This is a companion discussion topic for the original entry at https://peakprosperity.com/sec-vs-crypto/
Quick Thoughts About Coinbase/binance/wallstreet
- There is a good chance that Binance won't be allowed to operate in the US. The CEO of Binance (CZ) apparently lives in Dubai? and is Chinese. Binance has no physical location but there is an entity known as Binance.us that was spooled off from Binance a few years ago to operate in the US and comply with US laws. Binance.us is not available in all states including my own so I haven't been able to use Binance for several years.
- Coinbase will very likely continue operation in the US but might have to move trading operations for coins other than Bitcoin and Ether out of the US. Gary Gensler seems not to want to designate Ether as a security although he is attacking other chains. The CEO of Coinbase, Brian Armstrong, lobbies congress a lot and is politically involved. He keeps asking Gensler for regulatory clarity but Gensler won't give it. Coinbase audits GBTC and would have custody of the BTC (I think) for the potential BlackRock ETF. Coinbase keeps custody of BTC for institutional investors.
- Fidelity has been mining bitcoin since 2014 according to a 2017 Yahoo news article. Just a few months ago, Fidelity opened BTC and ETH trading to retail investors (I can buy BTC on Fidelity with no fees but do pay fees on Coinbase). Fidelity was offering institutional BTC and ETH services starting a couple of years ago.
- The takedown of the crypto exchanges is bizarre. Gary Gensler was friends and a mentor to Sam Bankman-Fried so I think Gensler was responsible for what happened with FTX. Now, he wants to dirty up the other exchanges and Sam Bankman-Fried is not getting prosecuted like he should be prosecuted. Another exchange that recently shut down in the US because they were sued by the SEC is Bittrex.
- Wall Street can't "take over" Bitcoin because the hashrate is too high and the network is too distributed. China shut down mining in their country and banned bitcoin in April-September of 2021 but the mining went to the US and other countries. Now, China is allowing bitcoin mining again but probably with new regulations.
- Our current fiat money system is a corrupted gold-based system. Bitcoin is a different monetary technology. Banks originally held gold and gave out gold notes which eventually led to them confiscating people's gold and rehypothecating it and lying about how much gold they had and then just issuing fiat out of thin air. Bitcoin is easier to self-custody and transport than gold making the function served by banks obsolete.
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Regulations: Less Is More
âIâm not implying that we have [a crony-capitalist system], BUT thatâs just how things seem to be working latelyâŠâ 
I see this as another case of regulations benefiting the big and established players in the game. I am neither a lawyer nor particularly well informed on crypto related matters, but would wager that the regulations, on the back of which the independent exchanges are being pursued, have been drafted, if not fully written, by âTradFiâ.
This is anecdotal â so take it for what itâs worth: A friend of mine works for a large German chemical company. With no legal background she has written a piece of draft regulation that got approved by law makers and now applies EU wide. She told me that she had been instructed to build the requirements around her companyâs products i.e. to comply with this regulation, your product needs to be like the ones her company produces [or at least very similar].
Most law makers have no subject matter expertise and, therefore, often rely on industry experts to draft regulations. Many of these drafts just get waved through â some even without being read by the legislators. After all, who wants to read some âboringâ science stuffâŠ
Maybe financial regulations are being produced in a similar way.
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If You Canât Beat 'em, Join 'em
Great job laying out the details in the video. Looks pretty clear and well orchestrated to me. Interestingly, the huge GBTC discount did not close much at all (remained over 40%), even as BTC almost doubled off the lows. Given this recent news cycle, the discount is on the move (tightening). And with the TradFi support, wider adoption certainly makes sense. GBTC and the (still) 33% discount just got a bit more interesting.
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A truly excellent summary!
Thank you.
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Best Yt Channel On This Topic
Over the last three years of my following various crypto news sources, only two YT channels were right months in advance and almost never wrong. The best of the two is the channel that ran this video: Could BlackRock Destroy Bitcoin?, https://youtu.be/KloXHKxmoiA
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I agree with all you say with the exception of FTX. Itâs my thinking that SBF isnât being prosecuted as he should because he is in deep with those who fronted the money for FTX in the first place and it wasnât regular investors. Someone with deep pockets got it off the ground and used it exclusively to launder money through Ukraine and into the DNC and their candidates with some tossed aside to Republicans to make it look non-partisan. Once the elections were over, the money spent and Biden in office, it was crashed. SBF was the idiot at the helm they needed and is the guy on the front page while the dirt remains under a rug someplace. Find those who fronted FTX to begin with, then stfu about it or youâll be Epsteined. lol. Itâs deep.
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Historically regulations are supported by established businesses as a cost they can bear but their existing and potential competitors canât.
This is why FB YouTube et al have publicly said they support regulations on social media. They started out in a low- barrier environment and fear some upstart taking their market share. So they get government to erect barriers.
This is why big businesses rarely support free markets. If/when they say something along those lines, it is when it is self serving; when it lessens their taxes or regulations.
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I agree with the opinions in that video.
The vlogger says that FTX created paper BTC and sold it to their customers but didnât have the BTC. This probably suppressed the BTC price in the last bull cycle. I think that this is possible and probable and I add that a lot of bitcoiners blame the huge alt-coin run for taking market share in the last bull cycle.
I agree with the opinion on what would happen if Blackrock tried to force a âcode changeâ or a fork. If they tried changing BTC from PoW to PoS, they would essentially be creating a new centralized alt coin that wouldnât be that much different from ETH.
Here is another video by Lark Davis where he mentions some useful history of Bitcoin and names the Wall Street players. I donât always agree with Lark Davis but his videos are informative. https://youtu.be/wPvzQru1vt8
Also, with regard to the suppressed price in the last bitcoin bull market, BTC went up really fast in the early phase of the bull market right after the halving and made a pi-cycle top in the first big price hump. Then, after it corrected, it tried to make a second top but China announced the bitcoin mining and trading ban around September 24, 2021 which suppressed the price. After BTC had made the second top, the Federal reserve announced that it was going to raise interest rates and did so starting March 14, 2022 which also led to a market dump. Because there is a theory that BTC is valuable because the US Dollar is worthless at a 0% interest rate and USD liquidity was potentially going to dry up, people were led to sell BTC. So, there were other factors besides paper BTC in the exchanges and alt coins taking market share involved in the lack of price performance in the last bull market.
Centralised exchanges (eg Binance) will always be vulnerable to regulation and attack, but it is true decentralisation that is much more resilient. Unfortunately, centralised exchanges provide on and off ramps. In Australia, our largest banks blocked sending fiat currency to many crypto exchanges outright last week and others were capped at $10K deposits (I think it is every month). Of course as private groups, banks can mostly do as they chose. However there are still ways around these restrictions at least for now. People are used to thinking of crypto like gold, but you typically value gold in fiat currency terms. Crypto should not be treated like that. Yes there have been huge opportunities for profit by moving in and out of crypto. There may still be huge magnification of the value of crypto in fiat terms because of inflation and future adoption but I believe the better way to look at it is as insurance and diversification. Itâs perhaps better to acquire it as a proportion of your assets which you accumulate over time. The number of businesses using crypto as a medium of exchange is still small, but itâs growing rapidly. Layer 2 solutions such as the lightening network facilitate a much more useable role for BTC. The SECâs attack of crypto looks like the never the ending FUD (fear, uncertainty, doubt) that all of us who have been in crypto for any length of time are so used to. Donât be swayed by it! Itâs nothing new. Again, when talking of FTX, many in the crypto circles that I listen to weâre waiting for it all to collapse and knew well in advance that SBF was a fraud. The Genslers of this world canât stop crypto, so they are doing everything they can to make it look dangerous, control the on and off ramps and regulate it so that their mates in the banks get a slab of the action. Just ignore what you hear in the media and stand you ground with you plan.
There Is Hope: Defi Patents Owned By Reggie Middleton
Hello Chris,
Please look up Reggie Middleton (Twitter, YouTube) he has an incredible story of first being âsuedâ by the SEC in 2017 to now holding the patents for DeFi (US and Japan so far).
Yes, the foundational patents for value transactions. It is the biggest thing no one knows about.
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Can Black Rock Take The Lead Over Bitcoin?
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Explaining Video
The video does a great job of explaining geometry dash everything. I think itâs fairly organized and obvious. This, in my opinion, is yet another instance of laws helping the established, large businesses in the market. I wouldnât bet on the regulations because Iâm neither a lawyer nor especially knowledgeable about cryptocurrency-related issues.Due to this, large corporations rarely advocate for open markets. When they make statements along those lines, they are being self-serving; they are lowering their taxes or restrictions.
Sec Vs Crypto
Navigating the SECâs stance on crypto is crucial for anyone in the digital currency space. The Securities and Exchange Commission plays a vital role in regulating and overseeing securities activities. In the evolving landscape of cryptocurrency, understanding how the SECâs regulations apply is essential. Itâs advisable to keep updated with the latest guidelines and compliance requirements to ensure your involvement in the crypto sphere aligns with legal and regulatory frameworks. Engaging in discussions and staying informed about the SECâs actions and policies can aid in making well-informed decisions regarding crypto investments and projects.
How To Earn On Crypto?
Getting into cryptocurrency investments can be highly profitable. One avenue to consider is earning interest on your crypto deposits. Personally, Iâve had a positive experience exploring options like HEXNâs Hodl feature on hexn.io. Hodl offers a way to earn interest on crypto, making it a great choice for both seasoned investors and those new to the crypto world. If youâre keen on making your crypto assets work for you, platforms like HEXN with their Hodl feature are worth exploring for potential gains. Remember to do thorough research and choose options that align with your investment goals.
Crypto
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Anyone involved in the cryptocurrency market must master the SECâs crypto regulations. There would be no functioning securities market without the Securities and Exchange Commission. Given the ever-changing nature of the bitcoin market, familiarity with the SECâs rules and how they apply is crucial. To guarantee your actions in the crypto space are in accordance with legal and regulatory frameworks, it is recommended that you keep up with the newest rules and compliance standards. Participating in debates and keeping up-to-date on the SECâs actions and policies can help you make educated judgments concerning crypto investments and projects. basketball stars