Flipadelphia now has stop-and-frisk procedures along with obligatory beatings and muggings.
Nothing is in and nothing is out. The only change that happened was that the DEC held was converted to SWAP.HBD. There could be a rocky response to the latest news coming from the U.S. Securities & Exchanges Commission and in an abundance of caution running to Hive's stable coin, the Hive Backed Dollar (HBD) was the move with the flipping proceeds. It would have been nice to have been able to make some moves, but playing it safe is the way to go. What an unusual time to be in Flipadelphia, there's a lot happening.
What exactly happened?
https://twitter.com/SECGov/status/1623778000675168256
- SECGov
This should be self-explanatory, but it is an initial toehold of a desire to either heavily regulate cryptocurrencies in the United States or ban them altogether. It is never just one firm or narrow regulatory action, this is not how these agencies and certainly not how politicians trying to appeal to their bases work. There are anti-crypto positions held by both Republicans and Democrats on Capitol Hill, their reasoning can be simplified as the following:
Democrats - "Crypto is an scam designed to exploit the lower and middle class, people were able to become wealthy from it, and it enables people to commit tax evasion and launder money."
Republicans - "The wrong people became wealthy from crypto. These people did not earn their wealth from hard, honest work. Crypto is a National Security issue as it is tied to human trafficking, Islamic terrorism, and drug smuggling."
https://twitter.com/TheNextBlockIO/status/1604249753100894208
- TheNextBlockIO
If this legislation does not pass through the U.S. House of Representatives, the regulatory agencies (SEC and CFTC) are expected to step in and act without any limit on how far they will go. The end result should play out much like aftermath of Dodd-Frank Act where retail FX brokerages swiftly exited the U.S. market. Crypto firms will and should proactively leave the United States as fighting with the country's gerontocratic values and antiquated notions toward technology are not worth the legal and political fight. Crypto holders will keep their crypto hidden from the U.S. Government, become more suspicious of crypto inquiries, make use of cold wallets, and start looking for opportunities to go where they are treated best.
This first shot at crypto by the United States Government is a positive development for offshore finance and cities/countries looking to attract expats, residents, and citizens by investment. It's a warning that crypto holders are on borrowed time in the United States.