Bitcoiners have been waiting for years for mass adoption and the legalization of cryptocurrencies. This is starting to happen, but the regulator is inevitably trying to distort everything related to cryptocurrencies to suit its own agenda. I fear the
BTC-community will receive a very different crypto future (contrary to expectations).
In the US (Kentucky), Section 33, an amendment to the bill House Bill 380, was quickly introduced, by a vote of 85 \ 0, the essence of which is the requirement to:
"The amendment directs hardware wallet manufacturers to help customers reset access credentials. It expressly covers any “password, PIN, seed phrase, or other similar information” used to unlock on-device funds. Moreover, it applies to any information needed to access wallet contents, effectively tying technical design to state-level compliance rules."This directly contradicts the operating principles of hardware wallets and is a massive backdoor, allowing not only users but also any malicious actor to regain access to their wallet. Of course, this is being presented as "concern for hardware wallet customers" (
the road to hell is paved with good intentions), but the effect will be the exact opposite. If this law is passed (it has already been sent to the Senate), other states will follow suit, and then the entire US, and other countries will follow suit, potentially becoming a global norm (I'm not saying it will be exactly that way, but there are certainly similar risks).
Perhaps HW manufacturers will simply leave the US market if the law is passed. Or they'll
sell out himself completely to the regulator. What do you think about this?
Would you want a regulator-imposed backdoor in your hardware wallet? What if they don't even ask you about it?
Source: https://abstractcrypto.com/kentucky-hb-380-proposal-on-hardware-wallet-recovery-sparks-self-custody-concerns/
