Senator Warren Says, Cryptos Are ‘Speculative In Nature And Going To End Badly’

Senator Warren Says, Cryptos Are ‘Speculative In Nature And Going To End Badly’

Crypto critic senator Elizabeth Warren doesn’t see cryptocurrency investment ending up good for anyone.

“Speculative in nature and going to end badly,” is what she had to say about the digital currencies in an interview with CNBC. Back in 2018, she said, “The challenge is how to nurture productive aspects of crypto with protecting consumers.”

On Tuesday, Warren was asked if she agrees with US Treasury Secretary Janet Yellen’s sentiments about cryptocurrencies. Warren said Yellen is a “very smart woman,” and she didn’t leave much room for ambiguity regarding her views on cryptos.

Yellen called Bitcoin “highly speculative” last month because of cryptocurrencies usage in terrorist financing and illegal business. She also called the leading digital currency “extremely” energy inefficient.

Cathie Wood, founder, and CEO of hedge fund ARK Invest addressed Yellen’s remarks, saying the Treasury Secretary doesn’t understand cryptocurrencies. She said,

“I’m not quite sure why she’s saying this. All I know is that she doesn’t understand the crypto space, and I say this with all due respect; I just don’t think it is what she does. She’s responding to a movement in price, that I understand, which has been very rapid.”

Wood further argued that the energy usage of Bitcoin, which is mostly renewable, is a fraction of that used to mine gold, and it “hardly measures up” to the energy consumption of the traditional financial world.

Warren, meanwhile, as one of her first moves as a new member of the Senate Finance Committee, unveiled legislation this week that would introduce the Ultra-Millionaire Tax Act. As per this proposal, a 2% annual tax on households and trust over $50 million will be introduced. An additional 1% annual surtax could be added to those whose wealth exceeds $1 billion. She said in the interview,

“I think most people would rather be rich and pay 2 cents. This is not very fancy. It really is a tax on fortunes above $50 million.”

According to her, wealth tax was needed for a long time in order to produce more opportunity in America. In a statement, she pointed out how the wealth of the billionaire class increased by more than a trillion dollars over the last year, during the pandemic. Warren said,

“We do understand the direction we’ve been going. This pandemic has created more billionaires. The people at the top are not barely hanging on by their fingernails.”

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Author: AnTy

Bitcoin Sellers Are Running Out of Ammo; Sees Green Start of the New Month

Meanwhile, Warren Buffett says Fixed-income investors worldwide, from pension funds, insurance companies to retirees, all are facing a “bleak future.”

Last week has been a brutal one for Bitcoin as the prices continued to go lower and lower. The low, for now, has been set at around $43,100, representing a drop of 26% from the Feb 21 high of about $58,300.

“BTC has not yet seen a capitulation wick but sellers running out of ammo,” commented trader and economist Alex Kruger. “Stocks & bonds opened sharply higher. Playbook is strong week up, not just a strong open.”

Still, another drop lower will take us to the January high of $42,000, which still won’t be anything out of the ordinary.

During the 2017 bull cycle, Bitcoin had several drawdowns of an average of 30% to 40%, and such a pullback this time would take us just under $35,000. This means we can see another leg lower especially given that March is not historically a bullish month for Bitcoin rather just the opposite.

$45k is actually very strong support, and “any dip into $39k is a no-brainer BTFD,” said on-chain analyst Willy Woo.

Moreover, the recent sell-off has been ignited by the macro environment. As we reported, the stock market has been dragging Bitcoin down along with it in the aftermath of bond prices soaring.

The sudden US treasury lift-off has been on the changing outlook for inflation and economic growth following unprecedented stimulus and monetary easing along with the increasing COVID-19 vaccinations. This further pushed the US dollar up.

Still, with the recent uptrend, the rates have only gone to pre-COVID levels. Even Warren Buffett mentioned it in their annual letter to his followers Saturday where he wrote, “bonds are not the place to be these days.”

The billionaire mentions how the yield on 10-year U.S. Treasury bonds has fallen 94% from Sept. 1981 levels. “Fixed-income investors worldwide – whether pension funds, insurance companies or retirees – face a bleak future,” reads the letter.

Commenting on this, Bitcoin bull MicroStrategy CEO Michael Saylor said if we agree with this that “bonds are broken as a store of value, then corporate treasury reserve strategies employing bonds no longer work to preserve shareholder value,” and of course, the answer according to him is the leading cryptocurrency.

Buffett, however, didn’t mention Bitcoin, Robinhood, or WallStreetBets in his letter at all. Meanwhile, his company’s cash stockpile, known for being massive, has come down a bit to $138 billion.

A low yield has been actually positive for Bitcoin and risky assets; as such, rising yields impact the prices in the market.

On the first day of March, Bitcoin went just over $48k, making a green start of a new month, following positive sentiment in the risky asset driven by three variables: bond panic over, Powell to calm markets, and fiscal package approved, noted Kruger

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Author: AnTy

US Lawmakers Appeal the Treasury Secretary & SEC; Do Not ‘Hinder American Leadership’

Four US lawmakers, Warren Davidson (R-Ohio), Tom Emmer (R-Minnesota), Scott Perry (R-Pennsylvania), and Ted Budd (R-North Carolina), sent a letter to Treasury Secretary Steve Mnuchin, “expressing our concern” about the rumored self-hosted wallet regulations.

Last month, Coinbase CEO Brian Armstrong tweeted that Mnuchin was “planning to tush out” new regulations that will require KYC for these wallets.

According to the letter, Mnuchin’s potential regulation would “hinder American leadership,” threaten user privacy, and “undermine the Treasury Department from stopping illicit actors from exploiting the financial system.”

Regulating self-hosted wallets might have the unintended effect of making anyone who uses them into a criminal, the letter said.

The US should have “regulatory parity” between the crypto ecosystems and the traditional financial system, it further added.

“Over-regulating self-hosted wallets will crush a nascent industry and leave the United States behind the rest of the world when it comes to harnessing the power of blockchain and cryptocurrency,” said Davidson in a statement published online where he asks Mnuchin to appear in the Peoples’ House and talk about what these regulations would do.

Regulated safekeeping of Crypto Assets

The same day, nine Congress members sent a letter to Securities and Exchange Commission Chairman Jay Clayton, asking the securities regulator to create clear guidelines on cryptocurrency custody and enable FINRA to approve broker-dealer applications.

The letter mentions that strong financial markets attract investment and serve as the foundation for a healthy economy, and adopting innovative technologies will only improve the functioning of securities markets. The letter says,

“Following the OCC’s lead, the SEC and FINRA should address the need for regulated safekeeping services for cryptographic assets.”

The congress members want the SEC to explicitly confirm that banks may act as good control locations for the custody of digital securities, advise FINRA on the requirements for broker-dealers to be able to custody digital securities for their customers, and instruct FINRA to approve broker-dealer applications that meet the necessary requirements.

“Doing so would greatly increase the uniformity and efficiency of safekeeping mechanisms for all security types, resolving uncertainty and creating an environment for the digital securities industry to flourish.”

Clayton is to step down from his role at the end of this year.

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Author: AnTy

“Short the Dollar”, says Bitcoin-friendly US Congressman, Warren Davidson

US Congressman Warren Davidson, a Bitcoin proponent, tweeted on Tuesday, “Short the Dollar.” This has been in response to the Twitter account of Forbes Crypto asking the community to sum up cryptocurrencies in 2020 in three words.

Davidson replied with shorting the US dollar and the hashtag “Sound Money,” referring to Bitcoin.

According to him, Bitcoin is a “great store of value,” which he views “like digital gold versus a true currency.” But he doesn’t own any personally. Davidson’s reply triggered some, Rohan Grey being one of them who wrote,

“Another brilliant monetary insight from one of the Republicans who opposes the #STABLEAct.”

Grey, an assistant professor at Willamette University College of Law, has recently been in the limelight helping draft the controversial Stablecoin Tethering and Bank Licensing Enforcement (STABLE) Act.

Grey also worked with Rep. Rashida Tlaib on the Public Banking Act draft, which was introduced in October, and a COVID relief plan to invest in the digital wallet.

The latest draft STABLE Act requires any stablecoin issuer to obtain a banking charter and approval from the Federal Reserve and be FDIC-insured. This bill further holds the node operators and network upon which these fiat-based cryptos will operate liable.

According to him, it’s about the systemic risk that stablecoins pose, and as they become larger, they are no different than any other big financial institutions. For him, even if an instrument is issued on a decentralized network, if it is “trying to walk and talk like money, and therefore carries a systemic risk, it should be regulated like money.” Grey said,

“I hold the view…that decentralized networks are not sort of a crowd where there’s nobody liable—that there are actors you can point to that operate and govern and make decisions related to key parts of that infrastructure.”

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Author: AnTy

Banking Sector Bleeds in 2020 While DeFi Records 900% Growth

In 2020, we saw the Oracle of Omaha, Warren Buffett selling all his positions in banks that included; Goldman Sachs, JPMorgan Chase, Wells Fargo, and others.

Given that the banking sector of Dow Jones, Nasdaq, and S&P 500, all three remain under losses, negative 35% returns YTD, it makes sense that even Buffett has jumped the ship.

In the current environment of ultra-low interest rates, banks are struggling to remain profitable.

But while centralized financing is suffering, Decentralized Finance (DeFi) has emerged in the crypto market as the latest craze which is seeing explosive growth.

The DeFi Boom

On January 1st, 2020, the total value locked in the DeFi sector was $680.9 million, which has now grown to $6.67 billion in just eight months.

The total market capitalization of the top 100 DeFi coins is close to touching $14 billion, as per CoinGecko. The biggest gainers of this sector this year include LEND (6,280%), REN (1,300%), KNC (835%), YFI (789%), LINK (650%), and SNX (480%).

The blockchain underpinning majority of the DeFi development, Ethereum is also up 209% YTD. Also, a record 4.6 million Ether are locked in these DeFi protocols along with 47.8k BTC.

“From a portfolio standpoint I want to be long the asset that is driving the market with real demand. ETH is a newer trade than the traditional trade of BTC vs central banks printing money,” said trader CryptoISO.

“Rocket Fuel” for DeFi Growth

The DeFi sector is seeing a new wave of financial experiments which is tokenizing everything from money, debt, mortgages, to insurance.

As Asheesh Birla, SVP of Product at Ripple notes, “We’re seeing a melding of the old world and new. It’s only a matter of time before banks offer custody services, acquire companies with those capabilities, and potentially even offer crypto lending as they see consumer interest in DeFi.”

Decentralized exchanges, with no central operator, in the crypto world, are already giving centralized exchanges a run for their money. Fiat-backed stablecoins have been providing the fiat on and off-ramps while enabling global consumers to access the USD without a bank account through the likes of Tether (USDT).

But within this sector, a new wave of Yield Farming is what is taking DeFi world by storm. It is basically serving as “rocket fuel” for the current growth cycle in DeFi, states Delphi Digital in its latest report.

Yield farming is generating the most returns on your crypto assets, and since people started chasing high yields, many ‘experiment” projects have cropped up in this really short period. It started with Compound and only grew from there to the likes of Yearn.Finance (YFI), Balancer, YAM.Finance, the Curve-Ren-Synthetix mix, and so much more.

But Not Without the Risks

As we reported, the skyrocketing Ethereum transaction fees are pricing out smaller layers and making DeFi increasingly a game of whales.

Another big question is: Are these governance DeFi tokens, that are at the heart of DeFi’s explosive growth, really that decentralized? According to the Token Daily report, the distribution of these tokens might not be that different from the ownership structure of JP Morgan or Bank of America.

For starters, the investors of these DeFi projects control a “disproportionately large amount of votes,” such as more than 13% of the voting power for Compound is controlled by the top 10 addresses.

Also, “In yield farming, funds and wealthy investors, aka whales, are maximizing their benefit/share of governance tokens using recursive provisioning of liquidity. This ultimately leads to a concentration of these tokens into the hands of a few players/farmers.”

Although with liquidity mining as with Yearn.Finance, a new dynamic of money distribution is being added; large gatekeepers still have a big influence on the protocol, which could be even more concentrated than the centralized options.

Moreover, all this craziness will inevitably invite “difficult legal questions and regulatory scrutiny,” said Jason Somensatto, senior counsel at 0x Labs. But in the end, he hopes, it will leave a “healthier ecosystem.”

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Author: AnTy

US Congressman Davidson Refers to Bitcoin As ‘Sound Money Required to Defend Freedom’

Bitcoin has found yet another supporter in the government in the form of Rep. Warren Davidson, (R) Ohio’s 8th Congressional District.

The sitting US Congressman took to Twitter on June 22nd to Tweet, “#SoundMoney is required to #DefendFreedom” with an image containing Bitcoin.

“Thank you, congressman, for your advocacy!” commented Meltem Demirors, Chief Strategy Officer of CoinShares, a crypto investment firm.

Davidson’s bitcoin support isn’t new: he is a familiar figure in the crypto world for authoring the Token Taxonomy Act.

Last year, he not only said that Facebook should drop its Libra plans and adopt Bitcoin but also used the term “shitcoin” during the congressional hearing related to facebook’s so-called cryptocurrency.

Earlier this month, Davidson appeared on the “Unchained” podcast with Laura Shin, where he talked about how, due to issues in international payments, he was introduced to DigiCash and then came to know about the “pretty elegant solution” bitcoin.

Although he doesn’t own any BTC himself, he views Bitcoin “kind of like digital gold versus a true currency. I think it’s a great store of value.”

But unlike Davidson, President Trump is not a Bitcoin supporter as we got to know when he explicitly tweeted about a year back that he isn’t a “fan of Bitcoin and other Cryptocurrencies.”

At that time, he said they are not money; instead, cryptos are based on speculation and are highly volatile, which are used to facilitate unlawful behavior.

Then we came to know last week that Trump was wary of the world’s leading digital currency as early as in May 2018. It was revealed in the book “The Room Where It Happened” by former national security advisor John Bolton that Trump told Treasury Secretary Steven Mnuchin to “go after Bitcoin” in a meeting about China.

Crypto also featured in White House’s budget proposal for the fiscal year 2021. Where moving the secret Service from the Department of Homeland Security to the Treasury Department was proposed, which would “create new efficiencies” in preparing the US to face “the threats of tomorrow,” such as the use of cryptos to finance terrorism.

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Author: AnTy

Warren Buffet Clarifies Donating Crypto Assets Handed Over By Justin Sun

  • Warren Buffet’s hard line on cryptocurrency has not changed despite some earnest convincing from Tron’s founder Justin Sun at the $4.6 million charity dinner.
  • He apparently also donated the crypto assets handed over to him to his Glide Foundation.

Warren Buffet has made headlines again as the Oracle of Omaha has quelled the heated debate about his cryptocurrency ownership. This is despite Tron’s founder, Justin Sun, allegations that he handed Warren Buffet some Bitcoin and TRX in a Samsung wallet.

This was a topic that sparked a heated debate online as to who was less than forthcoming about ownership of the alleged crypto-assets according to reporter Betty Quick.

“My Twitter feed blew up because people were either saying that Warren Buffett was a liar or Justin Sun was a liar.”

The CEO of Berkshire Hathway has taken a hard line in regards to cryptocurrency. It was during a SquawkBox interview with reporter Betty Quick that he openly denied owning any cryptocurrency and ever having the intention to do so.

Betty however later clarified that Warren Buffet had donated the cryptocurrency to his Glide foundation. This was alongside the $4.6 million raised during the Warren Buffet Charity Lunch that was attended by Justin Sun alongside other cryptocurrencies top brass. They were unsuccessful in talking Warren Buffet, a cryptocurrency critic, to change his stance on crypto assets.

During the interview with the SquawkBox Warren Buffet joked about creating his own cryptocurrency with proof of ownership whose only value could be achieved from the transfer of ownership.

Justin Sun has proved that indeed Buffet received the BTC

Justin Sun has come out in his own defense insisting he can prove he actually gave Warren Buffet the BTC and TRX. In a tweet, he posted Buffet’s wallets addresses to prove that the crypto assets were still there.

He has thanked Squawk Box for clarifying that Warren’s Glide Foundation now owns the crypto assets.

“Thanks for the clarification & glad to know Glide Foundation owns it now. Hold on to it & take care of the precious $BTC / $TRX!”

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Author: Lujan Odera

Happy 11th Birthday to Bitcoin, Says Two US Congressman

  • US Reps. Patrick McHenry and Warren Davidson pushed for more opportunities for these innovators in the country.
  • At the time of writing, Bitcoin was holding steady at $9,217.57.

Today, Bitcoin is now over 11 years old since the whitepaper was originally released by Satoshi Nakamoto on October 31, 2008. Fast forward to today and 2 US Congress reps McHenry and Davidson gave a special shoutout to BTC.

McHenry, the representative for the 10th District in North Carolina, stated that the authorities in the US shouldn’t try to impede the progress of the technology in an October 31st tweet. He believes that policymakers should take on a more helpful role in the development of new technologies.

Davidson highlighted the importance of protecting online privacy and the way that Bitcoin supports that effort, using Twitter to retweet an article from Cointelegraph on Bitcoin’s whitepaper’s 11th anniversary. The congressman remarked that the publication created “infinite possibilities for technological innovation,” pushing for the US to create framework that benefits the innovators in the space.

Earlier last month, Davidson had said that the addition of Bitcoin into the Calibra wallet by Facebook would ultimately be a “way better idea” that creating their Libra digital asset.

Coinbase posted a blog yesterday, pointing out that the development of Bitcoin’s adoption has been progressing quickly, and at a much faster rate than other technologies previously, including email and television.

The exchange wrote:

“The television set was invented in 1927 but by the end of the 1940s only 2% of American families owned one. Bitcoin, on the other hand, went from an idea in 2008, and a first transaction in 2009, to over 27 million users in the US alone in 2019, or 9% of Americans.”

As of April 2019, a survey found that potentially 11% of the American population had some ownership of Bitcoin. Presently, Bitcoin is worth $9,217.57, losing less than half a percent of its value in the last 24 hours.

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Author: Krystle M

Pro-Crypto US Congressman Warren Davidson Proposes US Dollar Tokenization Concept

Renowned crypto advocate US Congressman Warren Davidson who is well known among the crypto worshippers due to his Token Taxonomy Act is now proposing the tokenization of the US dollar.

In a series of tweets, Davidson asked about the impact tokenization of the dollar would have in the world.

Appearing in a recent CNBC’s show “Squawk Box” Morgan Creek Digital’s Anthony Pompliano said that it was time that the US government becomes serious in tokenizing the dollar.

Pompliano also stated that the US federal government should move with hurry to issue its own virtual currency to counter the expected Chinese digital Yuan. he argued that a digital Chinese yuan may be highly adopted if they the country goes ahead and launches the currency. China is expected to roll out its central bank digital currency (CBDC) probably next month.

During the interview, some of the followers wondered why there was a need to have another tokenized dollar yet there other payment solutions like PayPal.

However, Davidson gave out various reasons why digitalization and tokenization are different saying that tokens are meant to be stored on a distributed ledger. In addition, tokens cannot be controlled by the creators or central authority who always have a vested interest. Davidson also explained that tokens can be transferred without intermediaries like banks.

Despite the strong advocacy for tokenization of the dollar, in the recent past, the Federal Reserve Chair Jerome Powell indicated that the US central bank has no plans in the near future to launch its own cryptocurrency.

In a recent past, Simon Potter a former Fed official explained that he sees no reason that would warrant the replacement of the US digital dollar with a cryptocurrency. He said that there is no need to create anything that is complicated when there large liquid capital markets in the country.

U.Today reports that in June, former FDIC chairperson Sheila Bair had suggested that the time was ripe for the Fed to develop its own digital currency in order to eradicate various frictions that are present in the payment system.

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Author: Joseph Kibe

Congressman Warren Davidson: SEC Is Taking a “Third World” Approach to Crypto Regulations

Congressman-Warren-Davidson-SEC-Is-Taking-a-Third-World-Approach-to-Crypto-Regulations
  • The SEC is still working to establish complete regulations regarding the cryptocurrency industry.
  • Congressman Warren Davidson believes that the lack of urgency is holding back the United States.

Even with the stance that the Securities and Exchange Commission (SEC) has officially taken in the cryptocurrency community, there are still plenty of lawmakers that do not agree at all. Republican Congressman Warren Davidson is easily one of those people, criticizing the SEC for taking a “third-world, developing-economy approach.”

As Davidson explained, the approach being taking by the SEC is causing the entire United States to be left behind in the progress of the crypto industry.

The comments by the congressman were made at the recent inaugural meeting of the House Task Force on Financial Technology on June 25th. During the meeting, Davidson questioned why there is not any urgency for the regulations to be established for cryptocurrency for more clarity. The industry is becoming impatient and frustrated, because there is so much waiting on these regulations to be established.

As the SEC wastes the time of the cryptocurrency community, there are many businesses that are taking their activities outside of the United States to give them a place that offers more certainty in their regulations. He explained that certainty is necessary in the industry that there are certain actions that a cryptocurrency needs to take to be officially called an asset.

In response to the heavy criticism, the SEC’s Valerie Szczepanik defended the authority, saying that they have been “quite clear” about where they stand on cryptocurrencies.

Her statements should hold some weight, since she is the senior advisor for digital assets with the SEC, which was a position that was created with the intention of dealing with the cryptocurrency industry. Still, the rest of the industry has yet to agree. Szczepanik explained,

“We’ve put out guidance at least on [initial coin offerings] beginning in 2017 about how we apply the law to the issuance of digital assets. We’ve put out a number of statements since then. So, we believe that the guidance is clear.”

Even with these statements, Szczepanik recognized that the cryptocurrency and blockchain industries are still fairly new, which has put the SEC behind on their ability to keep up with the technology. She said that the current laws in place “are flexible, principles-based, and very broad.”

She reassured that this is hardly the first time that the market has been introduced to a new technology in need of regulation, adding that the SEC “regulate[s] around activity and conduct.”

The Token Taxonomy Act was introduced by Warren Davidson in December 2018, and again in April this year. This act would chance the Securities Exchange Act to explicitly remove cryptocurrency from its coverage. He added that imposing highly restrictive laws could ultimately prevent the industry from its innovative nature.

The vicious comments from Davidson are much like that of the SEC’s “Crypto Mom,” better known as Hester Peirce. She stated that the SEC should’ve already approved the use of a Bitcoin ETF, adding that this restrictive approach from the SEC is putting the United States at a significant disadvantage. He added, “That’s not a healthy state of being.”

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Author: Krystle M