay any user retention incentives in the event of it being responsible for the failure that led to the slashing? Most SaaS offer some uptime guarantee/SLA with compensation. — PolitiTweet.org

Jesse Powell @jespow

@lex_node I think the SEC's view is that if the user delegated their coins to you and you gave them more coins back without them "working", that's a security. Unfortunately, we are still left guessing about where the line is. Maybe someone with deeper pockets will invest in finding answer. — PolitiTweet.org

Jesse Powell @jespow

@lex_node Without commenting on the Complaint itself, I believe most programs work like: Pay network reward minus a fee. Fee can be variable so user's reward can be fixed. Reserve the right to not pay if network fault. Pay user retention bonus if slashed. SaaS reward always <= on-chain. — PolitiTweet.org

Jesse Powell @jespow

@paulvigna The problem isn't a lack of willingness, resources or effort. The problem is that the SEC doesn't actually want to register anything having to do with crypto. Check the backlog. RaaS is DOA if they won't say what to register as and registrations are not being processed, anyway. — PolitiTweet.org

Jesse Powell @jespow

@EthereanMaximus @daveweisberger1 How would you describe it? — PolitiTweet.org

Jesse Powell @jespow

@EthereanMaximus @daveweisberger1 I can't comment on, admit or deny what is contained in the Complaint but you can go to the website and read about how staking works for yourself. You can also compare our rewards to the on-chain rewards. You can see on the blockchain how much we actually had staked. — PolitiTweet.org

Jesse Powell @jespow

@PrinceySOV @krakenfx @Croesus_BTC @edstromandrew It goes to Treasury. From there, I imagine it will be sent on to Zelensky or Pfizer. — PolitiTweet.org

Jesse Powell @jespow

Oh man, all I had to do was fill out a form on a website and tell people that staking rewards come from staking? Wish I'd seen this video before paying a $30m fine and agreeing to permanently shut down the service in the US. How dumb do I look. Gosh. ⛽️💡 https://t.co/UPdQdnI6xN — PolitiTweet.org

Jesse Powell @jespow

@lex_node The SEC may not have accurately described our business in its Complaint. It’s possible there is some 100% pass through custodial staking model that works, requires 32 ETH from each individual, no difference from non-pooled DIY. Would that actually be a viable consumer product? — PolitiTweet.org

Jesse Powell @jespow

@Qryptonaut90 I heard donating hundreds of millions of client funds to politicans worked for one new exchange. — PolitiTweet.org

Jesse Powell @jespow

@Jayfer3333 Might be walking funny for a bit but other than that, everything’s great. — PolitiTweet.org

Jesse Powell @jespow

The superior model, IMO. Demurrage was explored as early as Ripple and Freicoin. Slash those who don’t participate rather than top up those who do. Better from a tax and regulatory perspective. Stopping the bleeding doesn’t look like a gain. Bleeding looks like a direct loss. — PolitiTweet.org

Jesse Powell @jespow

@0xfoobar @0xpanettone Bigger balance sheet wouldn’t hurt either. They picked the bottom of the bear market, waited for us to do a 30% layoff. They have all our financials, lots of leverage. Maybe we looked weak. This is more about FTX than it is us or staking but the timing was not great. Potential… — PolitiTweet.org

Jesse Powell @jespow

@0xfoobar @0xpanettone For our company. I do think a different company, with different corporate structure, shorter operating history, some product/marketing/ToS differences might make a different decision. — PolitiTweet.org

Jesse Powell @jespow

@0xfoobar @0xpanettone risk-adjusted return — PolitiTweet.org

Jesse Powell @jespow

@uscryptotax I don’t see a material difference vs competing products. I don’t think that any minor differences matter to the SEC, which views all forms of custodial staking as problematic. I expect more settlements or lawsuits to follow imminently as they make the rounds with their example. — PolitiTweet.org

Jesse Powell @jespow

@tomlombardi Highly recommend doing that if you have the technical ability and the minimum amount required to stake. A lot of people don’t have 32 ETH and don’t trust themselves with the tech though. It may drive more direct staking but will block retail adoption. — PolitiTweet.org

Jesse Powell @jespow

I honestly hope that somebody proves, in court, that there is a legal, user-friendly version of custodial staking that can be offered to US consumers. It’ll be a brutal, lengthy, expensive fight and a massive distraction but the industry and the USA will be extremely grateful. — PolitiTweet.org

Jesse Powell @jespow

Thank you. Some guidance would be appreciated. The “This is wrong but I won’t tell you how to do it right. Want to find out if X works? Try it and see what happens.” approach does not help the industry nor consumers. We aren’t anti-regulation but we need a clear path to operate. — PolitiTweet.org

Jesse Powell @jespow

Congress must act to protect the domestic crypto industry and US consumers who will now be going offshore to obtain services no longer available in the US. — PolitiTweet.org

Jesse Powell @jespow

@MetaLawMan Doubt the existence of anything outside of our borders has ever crossed their mind. Certainly would explain the lack of any appreciation for global competitiveness and the focus on enforcement against US companies. — PolitiTweet.org

Jesse Powell @jespow

@MetaLawMan *applies to US accounts only. Staking continues as usual outside of the US. Majority of clients are not affected. — PolitiTweet.org

Jesse Powell @jespow

@LefterisJP @tier10k Thank you! 🙏 — PolitiTweet.org

Jesse Powell @jespow

@LefterisJP @tier10k Yeah, there will be no changes to the ledger or API. All the historical transactions will remain available. — PolitiTweet.org