Damn Chico why you so bullish!?
That might have been what some of you were saying after Monday’s 2021 $100k video.
Well here... we look at both sides of the coin.
Dam Chico why you so bearish!?
Let me tell ya, cuz it’s time for Chico Crypto!
Well yes things are looking tasty for Bitcoin, and some of the big US players at the top...the
Coinbase IPO, from what I can see, is in the greenlight from the SEC.
Elad Roisman is in, while Jay Clayton is out, and Elad days before his appointment to chairman,
was supporting the New York Stock Exchange’s rule change for direct listings, which is
obviously for the planned early 2021 Coinbase IPO.
But Elad, he was appointed by the Trumpster, he was one of the four commissioners of the
SEC who could have taken the spot.
The others, Hester Pierce republican.
Allisson Lee, Democrat & Caroline Crenshaw democrat.
Thus when Joe presumably takes office January 20th, one of the democrat commissioners may
be appointed, Allisson Lee or Caroline Crenshaw, while the search for a new commissioner begins
or one of the current commissioners end up with the chairman spot.
So, do these 4 commissioners share the same views??
Will there be much shake up at the SEC with transition??
Well the two democrats Crenwhaw and Lee, put out their own statement on the direct listings.
And yes as we can see, the Commission approved this for the NYSE….but also from Crenshaw
and Lee at the bottom they say regarding the NYSE’s specific rule “Unfortunately, the
rule fails to address very real concerns regarding protections for investors.
As a result, we are unable to support this specific approach” And they list their concerns
below….
The 20th is in just 22 days and we may have a new “temporary” chairman, who isn’t
a fan of this direct listing process.
So will they be able to flip the switch?
And stop this rule change before it gets started?
Well bloomberg covered the rule change when it happened last week, in an article titled
“Silicon Valley Wins as SEC Allows New Direct Listing” and they said this “Getting the
rule done under SEC Chairman Jay Clayton, who was appointed by President Donald Trump,
might prove important for the exchange and Silicon Valley.
That’s because there’s no guarantee an SEC chief picked by President-elect Joe Biden
would approve NYSE’s proposal”
It doesn’t look like it...a new rule would have to be constructed and passed by the new
chief and commission, which would take some time, and like I showed Monday, Coinbase is
looking to do it early 2021...so me thinks this was pushed through with a purpose….
So that is not necessarily bearish Chico...so what the freak is??
Well there is the slight possibility that the house of cards I’ve been covering for
a long time, could get hit harder than some want to believe.
I’m Talking about Tether USDT.
So we all know the New York AG’s Case is still ongoing, against those in charge of
the dark stablecoin.
But there was something else that came out right before Christmas, that could have implications
for Tether.
The Treasury released a statement titled “President’s Working Group on Financial Markets Releases
Statement on Key Regulatory and Supervisory Issues Relevant to CERTAIN Stablecoins”
Yes certain, and this certain part of the statement is important.
“Depending on its design and other factors, a stablecoin may constitute a security, commodity,
or derivative subject to the U.S. federal securities, commodity, and/or derivatives
laws.
If so, the federal securities laws, and/or the Commodity Exchange Act (“CEA”), would
govern the stablecoin itself, transactions in, and/or participants involved in the stablecoin
arrangement.
So that means, the DOJ, has ruled a stablecoin can be ruled a security...it’s possible
now for something like Tether, to be ruled a security & the issuers of it, Bitfinex,
Ifinex & others could face a lawsuit, like XRP did from the SEC.
So what would happen if Tether USDT was ruled a security??
Well you see how all the exchanges delisted XRP?
Same thing would happen, all exchanges would delist and stop the trading of USDT….that
wouldn’t be good for this “run”
It’s not a coincidence, that since September the Supply of Tether has grown by 54 percent,
from 13.5 billion to over 20.8 billion, that’s an average growth of 1.8 billion per month,
beginning in September.
And here is a Twitter influencer, Andrew Rennhack, who understands what’s going on with the
markets, give him a follow, his profiles in the description.
November 29th, when BTC was under the 20k level, looking like it would not break, he
tweeted this.
“The bitfinex BTC/USDT premium got arbed away.
The spread is only a few dollars now.
Tether is back to parity and printing $600M/week.
I hate to say it, but this is bullish.
BTC currently $18.3k.
Probably headed for ATH. $25k btc this month would not surprise me at all.
Well he was pretty much spot on with that, and he followed that tweet up with this, on
Christmas and a picture of the USDT supply of which bitfininex’d retweeted.
He said “I told you $25k was coming this month.
$30k is probably coming next month.
As long as tether keeps printing $100M/day and the peg holds, BTC is going higher.
Not from legitimate demand, but from fraud.
This all collapses when the peg breaks”
That tis bearish, that would take the wind right out of a $100k Bitcoin RUN.
So the big question is Tether going to face the other regulators in 2021?
Like the SEC?
Well me thinks what’s happening with the AG, the gathering of evidence ties right into
what the DOJ just did.
December 9th, The last thing we heard regarding the AGs case was this, from Attorney James,
she said the “evidence” documentation handover could be finalized in the coming
weeks…
And the deadlines for each to voice their positions, post document handover for the
AG and Ifinex was extended but would be coming, next year...early...
January 15th...or just 17 days away.
Now depending on how Tether acted...which the evidence will show...Tether could face
a whirlwind of other lawsuits, as it could fit right into the basket of a stablecoin
security.
If you haven’t noticed, Tether, in the face of the New York Regulators, hasn’t stopped
what they are doing.
Business is running per usual, as per what’s going on.
But in the face of the SEC, it’s not up to Tether to shut down business, the industry
shuts them out.
Just like XRP is getting delisted from exchange after exchange, Tether would to...the lifeline
of the crypto markets would be killed, not from the inside out...but from the outside
in….
Per example, you had Coinbase...suspiciously decided to announce they would be suspending
the trading of the XRP next month, even before anything was set in stone, XRP isn’t ruled
security yet...and what’s super weird to me, Even Chinese exchanges, who have nothing
to do with the US, decided to suspend trading...a killshot, that XRP could do nothing about,
from the outside..
So things are getting weeeiird... on one hand you clearly have the SEC preparing Coinbase
for it’s IPO.
Then on another hand you have the SEC going after XRP, and possibly down the road stablecoins
like Tether??
The only thing that makes sense to me are either two things…Coinbase knows Tether
has been propping up the Bitcoin markets, and they are trying to pull of the IPO unloading
their shares through direct listing before the Tether plug is pulled or Coinbase is getting
prepped to take over the crypto markets, with the probable Tether killshot and when the
dust settles.
As Coinbase is in a position to do just that, with the second most dominant stablecoin,
USDC who already plays nice with the regulators, fulfilling any of their requests….
So, I’ve come to realize, without Tether, it’s very unlikely $100k is hit in 2021.
But with Tether operating per normal, it’s very possible.
Monday’s video was made in the light of Tether operating as it has since March of
this year.
This one was made in the light of Tether having trouble with the SEC...And right now, it's
way too early to call if Tether will have any of those troubles...but like always, I’ll
be attempting to bring you the latest greatest, both sides of the coin.
And we get a Tether update January 15th...Cheers I’ll see you next time!