The SEC Goes After Crypto Exchanges - Why People are Angry
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- Опубликовано: 6 июн 2023
- The SEC announced that it is suing both Binance and Coinbase this week. The implications could be massive for the crypto industry. In today’s video, I explain what this means for the area, and why people are upset about the lawsuits.
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DISCLAIMER:
Richard does not have a position in Coinbase or any mentioned stocks.
This channel is for education purposes only and does not constitute financial advice - Richard is not responsible for investment actions taken by viewers. Please seek out a registered advisor if you require assistance (while Richard is a registered portfolio manager at WDS Investment Management, he does not provide advice through The Plain Bagel, which is not affiliated with his employer).
Using exchanges as a way to store your coins is the worst financial decision possible. Literally the combination of bad perks of crypto and banks.
Yeah but the abandonment of exchanges just walls off massive numbers of people from dealing in crypto. Having well-regulated exchanges would be a massive boost to crypto.
@@joewest3901 I don't know that it would be a massive boost. It would give the exchanges legitimacy, but at the same time it would require them to act legitimately. It would be a lot harder to run the pump-and-dump schemes that are mostly responsible for enriching the crypto bros when those schemes are suddenly subject to regulatory oversight.
And once you can no longer build "to the moon!" coins on the backs of the suckers who buy in late (or at least not nearly as easily), where is the draw of crypto? Like the actual draw, not the idealistic nonsense about anonymity and freedom from government control that nobody really believes in anymore. Especially the latter when the whole point of this exercise is to intentionally subject crypto to government control.
@@altrag Crypto will never be fully subject to government control and "everyone" is a generalization it is not nonsense or idealisitc. Crypto is a currency alternative to fiat currency that is one of the main draws.
@@the_expidition427 > Crypto will never be fully subject to government control
Then it will never be legitimate. Legitimacy requires oversight.
> it is not nonsense or idealisitc
It is. Currency requires trust in its stability. The USD and most other major currencies base their trust in their respective governments and national economic outputs.
Crypto does not provide that kind of trust. Its possible that crypto coins could be minted with that kind of trust, but that would require imposing oversight - the very thing you're trying to avoid.
Crypto is one of those "we want all of the rights but none of the responsibilities" type ideologies, and those just don't work out all that often in the real world.
> Crypto is a currency alternative to fiat currency that is one of the main draws
Except it isn't an alternative to fiat currency. No company is going to make a (major) transaction in a "currency" that could lose 20% of its value within an hour based on nothing more than some nerd's blog post.
Sure, it kind of half-assed functions as an intermediate fiat currency in black and grey markets where avoiding oversight is more important than stability, but crypto will never be used on large scale among legitimate businesses. Not until it finds something stronger than "the popularity of the latest internet meme" to base its stability on.
(And no, stablecoins don't cut it. They're explicitly tied to the value of real currency, meaning you can't replace real currency and retain that stability. Not that stablecoins have proven themselves to be as stable as they claim anyway. They're often just trading stability of value for stability of existence.)
The dream for the anarcho buyer/ converter is cognitively dissonant, as "free actors" trade finally mostly in the new defaultof crypto, they will simultaneously cash out sideways within the new finance paradigm with a big leg up.
It's therefore hard to sympathize, but fascinating like crummy Dickens characters like Fagin.
When half the crypto is proven to be a scam / in serious risk it only makes sense to investigate the other half, despite if people think they are 'the good ones'
Yeup. And if anything Binance has proven itself to be pretty shady in how it interacted with FTX & the degree of personal control / ownership CZ has over its operations. I suspect Binance really really doesn't want to be investigated because it may prove some things some crypto critics have suspected for a while now. Namely that they're running a Ponzi scheme and are insolvent, among other things.
As someone that’s been involved it’s crypto since it’s rise to popularity in 2015, I can definitely say claiming that half are a scam is an understatement.
There are thousands if not millions where their technology will not go anywhere, or is definitively a scam.
If anything, the least worrisome crypto is realistically the top 20 coins if not the top 10.
At best, it’s a volatile investment where the investor should know the risks and accept them. Might as well pick the one with the most history.
@@robster7787 "volatile investments" shouldn't really be pushed into lay people, but here we are. Several years of those bastards trying to prove to us that this is the future.
Half? More like 95% are scams
Except they’re not investigating any specific list of crypto - they’re investigating the exchanges.
Crypto can continue with no centralised exchanges, they’re just convenient.
If the SEC went after crypto scams they’d be actually doing some good, but that’s not really their MO
Calm and collected view on the situation. Thank you very much for what you provide to people not accustomed to the US regulatory system.
Yeah it's a scam.
This is one of my favorite youtube channels. You really dp serve us no-nonsense, high quality bagels of explanation. Im sp grateful for what you do
seconded :)
There is a anti-crypto bias, but otherwise yes, very good channel
At least he’s upfront about where his biases are. Unlike certain owners of crypto exchanges who can’t seem to stop saying one thing in public and then doing the exact opposite in private. I’m sure it’s just a coincidence (again) and none of them were trying to deliberately break the law and manipulate investors or commit fraud.
hehehe... bagels 🥯
wpll spid
Axios made a hilarious comment in their markets newsletter this morning to the effect that AI coming along as the next big thing for investors freed the SEC to move in because crypto is no longer too cool to intervene. And that sounds about right.
It's the opposite. After multiple big frauds and scandals with retail traders being the victims, the SEC is pressured to come in and regulate the shitshow. The future of finance heh.
That sounds hilariously dumb
Thats just not how the world really works. It was always just a matter of time with crypto, eventually the wrong billionaire would lose money and their friends at the SEC would jump to action.
And here we are...
"Gensler: Uy-ishkabibble! I can't steal from them - they're too cool!"
@@earthling_parth Yes, the world is that dumb, public opinion does matter. 2 years ago, crypto was the cool kid in town, and if you are a no-coiner, "have fun staying poor!!" How things have changed, all it took was millions of retail investors to lose their wealth.
Coinbase didn’t do an IPO, they did a direct listing,
Less regs, too
Oops! He dropped the bagel on that one. Or did he? Was it approved for an IPO as he said, but then did the direct listing instead?
@@rossmacintosh5652 Yes regulation for that too.
I really appreciate the breath of fresh air this channel is. I feel like a lot of money/finance content online is either very misleading or a straight up scam. Nice to feel like I’m not being sold something when trying to understand what’s going on in the world :)
Sarah Brown You are right. So much misleading info on the internet. Always double check.
Well-explained and easy enough to understand (as always). Interesting to see how this will play out!
Subscribed! No hype, no crazy clickbait, just good organized facts and news. Thank you.
Always so clear and helpful. Thank you for your organization and presentation.
I got some money in USD recently, which I don't want to convert to Polish Zloty (Polish currency) and I was thinking of opening a Binance account, not even "getting into crypto" per se, just heard that they have very low fees on cash withrdrawals and paying with a card. But after what you just said I'll probably pass :D
Thanks for breaking down such complex issues in a reasonable manner.
Remember when the SEC sued FTX? Oh wait... no they actually gave them the green light. Makes sense
When the line is going up, nobody wants to regulate because it just stops people from accumulating wealth.
When everything goes bust, the regulatory appetite surges because now there’s actually some evil to regulate out of the market.
Is that right? Not really. But it makes perfect sense.
Yeah…..
If the SEC had stopped FTX/Alameda back in 2019, everyone paying attention would have hailed SBF as a hero and victim of tyrannical overregulation. It’s not until people get hurt that anybody wants red tape, and when red tape protects people, you only notice it when it annoys you, so everyone ends up wanting it gone. Cycle of sticking hands into fires…..
Well, that's becuz SBF paid off some congressmen, and those congressmen wrote an angry letter to SEC, demanding that SEC not interfere with crypto "innovation". SBF was so so close to fulfilling his goal: getting congress to pass a crypto friendly bill. And the house of cards suddenly collapsed becuz SBF chose to rife up CZ. these 2 clowns deserve one another...
@@joewest3901 no one accumulated wealth when line went up. It was all a ponzi
@@joewest3901 No it does not make perfect sense everyone doing the same thing does not make it safe only lucrative. Whether it is the tide that lifts all boats or the tide that shows whos skinny dipping there is almost always some type of shill to regulate, except the regulators took a backseat and turned a blind eye this time.
As everyone had been doing and regulators are part of that whole.
the plain bagel is starting to feel more like the everything bagel, it's giving us everything finance (and supposedly finance)
Thanks for the excellent analysis of these lawsuits. I was also kind of hoping that there would have been an discussion regarding the ongoing court case between Ripple (XRP) and the SEC. Maybe another video once the final judgement is announced??
Thank you for the thoughtful and nuanced takes I have come to expect from this channel. 👍🤩👍
They want a registration regime that's lacks conditions restricting their behaviour. Hard to square.
Thanks for the summary and explaining both sides of the argument. traits of a good reporter.
I really appreciate your diligence on staying up to date and all of the knowledge you have. Recently found your channel and already a big fan.
Can someone explain this to me? Why did the SEC allow coinbase to be a publicly traded company in the first place if they knew about all their wrong doings?
Cause they started with only Bitcoin and few others and now into shit coin scams
@@mattmmilli8287 they were selling way more than just BTC then. A lot of the alt coins the SEC has a problem with (ADA, MATIC, SOL, ALGO, etc) recently were all being sold on coinbase at that time.
Not the first time a company goes rogue after being cleared at first. It's unpredictable, that's why we have the SEC.
@@lunarmodule6419 what did they do recently where they went rogue, that they weren’t already doing in the past?
@@bootysnatcher8069 Insider trading , listing a crapload of shitcoins which are no different from penny stocks, except it's unregistered. Anyways, coinbase argument is weak. Being publicly traded doesn't mean you have the license to do whatever you want. Only entitled cryptobros think this way.
It is really great to see your channel grow from under 10k to now over 746k! And, of course, thanks for the great content!
I would say that the biggest "issue" that these exchanges have is due to the existence of things like "tokenized stocks." I know that FTX had some which were marketed as 1:1 with the associated stocks and supposedly had actual stocks backing them. Something like this, I would see as definitely being a security and thus subject to all the regulation it requires.
The govt literally counterfeits money and gives it in the form of grants to companies that pay their employees with stock options. Those same companies buy their own stock back with the govt money. If that's okay and the SEC doesnt have a problem with that (and a hundred thousand other forms of fraud that are daily occurances in the stock market) then I don't see the problem. The SEC allows all kinds of fraud, it's inconsistent for them to go against any of it.
Thanks for this great summary!
Is this when Jeremy Clarkson goes "Oh no, anyway"?
The weird crypto mining AD I got on this video shook me for a moment. I don't think it's as effective on your videos as they probably hope 😂
Excellent content thank you
Time to liquidize those coins
-Every person with an ounce of sense and invested in crypto (they don't exist)
@@jakalordarkblood4331 genuine moron comment, especially considering all the people that have made lots of money from it
It’s honestly a battle between the people and government. People want to cut out the banking system but the government doesn’t want that. I just average in a couple $100 and don’t really care where it goes.
Give me your argument on how blockchain and cryptocurrency has no utility or purpose? I'll wait... Because there isn't one. Your emotions dictate your words. Just because FTX fails, or some influencer's altcoin or NFT rugpulled you, doesn't mean the technology isn't sound or useful and revolutionary.
@John 😅
Until the coins/exchanges/salesmen do no travel to the moon. Then its time to run home to daddy.
It seems that those investing in digital currency seem to not look to closely at how the analogue world came to its formation.
Like every middle manger that tries to reimplement the same failed project as the previous collective of middle managers.
Learn the fuck ups first. Then try to innovate. Just don't find a new crutch to think it will help you scale.
An excellent and informative video ... as always. I was a little distracted every time you said "subsidairy". Were you saying subsidiary? Is that just a new, accepted pronunciation?
No, it's not accepted. I found it very distracting as well.
Excellent explanation!
You're helping a lot of people man
My issue with the SEC suing Coinbase is that there isn't a framework to allow for cryptocurrency trading in the US. Even though the CEO of Coinbase has asked and petitioned for regulation in D.C. The way I see it, Gary is either pushing forward with the Coinbase lawsuit to force Congress to pass a law to regulate crypto, or end of banning it altogether.
Nobody wants your frameworks and regulations.
Anything crypto that's being regulated is doomed and going to zero.
A total ban on crypto in the US would be inevitably enforced beyond its borders as a total world ban since US effectively owns and controls the finances of the entire world.
They want the legitimacy that comes with regulation, they don’t want the actual regulation when they discover that their business schemes are universally fraudulent
I strongly doubt Congress is going to give two craps about a relatively niche market trading on the value of rumors and precious little else, no matter how much publicity it gets. The SEC already exists, as does the FTC if crypto somehow wins its rather absurd bid to be labeled a "commodity".
It should be banned .. or regulated like gambling
What does it say about an "industry" that some of it's proponents claim that preventing fraud and scam, will kill the "industry."
If safe guards, protections, and justice can even cause "harm" to something, then that thing is called a criminal organization
I think people are mad because 70% of stock volume already doesn't go through NYSE, so any credibility the SEC has is nonexistent. At least that's why I'm mad. The TradFi markets are far worse than crypto in terms of fraud. It's kind of funny to me the SEC is pretending to care about fraud when they so obviously don't, at all.
Amen.
great video
Sounds like SBF had a bit of a revenge on CZ.
How much of the exchange licensing challenge comes from the fact that there doesn't exist any properly registered securities to buy and sell on the exchange? "You can be licensed, but only to traffic in registered securities" doesn't seem like something they'd be able to comply with, unless they can get all of the crypto to register and file audited quarterly reports etc.
I'm SHOCKED. SHOCKED!
Thank you Spicy Beagle
With these kind of topics it seems like a competition who puts a video out first, be it the Bagel guy or Patrick Boyle. Horray for Bagel!
Coincidentally watching this the day Binance and CZ agree to plead guilty to money laundering
Subsidiary not subsidiary
Thanks for the coverage which personally I think it's a Slippy slope as one mans commodity is another security...
Nice video
I find it interesting that these lawsuits come out a few days before Sberbank start offering crypto services 🤔
Got to ask: Since the SEC only does civil actions and lawsuits-and I'm not saying the DOJ isn't also doing a parallel criminal action against Binance-how does the SEC action in the U.S. affect Binance global and CZ, which operates largely outside the U.S. and who lives outside the U.S.? I see it can shut Binance U.S.; however, how would that directly affect Binance outside the U.S.-excluding just hurting their reputation?
I appreciate the clear breakdown of what we know and what is being alleged. If nothing else, the outcome of these cases should give us more clarity about what is and isn't allowed, legally.
First Do Kwon,Powell, SBF then CZ n then now Garry good guys for discount 😊
Still not gonna use a CBDC.
Subsi-Dairy? ;)
Just teasing, keep up the great content. :)
You're the same crypto scammer with dozens of accounts manipulating the votes, aren't you?
Nice
After the Hinman emails, the SEC lacks subject matter jurisdiction over any of the coins being sold on Coinbase and Binance. That is the primary defense of all the exchanges. The only time they have jurisdiction is if the token passes the Howe Test. Since these tokens are decentralized, these tokens do not pass the Howe test.
Damn, wild times.
Would the Canadian exchanges be allowed in the usa? Like, setting aside feelings on whether crypto is "something" or not, i always believe that IF Canada's regulatory process is so strict that we're called a banana republic, why are we letting exchanges operate here if our govt didn't see some kind of utility?
As someone who is extremely informed on the cryptocurrency ecosystem, I can say this video is an accurate take on the entire situation from every direction. Very impressive work!
If you take away the ability to convert crypto currencies to USD/Fiat, are they really wortb anything?!?
They never were worth anything. They are only worth something if you can con an even bigger idiot into buying them tomorrow.
They already aren't worth anything. They have never been anything other than a "bigger fool" scam.
Do you have a podcast??
It’s probable the SEC is cracking down on Coinbase as preparation for a larger operation against Binance
Great video, but need to ask why you pronunce the word "subsidiary" that way.
You pronounced “subsidiary” incorrectly. Also, it is 5 syllables, not 4.
I don't really have a huge opinion one way or another on crypto, but if you're gonna go after them for having an exchange and making sales because it has conflict of interest, then they NEED to go after companies like citadel who have hedge funds and market maker privileges. They are taking everyone's trades and able to see them, set them in dark pools, make their own bets and then let volume through when they want to always come out on top on trades. Like, it's beyond obvious. I don't understand why crypto is suddenly an issue when that exists in our markets as is.
Many unfair things happen but until it effects us we don't care, but it's always the same assholes at the top perpetrating it.
A fairly SEC leaning video.
There's no debate here. There's the sheriff, there are the fraudsters, there are victims, and there are bystanders. Which one are you, chump?
I’m compiling and picking stocks that I’d love to hold on to for a few years before retirement, do you think these stocks would do better over the years? I’d love to retire with at least $2million savings. Now you gotta rely on a pretty good diversification if you must stay green. Currently up 31% and being cautious. Still better deal than letting it sit in savings or checking earning near 5% interest
Thanks Richard, I sleep better after watching your videos 😅
Been waiting for this moment for awhile now
Uh oh, funds are not safu
Wonder what is going through CZ mind when he blew FTX up. Did he think that his own Binance firm would not be put under the same scrutiny after blowing up his rival?
Talk about a powder keg trail
If coin base assets are frozen …. Does that mean it’s investors cannot withdraw their money at the moment?
Well, better move all assets to cold storage. Looks like coinbase is going to get kicked out of the US circa 2019 Binance
it's supposed to be a currency, right? wouldn't crypto be regulated the same as Forex exchanges?
Recommend you read about the Howey test on investopedia and why at least some crypto is considered an investment.
@@benjaminfranklin329if you're buying and hoping the line goes up, that's speculation, gambling, which is what most crypto buyers are doing.
Okay, so I'm glad to be informed. The important takeaway is that this is not on the same level as the FTX situation, no fraud is occurring, nothing to call a scandal. Instead, the inevitable, once and for all we find out if these things are securities or not, and whether SEC rules apply to them. I'm glad I have somebody who knows this stuff, so I don't have to. I toast my bagel to you, once again.
Well if they are the answer seems pretty obvious to me
I feel I am overly trusting. I want to believe that there is a dig picture here a ND something important at hand.but that just isn't likely. Better options were out there. Even if planned going in blind nobody would have picked me for this role.i have so much going on in my life and so little knowledge. I am no quitter I am going to continue but still am blind. If u had a goal to astablish a company direction would have been simple. I'm out of trust and still so angry
Choice opening line 😅
With too many scam and bankruptcy in crypto industries, i support SEC to clean up this mess.
Subsidiary is a five syllable word: suhb-sid-ee-er-ee
It’s not “subsidary”.
I'm not sure what people expected. Even if the SEC couldn't go after them, the US Government would just make something that could. Instead of the Securities And Exchange Commission, we'd have something like the Electronic Market Commission. It's the government. It's how it operates. And the second option always seems to be worse in the end.
Suing for being "unregulated" when no regulation is possible is a move of totalitarian states
Why ware the only options securities or commodities, arm’t cryptocurrencies currencies? Is Coinbase allowed to exchange dollars and Euros?
currency? nope, collectables. Yeah, they're baseball cards.
@@eldersprig bifurcation. two things can be true simultaneously.
What is causing the SEC to not include Gemini?
Paid off the right people
Clearly they don't have to sue every outfit the same day (as already shown). Several others would well get sued in coming days or weeks.
@@nielsbishere The Winklevoss twins know how to play this game
I'm angry they didn't go after them 5 years ago
I'm angry that the SEC pretends to care about fraud when 70% of stock volume doesn't even go through NYSE
@@xraceboyex That's not even illegal. Banning dark pools is a Congressional matter.
how exatly is ADA a security?
I fully expect this comment to be loudly booed and downvoted, since people seem to not like any kind of critique or criticism. That's fine.
Every time The Plain Bagel says the word "subsidiary" he misses the middle syllable.
He pronounces it with four syllables as "sub-sid-AIR-ee" (see 1:57 for example). It's actually pronounced with five syllables as "sub-sid-EE-er-ee".
It's not a British or Canadian English versus American English thing. It's just a straight mispronunciation.
The crowd can commence their booing and hissing now.
Guys don't worry none of us have enough money in crypto to actually matter to them
Who decides what is a security or not? Like is Lego, land, Pokémon cards, retro video games are all securities because they all have missions of American using them as investments?
Belief they are an unlicensed exchange does not make them one. I would argue cryptocurrencies are scrip not securities. Effectively, they are commodities.
I'm not sure that's what you really want. Instead of the SEC you get the FTC stepping in. And probably the CFPB as well. I don't imagine they'd be particularly keen on the wild dealings that tends to mark crypto trades.
But the biggest stumbling block is probably the fact that crypto is listed on stock tracker websites right beside the legitimate exchanges. If it walks like a duck and quacks like a duck..
@@altrag So are dollars and yen, but those clearly aren’t securities.
@@headlibrarian1996 Yes they are. They're just investments in a nation rather than in a company.
Not _quite_ the same to be sure, as we can trade dollars for bananas in a way we can't do with shares in Halliburton, but fiat currencies are definitely not "commodities".
@@altrag They are according to the SEC and FTC. In particular, currencies do not earn profits, just like oil and soybeans, which is a key part of the Federal definition of “security”. They do change prices, which can be profitable, but that is not the same thing.
I firmly belvive there is only one truth.
We as a Country have full information on streams of valuable goods.
AND
We as a Country need to FUCKING TAX everything! We do not have to save people, or cooperations but we NEED the MONEY.
As someone with a less than 1% worth cryptocurrency i firmly belive a state cannot create wealth but it can tax what is there.
Even if you were a crypto supporter and like investing in them... why exactly would you defend these exchanges from screwing you over? Comingling customer funds doesn't sound like a good thing nor is manipulating the value by wash trading is ever in your best interest.
Yet both of those things happen more in the TradFi markets than they do in crypto 😂 so what rug is the SEC's credibility hiding under? I don't see it
Just thinking of cryptos and a wallets . What’s going to happen
Wait did the SEC actually tweet that?
The word "security" to classify a crypto coin sounds like a joke
An acceleration in further downfall for crypto seems imminent. Key players are now really coming under legal scrutiny (Coinbase and Binance), which is bad news for them. Because legally they have little to no footing. Especially Binance is shaping up to look like even more of a mess than FTX. Given Coinbase is the cashier’s desk and Binance is where most trading is taking place, this is huge. And I expect the SEC to go after Tether as well.
By now, this market is mostly smoke and mirrors anyway. The actual trading is quite thin.
Electric guitar riffs are definitely the epitome of evil
One of few people on money totally trust.
The day after the sec did this was the day Coinbase Robinhood and the CTFC were goin to testify against the sec over lack of regulations
I'm down like 10k $ as a result of this, my Cardano bags are hurting :(
Gary sends his regards and a wink & laughing emoji...
SEC being one of the government branches, only goes after companies that politicians are not making money off of. Many hedge funds have illegally been manipulating markets for decades but because majority of politicians use hedge funds, they don't go after them.
You do have a point. But not all hedge funds make money.
Bingo. The only reason the government is meddling is to get a piece of the pie.
@@lordlee6473 I know. That's why I said "Many" not "All". I'm sure there are plenty of smaller hedge funds that get wiped out.
@@trisbane4086 Yup. That's why these cockroaches are so eager to become politicians.
If you have any evidence that they have been illegally manipulating markets, then produce it and I'm sure they will be taken to task. Otherwise, you're just blowing smoke.
What perplexes me is why Coinbase can't simply adhere to regulations like other U.S. cryptocurrency exchanges. Many other exchanges in the United States manage to operate within the bounds of the law. Is Coinbase concealing something fishy? 👀
9:02 "tZERO is one of the few regulated and licensed venues that supports both the traditional trading of private securities as well as digital securities utilizing the blockchain. This can include both regular security tokens and non-fungible tokens (NFTs) with benefits, such as fractionalized ownership, improved tracking, and accelerated settlement. tZERO meets its regulatory requirements for digital securities through its ownership of a FINRA-member broker-dealer and an SEC-registered alternative trading system (ATS). Unlike other market participants, tZERO offers assets that comply with applicable securities and other laws intended to protect investors and the integrity of the marketplace."
Anyone thinking that the SEC is doing something especially dodgy here, regarding approving the Binance IPO and then the lawsuit doesn't understand what the words "Chevron deference" mean and also probably haven't been following the ATF. It is entirely legal for the SEC to interpre the law one way one year and then the complete opposite way the next. Having said that, if half the community talking about a specific coin are using the phrases "to the moon" and "have fun being poor" then I think it's going to be on shaky ground to say they're not going to be classified a security under Howey. As the saying goes... "What you say can and will be used against you".
It's amazing other countries have figured out crypto regulations, but the USA can't.
Have they?
@@drgrey7026 Would be a good topic for a video, but yes. Canada taxes it as capital gains.
@@ZacJ I mean yeah so do we that's definitely not the hard thing to figure out with crypto.
@@drgrey7026 well, go on, tell the class what is...
@@ZacJ where do I begin, defi by its very foundation often seeks to avoid regulation, while most chains don't include privacy measures on chain, mixers and other 3rd party services have made crypto a invariable revolution in money laundering and online crime. They don't have the safety measures or consumer protections involved with centralized banking so inexperienced users don't have avenues to recover their money after being scammed. I mean I can't possibly list all of them here (I didn't even get to the main ones) but what category of taxes it should be in was a fairly simple problem capital gains tax can apply to any appreciation from stock and bonds to Pokémon cards, especially since crypto is asset fairly easy to appraise that part was pretty easy, now there are other problems with taxing crypto but those are outside of the scope of a yt comment.
It seems pretty silly to punish someone for something they could not have remedied in the first place? But then you said robinhood is registered but no longer does cryptocurrencies under that regulated entity so why was that done?
Coinbase in my opinion are scumbags...especially in regard's to staking...
I don't doubt it, but is there any particular reason?
If setting up regulations to prevent scams will “hurt the industry” then I think that says a lot about the industry… I mean, regulations also hurt the Ponzi and Pyramid scheme industries too…..
Every regulation intended to limit freedom of speech and privacy is justified because "we need to protect the children", politicians with ill second intents will always pretend to be doing something good; regulations can be good or bad, regulations can be fair or written implicitly to protect the incumbents' interests.
Gary Gensler is not a good actor, check out his courses from when he was teaching, he was being pretty clear that finance for him was for the most part rent seeking because he was able to extract resources from all the other professions; he is now trying to find himself a new position in politics pleasing Elizabeth Warren and the current administration.
What an ignorant comment, bitcoin is the most regulated asset in the world. It's regulated by immutable code.
@@1st_edition You must be a troll lmao
what "regulations" though
What the SEC is talking about is regulations that would make all cryptocurrencies illegal, they have been saying it for years
@@1st_edition lmao I love sarcasm it’s the best type of internet humor