I have news. The stable coin issue just a protocol issue, Swift vs Eth 2.0, basically. The competition is unfair since Swift comes with a 15 year 1.5% VAT tax, but that has nothing to do with protocols, the Fed is free to add the surcharge to all Eth stable coin chains, it is voluntary. This is an unfair debate, Swift is not getting a fair chance.
But it points to the larger problem, the Powell is not allowed to admit the Fed is in tax collection mode for 15 years. This is where 'expectations' or Overton comes in, and this is where we see Nixon Shock syndrome is all these debates. And it points out how taxes become distortionary in a very obvious way.
Rather then regulate stable coins, I have a better idea. Assign Treasury limited authority to double spend, and the philosophers can debate that. Then we can leave the Overton Windows out of technology and science, please.
Illegal taxation problem in the law. It is no secret this animosity to fintech is about protecting, and hiding that fat central bank VAT tax, issued strictly on coinage power. The reserve act allows it, actually, up to a point. But there is credible evidence showing that the Fed is violated the due process in free markets to generate this tax income, sand that is out of bounds.
The whole mess will boil down to the Supremes, you can bet on that. Especisally true sicne treasury has the native power to double spend under the current reserve act, coinage power is not all spent. Coinage power remains, in a tautology, we need it to avoid the taxationwithout legislation, we need the both to make the money base. And for crying out loud, set the fiaters free for the next 15 years, it you turn them into tax collectors we will burn them down, been there, done that.
Not the first time, try a little American history.
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