Supply Shock Save Our Wallets: The Legal War on Bitcoin | Matt Corallo
Jun 5, 2025
Veteran Bitcoin developer Matt Corallo, an open-source engineer at Spiral, dives into the critical role of second layers like Lightning for Bitcoin's scalability. He sheds light on regulatory blind spots jeopardizing non-custodial wallets, advocating for the Blockchain Regulatory Certainty Act to protect innovation. Corallo questions Bitcoin maximalism, discusses trade-offs of Layer 2 solutions, and emphasizes the need for realism in the decentralized landscape. His insights challenge the status quo and highlight urgent legal issues facing the crypto community.
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Protect Wallets Via Legislation
- Passing the Blockchain Regulatory Certainty Act is essential to protect non-custodial wallets from harmful regulations.
- Call Congress via saveourwallets.org to show support and push for legal clarity and wallet freedom.
Regulation Risks Banning L2s
- Treating Lightning and other L2 operators as money transmitters effectively bans their operation in the U.S.
- KYC/AML requirements are impractical for Lightning nodes and break Bitcoin's non-custodial design.
Lightning Revives Bitcoin Payments
- Lightning Network's improvements in speed and reliability have revived Bitcoin payments.
- Payment volume on Lightning, particularly on Cash App, has increased ninefold in a year.