Senate Hearing on Cryptocurrency

While the hearing could have been a lot worse, I’m afraid that we may be duped. A televised hearing is an opportunity for politicians to show off their skills and “wise demeanor”. These people are actors and can play to the audience. Their true face comes out behind closed doors, far from millions of eyes that can see their deviousness.

Make no mistake, the true mandate of the SEC is to serve Wall Street, not main street. Their very existence is based on legitimizing ways for their masters to fleece the little guy. (Think High Frequency Trading).

Keep a keen eye on what they do, not what they say.

These are the foxes telling the kitchens they are here to help.

The good news is that clearly they don’t have a handle on the crypto space and don’t yet know how to intervene.

The other news that was missed in the euphoria was the head of the BIS (the Central bank of Central Banks), Augustin Carstens, speaking about cryptos:

“Novel technology is not the same as better technology or better economics,” he said. “That is clearly the case with Bitcoin: while perhaps intended as an alternative payment system with no government involvement, it has become a combination of a bubble, a Ponzi scheme and an environmental disaster.”

“Private digital tokens masquerading as currencies must not subvert this trust [in central banks],” he said, before proceeding to layout a “strong case” for banking regulators to place the squeeze on the cryptoasset ecosystem.”

This shows how they really feel. Legacy money does not accept competition.

Stay vigilant!