EddieJayonCrypto
3 Mar 23
• Gary Gensler's next move is telegraphed and centralized exchanges domiciled in the US should be worried• Rep. McHenry and Sen. Lummis question regulators' crypto accounting policies in a joint letter to the Federal Reserve and other US agencies, directly questioning the SEC's Staff Accounting Bull...
• Gary Gensler's next move is telegraphed and centralized exchanges domiciled in the US should be worried• Rep. McHenry and Sen. Lummis question regulators' crypto accounting policies in a joint letter to the Federal Reserve and other US agencies, directly questioning the SEC's Staff Accounting Bulletin 121 that was issued last year• MicroStrategy has minimal exposure to Silvergate as Crypto.com, Gemini, and Coinbase pause transactions with the bank• The tax evasion case against Michael Saylor will move forward as per a US judge, while whistleblower allegations were dismissed• Bitcoin miner Riot Platforms delays their 10-K filing due to accounting issues, with their tax filings from 2020-2022 containing "material errors."• Ethereum's Shanghai upgrade is delayed until April, but no significant backlash in price is expected• Mt. Gox starts paying creditors on March 8th and they could have sold a couple of hundred million BTC to cover those that want cash payoutsSeveral macro events come together to create the almost perfect storm. Here is what is on my mind today.1. Gary Gensler goes after the jugular saying crypto exchanges are not qualified custodians. In his boldest move yet, Gensler telegraphs his next move and all centralized exchanges domiciled in the US should be worried. 2. Rep. McHenry and Sen. Lummis jointly pen a letter to regulators questioning their accounting policies and that can undermine safe crypto custody. The letter was sent to the Federal Reserve and other US agencies and directly questioned the SEC's Staff Accounting Bulletin 121 that was issued last year. Gary is facing heat from many sources. His latest move to limit custodial services to banks is ominous. 3. MicroStrategy says they have minimal exposure to Silvergate as Crypto.com, Gemini and Coinbase pause transactions with the bank. MicroStrategy has a $250M loan from Silvergate that is not due until Q1 2025. They went on to state they did put up some collateral to back the loan but that collateral is not held by Silvergate. 4. The tax evasion case against Michael Saylor is going to move forward as per a US judge. The former CEO of MicroStrategy. In a small win, the judge did dismiss whistleblower allegations that Saylor and MicroStrategy conspired to skirt the False Claims Act by making misleading statements about the billionaire's residence. This 5. Bitcoin miner Riot Platforms has delayed their 10-K filing because their accounting firm cites accounting issues with how the company calculated their impairment numbers related to Bitcoin assets. IN a statement Riot said their tax filings from 2020 - 2022 "contained material errors and should not be relied upon". Most assuredly, this is going to have a long tail for the company. 6. Ethereum's Shanghai upgrade is confirmed as being delayed until April. No one is expecting major backlash in price over this delay. But it does add to the negative news for the day. 7. I should also point out that Coinbase mysteriously went down yesterday. I know they have a scheduled maintenance coming tomorrow. I do wonder if this has anything to do with why they have planned that maintenance. Even if it isn't, I am sure there will be some work done on whatever caused the period of degraded service.