Decentralized exchange UniSwap and venture capital firm Andressen Horowitz were revealed as former clients of LaBolt in a recently published public financial disclosure report.
The Biden Administration Is Politicizing Crypto
With crypto exchange Coinbase (COIN) last week receiving a Wells Notice signaling impending action from the SEC, and with the CFTC this week suing Binance, another crypto exchange, it feels like the crypto industry is at war with the U.S. government. This could get bad.
White House Takes Aim at Crypto in Scathing Economic Report
The report, authored by the White House Council of Economic Advisers, laid out a number of issues seen within the digital asset ecosystem.
US Fed faces internal probe over Silicon Valley Bank failure
Federal Reserve chair Jerome Powell said a “careful and thoughtful” review is needed to understand how the bank collapsed under its watch.
Biden vows to hold those responsible for SVB, Signature collapse
US President Joe Biden on Twitter said he is “firmly committed” to holding those responsible for the Silicon Valley Bank and Signature Bank collapse “fully accountable.”
U.S. Treasury Department Proposes 30% Excise Tax on Crypto Mining Firms
A provision in the department’s “Greenbook,” its list of tax proposals and explanations for U.S. President Joe Biden’s budget proposal, would create a phased-in excise tax based on the costs of the electricity used in crypto mining, imposed on the companies “using computing resources” to mine cryptocurrencies.
Biden Budget Plan Would Close Crypto Tax Loss Harvesting Loophole
U.S. President Joe Biden’s proposed budget will include a provision to close tax loss harvesting on crypto transactions.
Biden to Name Fed Vice Chairwoman Lael Brainard as Top Economic Adviser: Bloomberg
Brainard has been leading the U.S Federal Reserve’s work on a potential digital dollar and has been minding the store on crypto policy discussions until the central bank appoints its permanent vice chair for supervision.
Rep. Cawthorn fined for ethics breach over Let’s Go Brandon token promo
The Ethics Committee couldn’t agree if the Representative sought to profit from his promotions but he was fined for it regardless and for also not declaring a “gift” of the token.
US senators commit to advancing crypto bill despite FTX collapse
The two U.S. Senators said the downfall of FTX clearly exemplified “the need for greater federal oversight of the digital asset industry.”
Biden’s cryptocurrency framework is a step in the right direction
Cryptocurrency guidelines released by the Biden administration this month show that officials are considering the benefits of crypto. That’s a step in the right direction.
Biden’s anemic crypto framework offered us nothing new
The cryptocurrency industry needs substantive proposals that aim to do more than simply mitigate potential damage. The Biden administration’s framework failed to acknowledge crypto’s advantages.
Sam Bankman-Fried could spend up to $1B in 2024 to thwart Trump comeback
The FTX founder said he’d spend “north of $100 million” with a “soft ceiling” of $1 billion and added “who knows what’s going to happen between now and then.”
The Young Turks Embarrass Themselves Trying To Discuss Crypto Regulation
Why do these Young Turks ladies dare to speak about a subject as complex as cryptocurrencies without doing ANY research? In the following video, both Ana Kasparian and Francesca Fiorentini read a New York Times article interpreting it as fact, while giving the most inane commentary you could imagine. To make things worse, they try to be sarcastic and humorous and fail completely at that too.
Related Reading | Crypto Needs Regulation If It’s Going To Survive, Says SEC Boss
Their main thesis is that crypto lobbyists are influencing bills and legislation while at the same time trying to keep the industry deregulated. Is that what’s happening? Doesn’t that thesis contradicts itself? Let’s go through the Young Turks ladies’ points one by one to see if we can understand them better. But first, the video:
What Do The Young Turks Think They’re Saying?
To express coherent ideas while recording live is hard. So, to cut the Young Turks ladies some slack, let’s start with the text. The YouTube information box starts as follows:
“Crypto lobbies and lobbyists are gaining ground in their fight to profit from bills drafted with state legislators to keep the cryptocurrency market free of regulation, leading to an increase in profits for crypto executives and lobbyists.”
If a bill passes, that’s regulation. Isn’t that what those lobbyists are pushing? Regulation? Also, isn’t everyone in the United States looking to increase profits? It seems like the Young Turks are protesting about the lobbyists dictating what regulation looks like, but that framing wouldn’t drive the outrage clicks.
Later on, the info box says:
“Florida is the most recent state to adopt crypto-friendly legislation as the state recently signed a law that would make it much easier to trade and hold cryptocurrencies in the state in an attempt to draw investment into the industry in Florida.”
What’s the problem here, exactly? Regions all over the world are executing this geographical arbitrage play. Is it illegal? NO.
The info box closes with:
“Across the nation, crypto executives and lobbyists are helping to draft bills to benefit the fast-growing industry, then pushing lawmakers to adopt these made-to-order laws, before moving rapidly to profit from the legislative victories.”
Yeah, that’s what lobbyists do. Every industry under the sun is trying to influence regulation in its favor. Is it right? Maybe not, but it’s as common as bread. Crypto people didn’t create lobbying.
What Do Ana And Francesca Think They’re Saying?
The Young Turks’ bosses did these women dirty by putting them in this position. It seems like they ordered a hit piece about one of the most complex subjects around without providing any training whatsoever. Do The Young Turks’ bosses have training themselves? Because it seems like they’re as confused as the ladies.
The video starts with Ana stating the confusing thesis, crypto lobbyists are drafting laws to make sure that the industry remains deregulated? If they’re drafting laws, they’re looking for regulation, but ok. Then, she criticizes Joe Biden’s now-famous Executive Order by saying it’s just the commission of studies. Well, it’s a complex subject, and the Young Turks could benefit from commissioning studies themselves.
Then, Ana says that the laws are being left up to each State. Isn’t the United States a constitutional federal republic? Federal means that the States are sovereign. After that comes the terrible “Tales From The Crypt-o” title card, in which they use a tweet from an NFT owner who got hacked as some kind of proof that the crypto space is spooky and treacherous.
Then, the New York Times articulates what the Young Turks couldn’t. According to it, a law presented in Florida eliminates “a threat from a law intended to curb money laundering.” So, what they’re actually against is that the crypto industry is getting rid of AML laws? They’re not being too successful, then, because, as far as we can tell, every exchange in the US has AML procedures in place.
ETH price chart on FTX | Source: ETH/USD on TradingView.com
The Young Turks Think That Cryptocurrencies Are Good For Criminals
It’s Francesca’s turn, and, with the eloquence of a first-time podcaster, she says that cryptocurrencies are a new way to “do corruption,” to “steal money that is not yours,” and for “paying 17-year-olds for sex.” A ten-minute read on cryptocurrencies would’ve told the Young Turks that the blockchain is an immutable ledger. There’s not a worse medium to finance the crimes that Francesca describes.
Then, Ana insists that financial institutions need to be regulated. That’s exactly what the lobbyist are trying to accomplish, but ok. Then, she says “You should want protection. You should want to ensure that cryptocurrencies aren’t used for money laundering.” Perfect, but the people should also want banks not to be used for money laundering, and they’re not getting that either. The only way to stop money laundering is for the financial authorities to do their job and stop it. Common citizens shouldn’t suffer.
Related Reading | Dubai World Trade Centre To Become A Crypto Hub For Regulation
Near the end, Francesca qualifies the whole industry as a slow-moving con or scam. As a contrasting opinion, we might qualify the industry as the most exciting development in finance in decades. And as a job-generating juggernaut that’s saving lives worldwide. Then, Francesca predicts that, in a few years, we’re going to be inundated with documentaries about the different cases in which people lost their savings and whatnot. She might be right about that. There’s too much money involved and the average citizen is as uninformed as the Young Turks.
Do your own research and commission your own studies so that you won’t become a victim. As in the traditional financial markets, laws aren’t going to protect you from scams. Information and due diligence will.
Featured Image: Ana and Francesca, screenshot from the video | Charts by TradingView
Bank of Canada collaborating with MIT on CBDC research
The bank will work alongside the MIT Media Labs’ Digital Currency Initiative (DCI) team to examine how “advanced technologies could affect the potential design of a CBDC.”
Haven Protocol (XHV) shows strong signs of bottoming out after crashing 90%
The Monero blockchain fork has surged by nearly 100% in the past five days against a rising appetite for privacy-focused cryptocurrencies.
Regulators and industry leaders react to Biden‘s executive order on crypto
“The proverbial doors of policymakers are wide open, this is now a national conversation in the U.S.,” said Circle CEO Jeremy Allaire.
Bitcoin stems losses after US bans Russian oil, gold heads to record highs
The precious metal was a hair off a USD peak Tuesday, running higher with oil and other commodities, while stocks suffered.
Biden expected to issue executive order on crypto and CBDCs next week: Report
Both President Barack Obama and the previous administration issued executive orders related to digital assets.
President Biden taps economists for Fed governors’ seats, Sarah Bloom Raskin as vice chair for supervision
According to the U.S. President, the three nominees have the “experience, judgment and integrity to lead the Federal Reserve and to help build our economy back better for working families.”