EddieJayonCrypto
16 Sep 22
• Macro events are causing the market to tank but I suspect next week things may turn around• Gary Gensler is gunning for Ethereum because of the merge, while getting grilled by the Senate Banking Committee• The White House publishes a framework for regulating the CryptoverseThe merge happened and e...
• Macro events are causing the market to tank but I suspect next week things may turn around• Gary Gensler is gunning for Ethereum because of the merge, while getting grilled by the Senate Banking Committee• The White House publishes a framework for regulating the CryptoverseThe merge happened and everything shat the bed! Here is what is on my mind today.1. Inflation is a bit hotter than expected based on some data we got back this week. That led to the markets tanking. That said, there are a lot of lagging indicators that have yet to be accounted for, such as housing. There was also a mixed bag coming from retail prices coming down a bit. Although less likely, the market is spooked by the possibility the Fed will overshoot with rate hikes and even throw the US into a recession. Making matter 2. Well, the almighty Chairman of the SEC, Gary Gensler, has laid down yet another threat saying Ethereum's move to Proof-of-Stake can make it a security. Anyone with even half a brain knows this means the SEC is going to investigate Ethereum. You know he has been waiting for the PoS move. Think about what he didn't say though. If the move to PoS makes it a security, it means it wasn't before. Uh, isn't that where Ripple is? I think he just messed up. With 18 years at Goldman Sachs and then a stint as Chairman of the CFTC before moving to the SEC you can see his land grab mentality. He got grilled by the Senate Banking Committee yesterday, too. Why? His antics are wearing thin with the Republicans on the committee. They see him as hostile toward the banking industry. He also caught it for not having a regulatory framework for crypto. Tactics matter. 3. The White House has publish a framework on regulating the Cryptoverse. This stems from the executive order given in March by President Biden. The salient points in the framework are focused on making it easier to do cross-border transactions through the evolution of the financial services industry as well as cracking down on fraud in the digital asset space. I was wondering why Coinbase released that new politico crypto ranking feature. It is because things in the regulatory space are coming to a head. The framework also delves into the benefits of a US CBDC. As you might have guessed, this means there are significant reference to stablecoin regulation. Something Chairman Powell has been requesting for some time. Of course, his take is that the CBDC would eliminate the use of crypto in the country. On this, I think he may be off his rocker.