Head of Research @bitcoinpolicy | Fmr Senior Advisor & Chief Speechwriter to @SecScottBessent | @Forbes Contributor | @PrincetonSPIA alum
Washington, DC
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NEW: BPI research reveals that a Marxist-Leninist group with documented ties to China has been a critical mobilizer in efforts that have blocked or delayed $23.6 billion in AI investment in the US.
Its scalps include 10 data center moratoria, 1 permanent data center ban, and 4 rejected or scrapped AI projects.
In Part II of our foreign influence investigation, BPI exposes the Party for Socialism and Liberation (or PSL) as the political arm of Shanghai-based Neville Singham, and lays bare a national campaign launched by the party to stop America’s data center buildout.
Singham is the subject of multiple federal investigations into his reported ties to the CCP. Our research uncovers the anti-data-center organizing of his activist vehicle, the PSL, across 21 campaigns in 14 states, in roles ranging from lead organizer to one member of a broader coalition.
This report adds to the mounting evidence that China and its surrogates are committed to stopping America’s data center buildout so that Beijing can gain the advantage in the AI race.
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“Last year, the Department of Justice indicted a Sinaloa Cartel member who laundered nearly $900,000 in crypto.”
What she doesn't want you to know: In the years prior, the Sinaloa & Norte del Valle cartels laundered nearly $900,000,000 in fiat currency through HSBC.
That's a fiat to crypto ratio of 1,000:1.
Senator Warren's entire gambit depends on public ignorance. Cash remains the preferred currency of criminals. And when compared to crypto, it's not even close.
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Critical context missing from the @WSJ piece on Hamas and crypto:
In April 2023, Hamas warned its donors to STOP sending Bitcoin.
Why? Because the transparent nature of the blockchain had Western intelligence following their every transaction like bloodhounds. Hence, the sudden drop on the chart.
There’s a reason money laundering via Bitcoin has been called a “classically dumb crime.” It shines a spotlight on everyone involved.
Remember this as the usual suspects ramp up their anti-crypto rhetoric in the weeks to come.
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“Let’s do a central bank digital currency … I think it’s time for us to move in that direction.”
Amid Sen. Warren’s moralizing on crypto money laundering, never forget what her ultimate goal is: the destruction of Bitcoin to make way for a CBDC.
Warren is usually effective at hiding her true intentions. But on this rare occasion, she let her guard down—and she can barely contain her excitement at the prospect of a CBDC.
Note that this interview aired the same month she first introduced crypto AML legislation. These two things are inextricably linked.
Warren frames her latest bill—the Digital Asset Anti-Money Laundering Act—as little more than an attempt to crack down on illicit finance. In reality, it’s a nuclear warhead pointed at the industry.
Make no mistake: Warren’s AML bill is the crypto killer. It would drive innovation offshore by imposing impossible burdens on miners, validators, and wallet providers. It would decimate an entire industry overnight, making it virtually illegal to do business with Bitcoin in the United States.
But that’s the point—Warren wants to cut crypto off at the knees. Because her true intention is to eliminate the competition to make way for a CBDC.
Anyone who signs Warren’s bill should know what they’re really signing up for: step one in the implementation of a central bank digital currency.
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Crypto is the preferred currency of criminals in the same way Elizabeth Warren is Native American—which is to say, not at all.
In 2022, only 0.24% of all crypto transaction volume was associated with illicit activity. Despite this, Warren claims that crypto’s main use case is money laundering.
In 2018, a DNA test revealed that Warren is only between 0.10% and 1.6% Native American. Despite this, she identified as “American Indian” and a minority on job paperwork for years.
The Senator isn’t bad with fractions—she’s just bad with facts. And she’s more than willing to misrepresent them to advance her career.
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If Gary looks slim, it’s because he’s been eating nothing but his own words since 2018.
“Bitcoin. Ether. Litecoin. Bitcoin Cash. Why did I name those four? They’re not securities.”
“Three-quarters of this market is probably not securities.”
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The SEC may have bitten off more than it can chew in its campaign against XRP.
In my latest piece for @ForbesCrypto, I discuss how the "Ripple effects" from this lawsuit could benefit not just the #XRPArmy but also @Coinbase & the industry as a whole.
forbes.com/sites/digital-ass…
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In retrospect, the decision to target the most passionate, anti-establishment, contrarian, and memetically powerful cults in the world …
was a really bad idea.
Cheers to Sen. Warren for accelerating crypto adoption w/one of the biggest political miscalculations of all time!
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BREAKING: Rep. Khanna becomes 1st Democratic member of Congress to endorse a strategic Bitcoin reserve.
Khanna: "Bitcoin that has been seized by the US government should be used as a strategic reserve asset given its potential for appreciation."
My latest in Forbes 👇
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The SEC had no idea what it was in for when it took on the #XRPArmy.
Credit to @Ripple's lawyers and one of the wildest communities in crypto for giving Coinbase significant legal ammo in its own fight against the SEC.
forbes.com/sites/digital-ass…
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At what point does Sen. Warren’s crypto vendetta start to undermine US security interests?
Take last week’s hearing.
At multiple turns, the expert witnesses had to fact-check Warren in real time and correct her gross exaggerations about crypto’s role in terrorist financing.
Fiat currency makes up between 2 to 5% of all money laundering worldwide; by comparison, crypto makes up only 0.25%.
And yet, Warren devoted 100% of her hearing time pushing the narrative that crypto was the main culprit in the Hamas attack—a narrative that has since been debunked by multiple blockchain intelligence firms.
In The Art of War, Sun Tzu champions the principle of misdirection: Make your enemy think you are strong where you are weak and weak where you are strong.
Hamas doesn’t need to do this in the arena of financial warfare because Elizabeth Warren is already doing it for them.
She’s inflating the role of crypto as a money laundering tool, which ultimately distracts the security state from where Hamas’ true strengths lie: fundraising through traditional means, such as state sponsors, shell companies, hawalas, and bulk cash smuggling.
Of course, this isn’t Warren’s aim—but it’s the unintended consequence of her anti-crypto campaign. Overstating the role of crypto in illicit finance only empowers Hamas by diverting our attention from the organization’s real cash cows. That’s why Dr. Wagman implores Warren not to take her eyes off the greater threat (see clip below).
@SenWarren, fight the industry, but not in this arena. Because a) you will lose, and b) you will weaken US national security in the process.
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“The degree to which all Twitter was basically a sock puppet of the government was ridiculous.”
Before 1436, Rome dominated Europe by holding absolute control over narrative formation. But the invention of the printing press changed everything.
Elon’s purchase of Twitter = the next step in the democratization of information. It put a printing press in each of our hands—and the high priests of a dying order hate him for that.
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Bad intel can get halfway across the world before the truth has a chance to put its pants on. In this case, it made it all the way to the Oval Office.
In @ForbesCrypto, I tell the story of how anti-crypto misinformation duped nearly 20% of Congress.
forbes.com/sites/digital-ass…
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Right now, the #XRPArmy is carrying all of crypto on its back.
If the court rules in favor of @Ripple, it would provide a critical legal precedent for the industry that would protect digital assets from further overreach by the SEC.
forbes.com/sites/digital-ass…
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The Ripple effects from this decision will be absolutely huge.
#XRP is not a security.
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Crypto is NOT a partisan issue. It’s a generational one.
Case in point: 21 Dems voted yesterday to rein in Gensler’s overreach on crypto.
The average age of this voting group? 48.
Contrast these young Gen Xers to the Dem party leaders they defied with yesterday’s vote.
Maxine Waters is 85.
Joe Biden is 81.
Elizabeth Warren is 74.
When it comes to digital assets, where a policymaker stands is more about age than political affiliation.
We need more innovation-friendly Dems whose minds are oriented to the possibilities of the future.
In other words, real progressives.
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“A well-designed CBDC could serve as a public alternative to these cryptocurrencies and potentially crowd out their usage.”
The fix is in and has been since Day 1: Elizabeth Warren wants to kill Bitcoin to make way for a central bank digital currency.
Anyone supporting Warren’s anti-money laundering legislation—including the five Senators who signed on yesterday—is just a pawn in her game.
As Warren’s strategy becomes clear, she may try to downplay her past statements on CBDCs. But we have the receipts.
Warren began her anti-crypto campaign in earnest on June 9, 2021. On this day, she hosted a Senate hearing with three hand-picked expert witnesses who all levied various attacks against Bitcoin. But the Bitcoin broadsides were merely an opening act for the main event: the supposed merits of a Federal Reserve-backed CBDC.
The title of the hearing says it all—“A Stronger Financial System: Opportunities of a Central Bank Digital Currency.” Over the course of nearly two hours, Warren attempts to convince her colleagues and the American public that Bitcoin is a danger to the environment and national security—and that the only viable alternative to crypto is a CBDC (see clip below).
Warren is more subtle now, but the goal remains the same: eliminate all competition until Americans have no choice but to bank directly with the Fed.
Each Senator that co-sponsors Warren’s bill gets her one step closer to that goal.
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"Imagine a financial instrument that could reduce the Treasury’s debt burden while giving investors risk-free exposure to the best-performing commodity of the last decade."
"This is the promise—and ambition—of BitBonds."
My latest in Forbes 👇
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WARREN: “So debanking is a real problem, and we need to work across the aisle to solve it.”
This is like an arson bemoaning the sudden uptick in house fires.
Don’t be fooled.
It was Elizabeth Warren and her acolytes in the Biden admin who orchestrated the debanking scandal in the first place.
Her sudden concern about the reality of debanking and the thousands of Americans it has harmed is pure theater.
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Warren re: potential terrorists: “They could be innocent!”
Warren re: US crypto holders: “They could be terrorists!”
The terrorist watchlist is rampant with inaccuracies and fuels discriminatory profiling.
I'm fighting to protect due process and civil rights for Americans who are wrongfully watchlisted. cbsnews.com/news/senators-ca…
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"Gensler’s attack on digital assets poses an existential threat to the industry. But for him, it may well be just a stepping stone on the path to higher office."
Get inside the mind of Gary Gensler in my latest piece for @ForbesCrypto
forbes.com/sites/digital-ass…
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"Economists can quibble all they want about the merits of bitcoin as a form of money."
"But they can’t ignore that the Nash equilibrium in a coordination game driven by positive network effects is to cooperate with other players—that is, to buy bitcoin."
My latest in @forbes:
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“Hamas learned the hard way that bitcoin is not ideal for illicit finance. Lawmakers across the country have yet to receive the memo. So we’re circulating it today.”
ICYMI: must-read op-ed in @thehill from @JasonLes_ and @MorgensternNJ:
thehill.com/opinion/finance/…
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“Crypto is currently a very small part of the puzzle. The major funding channels are, were, and remain state funding. Iran and others—those are the major players.”
Dr. Shlomit Wagman sets the record straight re: terrorism and crypto at today’s
@SenateBanking
hearing:
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Sen. Fetterman: So why didn’t Hamas use credit cards and bank accounts to finance their terror?
Dr. Wagman: Ummm … so actually they did.
This clip shows just how much Senators have internalized the Warren propaganda—and how much education is still required:
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“I don’t trust concentration of power.”
Unless it’s in her hands …
This is the conceit of Warren’s entire career: pitching herself as a champion of the people while hoarding power to herself and an elect few.
The biggest proponent of CBDCs & social media regulation is not—and never has been—“for the little guy.”
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Can you feel the vibe shift, anon?
In the last two weeks:
>Trump embraces digital assets, putting Biden on the defensive
>SEC reverses course on ETH ETF as approval looks imminent
>SAB 121 repeal passes Congress with dozens of Dems defecting from Warren's anti-crypto army
>Choke Point Marty forced to resign as FDIC Chair
>FIT 21 gains steam in the House, with passage looking more likely by the day.
Multiple policy victories of monumental proportions—and all of them happening in just one month.
This is what winning looks like.
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The political risk of Gary Gensler has NOT been priced in.
The Biden admin's reflexive hostility to crypto has alienated millions of Americans.
It's terrible policy—and even worse politics.
Gary has kicked a nest of cyber hornets. And they'll be swarming the polls this fall.
If @joebiden loses, there is a good chance you will be able to thank @GaryGensler and the @NewYork_SEC
Crypto is a mainstay with younger and independent voters. Gensler HAS NOT PROTECTED A SINGLE INVESTOR AGAINST FRAUD
All he has done is make it nearly impossible for legitimate crypto companies to operate, killing who knows how many businesses and ruining who knows how many entrepreneurs.
This is also a warning to Congress. Crypto voters will be heard this election. You could solve this problem for Biden by passing legislation that defines registration that is specific to the crypto industry just as other industries have registration that is defined for them
Or you could do the better option and assign all crypto to be regulated by the @CFTC
They actually know what they are doing
@ericswalwell @SenSchumer
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Today @matthewstoller accused “anyone involved with crypto” of committing treason—a crime punishable by death under the Constitution.
A question for Mr. Stoller: Does this include Larry Kramer, the president of the foundation that bankrolls your employer, the American Economic Liberties Project?
Is Larry Kramer—one of your biggest donors—also guilty of committing treason? Because he’s involved with crypto in a pretty big way.
For those who don’t know, Kramer is close family friends with the Bankman-Frieds. Yes, those Bankman-Frieds.
How close? He helped pay for SBF’s $250 million bail.
And no, I’m not making this up. We’ve got the receipts:
SOURCES:
Stoller’s original tweet: nitter.app/matthewstoller/s…
Kramer’s Role at the Hewlett Foundation: hewlett.org/people/larry-kra…
The Hewlett Foundation’s Donation History: hewlett.org/grants/american-…
Kramer’s Role in SBF Bail: forbes.com/sites/dereksaul/2…
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The Warren Narrative is Crumbling
It’s now a matter of congressional record that the numbers Sen. Warren cited re: Hamas and crypto are false and misleading.
According to whom? Our own Treasury Department.
Rep. Emmer: “Hamas is using crypto in relatively small amounts compared to what’s been widely reported. That’s correct, isn’t it?”
Undersecretary Nelson: “That’s our assessment, yep.”
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This is a watershed moment for crypto.
The dam built by Elizabeth Warren is starting to break.
She tried—and failed—to make this a partisan issue.
Expect more Dems to find their voice in the months to come.
SAB 121 CRA —first standalone crypto bill ever to pass both chambers of Congress—SAILS through the Senate 60-38.
Dems voting for CRA/against WH & SEC:
**Schumer**
Gillibrand
Hickenlooper
Peters
Tester
Sinema
Rosen
Kelly
Casey
Booker
Lujan
Wyden
(Biden still expected to veto)
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Hard to put into words how hugely consequential the #Ripple decision is for the entire crypto industry. But I try in my latest for @ForbesCrypto
TLDR: Vindication for #XRP is just the start.
forbes.com/sites/digital-ass…
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There’s been a lot of noise this week. So where’s the signal?
The signal = Nancy Pelosi.
Her vote on FIT 21 sealed the fate of the anti-crypto army.
As the de facto leader of the Democratic establishment, Pelosi sent a clear message to the Warren wing: We have no time for this quixotic crusade.
Some are saying Dem converts will revert to an anti-crypto position after the election.
It’s unlikely.
Being against the world’s fastest-growing asset class has proven to be a massive political liability. And that liability will only grow as crypto becomes more mainstream.
TLDR: As a measure of institutional acceptance, Pelosi’s “yea” vote on FIT 21 was as significant as BlackRock’s Bitcoin ETF filing last summer.
The Uniparty—like Wall Street—is capitulating to crypto.
Warren is washed. And we are here to stay.
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Sen. Warren: So how about that WSJ figure that Hamas raised $130 million in crypto? Crazy, right?
Expert witness: Yeah no I’m pretty sure those numbers are BS.
The anti-crypto narrative withers when exposed to facts. Good on Dr. Levitt for correcting the record here.
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Thank you, John. Consistently blown away by the strength of the #XRPArmy
Elizabeth Warren's "anti-crypto army" doesn't stand a chance against these anons.
Outstanding article by @SamLyman33. XRP Army if you’re not following Sam you should be. He’s calling it exactly the way it is regarding @GaryGensler.
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SOURCE:
justice.gov/opa/pr/hsbc-hold…
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“If you’re in favor of crypto, you better vote for Trump.”
1 in 5 swing state voters consider crypto to be a pivotal issue at the ballot box.
That’s ~5 million Americans.
In states that were decided by just thousands of votes.
Crypto could swing the 2024 election.
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The fate of XRP and the entire US crypto industry could hinge on the "Hinman documents."
Read about what they are, why they matter, and how they could affect future litigation in my latest piece for @ForbesCrypto
forbes.com/sites/digital-ass…
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An Ivy League student in a fur-lined $1500 Canada Goose jacket harassing a Jewish classmate for holding views other than his own is the perfect distillation of today’s campus discourse.
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The fact that “Gary Gensler” became a household name is the greatest indictment of the outgoing SEC Chair.
The average American should neither know nor care who heads this agency. But Gensler abused his post to raise his celebrity—and in the process, nearly destroyed an entire industry.
The Dem post-mortem still hasn’t accounted for the incalculable political damage wrought by Gary Gensler.
As Elizabeth Warren’s lackey, he waged war against pro-crypto Americans, alienating voters and driving billions of investment dollars overseas.
The reckoning came in the form of Donald Trump and the millions of digital asset holders who turned out to support him.
The greatest irony? Gensler’s overreach arguably cost Harris the election, ushering in the most pro-Bitcoin administration the country has ever seen.
Newton’s Third Law of Physics applies to politics as well: For every action, there is an opposite but equal reaction. Unless you come against crypto—in which case, the reaction will be tenfold.
Goodbye and good riddance to all conscripts of the anti-crypto army.
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Of note: Sen. Warren has quietly abandoned the debunked claim that Hamas raised $130 million in crypto.
She keeps it vague here by simply saying "millions.” A small but important victory.
Just goes to show that the noise you anons make really can push the needle 🫡
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The Trump-Vance ticket = a profound sea change for the digital asset industry.
DJT wants all remaining Bitcoin to be “made in the USA” as part of a national strategy to achieve energy dominance.
Vance, meanwhile, felt that FIT 21 wasn’t friendly enough towards crypto—so he drafted his own proposal defanging the SEC.
TLDR: This is the dream ticket for anyone who believes in self-sovereignty and the freedom to transact 🇺🇸
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“To prepare the soil for a CBDC, Elizabeth Warren has to make that soil radioactive for Bitcoin.”
Sen. Warren’s anti-money laundering legislation is a classic bait and switch.
The bait = cracking down on illicit finance.
The switch = killing crypto as we know it.
Lawmakers should not be fooled: a vote for Warren’s bill is a vote to make way for a CBDC.
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Are the SEC’s enforcement actions against crypto a smokescreen to distract from the agency’s other failures?
I investigate in my latest for @ForbesCrypto
forbes.com/sites/digital-ass…
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“Is it possible to design a central bank digital currency that doesn’t require miners?”
The mask comes off.
More evidence surfaces that Sen. Warren doesn’t want to simply regulate Bitcoin—she wants to replace it with a CBDC.
When someone shows you who they are, believe them.
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Elizabeth Warren’s myopic focus on crypto is itself an impediment to national security.
How can anyone look at the chart below and think, “Oh yes, the problem is Bitcoin!”
Warren’s end goal? Eliminate the competition to make way for a CBDC.
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“Who should get to decide the future of crypto and blockchain?”
“Should it be Chair Gary Gensler, an unelected bureaucrat who answers only to himself? Or Congress, whose members are elected by—and therefore accountable to—the people?”
@RepRitchie is a light in the wilderness
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“I’m a lifelong Democrat … I’ve decided my vote will only go to a pro-crypto candidate.”
Many such cases 👇
I’ve wrestled with this for years but I’ve made a decision
I’m a lifelong democrat and even worked professionally to elect democrats in Minnesota for years
I’ve decided my vote will only go to a pro crypto candidate. You don’t get my vote unless you fight for crypto or - at bare minimum - don’t impeded the industry
I personally have too much at stake between my career, most of my net worth in the asset class, and my belief in the technology
This issue matters to my life in so many ways that it drives my vote now
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"Not only could a strategic Bitcoin reserve significantly reduce our national debt; it could also ... increase our economic leverage over China and Russia."
Larry Summers says an SBR is "crazy." I explain why it's necessary in my latest for Fortune 👇
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“Bitcoin is the same as gold. And Bitcoin should trade the same as gold—everywhere in the world, without exception.”
This man, Howard Lutnick, could be the next Treasury Secretary.
If it feels like we’re in the middle of a global paradigm shift, it’s because we are.
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CHAMATH: “Crypto is dead in America.”
NARRATOR: “But crypto was not dead in America.”
Since this podcast aired on April 21, 2023:
>Bitcoin is up 146%
>The SEC has approved both a BTC and ETH spot ETF
>The House has passed a comprehensive regulatory framework for digital assets
>The leading candidate for President of the United States has vowed to ban CBDCs and make America a central hub for crypto innovation
A reminder that “It’s so over” is simply the prelude to “We are so back.”
In hindsight, this episode of the All-In Pod marked the pico shmico bottom of the crypto policy bear market 🙏
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"Will misinformation form the foundation of crypto policymaking? Or will lawmakers heed the facts?"
Sen. Warren has led an active smear campaign against digital assets. But her narrative is crumbling.
My latest in @ForbesCrypto
forbes.com/sites/digital-ass…
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Elizabeth Warren’s “Anti-Crypto Army” is down astronomically bad.
Soldiers that haven’t defected are feeling mutinous.
Leaked footage from what’s happening on the ground 👇
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You forgot monetizing the world's stranded energy, driving investment in renewables, turning methane into digital gold, providing refuge from abusive monetary policies, and storing value across space and time better than any existing commodity.
Pls update your talking points.
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"The US can use Bitcoin ... to deter China and Russia from leveraging their gold reserves to undermine dollar dominance."
BTC is on the cusp of nation-state adoption. So what role might it play in economic statecraft?
As it turns out, a very big one. Let's dive deeper:
1/🧵
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“Hamas thought it could flout Western surveillance by embracing bitcoin. It thought wrong—and the story is illuminating for those who believe bitcoin provides a safe space for terrorists.”
Every Senator should read this oped by @JasonLes_ & @MorgensternNJ
thehill.com/opinion/finance/…
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Another day, another hit piece on crypto 🙃
A reminder that these numbers more likely reflect the total volume of crypto that flowed between entities with links to Hamas—not the actual amount of money raised by the organization.
Stripped of this context, you get Senators sending panicked letters to the White House with erroneous claims that Hamas had raised “over $130 million in crypto.”
Naked data with no interpretation is how misinformation spreads.
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“The SEC under Gary Gensler blatantly and repeatedly oversteps its statutory authority.”
And who’s footing the bill for its war against crypto?
The taxpayer—you and me.
Being forced to finance your own political prosecution is a sick twist of irony.
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“There is a very strong argument that if the SEC simply did not exist and had been replaced with literally nothing, far less consumers would have been harmed in crypto.”
Thought-provoking thread from @austincampbell 👇
Today, the SEC appears to have continued their ongoing crusade to protect terrorist funding and large bank monopolies at the expense of the American consumer, innocent civilians in warzones, and technology that was created after the year 1940.
I want to be clear that I'm not anti-regulator in saying this. Quite the reverse, actually! I have a lot of respect for the work of the Federal Reserve, the NYDFS, the JFSA, the CFTC, and others. Are they perfect? No, nobody is. Are they more of a positive force than most people who complain about regulators want to admit? With almost 100% certainty. I've had my differences with the OCC and FDIC on crypto regulations in particular, but I think in their case it's driven by a lack of understanding and the natural paranoia they have for the stability of the US banking system. Thus, even when I disagree, I'm usually not of the belief that their actions are motivated by malice, but rather lack of information and understanding that will be remedied over time as they get up to speed on things. I've also written several times about what an unenviable job most US financial regulators have and how we should appreciate them more.
Then there is the SEC.
To recap briefly on the history of the SEC, they have somehow managed to sue Ripple and Coinbase, then send Wells Notices to people like Paxos on products that are already regulated by a banking regulator. They've also destroyed LBRY, one of the few functioning crypto projects from the early boom which wasn't defrauding anyone, and they inexplicably shut down Stoner Cats.
Do you notice what is not on that list? FTX. Celsius. Terraform Labs. Hex. SafeMoon. BlockFi. The list goes on.
Basically, if you were an actual scam or criminal activity, you were 100% safe from the SEC and they were, in fact, going to go out of their way to assist you by attempting to cripple your legitimate competitors instead. There is a very strong argument that if the SEC simply did not exist and had been replaced with literally nothing, far less consumers would have been harmed in crypto.
This brings me to today, where we find out the SEC, in response to all of the concerns being raised about terrorism financing, the still-ongoing issues Justin Sun-affiliated projects like TUSD, USDD, and Tron, and the increasing offshoring of all KYC/AML data due to projects leaving the United States, the SEC has decided to attempt to intimidate and investigate...
PayPal?
You can't make this shit up.
PYUSD is transparently a stored value project under the NYDFS stablecoin guidance. Being incredibly blunt here, as someone with deep knowledge of the inner workings, if PYUSD is a security, so are Starbucks gift cards, prepaid debit cards, and airline reward points. This thing fails Howey so spectacularly it would be laughed out of court by a judge. It's also safer for consumers than standard PayPal e-money because it's bankruptcy remote. This is strictly better in all ways.
And yet, in a target rich environment, the SEC continues to avoid going after anyone actually doing wrong and instead continue to target legitimate companies helping consumers in a way that is guaranteed to damage American security interests and push the space offshore in a way that makes it more viable for terrorists and criminals to use crypto because we slowly lose the tools to interdict them.
Put differently: if Gary Gensler has been bribed by crypto scammers, organized crime, and Hamas, and was trying to help them while not tipping his hand, what would he be doing differently?
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“While the crypto vote was a non-factor in 2020, it is primed to play an outsize role this November.”
Do you feel this? Will a candidate’s position on Bitcoin and digital assets sway your vote this year?
forbes.com/sites/digital-ass…
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“I don’t know what 'de-bank' means. But he may have to call de-ambulance to see de-doctor."
SNL thinks de-banking is a joke. But it’s not a joke to:
>The 19 state attorneys general who unearthed evidence that JP Morgan has “persistently discriminated against certain customers due to their religious or political affiliation.”
>The 14 state treasurers who charged the bank of similar discrimination after it inexplicably terminated the account of the National Committee for Religious Freedom—a religious nonprofit representing the interests of Hindus, Jews, Muslims, and Christians—and denied credit card services to a pro-life organization.
>The 200+ Canadians who had their bank accounts frozen by the Canadian government in February 2022 for protesting Justin Trudeau’s COVID lockdown policies.
The de-riding of de-comedians aside, de-banking is a serious threat to anyone whose opinions defy the mainstream.
Colin Jost may want de-facts before he makes the de-jokes.
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Gensler says crypto suffers from a lack of compliance—not a lack of clarity. But the Hinman documents put the lie to this idea.
Officials WITHIN his own agency can’t decide whether crypto is a security. The #XRParmy knows the pain all too well.
See my latest w/@realtimecyber
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“This bill would plug the holes in our anti-money laundering rules…to shut down the scammers.”
Warren’s bill would make any blockchain protocol functionally inoperable in the US.
So yes, it would shut down scammers—in addition to the millions of legitimate actors in the space.
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Unpacking Warren’s Claims on Crypto and North Korea
If a criminal went on a bank-robbing spree and used the money to finance his drug operation, would it be logical to shut down the banking industry? Or ban all US dollars?
Of course not.
Yet this is the twisted logic behind Warren’s North Korea argument.
North Korea has hacked multiple crypto companies and DeFi protocols and used those funds for nefarious purposes. No one disputes this.
But the problem is cybercrime—not crypto.
Cybercrime is expected to cost the world $10.5 trillion annually by 2025. Billions will be lost in stolen intellectual property alone. That intellectual property could be used by our adversaries to build new weapons and defense systems.
But is intellectual property—or those who produce it—the problem?
No. And neither is crypto.
In sum, Senator Warren is confusing cause and effect. Whether she’s doing that out of ignorance or malice is not for me to say.
At any rate, the Senate’s focus should be on combating North Korean cybercrime—not destroying a nascent industry.
Warren’s myopic focus on the latter will only weaken national security by distracting us from the real threats at hand.
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“Arbitrary and capricious”
“Bad faith conduct”
“Gross abuse of power”
This is how courts have described the SEC’s actions under Chair Gary Gensler.
The agency has abandoned its founding mission to wage lawfare against American crypto holders.
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✅ ETH ETF approved
✅ FIT 21 passes House
✅ Anti-CBDC bill passes House
All in the span of 24 hours.
Welcome to the most monumental month in the history of crypto policy.
BOOM!! APPROVED! There it is. The SEC just approved spot #Ethereum ETFs. What a turn of events. It's really happening.
h/t @PhoenixTrades_
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“So how is it right now that Hamas has access to money?”
A reminder: Traditional money laundering—involving banks, money exchanges, and cash—has always been Hamas’ primary means of fundraising.
Wally Adeyemo knows this—but he also knows this isn’t what Sen. Warren wants to hear.
So he offers up a word salad, mixing in qualifiers as croutons.
Then finally, the magic word: “cryptocurrency!”
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“Sen. Warren … has effectively been running the Biden administration’s digital asset policy for years.”
Warren = the architect behind the EIA audit.
So don’t think for a second that this isn’t political.
@MorgensternNJ explains in a new episode of the @stephanlivera podcast
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“At what number will you say ‘I believe in it?’”
50k? 100k? 500k?
The normie mind can’t comprehend what comes next. #Bitcoin
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The Director of Global Macro @Fidelity just called Bitcoin “exponential gold” as the economic stars align for a new bull run.
The institutions are no longer coming. They’re already here.
Bitcoin is on the move again (following the pattern of previous boom-bust cycles, so far). What to make of it? Let’s revisit my thesis from late 2020: 🧵
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"The numbers paint a clear picture: whichever presidential nominee secures the crypto vote could also secure the White House."
The crypto vote is MASSIVE—and essentially up for grabs.
But no one is talking about it. So I do in my latest for Forbes:
forbes.com/sites/digital-ass…
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The last thing I’ll say: Bitcoin is the purest distillation of the American Idea.
The entire ethos of our industry is one of personal sovereignty, empowerment, and self-determination. As a decentralized, immutable ledger, the Bitcoin network discriminates against no one.
Bitcoiners believe that any person—regardless of color, class, or creed—should be able to determine his or her financial future.
Anyone who calls us “treasonous” understands neither our industry nor the American Founding.
To the CBDC advocates and the @matthewstoller’s of the world, I can only say this:
“We fight not to enslave, but to set a country free, and to make room upon the earth for honest men to live in. In such a case we are sure that we are right; and we leave to you the despairing reflection of being the tool of a miserable tyrant.”
-Thomas Paine
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During the 5 years I worked in the Senate, my boss would always ask, “How many letters did we get on X issue?”
The Point: These letters make a difference. Senators use them to check the pulse of their constituents.
Take 3 minutes to write your Senator to stop the Bitcoin ban:
🚨TIME TO TAKE ACTION🚨
Your right to self-custody and mine #Bitcoin and other digital assets is under attack.
Write your Senators now and tell them you oppose the '#Bitcoin Ban Bill'!
Use the link below to send a message to your U.S. Senators!
satoshiaction.quorum.us/camp…
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This is YUGE.
Opposing CBDCs = the gateway drug to supporting Bitcoin
Prediction: Despite his past criticisms, Trump will come to embrace BTC this election cycle.
Why? Because the upside to courting the BTC/crypto vote is impossible to ignore.
Trump War Room
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“It seems they used crypto because it’s really difficult or impossible to trace … If you are able to remove that ability to be anonymous, would crypto even endure?”
Fetterman makes the same mistake Hamas did: thinking crypto is untraceable & anonymous. In fact, it is neither.
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Why The United States Should Hold Bitcoin as a Strategic Reserve Asset
I appreciate @georgeselgin weighing in on my recent Forbes article re: Bitcoin as a strategic reserve asset.
But he's wrong—and I welcome the opportunity to respond.
Let’s start here:
George casts doubt on the premise of nation-state game theory. He argues that it is doubtful that if “the US [were] to start stockpiling Bitcoin, it would compell [sic] other nations to buy more.”
But the entire history of Bitcoin refutes this point.
As the hardest money in the world, Bitcoin is engineered for global adoption—first by individuals, now by corporations, and soon by nation states.
Countries that fail to adopt hard money fall behind. China and India learned this the hard way.
A Cautionary Tale: China and India Choosing Silver over Gold
In the 19th century, China and India chose to stay on the silver standard when the rest of the world moved to the gold standard. This consequential decision set China and India’s economic development back decades.
Silver is soft money compared to gold because it is less scarce and easier to mine. And in the Darwinian world of currency competition, hard money always wins.
China and India faced severe economic consequences for their decision to stay on the silver standard.
As the world increasingly valued gold over silver, China and India grappled with trade imbalances, inflation, and decreased purchasing power. This is just one reason why—in spite of their vast troves of natural resources and human capital—the two countries were late entrants into the modern economy.
The Logic of a National Bitcoin Strategy
Nations that fail to implement a Bitcoin strategy today could be repeating the mistakes of China and India in the 19th century.
The question facing forward-thinking economists now isn’t “Gold or silver?” It’s “Gold or bitcoin?”
Bitcoin has many of the properties of gold. But it is more portable, divisible, and easier to verify. It is also scarcer and more difficult to mine—and therefore, arguably a form of harder money.
We can neglect this reality and take the same risks that China and India took in the 19th century. We can assume that the rest of the world will not adapt to harder money as the long-term viability of fiat currency becomes increasingly precarious.
Or we can begin accumulating Bitcoin as a strategic reserve asset.
Simple as.
Nation-state accumulation of Bitcoin is a call option on Bitcoin becoming globally recognized as hard money/digital gold. BlackRock recognized Bitcoin’s value early on, leading to the most successful ETF launch in history. And you don’t think nation states will do the same?
Think again, anon.
TLDR: The United States holds gold as a strategic reserve asset. But Bitcoin represents a technological innovation that improves on gold. In the name of asset diversification, it would be prudent to hold both.
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ICYMI: The Senate Banking hearing on Operation Chokepoint 2.0 featured an Oscar-worthy performance from Sen. Elizabeth Warren.
The former Republican (and Native American) has donned a brave new role as a debanking truther.
Some highlights and a 🧵/
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WSJ also failed to mention that Hamas' crypto fundraising program was a complete disaster.
It exposed key donors to criminal prosecution and financed its two greatest enemies, the US and Israel, to the tune of millions of dollars.
forbes.com/sites/digital-ass…
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BitBonds, if properly structured, could save the government $700 billion in borrowing costs over the next decade while simultaneously stocking the strategic bitcoin reserve.
This is the biggest idea to come out of Bitcoin policy in years.
Yes, even bigger than the SBR.
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From ally to agnostic to adversary—Gary Gensler has held multiple positions on crypto over the years.
But there’s a logic behind his contradictory statements. Read more about “anchoring” as a negotiation strategy in my latest for @ForbesCrypto
forbes.com/sites/digital-ass…
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“Torres’ reasoning torpedoes the SEC’s suit against Coinbase.”
Why the #XRP decision = a sea change in crypto regulation.
A big thanks to @JohnEDeaton1, @TomicahTD, and @JBSDC for lending their thoughts to this piece.
forbes.com/sites/digital-ass…
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“But Sam, why all of this and why now??”
Well it all started at an exclusive gathering of collectors of Trump’s Mugshot NFT …
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SOURCE: Reuters
"Hamas Armed Wing Announces Suspension of Bitcoin Fundraising"
reuters.com/world/middle-eas…
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"The SEC has violated due process, abused its discretion, and abandoned its own earlier interpretations of the securities law."
Coinbase not mincing words here.
More evidence that the tide is turning in the regulatory battle with the SEC.
Today, @coinbase filed our brief asking the Court to dismiss the SEC’s case against us. Our core argument is simple — we do not offer "investment contracts" as that term has been construed by decades of Supreme Court and other binding precedent. 1/3 assets.ctfassets.net/c5bd0wq…
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BREAKING: Sen. Lummis weighs in on the prospect of Bitcoin as a strategic reserve asset.
“Bitcoin is an incredible store of value, and I certainly see the benefits of our country diversifying its investments.”
My latest in @ForbesCrypto
forbes.com/sites/digital-ass…
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"Bitcoin is not only simpatico with an ESG framework; it is superior to existing ESG technologies."
In my latest for @ForbesCrypto, I explain why BTC = ESG. A big S/O to @DSBatten and @Jamie1Coutts for the pioneering research they've done in this area
forbes.com/sites/digital-ass…
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“Effectively, what you’re doing is you’re banning Bitcoin in the United States.”
Elizabeth Warren’s bill seeks the destruction of an entire industry. @BitcoinPierre exposes her radical agenda on a recent episode of the Stephan Livera podcast.
A must-listen:
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So @matthewstoller, do you wish to take back the assertion that “anyone involved with crypto is committing treason”?
It might smooth things over with Larry Kramer. But it might also make amends with the 29,000 Americans who work in crypto who you’ve accused of betraying their country.
Or is there something deeper going on here? By questioning the patriotism of the 52 million Americans who own crypto, are you actually doing the bidding of another billionaire backer who has a vested interest in smearing the industry?
I hope it’s just a coincidence that AELP’s most notorious billionaire donor, Pierre Omidyar, led the Series C funding round for eCurrency Mint—a company that is pioneering “a new technology to enable central banks to issue digital fiat currency.” In other words, CBDCs.
So to put everything in context, AELP’s most prominent donor is pushing CBDCs. And today, AELP’s director of research called anyone involved with crypto treasonous.
Is this all starting to make sense now?
SOURCES:
Omidyar Network’s Funding of AELP: irishtimes.com/business/tech…
Omidyar Network’s Funding of a CBDC Project: prove.com/blog/central-banks…
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“What this hearing is about is exploring how central bank digital currency could serve the American people.”
Warren’s game plan since day one:
1) Eliminate crypto
2) Implement a CBDC
We’re currently at step 1.
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What if I told you Congress is working on a bill that could make depegs for payment stablecoins a thing of the past?
My piece in @ForbesCrypto explains how the McWaters bill could protect stablecoin issuers from the risks of fractional reserve banking:
forbes.com/sites/digital-ass…
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“As bitcoin miners pursue cheap energy and infrastructure development, it might just be the economic incentive that revitalizes the Rust Belt and rural America.”
Great piece from @PlebiusEconomus in @forbes on the positive externalities of Bitcoin mining
forbes.com/sites/digital-ass…
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“Cash today is worth about 30% less than it was 10 years ago—as opposed to Bitcoin, which is worth about 5000% more.”
Bitcoin ETF inflows are unstoppable, surpassing $1 billion yesterday.
Why?
Two words: monetary debasement.
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“My perception is that the divide on crypto is not so much partisan or ideological as it is generational.”
@RitchieTorres and the five Dems who joined him are proof that support for crypto cuts across party lines.
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Love you, Ben. Your writing is incredible and fresh and lucid. And it’s had a deep impact on the way I perceive the world.
But it’s growing harder to reconcile the wisdom of your long-form writing with the tone of your tweets. It feels like two different people, especially lately.
Just wanted to throw this out there as someone who’s a longtime fan of your work. Your project at Epsilon Theory is important—and I worry your Twitter detracts from it.
Please know that I say the above with only respect. Genuinely looking forward to your next newsletter.
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“Overreaction with [crypto] regulation can undermine exactly what we’re trying to do … An overreaction can jeopardize national security. It can make our problems far worse.”
Imagine if regulators had banned the internet in its early days for fear of what bad actors could do with open-source protocols. Would that have advanced American interests? Far from it.
Yet this is the risk we face today. Here, @gregoryclisa explains how a draconian approach to digital asset regulation would weaken the US while strengthening adversaries like Russia and China.
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The Biden-Harris admin inexplicably targeted crypto in one of the biggest political miscalculations of all time.
Now their party is sowing the whirlwind.
You come after the most cracked community of online schizos, autists, and memelords, you best not miss.
Their biggest mistake was antagonizing the entire crypto community. And this was entirely unnecessary; there wasn't some other constituency they were trying to win points with by doing it.
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If only a technology existed that could monetize the world’s stranded energy while simultaneously reducing carbon emissions …
Wait, what? It already exists?
#Bitcoin
There is no natural gas flare on this Saskatchewan oil well.
Instead, a bunch of engines turn associated gas into #bitcoin
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The world's largest online payment processor just entered the chat 👀
Stablecoins will turn crypto agnostics into believers. That's the bet @PayPal is making on the future.
cnbc.com/2023/08/07/paypal-l…
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