Presidential candidate and 45th U.S. President Donald Trump has declared support for the crypto sector. “I will also stop Joe Biden’s crusade to crush crypto,” he promised. “I will support the right to self-custody.” He will also “commute the sentence of Ross Ulbricht to a sentence of time served.” Moreover, Trump stressed, “I will keep […]
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Vanguard CEO Salim Ramji Sticks to Firm’s Anti-Crypto Stance, No Plans for Bitcoin ETF
Salim Ramji, the new CEO of Vanguard and former head of Blackrock’s global ETF business, has affirmed the company’s position against launching a spot bitcoin exchange-traded fund (ETF), emphasizing the need for consistency with Vanguard’s investment philosophy that views crypto as a speculative and immature asset class. Despite Ramji’s prior involvement in launching Blackrock’s successful […]
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Anti-Crypto Mixer Blockchain Integrity Act Introduced in US House of Representatives
The Blockchain Integrity Act, a piece of legislation that seeks to put a 2-year moratorium on using cryptocurrency mixers, was introduced by U.S. Congressman Sean Casten on March 7 in the U.S. House of Representatives. Co-sponsored by Reps. Bill Foster, Brad Sherman, and Emanuel Cleaver, the bill proposes to conduct a study on the issue […]
Bitcoin News
Vanguard Deepens Anti-Crypto Stance After Disallowing Spot Bitcoin ETF Trading — Ark CEO Says ‘It’s a Terrible Mistake’
Investing giant Vanguard has doubled down on its anti-bitcoin and anti-crypto stance after disallowing investors access to spot bitcoin ETFs approved by the U.S. Securities and Exchange Commission (SEC) this week. The firm has also announced that it will no longer accept the purchase of cryptocurrency products, including bitcoin futures ETFs. Ark Invest CEO Cathie Wood called this decision “a terrible mistake” and “a strategic blunder.”
Vanguard’s Anti-Crypto/Bitcoin Policy Intensifies
Investing giant Vanguard has doubled down on its anti-crypto and anti-bitcoin policy in addition to blocking customers from trading spot bitcoin exchange-traded funds (ETFs) recently approved by the U.S. Securities and Exchange Commission (SEC). A spokesperson for Vanguard told Axios Friday:
In addition to spot bitcoin ETFs not being available for purchase on the Vanguard platform, effective immediately, Vanguard will no longer accept the purchase of cryptocurrency products, including bitcoin futures ETFs.
“This change allows us to focus on offering a core set of products and services consistent with our commitment to serve the needs of long-term investors,” the spokesperson added.
When customers saw they couldn’t trade new spot bitcoin ETFs on Thursday, Vanguard stated: “Spot bitcoin ETFs will not be available for purchase on the Vanguard platform. We also have no plans to offer Vanguard bitcoin ETFs or other crypto-related products. Our perspective is that these products do not align with our offer focused on asset classes such as equities, bonds, and cash, which Vanguard views as the building blocks of a well-balanced, long-term investment portfolio.”
Ark Invest CEO Cathie Wood called the decision by Vanguard to deny their customers access to spot bitcoin ETFs “terrible.” Ark 21shares Bitcoin ETF is among the 11 spot bitcoin ETFs the SEC approved on Wednesday. The fund started trading on Thursday.
“I think it’s a terrible decision. I think it’s a strategic blunder. And what Vanguard is doing is basically saying: ‘You know, the world’s not going to change. These new financial rails are not going to be successful. We’re still going to have seven middlemen between merchants and consumers, each one taking a toll,’” the Ark executive described. “We just don’t think that’s going to prove correct. Truth always wins out. Innovation solves problems. There’s a lot of friction in the financial system, and we believe that bitcoin, blockchain technology generally, are going to take a lot of the friction out of the system.” Wood opined:
The other reason I think this is a terrible mistake is they are going to deprive the investors who stay with them of, really, the first global, decentralized, private, no government oversight, rules-based — critical phrase there — monetary policy, monetary system in history.
What do you think about Vanguard doubling down on its anti-bitcoin and anti-crypto stance? Let us know in the comments section below.
Winklevoss Twins Rail Against US SEC’s Anti-Crypto Stance: ‘It Does Not Feel Like America, It Feels Like Venezuela’
The Winklevoss twins, founders of Gemini, a U.S.-based cryptocurrency exchange, have criticized the U.S. Securities and Exchange Commission (SEC) for its perceived anti-crypto stance and recent enforcement actions. In a recent interview, the Winklevoss twins commented that the regulatory environment in the U.S. felt like “third world, like Venezuela,” for builders in the crypto world.
Winklevoss Twins Against SEC: Building Crypto in the U.S. ‘Feels Like Venezuela’
Tyler and Cameron Winklevoss, founders of Gemini, a U.S.-based cryptocurrency exchange, have criticized the regulatory environment that crypto builders face in the country with the recent enforcement actions of the U.S. Securities and Exchange Commission (SEC).
In a recent interview with Balaji Srinivasan, former CTO of Coinbase, the Winklevoss twins explained the difficulties that existing regulation poses to cryptocurrency investors. They detailed that the launch of a rule-compliant cryptocurrency exchange in the U.S. involved getting a state license for every state served and a money transfer license (MTL), raising the costs to enter the crypto business.
In addition, the Winklevoss twins criticized the “regulation by enforcement” approach of the SEC, stating:
They won’t tell you what you need to do to comply. They won’t tell you these are the roads, they are paved, there’s a speed limit… There isn’t that path for people who want to comply.
Furthermore, they explained that building in crypto in the U.S. “feels like Venezuela,” commenting that common protections do not apply in the crypto world.
Further Criticism
The Winklevoss twins further criticized the lack of clarity of the SEC regarding the classification of certain cryptocurrency assets. In the case of ether, the twins detailed that even though the Ethereum network is ten years old, there is still no clarity about how it will be classified, with SEC Chairman Gary Gensler refusing to answer a direct question on the subject in a congressional hearing in April.
They declared:
The only thing that that U.S. regulators seem to agree on is that bitcoin is a commodity but they won’t agree on any other crypto.
Due to all of these complications, the Winklevoss twins believe that there will be a crypto “flippening” from America to Asia, where regions such as the Asia Pacific (APAC) and the Middle East and North Africa (MENA) will grow to be the largest source of revenue for Gemini. Compared to the U.S., where the twins explained the “environment is hostile and you can’t get anything done,” these jurisdictions offer friendlier crypto regulations.
Others have warned about crypto fleeing to other, less hostile markets, including Coinbase CEO Brian Armstrong and U.S. Senator Cynthia Lummis.
What do you think of the opinions of the Winklevoss twins on the state of crypto regulation in the U.S.? Tell us in the comment section below.
Elizabeth Warren Explains Her ‘Anti-Crypto Army’ Stance; Waves of Democrats Oppose Her Bitcoin Criticism
Elizabeth Warren, the Democratic senator from Massachusetts, has recently launched a political campaign against cryptocurrencies as she seeks a third term in office in 2024. In a recent interview on “Meet the Press Reports” with NBC’s Chuck Todd, Warren likened buying bitcoin to “buying air.” Despite her stated distrust of banks, Warren told the show host that as far as central bank digital currency (CBDC) is concerned, she thinks “it’s time for us to move in that direction.”
Warren Compares Buying Bitcoin to ‘Buying Air,’ Says It’s Time to Move in the CBDC Direction
The Democratic senator from Massachusetts, Elizabeth Warren, has been vocal about her skepticism of cryptocurrencies such as bitcoin (BTC), citing risks and negative environmental impacts associated with bitcoin mining. Moreover, Warren recently attributed the liquidation of Silvergate Bank to “crypto risk.” During a recent interview with Chuck Todd on “Meet the Press Reports,” Warren reiterated her distaste for bitcoin. “If I buy bitcoin, what am I buying? Are you buying air?” Senator Warren asked. “With bitcoin, there’s no underlying asset that backs it up, it’s simply a matter of belief,” she told Chuck Todd during the interview. When Todd asked if bitcoin could be compared to a painting, she rejected the comparison, stating that with a painting, she could physically possess it and throw darts at it. “Instead of bitcoin, we should be discussing digital currency,” Warren suggested, noting that digital currency is different from bitcoin as it is backed by the government.
Warren has been a vocal opponent of the Federal Reserve’s recent interest rate hikes. During her interview with Todd, she expressed her belief that, while banks are not perfect, it is time for the government to move towards a central bank digital currency (CBDC).
The Massachusetts politician also drew comparisons between the digital world and the real estate crash in 2008. “How many times did people say, ‘Real Estate always goes up. It never goes down’? They said it decades ago before the last real estate bubble. They said it in the 2000s, before the crash in 2008,” Warren stated. Warren ultimately believes that the crypto industry will be subject to strict regulation. Despite Senator Warren’s anti-cryptocurrency stance, a number of Democrats have taken to social media to express their dissatisfaction with her position.
Many of the responses to her recent tweet about building an “anti-crypto army” have been negative, with individuals expressing their disappointment in Warren’s views. “Pro-tyranny army – I guess we shouldn’t be surprised, since you have personally benefited from the current corrupt system,” one person told the senator. “The big banks really do own you, don’t they? It only took two terms in the Senate. I wish you would start fighting for the people again instead of for the banks,” another person tweeted at Warren. What are your thoughts on Senator Warren’s anti-cryptocurrency stance and her call for a central bank digital currency? Do you agree or disagree with her views? Share your opinion in the comments below.
Burry on Banking Crisis, Kiyosaki Warns of ‘Fake Money’ Injections; Talk of ‘Anti-Crypto’ Agenda Behind Signature Bank Collapse — Week in Review
Speculation and debate continue to rage surrounding the current global banking debacle. Hedge fund manager Michael Burry — known for predicting 2008’s economic crisis — is drawing comparisons to the Panic of 1907, while Rich Dad Poor Dad author Robert Kiyosaki warned this week of more ‘fake money’ being injected into the U.S. economy. In related news, former member of the U.S. House of Representatives and Signature Bank board member, Barney Frank, said he suspects regulators meant to send an “anti-crypto message” in regards to the bank’s recent failure. All this and more just below, in the latest Bitcoin.com News Week in Review.
Michael Burry Compares Current Banking Turmoil to Panic of 1907 — Highlights Markets Bottoming
Michael Burry, a hedge fund manager renowned for predicting the 2008 financial crisis, has drawn parallels between the current banking turmoil and the Panic of 1907. He noted that three weeks after J.P. Morgan made a stand, the panic was resolved and the markets bottomed. “A stand was made this past weekend,” the famous investor pointed out.
Robert Kiyosaki Warns of ‘Crash Landing Ahead’ as Bailouts Begin — Advises Buying More Bitcoin
The famous author of the best-selling book Rich Dad Poor Dad, Robert Kiyosaki, has reiterated his bitcoin, gold, and silver recommendation. Emphasizing that government bailouts have begun following the collapses of Silicon Valley Bank and Signature Bank, Kiyosaki warned that the Fed will inject more “fake money” into the “sick economy.”
On the Brink of a New Trend: Credit Suisse Receives 50 Billion Swiss Franc Bailout From Swiss National Bank
Credit Suisse has experienced a loss of confidence in the financial institution’s health following a significant drop in its shares’ value this week. Over the past five days, Credit Suisse shares have fallen 24.34% against the U.S. dollar, eroding trust amid fears about the global banking system. On Wednesday at around 9 p.m. (ET), Credit Suisse announced that it was strengthening its liquidity by borrowing 50 billion Swiss francs ( billion) from the Swiss National Bank (SNB). As concerns about the world’s banking system continue to spread, bailout measures are starting to emerge in the U.S. and abroad.
Bank Board Member and Dodd-Frank Co-Sponsor Barney Frank Suspects ‘Anti-Crypto’ Message Behind Signature Bank Failure
Barney Frank, a former member of the U.S. House of Representatives from Massachusetts and leading co-sponsor of the 2010 Dodd-Frank Act, discussed his opinion on the recent failure of Signature Bank. In an interview, Frank stated that he believes regulators aimed to “send a very strong anti-crypto message.” Frank, who also serves as a Signature board member, explained that he was surprised by the financial institution’s demise.
What do you think? Are the banking dominoes now falling part of an engineered anti-crypto agenda? Let us know in the comments section below.
Signature Bank’s Closure Is Political And A Strong Anti-Crypto Message, Ex-Congressman
Barney Frank, the director of Signature bank and a former congressman who helped draft the Dodd-Frank Act, has stated that the lender is solvent and that there was “no real objective reason” for the bank to be closed. He said regulators wanted to send a strong anti-crypto message.
The Real Reasons Behind Signature Bank’s Closure?
The vague statement issued by the New York Department of Financial Services (NYDFS) on the closure of Signature Bank claimed the move was “in order to protect depositors.”
Compared to the detailed order passed by the California Department of Financial Protection and Innovation (DFPI) when they took over Silicon Valley Bank, citing inadequate liquidity and insolvency, the NYDFS statement regarding Signature Bank is vague and lacks any fact-finding order. The DFPI appointed the United States Federal Deposit Insurance Corporation (FDIC) as the receiver of Silicon Valley Bank (SVB).
The transfer of SVB’s assets to the FDIC led to a temporary retracement of crypto assets, including Bitcoin. Meanwhile, USDC, the stablecoin issued by Circle, which had .3 billion stuck in the tech lender, de-pegged. But as of March 14, the stablecoin is trading at parity with the USD.
Industry participants have concluded that Signature Bank was shut down because of its pro-crypto stance and the fact that it was facilitating stablecoin liquidity using its Signet network. The government’s actions may have been prompted by the opportunity over the weekend from SVB’s failure. This is the third major bank with ties to crypto to collapse in less than a month.
Silvergate bank was shut down, then SVB went insolvent. With 0 billion in assets, Signature Bank went under due to a billion bank run, though it had billion deposits filing.
Silvergate is still solvent, despite an unprecedented 90 day billion liquidation sparked by a corrupt sitting Senator who coordinated a bank run w/ short sellers.
Signature was healthy. NYDFS went rogue in shutting them down, and surprised even the FDIC.
It's targeted.
— Ryan Selkis
(@twobitidiot) March 13, 2023
Senator Elizabeth Warren Blames Trump As SEC Cracks Down On Crypto
Senator Elizabeth Warren has blamed the Trump administration for the closure of Silicon Valley Bank (SVB), which she claims was largely due to the rollback of critical parts of the Dodd-Frank Act in 2018. Warren has called for Congress, banking regulators, and the current administration to reverse these actions as an immediate priority.
The closure of Signature Bank might be a message that the industry is targeted. This comes when Bradley Garlinghouse, the Chief Executive Officer (CEO) of Ripple, a blockchain company, maintains that United States regulations don’t favor innovation, especially in crypto.
The headwinds keep growing – with the SEC declaring war on crypto, Chair Gensler continues to harp that firms simply need to come in and register, but the truth is there’s no infrastructure in place for a “registered token” to trade nor any clarity as to what these tokens are.
— Brad Garlinghouse (@bgarlinghouse) March 7, 2023
Together with other executives, including Christian Larsen, Bradley was sued by the United States Securities and Exchange Commission (SEC). The regulator claims they sold unregistered securities in XRP during their initial coin offering where they raised over billion.
Bank Board Member and Dodd-Frank Co-Sponsor Barney Frank Suspects ‘Anti-Crypto’ Message Behind Signature Bank Failure
Barney Frank, a former member of the U.S. House of Representatives from Massachusetts and leading co-sponsor of the 2010 Dodd-Frank Act, discussed his opinion on the recent failure of Signature Bank. In an interview, Frank stated that he believes regulators aimed to “send a very strong anti-crypto message.” Frank, who also serves as a Signature board member, explained that he was surprised by the financial institution’s demise.
The Third-Largest Bank Failure in U.S. History: Signature Bank’s Demise was Confusing to Company Executives
New York regulators from the Department of Financial Services (DFS) announced on Sunday evening that Signature Bank (SBNY) was shut down and the Federal Deposit Insurance Corporation (FDIC) took over as the bank’s receiver. The seizure was intended to “protect depositors,” said DFS superintendent Adrienne Harris. Unlike Silvergate Bank and Silicon Valley Bank (SVB), Signature’s failure was somewhat confusing to some market observers and it was the third-largest bank failure in the United States.
On Sunday evening, superintendent Harris stated that as of December 31, 2022, Signature had about 0.36 billion in assets and total deposits of around .59 billion. According to Barney Frank, a Signature board member and former U.S. representative from Massachusetts, the bank’s failure was surprising to its executives. In a phone call interview with CNBC, Frank stated, “We had no indication of problems until we experienced a deposit run late Friday, which was solely due to contagion from SVB.”
Frank explained that concern began to spread last week as Signature’s customers began transferring deposits from the New York bank to larger financial institutions such as JPMorgan and Citigroup. Although the former politician saw “no real objective reason” for Signature to be seized and shut down, he suspected that U.S. regulators may have been sending a message.
“I think part of what happened was that regulators wanted to send a very strong anti-crypto message,” Frank stated. “We became the poster boy because there was no insolvency based on the fundamentals.”
Frank also mentioned that withdrawals slowed on Sunday, and Signature executives believed the situation was resolved. Additionally, he asserted that the bank’s senior staff attempted to explore “all avenues” to resolve the financial institution’s liquidity issues. Frank was a co-sponsor of the 2010 Dodd-Frank Act, which made significant changes to how U.S. banking and the financial regulatory system are currently conducted. However, the policy framework has been partially repealed, and some U.S. banks are exempt from the Dodd-Frank ruleset.
What do you think about Barney Frank’s suspicion that regulators wanted to send an anti-crypto message by shutting down Signature Bank? Do you believe this is a fair assessment or is there more to the story? Share your thoughts in the comments section below.
China Continues Anti-Crypto Stance With Beijing Warning; Will it Work?
Shanghai Securities News has just reported that authorities in Beijing, China’s capital, have renewed their anti-crypto stance. Per the report and one from The Block, the Beijing Local Financial Supervision and Administration Bureau, the Business Management Department of the People’s Bank of China, the Beijing Banking and Insurance Regulatory Bureau, and the Beijing Securities Regulatory Bureau have requested for firms under its jurisdiction not to engage in crypto-related activities.
This news comes just a month after the Shanghai branch of the People’s Bank of China issued a similar warning. Per previous reports from NewsBTC, an announcement published by the central bank remarked that the sale of tokens for Bitcoin, Ethereum, and other virtual currencies remains “essentially unauthorized illegal public financing, suspected of illegal sale of tokens, illegal issuance of securities and illegal fund-raising.”
As such, the Chinese central bank asserted that it will continue to “monitor the virtual currency business activities within the jurisdiction,” which will be “disposed of immediately” if discovered.
Effective Crypto Regulation?
While the warnings may shock readers in the Western world, not everyone is all too sure that it will be affected.
Sino Global Capital chief executive Matthew Graham, who focuses on investments in China and around blockchain, remarked that he thinks that no one in China will give any heed to the latest warning from the local authorities in Beijing.
Number of f*cks given in China by anyone except possibly Beijing-based blockchain media: zero
— Matthew Graham (@mg0314a) December 27, 2019
It is important to note, however, that Chinese firms have recently been affected by Shanghai’s anti-crypto sentiment, making it a possibility that Beijing’s latest warnings could serve to a similar effect.
The aforementioned warning resulted in a number of Shanghai-based crypto exchanges having to close up shop, revealing that they would not serve any Chinese customers from then on forward.
Related Reading: Early Bitcoin Adopter Throws Cold Water On Halving Narrative; Here’s Why
Digital Yuan Launch On Its Way
It seems as though Beijing and other authorities around China are cleaning house in preparation for the launch of China’s national crypto asset.
Chinese financial news outlet Caijing reported earlier this month that the PBOC will soon test DC/EP — the name given to China’s digital yuan crypto-asset project — in the cities of Shenzhen and Suzhou, the former of which being China’s iteration of Silicon Valley.
Related Reading: Why Bitcoin Needs to Close Above ,000 to Catalyze Next Bull Run
There will be a first phase, which will is slated to begin in the coming weeks, and a second, during which the digital currency will be widely promoted in the two aforementioned cities sometime in 2020. Caijing noted that per their information, the PBOC has partnered with seven state-owned enterprises to roll out this pilot, these being four Chinese commercial banks and three telecom giants.
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