EddieJayonCrypto
22 Mar 23
• NYCCoin and Miami coins have been suspended by OKCoin due to liquidity concerns that could lead to price manipulation and fraud• Fed Chairman Powell is expected to make a 25 basis point move during his press conference at 2PM today• SushiSwap and its CEO have been subpoenaed by the SEC, prompting ...
• NYCCoin and Miami coins have been suspended by OKCoin due to liquidity concerns that could lead to price manipulation and fraud• Fed Chairman Powell is expected to make a 25 basis point move during his press conference at 2PM today• SushiSwap and its CEO have been subpoenaed by the SEC, prompting the DeFi project to create a $3M legal defense fund• CFTC Commissioner Summer Mersinger calls for Congress to order better regulator cooperation on crypto• The IRS is looking to tax NFTs as collectibles• The Public Company Accounting Oversight Board (PCAOB) says reserve reports from some crypto companies may not be based on genuine auditing practicesAll eyes will be on Fed Chairman Powell today. What he says will carry even more weight than normal given recent bank failures and troubles still rocking the financial industry. Here is what is on my mind today.1. Fed Chairman Powell's press conference will be at 2 PM today. My thought it there will be a 25 basis point move. Zero is unrealistic given inflation is still prevalent and a 50bp move would be a severe shock to the system given recent macro events in the banking industry. 2. NYCCoin and Miami coins are suspended by OKCoin due to liquidity concerns. Apparently, there is so little action going on with the coins on the exchange that there can be price manipulation. The actual statement says "Limited liquidity for these coins on our platform has created the possibility of price manipulation and fraudulent activity". 3. SushiSwap is in the SEC's crosshairs having been subpoenaed along with its CEO. Now the DeFi project is looking to create a $3M legal defense fund. I have been wondering how long it would be before the SEC started targeting DeFi projects. Remember, that is the next space large financial institutions are headed for. People are wondering how a decentralized project can be served. I will point out that receiving a subpoena only means an investigation is underway. A Wells notice means action is pending. We will have to monitor this situation. 4. Meanwhile, CFTC Commissioner Summer Mersinger says Congress must order regulators to cooperate when it comes to crypto. I tend to agree given how far out of control the SEC has gotten. In an op-ed published on CNBC, SkyBridge Capital CEO, Anthony Scaramucci says pro-crypto should be employed to foster growth in the nascent industry while providing guardrails and checking the SEC. This is with the backdrop of President Biden's economic report blasting crypto for "ignorance if basic economic principles". The report goes further in stating many cryptos have no fundamental value. Galaxy Digital CEO Mike Novogratz says if there is no value then the government should give back the taxes, he has paid over the last 10 years for his crypto trading. Boom! 5. The IRS is coming for your NFTs! Actually, they are looking to tax your NFTs as collectibles using a look-through analysis. This may seem strange to NFT holders. The analysis looks at NFTs to determine if they are collectibles and would then fall under that section of the tax code. For example, a gem is a collectible. Public comment closes June 19th. 6. The Public Company Accounting Oversight Board (PCAOB) says there are many crypto companies reserve reports that are based on untrustworthy information and not necessarily genuine auditing. There has long been an issue with existing auditing practices when they are applied to crypto. Many of the largest accounting firms in the world are not as interested in performing such audits. Again, we need to take a pragmatic approach to creating realistic guidelines and rules for the industry. It is not as cut and dry as some people may think.