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The vast majority of arbitrage of fungible assets happens in commodities, not securities. The SEC regulates securities. The CFTC regulates commodities.
Ok, but these are clearly not commodities.
Today, you can spin up your own shit coin with basically a few clicks.
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The only reasonable standard the crypto true believers would accept from the US government is that cryptocurrency tokens and derivatives are 100% unregulated and nontaxable by any current or future statute.
That's a nice ad hominem attack you've made there, but it isn't actually unreasonable to argue that Bitcoin and certain other currencies like it are not securities. Heck, even the SEC has said as much. It's even more reasonable to argue that things like NFTs are more like digital baseball cards than securities.
It’s not. But it’s clear the industry needs supervision, and it isn’t really worth the time drafting federal legislation. The SEC keeping the most egregious behaviour checked, e.g. policing positioning with retail investors, is the best worst option for now.
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That's a nice ad hominem attack you've made there, but it isn't actually unreasonable to argue that Bitcoin and certain other currencies like it are not securities. Heck, even the SEC has said as much. It's even more reasonable to argue that things like NFTs are more like digital baseball cards than securities.
> it isn't actually unreasonable to argue that Bitcoin and certain other currencies like it are not securities It’s not. But it’s clear the industry needs supervision, and it isn’t really worth the time drafting federal legislation. The SEC keeping the most egregious behaviour checked, e.g. policing positioning with retail investors, is the best worst option for now.
Earlier quoted context omitted.
The only reasonable standard the crypto true believers would accept from the US government is that cryptocurrency tokens and derivatives are 100% unregulated and nontaxable by any current or future statute.
That's a nice ad hominem attack you've made there, but it isn't actually unreasonable to argue that Bitcoin and certain other currencies like it are not securities. Heck, even the SEC has said as much. It's even more reasonable to argue that things like NFTs are more like digital baseball cards than securities.
To be clear, I don't know or really care if these stupid things are securities or what. But I do know that you're going to need a lot better of an argument than an "um actshually" to get the Feds off your ass. Y'all went and achieved your dream: a parallel financial system. Now Uncle Sam's comin' to get his cut.
https://twitter.com/mattwalshinbos/status/178746618973775060...
Here is some colour on the issue how the SEC sees the matter https://twitter.com/mattwalshinbos/status/178746618973775060...
Any idea what this could mean for those holding crypto on Robinhood?
Robinhood ain't risking much I think. Look at what the ex CEO of Binance got: a personal fine of $50m (while he's believed to be worth about $30 billion), a $4bn fine for Binance and three months in prison (where he'll be the richest inmate in the US).
Meanwhile Binance keeps working.
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> it isn't actually unreasonable to argue that Bitcoin and certain other currencies like it are not securities It’s not. But it’s clear the industry needs supervision, and it isn’t really worth the time drafting federal legislation. The SEC keeping the most egregious behaviour checked, e.g. policing positioning with retail investors, is the best worst option for now.
The CFTC seems to think it would be perfectly competent to handle the situation too. I don't think the only options are federal legislation or the (allegedly) overreaching SEC.
The way these businesses are run, it probably does too. A good amount of effort in finance goes into avoiding unneeded regulatory duplication. But if you’re a you’re a bank you get both the FDIC and SEC, a public drug manufacturer the SEC and FDA; if you’re selling crypto through your brokerage app, the SEC and CFTC.
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They've been reprimanded by a federal judge for blatant extrajudicial power grabs like this one. None of their huge cases claiming various cryptocurrencies are securities have succeeded, except in the super cut-and-dry cases like ICOs and centralized schemes that clearly pass the Howey test.
> None of their huge cases claiming various cryptocurrencies are securities have succeeded A federal judge found the SEC has jurisdiction over crypto and is sending Coinbase’s case to a jury trial [1]. [1] https://www.cnbc.com/2024/03/27/sec-scores-big-win-in-lawsui...
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From the CFTC's official website: "The Commodity Futures Trading Commission is an independent U.S. government agency that regulates the U.S. derivatives markets, including futures, options, and swaps." Also from their official website: 20 quadrillion per week in settled trades. Too lazy to look up the equities numbers, but I would bet everything I own it's lower. Also from the CFTC's website: "Bitcoin is considered a…
SEC regulates securities-based derivatives. I used to professionally make markets in those. SEC and CFTC are both claiming jurisdiction over Bitcoin.