In a video about current events in the cryptocurrency space, Dusty discusses the impact of government actions on legitimate businesses and the violation of due process. He also talks about the attack on crypto, particularly on Ripple and the SEC’s focus on XRP. Dusty notes that the SEC has been slapped by judges recently and questions how many times they can defy the courts before someone steps up. He touches on the shift happening in the crypto space and mentions the CFTC’s different approach in viewing Ethereum as a commodity instead of a security. The video is sponsored by a crypto project called Swiss Cheese, which aims to become the world’s first decentralized stock exchange.
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The Attack on Crypto
The government’s action to deprive legitimate businesses of their rights to bank accounts is a violation of constitutional due process. This was the argument presented by the Community Financial Services Association of America V FDIC Federal Reserve OCC. Coindesk reported that prospective buyers of Signature Bank will have to agree to drop all crypto business at the bank. It’s clear that the attack on crypto has started, and it’s not the first time that we’ve seen this happen. Ripple faced a similar situation when the SEC targeted them, but the SEC was underprepared for the fight.
SEC’s Attitude Towards Crypto
The SEC’s attitude towards crypto is concerning. Gary Gensler’s close connections with FTX CEO and other FTX executives did not notice any sketchy conduct took place when FTX CEO Sam Begman Freed had received $2.2 billion from FTX. On the other hand, Ripple was pursued by the SEC despite having closed connections with Gary Gensler. The SEC’s focus on XRP was strange, and it failed to take the same actions against many other coins. The SEC’s actions against Ripple have been criticized by lawyers, and the SEC has been slapped by judges.
The Role of Government Regulators and Crypto Space Players
The SEC is trying to capture and encompass the crypto world, but it does not fall under their scope. The Commodities Futures and Trading Commission (CFTC) is also trying to grab crypto, but they have a different approach. The CFTC insists that Ethereum is a commodity rather than a security. Most players in the crypto space have treated the recent attack on crypto with different responses. Coinbase was quick to delist Ripple, but they backed them in court as an amnesty. However, they did not drop Ethereum, even though Gary Gensler labeled every proof of state crypto as a security.
Sponsor Segment
Before moving on, the sponsor for today’s video is Swiss Cheese. They are developing a decentralized stock exchange with radically futuristic user-friendly multi-change stock and crypto products. Though their mission is broad and regulation-wise, not fully clear, investing in the project might be worth considering.
