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Leak Reveals Shock SEC Flip That Could Cause BTC & Crypto Price Chaoswww.forbes.com/sites/digital-assets/2024/07/12/leak-reveals-shock-wall-street-sec-flip-that-could-cause-bitcoin-ethereum-xrp-and-crypto-price-chaos/
260 sats \ 9 comments \ @Cje95 12 Jul bitcoin
Yesterday a House attempt to override President Biden's veto on the crypto accounting rule from the SEC failed to gain its 2/3 majority however after this bombshell the SEC is open to cut deals it seem
Some companies and financial institutions have agreed terms with the SEC that would allow them to skirt controversial crypto accounting guidance that effectively prevents banks from holding crypto on behalf of clients, an anonymous source told Bloomberg.
For those that are not aware here is what the SEC was trying to do
The SEC's staff accounting bulletin 121, known as SAB 121, requires banks and other companies that custody crypto to record their customer's crypto holdings as liabilities on their balance sheets, making it complicated and costly to do so.
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121 sats \ 8 replies \ @grayruby 12 Jul
I know Saylor is big on banks being able to custody Bitcoin for clients so it can be used as collateral. This is part of his thesis of how Bitcoin goes to 10M.
Don't know how I feel about this. We are supposed to be replacing the traditional system and helping people become self sovereign. But Bitcoin is for everyone so it doesn't really matter how I feel. Institutions and Banks and governments are going to take part in the ecosystem where we like it or not.
"Crypto" on the other hand is terrible collateral because your collateral is subject to the whims of the keystrokes of a few developers who are highly incentivized to enrich themselves. Even stablecoins aren't very good collateral because they are representations of dollar units without the legal recourse when you get rugged.
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50 sats \ 7 replies \ @Cje95 OP 12 Jul
From what I can find within that "crypto" part it seems that it has only been Eth and XRP that have gotten acceptance. I feel like Eth is mature enough for banks to hold is they so wish and I think XRP was accepted just because the SEC is tired of getting its ass kicked by Ripple lol. USDC is another that I think could get accepted as well esp. when you factor in Circle is looking to go public.
In a few states like Texas state-chartered banks are allowed to hold/custody BTC and ETH already. You cant borrow against if from what I remember rather the bank would essential be a wallet for your crypto which I don't think anyone should ever do because not your keys not your crypto but I also don't think the government should tell me what to do with my $$$ so if the bank will take it and someone wants to give it I say let em.
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0 sats \ 6 replies \ @grayruby 12 Jul
I don't think the Ripple situation is over. Wasn't there a judgement in a recent case that countered Judge Torres clam that non institutional sales weren't securities offerings. Larsen and Garlinghouse still on the books for being fraudsters.
I think banks will custody eth if they think they can make money on it. I am just saying it's a bad asset to use as collateral because you are basing the entire value proposition of the token on the whims of vitalik and a few devs.
Circle was completely insolvent until the Fed bailed out Silicon Valley Bank.
Nothing useful has come out of the "crypto" complex in its entire existence besides possibly stablecoin remittances to emerging markets. That's it. Hundreds of billions in capital and hundreds of thousands of hours of human capital to build a slightly better western union.
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10 sats \ 5 replies \ @Cje95 OP 12 Jul
The reason I say that Ripple is over is because the Chevon legal idea is dead the Supreme Court killed it. Hence the closure of the Paxos/BUSD investigation by the SEC. Last November the SEC dropped the cases against Larsen and Garlinghouse.
While technically Circle depegged within SVB there were far larger players who were even worse off. Roku for instance had 26% of its cash in SVB. Roblox had 5%, Rocket Lab USA had 7.9% among many many others. Circle had $3.3 billion and had a market cap at the time of over $43 billion or roughly 7.6% which while yeah its bad they were not nearly as compromised as others.
I honestly think its not to accurate to say nothing has come out of the crypto complex as it has opened entirely new fronts in the tech space. Depending on how you look and define crypto you can look at VeChain which Walmart has used for over 200 million transactions for tracking shipping. In the entertainment space, I think both FLOW and Chiliz have been solid and successful thus far with both continuing to grow.
We have also seen the emergence of DePIN and AI related crypto projects that could really help lower the barrier to entry.
I will leave you with one example that for me when I learned about it two years ago changed a lot in my mind. It is called Starling Lab—a project of Stanford and USC that used Filecoin to document Russian war crime when the war first started to break out and the ICC has accepted their images as evidence giving the project further umph.
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0 sats \ 4 replies \ @grayruby 13 Jul
None of those projects you mention require a blockchain.
The reason they use blockchain technology is so they can issue tokens that give them the privilege of seigniorage and do a regulatory end around.
Now I am ok with the notion that the SEC is an evil empire that crushes innovation and should be eliminated but I am not ok with the idea that crypto projects should be permitted to do an end around on regulation but everyone else has to follow it.
I also don’t like people buying their way out of guilt which is exactly what the crypto complex has done.
Fortunately most people understand bitcoin and crypto aren’t the same thing and more are learning every day. 99.9% of crypto will be worthless within a decade regardless of how many politicians they buy.
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10 sats \ 3 replies \ @Cje95 OP 13 Jul
Huh? VeChain requires a blockchain and is used to create a blockchain for where shipments are going, when they are sent, received etc. It's whole point is being a logistics tracker on a blockchain?
Chiliz with their fan tokens and fan token voting is the same thing the whole idea is a transparent voting process which I am not sure how you do not do without it being a complete mess. When people vote in the US it isn't like their votes are made public knowledge?
Filecoin's Starling Lab project again I am not sure how you would create a replicate system without blockchain because the purpose of it is to make it tamper-proof and transparent. If someone went around trying to mess with it there would be clear signs of it and essentially taking the information and chopping it up and scattering it worldwide across data centers its a whole tracking thing I cannot think of a logical simple solution that is not blockchain. Then there has to be a payment method for these projects and the cost of it which for these their crypto serves this purpose.
Buying your way out of guilt or trouble has been around for thousands of years across cultures. People want to survive and its just genetic for self-preservation with natural selection of those who cant find a way to rid themselves of the guilt associated. No matter what industry or what is invented/created in the future buying your way out of trouble and guilt isn't going to disappear.
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0 sats \ 2 replies \ @grayruby 13 Jul
Why does it require a blockchain to manage logistics? Why is that optimal compared to a standard database?
Fan voting certainly doesn’t require a blockchain or a token.
Data storage definitely doesn’t require a blockchain. There are many public company’s that achieve this extremely well without a blockchain.
Sorry but you aren’t going to convince me of the multichain, everything rebuilt on the blockchain narrative. The use case for blockchain is extremely narrow and money is thus far the only proven viable use case of the many that have been tried.
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10 sats \ 1 reply \ @Cje95 OP 13 Jul
All I am going to say is that if it wasn't worth it Maersk wouldn't be going back to it again for logistics. Same with DHL, Fedex, and Walmart to name a few. Even Microsoft and Amazon have been investing in blockchains with Microsoft having their own Azure chain and Amazon’s Quantum Ledger Database... obviously there is something there outside of finance or these companies wouldn't spend money here but they not only have but continue to
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