EddieJayonCrypto
19 Sep 23
Major events in the regulatory space for cryptos while the CFTC seems to be targeting all things DeFi. Here is what is on my mind today.1. The SEC seems to be failing at using their normal tactic of asking for far too much to try and hurt the company they are going after before they even get to cour...
Major events in the regulatory space for cryptos while the CFTC seems to be targeting all things DeFi. Here is what is on my mind today.1. The SEC seems to be failing at using their normal tactic of asking for far too much to try and hurt the company they are going after before they even get to court. In their case against Binance, they have requested an almost unfathomable amount of documentation from them. The idea is to make them have to spend an insurmountable amount of money in legal fees and force a company to settle. Instead of the judge ruling in favor of the SEC, the judge has ordered both parties to work together. That is a clear signal that the SEC will have to take a different approach. Currently BinanceUS trading volume has dropped over 98%. Neither side is doing well. 2. The New York Department of Financial Services has updated their green list and they have omitted a few of the most popular cryptos on the planet. I am talking about XRP, Litecoin and even DOGE. It isn't just the SEC that is chasing jobs out of the country. States like New York teem to be working hard to achieve the same thing. By delisting XRP and other the state is saying we do not want your crypto business in the state. I think the future will usher in a great deal of irrelevance for states like this. 3. I know I have not spoken about the effect of AI in the investment space. AI has been around for some time. It just hasn't been available to the consumer market. If you are an investor, you should be thinking about AI and how it can effect anything and everything you do. From running stock investment models to deciphering technical articles. Something else I pay attention to are the investment opportunities. For example, SoftBank is thinking about a large investment in OpenAI. I am paying attention to other opportunities, too. 4. Blockchain Capital has just closed 2 new funds that will focus on crypto investments. The two funds total $580M. I think there are going to be a lot of innovation being bankrolled in the very near future. Remember, they are not the only ones looking to drop millions in the space. I recently told you have Coinbase was the number one investor in crypto startups. 5. Hester Peirce, one of the Commissioners of the SEC, also known as Crypto Mom, has consistently voiced her opinion against certain tactics and the overall stance of the SEC. She is at it again, saying there needs to be more regulatory clarity in the digital asset space. In what could arguably be her most direct statement, she expressed disappointment in the lack of any substantive improvements in the overall regulatory environment. Then you have the CFTC saying they think the current regulations are sufficient for crypto and are pushing for a crackdown on DeFi. For those of us that thought the CFTC may take a more pragmatic approach, this is a huge disappointment. 6. NFT marketplaces, OpenSea, Rarible and others are now restricting the trading of Stoner Cats. That is the project started by Mila Kunis. This is a single project, but the SEC is clearly focusing on the NFT space. That is going to put a huge damper on it and could have a profound negative impact on NFT marketplaces in general. 7. The US national debt has reached and astounding $33T. Mind you, this is in a time where interest rates are at historic highs. If you are wondering if the Fed will pause tomorrow, I want you to keep this in mind. The strain on the average US household are tremendous. The Federal reserve Bank of New York recently reported that credit card debt has hit a record high of over $1T. Be mindful, people.