The ESG (environmental, social and governance) rating system is being criticized for potentially being more about controlling society and making money than safeguarding the environment. The system, which acts as a sort of social credit system, may effectively ban small farmers in America from working, as the SEC has proposed a rule that would require them to report their Scope 3 greenhouse gas emissions in order to do business with larger companies. Meanwhile, Paraguay has approved a legal framework to unleash crypto and crypto mining following in the footsteps of countries such as El Salvador and Brazil. It aims to become an international hub for miners due to its low electricity costs.
The SEC and ESG Weaponize Policy Against the People
ESG Scores and Social Credit Systems
The ESG ratings, which stands for environmental, social, and governance, act as a social credit system with one-third of all investments under management using ESG criteria. However, recent actions have shown that it may be more about controlling society and making money rather than truly considering how a company safeguards the environment. Tesla was removed from the S&P 500 index while Exxon oil company remained in the top 10 which prompted Elon Musk to call them a scam.
The SEC and ESG’s Proposal
The SEC has proposed an ESG rule that requires small farms to report their Scope 3 greenhouse gas emissions, which may effectively ban small farmers from working unless they spend time and money on tracking data. SEC Chair Gary Gensler defends this proposal, stating that it provides investors with consistent, comparable, and decision-useful information for making their investment.
The Ripple Case and XRP Whales
The SEC has been granted a time extension to oppose the status of the six XRP HODLers who want to tell the court how the ongoing case has hurt them as investors. Ripple’s top lawyer says it might not end until 2023. However, XRP whales are accumulating, and the total supply has recently hit a two-month high. Brad Garlinghouse even stated that they are considering an IPO to take the company public once the case is over.
Paraguay’s Legal Framework for Crypto and Mining
Paraguay has approved the legal framework to greenlight crypto and crypto mining with the aim to become an international hub for miners since their electricity costs are the lowest in all of Latin America.
The Importance of Developing a Long-Term Mindset in Crypto
Despite the current state of the market and the fear that surrounds it, the importance of developing a long-term mindset cannot be stressed enough. Crypto is here to stay and will be responsible for innovating the future for everything. It’s not about where we’re at but where we’re going.