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  • let's talk about regulation because you guys sit in an interesting space whereas and that's why I think what makes you guys really interesting because coin based like you said publicly traded company, it's kind of the chosen one of centralized exchanges in America.

  • It's got a lot of customers and they're dealing right on the front lines with regulation.

  • They came out with this potential lend product they were going to do to offer a 4% returns on some stable coins but they never actually got out of the gate because the sec kind of signal that they were not going to be allowed to the Ceo brian Armstrong whose Silicon Valley based guy um I think yeah y Combinator startup and all that just went to dc met with a bunch of entities.

  • But he said I reached out to the sec tried to get me with them.

  • They told me they weren't meeting any crypto companies.

  • Um And so he I think he's trying to figure out what to do.

  • You guys don't seem to be under you know that control of the U.

  • S.

  • So you guys are going ahead and offering these services out here and you have your own customer test case.

  • And yet brian is really having to deal with the realities of the US because he can't break those rules necessarily.

  • So we kind of find out where the regulations are.

  • What do you see when you watch that And I know you run your own legal here for you.

  • So here you have background in law so you can really tell us a lot of what's going on here.

  • I will try and do that.

  • Right?

  • Well, first of all, you know, the first line uh the U.

  • S.

  • Companies, right?

  • That's why coin base and block fire and Celsius, the U.

  • S.

  • Companies.

  • They got the first rounds of questions.

  • It was directed to him because then because they are in the U.

  • S.

  • Uh so no surprises there next.

  • So does the US being one of the markets, you know, further down the list and I'm sure that everybody who is offering these products will eventually get the same question years.

  • We'll go through the same procedures.

  • Uh Now what are the challenges, the challenges that, you know, we had um a administration and jake Layton before Gary Gensler who was very quiet about crypto.

  • It didn't pay much attention, you know.

  • Yes, there were some enforcement actions against I.

  • C.

  • E.

  • O.

  • S.

  • But against quite frankly the obvious cams.

  • And uh and now we have this new administration and a guy who has been teaching about Blockchain and crypto in his university in it and think it was and he's like a career um legislator.

  • So it's a very different, very different administration that we are dealing with and you know, when they try and pass the infrastructure bill.

  • You know, there was there was the crypto lobby and you can, you know have constituents, this guy does not really care about reelection.

  • He has got the mandate, he's appointed, he is here to stay.

  • So anyone who underestimates him and his resolve to deal with these things in the way that he's dealing is going to be disappointed, you know, to say the least.

  • So, um, good observation.

  • He is a personal story.

  • It's always a personal story.

  • You have to look at it and you look at his career.

  • I was looking through his Wikipedia page.

  • I mean, he has been at the forefront of a lot of, you know, government institutions, ex Goldman X.

  • M.

  • I.

  • T.

  • He used to teach this stuff and yet he comes out with some pretty strong statements calling the crypto industry the Wild West.

  • Uh, he had a quote by saying, we got a lot of casinos out here in the Wild West and the poker chip is stable coins.

  • So it feels like he's signaling that you maybe, maybe he's signaling that guess what, you are going to have to do something and we want to let you know, but you know, you worked in politics for a while.

  • It works in different ways.

  • Yeah, it does when like, you know, some of the states that have raised concerns and sees uh, issued season diseased, uh, letters to comparable services.

  • You know, we stopped onboarding new clients instantly.

  • Would we want to comply.

  • You know, we want to play by the rules, but uh, the rules haven't been very clear.

  • You know, we have the securities laws that were, uh, coins, somewhere in the 19 thirties, the vast majority of them and they just don't live up to the realities of the new world, you know, And then the administration says, okay, this might be bad rules or rigid or not all encompassing as they should be, but these are the rules, you know?

  • So it is, it's a very complicated situation.

  • What?

  • Yeah, no, I'm just, I agree.

  • It's complicated.

  • I'm just surprised that some of these people seem to be coming out with statements like poker chips and Wild West and, you know, the, the office of the comptroller of currency, Michael su said, quote, I've seen one fool's gold rush from up close in the lead up to the 2008 financial crisis.

  • And he's like, I feel like we're on the cusp of another, you know, fool's gold play with crypto and defy.

  • And I was just like, it's very surprising to hear guys, it's a very different thing the financial, the great financial recession, it was caused by the most regulated entities in the world and the uh, the institutions that have the most oversight ever, right?

  • And uh, you know, people are very quick to forget and this is, I think one of the problems with Wall Street in particular because every five years you have a new generation of traders and bankers and they don't remember even the great financial recession, this was back in the old days where you had bear markets and what the bear market anymore.

  • You know, nobody knows Everything has been.

  • I have been short in the S&P since 2010.

  • And I can tell you how that works out.

  • You know, not amazingly great.

  • But what I wanted to say is that, you know, back in the 80s, you could have your Treasury bond yielding you 30% per year, right?

  • And they have been cutting rates and cutting rates and great financial crisis even more.

  • So, I, as a student in London, I had a deposit at HSBC, a fixed-term deposit was yielding 6% a year.

  • I can find the documents and show this is not some fantasy by someone who's getting older, but this was a reality.

  • And now with this expansive monetary policy, where to the point where you know, everybody's got to be in the stock market And what's that doing for consumer protection and why is our product which is using 6%.

  • And I can very clearly show you how the money is being generated.

  • How is that dangerous?

  • And how and why have we all of a sudden being do the Wild West because we're offering high yield products which are dangerous, you know.

  • Yeah.

let's talk about regulation because you guys sit in an interesting space whereas and that's why I think what makes you guys really interesting because coin based like you said publicly traded company, it's kind of the chosen one of centralized exchanges in America.

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Welcome To The Wild West ? Are We On a Fool’s Gold Rush With Crypto? Antoni Trenchev

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    林宜悉 posted on 2021/10/14
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