EddieJayonCrypto
11 May 23
Crypto companies are making significant moves to decrease exposure to US risk, including regulatory uncertainty. Here is what is on my mind today.1. Binance Chief Strategy Officer joins the growing list of voices criticizing US crypto rules. He went on to state the company is increasing efforts to b...
Crypto companies are making significant moves to decrease exposure to US risk, including regulatory uncertainty. Here is what is on my mind today.1. Binance Chief Strategy Officer joins the growing list of voices criticizing US crypto rules. He went on to state the company is increasing efforts to be regulated in the UK. In my opinion, it is not just that the rules in the UK are better than in the US, it is that they are dependable. Nothing is perfect, but at least the UK doesn't have a government still stuck on fighting a losing battle. Crypto will not be stopped. There will be countries that leverage the technology and learn to work with it, and countries that choose to take the economic hit. 2. The Chamber of Digital Commerce is weighing in on the Coinbase versus the SEC lawsuit and filed an Amicus Brief stating the SEC is causing substantial economic harm. I have been thinking for some time now that Gary Gensler has been a useful tool to curb crypto growth and innovation while big players could examine the space and get in. That said, I also think his downfall is almost at hand. As the number traditional financial players now adopting crypto the establishment has started the government's gears to make changes to the SEC. In my best Samuel L. Jackson voice, "Tick tock, motherf*cker!" 3. In further evidence of innovation flight, It would seem that Ripple Labs is exploring the new MiCA regulations in the EU versus regulatory uncertainty in the United States. The growing number of companies exploring an exit from the US is growing and should scare lawmakers. 4. The SEC has served Marathon Digital a second subpoena citing the possibility federal securities violations. Announced yesterday, but served April 10th, it means the SEC is investigation and looking for a problem. Marathon says they are fully cooperating with the regulatory agency. Meanwhile, the company is also expanding into Abu Dhabi for their immersion crypto expansion, through a joint venture with Zero Two. The venture will create 2 mining sites having the combine capacity for 250 megawatts. Marathon also realized a 74% year-over-year in Bitcoin output and $51M in revenue. 5. Robinhood says they will be introducing 24-hour trading on certain stocks after releasing their quarterly report. The company announced they had an 11% growth in transaction revenue and earned $38M in crypto revenue. This, however, represented a 1% drop in crypto revenue. 6. In a shocking announcement, Circle CEO, Jeremy Allaire, said the company's reserves no longer contains any significant amount of US treasuries. The move was to specifically address and gird against a US debt default. Holding no treasuries maturing after June 2023 is a very big deal and should send a message that Circle is not the only company making such bold adjustments.