SEC chair Gary Gensler once again blurs the line between regulating crypto and "protecting investors".
Tether denies false accusations about their commercial paper portfolio.
And Celsius investors get hot as their assets remain frozen.
Including me.
My name is Ben.
This is your nightly crypto news wrap-up.
Let's get it!
Given the number of tokens that is traded by Coinbase or Binance or whatever,
some non-zero fraction of those tokens are securities that should be under the jurisdiction of the SEC.
- Then it-- - Not should be. Not should be.
Are under the jurisdiction.
We are not looking--
We're just looking out for the retail public.
And we're not looking to extend our jurisdiction.
But these tokens are being offered to the public.
And the public is hoping for a better future.
That's the characteristics of an investment contract
when there's an entrepreneurial group promoting it,
an entrepreneurial group that the investing public's relying upon.
And so we've said we'll use our exemptive authority.
We'll work with these "exchanges".
I call them platforms because they also trade against their customers.
They're asking actively acting like those wholesalers we've talked about a few moments ago,
where they take custody and they trade against their customers.
Did you hear what he said?
You can't make this stuff up.
Gary "The Rat" Gensler,
same guy who wants to alienate over 200,000 small farms from working with large corporations,
same guy who's delaying his inevitable loss against the XRP Army to save face,
the same guy who wants to call every project he can a security,
said that he's looking out for the retail public and not looking to extend his jurisdiction.
I haven't heard a joke that funny since last Dave Chappelle special.
How controversial.
In the virtual CFO Network Summit yesterday, Gensler told the Wall Street Journal
that there is an urgency to regulate the crypto space
given the recent turmoil in prices and platforms.
In the interview, he stated that he has brought 80 to 90 enforcement actions
against crypto projects and platforms,
but at the same time he feels that most of the few thousand altcoins in existence
are all securities.
My question is
when will it end?
It's all about protecting the public, right, dirty Gary?
He cites the withdrawal halts with Binance and Celsius as examples to back his point,
but if my memory serves me correctly,
weren't there withdrawal halts with meme stock situations just last year?
This guy is the living embodiment of a double standard.
If crypto wasn't a threat to his precious legacy system,
we wouldn't have to hear his voice.
Well, wouldn't that be nice?
Clear regulation is obviously necessary for the future of crypto,
but not when it comes from two-faced politicians
who claim that their main priority is protecting the investors.
Know this.
The system set up to protect investors is our biggest threat.
Now, let's pass the mic to Frankie Candles for a market update.
Thanks, Ben!
Alright, guys. Let's jump in and do a little market watch here.
We've got Bitcoin coming in at $22,566.
Up 1.5% on the day
ETH coming in at $1,223
Up about 1.5% on the day
And let's go ahead and check our top movers for a change
as we're seeing a little bit of green in the markets.
We've got Basic Attention Token up 22% on the day.
Not too bad
EGLD up 21%
BORA up 17.9%
Theta Network up 17%
Helium up 16.6%
And last but not least, ApeCoin up 15.5% on the day
Finally seeing some green in the markets.
Now, I'm not getting too excited just yet.
We did have some bullish divergences popping up on the 4-hour
and some of the lower timeframes,
which was foreshadowing this move.
But what I'm keeping my eye on
is a potential bullish divergence forming on the daily chart for Bitcoin
as well as a bearish divergence forming on the DXY,
which would be bullish for Bitcoin.
If you guys want to follow me,
it's Frankie Candles on YouTube or @Frankie_Candles on all socials.
Back to the news.
Thank you, Frank!
In a recent blog post,
stablecoin powerhouse Tether denied several allegations that were created
to spread and induce further panic in order to generate additional profits
from an already stressed market.
The biggest FUD rumor they denied was that their commercial paper portfolio
is 85% backed by Chinese or Asian papers and was being traded at a 30% discount.
To prove the rumors are just rumors,
they provided an assurance option that shows that over 47% of their reserves are US Treasuries.
They also stated that the 25% of their backing as commercial papers
will slowly but surely decrease to zero
and the expired commercial papers will eventually be rolled into US Treasuries.
They denied other rumors against lending exposure to Three Arrows Capital
and what leads us to our next story,
Tether has stated,
"Celsius' position has been liquidated with no losses to Tether.
Tether's lending activity with Celsius, as with everyone else,
has always been overcollateralized."
They ended by saying they currently have zero exposure to Celsius
besides one small investment made out of Tether equity in the company.
For obvious reasons, Tether is a big target for FUD
because if they failed, the results would be devastating.
So I'm glad they got in front of the problems before it got any worse.
Now, as you might have heard,
Monday,
lending platform Celsius suspended all withdrawals on Monday,
and users are still not able to access their funds.
It's obviously a bad look for crypto,
but bear markets have a way of stomping out those who don't have their ducks in a row.
Their problem started earlier in the year
when they stopped giving their good returns to anyone who wasn't an accredited investor.
Few months later, the rumors started flowing about how they mismanaged their funds.
It turns out the rumors were true.
Celsius has serious liquidity issues.
Ironically, the suspension on their withdrawals came hours after their CEO Alex Mashinsky
responded to FUD by saying,
"FUD"
"Do you know even one person who's had a problem withdrawing from Celsius?"
Well, I do know, Alex.
Now, I do know.
It's me.
Celsius is now hiring a restructuring lawyer after they turned down Nexo's offer to buy them out.
But the damage is done and the trust is lost and is obliterated.
Hopefully all their users will be able to get their funds out sooner than later
because if a Mt. Gox situation happen in 2022,
we'll never hear the end of it from old Skeletor himself,
dirty Gary Gensler.
That's all I got.
Be blessed.
BitBoy out.