Crypto's Rally Is a Message to the SEC

Editor's note: Our friend Eric Wade is one of the best in the business when it comes to breaking down all things crypto. Over the next couple of days, we're going to share some of his latest insights into the crypto market, including why bitcoin could go parabolic... The big news out of crypto this […] Not rendering correctly? View this e-mail as a web page [here](. [Empire Financial Daily] Editor's note: Our friend Eric Wade is one of the best in the business when it comes to breaking down all things crypto. Over the next couple of days, we're going to share some of [his latest insights into the crypto market]( including why bitcoin could go parabolic... --------------------------------------------------------------- Crypto's Rally Is a Message to the SEC By Eric Wade --------------------------------------------------------------- [On June 27th, Enrique Abeyta Reveals the TRUTH About His 92% Win Rate]( During 2022 – in the thick of one of the most chaotic periods in stock market history – Enrique did the unthinkable... he won on 92% of his trades. And now – for the first time – he'll show you how to do the same... using a secret that's drawn the attention of CNBC, Forbes , the Wall Street Journal, and more. [Click here to learn more](... --------------------------------------------------------------- The big news out of crypto this month was the U.S. Securities and Exchange Commission ('SEC') suing both Binance and Coinbase... As you can imagine, crypto prices dropped when the lawsuit against Binance was announced. It's remarkable just how fast cryptocurrency prices dropped. But you could also argue it's remarkable they didn't drop even more, considering that Binance is the biggest group of cryptocurrency exchanges in the world. The next day, the SEC announced that it was suing crypto platform Coinbase (COIN). Interestingly, crypto prices went up, especially bitcoin (BTC). Obviously, investors decided they wanted to stick up for the industry and at least put their money behind defending Coinbase. A lot of crypto investors and journalists think that SEC Chairperson Gary Gensler is overreaching. There has been a lot of talk and analysis about the fact that he never said anything like this about FTX. We all know that there were ridiculous amounts of political contributions made to FTX on behalf of FTX. And if you'll remember, FTX founder Sam Bankman-Fried was supposedly very close to Washington, D.C., trying to work out regulations. It didn't happen. But it looks like cryptos are starting to bottom and starting to maybe try to price this in and rally... If that's sending a message to the SEC, that's pretty impressive. But there are two sides of the coin when it comes to the SEC attacking cryptocurrencies. What happens next? I noticed while reading the SEC's lawsuit there were a number of mentions about how the exchanges are selling more of a coin or token to people than those people need for personal use. It's interesting because it indicates to me that the SEC clearly understands that these coins and tokens have utility. I'm taking this to mean the SEC is saying in its lawsuit, "Hey, we understand you can use these coins and tokens for the purpose that they were intended." But it also means if you're buying more than you need for personal use, it must be that people are buying them to make money off of them. Well, duh. Therefore, they're investments. I think that's where the SEC is trying to go with this: If you buy more than you need for yourself, it's an investment. I still want to know more about why the SEC found it important to inoculate its lawsuits against a utility argument by conceding utility. --------------------------------------------------------------- Recommended Link: [CNN calls this battery 'the next holy grail for EVs']( Tesla, Rivian, Hyundai, Volkswagen, Toyota, and GM are all scrambling to secure these "perfect batteries." But one automaker is way ahead of them... and it trades for just $12 a share. [Get the details here](... --------------------------------------------------------------- What's likely on everybody's mind right now is, 'What if it becomes difficult or impossible to get my money out of crypto?' And that's a fair question. If you're like me and you take money off the table to reduce risk, don't forget that crypto moves fast and you can make huge piles of money when the bull market starts. There are lots of ways to do that, which haven't yet hit the SEC crosshairs, and some that have already tangled with the SEC and may be safe from further action if they continue to keep their nose clean: Crypto.com, Gemini, Kraken, and Abra. But all of these are able to connect to your bank and pull money off, and are reputable, but may have an earn/yield risk from the SEC. That seems to be one of the main things that they're going after. I don't love the SEC... I don't really agree with almost anything it does, especially under its current leadership. But it is fair to consider the risks of a custodial earn program after we saw what happened with FTX.us, BlockFi, Celsius, and Voyager. Almost none of those worked out to be entirely above board or operating under sound economic principles of which blockchain participants thought they were. They all offered yield products and they all went under. None of this is the same, though, as holding your coins and staking them yourself. But let's take a look into the future... There is a tiny chance that the cryptocurrency blockchain decentralized ledger technology vision of the future may play out to be the biggest financial decision some people make. As in, you could become a billionaire. And what's coming next is the "hyperbitcoinization" mega-bull case. If you look around, you'll see $1 trillion of credit-card debt. We're about to hear the wailing and gnashing of teeth of student-loan debt that has been kicked down the road for a couple of years now. So, it's possible that our economy could become weaker. America may never have to pay the piper for overspending, runaway debt, and poor federal government management. I don't think that's the way our country should be run. I'm watching the price of bitcoin closely... What would hyperbitcoinization look like? Most people think it goes up and then flattens somewhere around $1 million. But what if the flattening curve isn't the curve? What if fiat starts to die and bitcoin goes parabolic? Because if the U.S. dollar starts losing favor around the world, we risk being on the outside of a sound currency, looking in. I'll extend that to Ethereum as well. What if bitcoin grows while the dollar collapses? Hypothetically, if fiat currencies start falling – just like numerous ones have in the past – bitcoin could go to the moon. Regards, Eric Wade June 23, 2023 --------------------------------------------------------------- Editor's note: Beginning July 1, the U.S. government will take the first step toward creating its own cryptocurrency by releasing a new financial system called FedNow. It will affect every American with a bank account, as well as the U.S. Treasury, Social Security, pension funds, and nearly every major bank across the country. But according to Eric, if you get positioned BEFORE the July release, you could make 3,050% on the U.S. dollar's biggest innovation in 51 years. [Click here to learn more](. --------------------------------------------------------------- If someone forwarded you this e-mail and you would like to be added to the Empire Financial Daily e-mail list to receive e-mails like this every weekday, simply [sign up here](. © 2023 Empire Financial Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Empire Financial Research, 1125 N. Charles Street, Baltimore, Maryland 21201 [www.empirefinancialresearch.com.]( You received this e-mail because you are subscribed to Empire Financial Daily. [Unsubscribe from all future e-mails](