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first_img SharpLink opposes Ethereum EIP-8363, stating that zero returns will undermine the core reason for institutions to choose ETH

Joseph Chalom, CEO of the Ethereum treasury company SharpLink, posted in opposition to Ethereum Improvement Proposal EIP-8363. According to his disclosure, the current network issues new ETH to validators as staking rewards at a variable yield rate of about 2.75%. If the proposal is passed, it will be implemented in phases over approximately a year and a half, gradually destroying part of the issuance rewards as the staking amount increases. When about 50% of ETH is staked, the staking yield will drop to 0%, and validators will only be able to rely on transaction fees, which currently account for only 15% of staking rewards, to sustain themselves.Chalom presented four points of opposition:Staking yield is the factual benchmark for all on-chain interest rates. The approximately $35 billion TVL of liquid staking tokens is the core collateral for on-chain lending. A yield of zero will raise on-chain capital costs, making actual yields approach or even become negative. Collateral will migrate to assets that still generate yields, and independent stakers and small to medium operators will be the first to be squeezed out.The native yield characteristic is precisely the key reason institutions choose ETH over Bitcoin. Erasing this difference is equivalent to voluntarily giving up its competitive advantage just as ETH is outperforming Bitcoin.Issuance is not a cost to external parties but a transfer of value to security maintainers and builders within the network. Destroying it is a destruction of value rather than a redistribution of this portion of value.The current timing is the worst; Ethereum is in a rising phase of institutional adoption, and destruction incentives will suppress this wave of adoption momentum.He stated that SharpLink agrees with the proposal authors' goal of making ETH scarce and stabilizing the staking rate at a reasonable level, but believes this should be achieved through the existing base fee destruction mechanism rather than altering the economic foundation of the protocol.

U.S. Senator Warren: Supports cryptocurrency regulatory legislation, but opposes the CLARITY Act

According to CoinDesk, U.S. Senator Elizabeth Warren stated that she supports pushing for cryptocurrency-related legislation but does not support the current CLARITY Act, believing that the bill fails to adequately address key issues such as corruption, consumer protection, national security, and economic risks.Warren pointed out that the crypto industry needs a clear regulatory framework, but the regulatory plan must ensure investor rights and the safety of the financial system. She believes that the CLARITY Act is lacking in preventing conflicts of interest, protecting consumers, and reducing potential systemic risks.The CLARITY Act aims to further clarify the division of regulatory responsibilities for the U.S. digital asset market, establishing a clearer legal framework for cryptocurrency asset trading, issuance, and market participants. Supporters believe that the bill helps enhance industry certainty and promote innovation.However, some Democratic lawmakers, including Warren, have previously expressed concerns about cryptocurrency regulatory legislation, arguing that some proposals could weaken the power of regulatory agencies and create regulatory arbitrage opportunities for large crypto companies.Warren has long taken a cautious stance on crypto assets, focusing on consumer protection, financial stability, and the risks of illegal activities in the crypto market. This statement indicates that U.S. cryptocurrency regulatory legislation still faces a struggle between the two parties and different interest groups.

David Sacks: Opposes using regulatory uncertainty to suppress open-source AI, warns that the AI duopoly is seeking to eliminate competition

David Sacks, Chairman of the President's Council of Advisors on Science and Technology, stated on the X platform that using regulatory uncertainty as a competitive tool is "completely unacceptable." Regulatory decisions should be based on facts, logic, and evidence, rather than deliberately creating fear and uncertainty (FUD). He is unsure whether venture capitalist and AI policy researcher Dean Ball is acknowledging a strategy of "regulatory capture" or merely predicting that such a situation will occur. However, in any case, the practice of issuing "soft law" warnings through regulatory agencies to create market panic, thereby forcing regulated companies away from Chinese open-source models, should not be accepted.David Sacks pointed out that Dean Ball believes there is no need to directly ban Chinese open-source models; it is sufficient to guide regulatory agencies to issue relevant warnings, which can influence corporate decision-making by creating enough doubt and uncertainty, and these reasons "do not even need to be very substantial." Any regulatory decision must have sufficient basis, rather than implementing policies by "artificially creating doubt." He warned that this practice of circumventing public deliberation procedures not only undermines the foundation of the rule of law but may also open the door to regulatory abuse against any company or individual in the future.David Sacks further stated that current AI policy is at a critical turning point. Leading closed-source laboratories, which have already formed a duopoly in AI model revenue, are attempting to use government power to eliminate open-source competitors. He called on other companies and developers in Silicon Valley that still support open competition to make clear statements to jointly maintain an open ecosystem in the field of AI.

a16z co-founder: Support the establishment of trust and safety guardrails for the new era, oppose regulations that stifle AI innovation

Marc Andreessen, co-founder of the venture capital firm a16z, published an article outlining his stance on AI regulation by the U.S. government. He stated that if so-called regulation means creating complex rules by people who do not understand the technology, suppressing innovation through layers of approval and compliance requirements, and ultimately becoming a tool for large enterprises to consolidate market positions and hinder newcomers, then he will firmly oppose such regulation.In his view, excessive regulation often leads to startups being crushed by cumbersome procedures and high compliance costs, causing innovative talent to flow to more open markets, while regulatory agencies themselves continue to expand, ultimately deviating from their original goals.Andreessen specifically criticized the regulatory mindset centered on the "precautionary principle," arguing that if this concept is amplified indefinitely, it could lead society to reject new technologies out of fear of potential risks. Many regulatory measures often arrive late, after fundamental changes in technology and industry have already occurred, making it difficult to address real issues and potentially becoming obstacles to innovative development. He also attributed the relatively lagging state of technological innovation in Europe in recent years to a culture of excessive regulation, believing that regulation should not become a moat to protect vested interests and raise market entry barriers.However, Andreessen emphasized that he does not oppose all forms of regulation. On the contrary, he supports rules that can build market trust, ensure public safety, and maintain fair competition. For example, preventing AI from faking voices to commit financial fraud, preventing deepfake content from interfering with elections, preventing technology from being used to harm vulnerable groups, and ensuring that consumers and businesses can safely use new technologies.In his view, reasonable regulation is like guardrails on a highway and a braking system in a car; it does not hinder technological progress but rather allows innovation to develop in a faster and more sustainable manner. Andreessen stated that what is truly worth pursuing is not "zero regulation" or "heavy regulation," but finding a balance between innovative vitality and social trust, which is also his unwavering stance.Previously, the U.S. government forcibly "recalled" commercial models due to jailbreak risks, leading Anthropic to take Fable 5 offline overnight and publicly protest.

The South Korean cryptocurrency industry collectively opposes the new anti-money laundering regulations, planning to require all overseas transfers of over 10 million won to be reported as suspicious transactions

According to Cointelegraph, the South Korean crypto industry group DAXA (Digital Asset Exchange Alliance), representing 27 registered virtual asset service providers (VASP), has submitted objections to the Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU) regarding the proposed amendments to the implementation order of the Specific Financial Information Act.The new regulations aim to require domestic VASPs to report any virtual asset transfers with foreign VASPs as suspicious transaction reports (STR) if the amount reaches 10 million won (approximately $6,800), regardless of the risk level. DAXA warned that this would cause the annual reporting volume of South Korea's five major trading platforms (Upbit, Bithumb, Coinone, Korbit, Gopax) to surge from about 63,000 last year to over 5.4 million, making compliance practically impossible.The industry also opposes the proposed requirement to verify the accuracy of customer information, arguing that the subordinate rules impose obligations not clearly defined by law. This industry backlash comes as exchanges face sanctions from financial regulators in court. On April 9, the court ruled to lift part of the business suspension against Upbit operator Dunamu, but the regulators have appealed. On April 30, the court suspended the six-month partial business suspension against Bithumb. Coinone also received a temporary stay of execution.The public consultation period for the new regulations ends on May 11, and it is expected to be finalized in July after regulatory and legal reviews. This highlights the tension between South Korea's tightening of crypto anti-money laundering regulations and the industry's concerns about excessive compliance burdens.
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