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SEC’s Gensler doesn’t see cryptocurrencies lasting long


HAL1000
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https://www.foxbusiness.com/markets/sec-gensler-cryptocurrencies-lasting-long

Regulator says history of ‘wildcat banking’ in U.S. shows limited viability for private forms of money.

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Mr. Gensler likened the thousands of cryptocurrencies in existence to the so-called wildcat banking era that took hold in the U.S. from 1837 until 1863 in the absence of federal bank regulation. Before President Abraham Lincoln created the Office of the Comptroller of the Currency, banks issued their own currencies, which they sometimes refused to redeem for their purported value in gold or silver.

 

Edited by HAL1000
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I am 100% "for regulatory compliance".

The "wildcat banking" is actually a good term, it harkins the Oil exploration industry investing in real estate.

The thing that's different and going to prove difficult for the SEC (and all domestic enforcement agencies) is that these networks are global & the cryptography dosent allow for their traditional enforcement methods. 

That said, I do think that the enforcement will center on the Exchanges, like they just did with Coinbase. The Exchanges will be for the vast majority of people the "on/off ramps" to the crypto highway.

So just like the cops don't pursue a high speed chase on the highway, finding that it's best to use a helicopter to view the public highway tracking the target, then catch the target at the on/off ramp. Enforcement through Exchanges makes sense.

That leaves self custody in an odd, yet to be defined position. They can't really stop the "wildcat banking" for folks who personally control their crypto, or folks outside their jurisdiction.

I think the SEC is in Check (not checkmate) and they are going to be forced into a "live and let live" position regarding the DeFi explosion. The best they can do is protect their jurisdiction (king) via the on/off ramps.

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Hey GG you can't control the entire human race, that's not how the world works. Money is whatever PEOPLE agree on it to be in the long run, money is a belief system and at any moment the species can stop believing in the $, especially when it's being printed to death. Utility is king, not belief, so incumbents and friends, once the rest of the world catches up with the idea that debt based economic systems, only hurt the users of the debt based tokens, then the world can move past the BS system we have all been forced into, eventually, debt based slavery will end.

https://www.usdebtclock.org/world-debt-clock.html

When the $ is no longer worth anything, then we can pay back the bankers, with their worthless paper.

Sorry, I'm having a rant, but GG is pissing me off, he's a belligerent A.hole. Hinman and JC are corrupt, this lawsuit is a sham and the SEC are showing everyone that the last thing they stand for, is investor protection. $15 billion dollar loss to XRP investors, 15 billion and GG still talks about investor protection, whilst JC and Hinman walk off with cushy salaries, for screwing us all over. I have said it before:-

 

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1 hour ago, KarmaCoverage said:

I think the SEC is in Check (not checkmate) and they are going to be forced into a "live and let live" position regarding the DeFi explosion. The best they can do is protect their jurisdiction (king) via the on/off ramps.

That's hard to do. I'm in New York, the most restrictive state in the US. But they allow 2 exchanges to operate. I use Coinbase to convert fiat into crypto, then send it to my self-custody wallet and then I'm free to do whatever the hell I want with it. It kind of sucks because I basically have to go through Ethereum and their high fees to get started, but then I can bridge over to whatever network I want. I could use KuCoin unverified to bridge networks, but I worry that if I ever have a problem they won't give me customer service. But that's my choice, I'd rather pay higher fees and have one less counterparty involved.

Anyway my point is, as long as governments allow an exchange to exist and allow people to withdraw a single crypto from that exchange - it doesn't really matter which one - they can't stop people. They can slow down adoption by making it difficult, but once you've got your own crypto in your own wallet you're free (at least until your try to come back into the traditional system). And I think we're about to see a bunch of new cross-chain DEXs come out as we've got all these new networks and Ethereum L2s coming into existence.

P.S. on that note. Damnit! This is the exactly the situation that the XRPL is made for. The XRPL Foundation should be doing everything it can to get these networks to bridge to the XRPL. The XRPL should be a hub in this multi-chain world. It's a shame that the DEX is dead.

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3 minutes ago, HAL1000 said:

Hey GG you can't control the entire human race, that's not how the world works. Money is whatever PEOPLE agree on it to be in the long run, money is a belief system and at any moment the species can stop believing in the $, especially when it's being printed to death. Utility is king, not belief, so incumbents and friends, once the rest of the world catches up with the idea that debt based economic systems, only hurt the users of the debt based tokens, then the world can move past the BS system we have all been forced into, eventually, debt based slavery will end.

https://www.usdebtclock.org/world-debt-clock.html

When the $ is no longer worth anything, then we can pay back the bankers, with their worthless paper.

Sorry, I'm having a rant, but GG is pissing me off, he's a belligerent A.hole. Hinman and JC are corrupt, this lawsuit is a sham and the SEC are showing everyone that the last thing they stand for, is investor protection. $15 billion dollar loss to XRP investors, 15 billion and GG still talks about investor protection, whilst JC and Hinman walk off with cushy salaries, for screwing us all over. I have said it before:-

 

Batman Clap GIF

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The problem with the era of wildcat banking in the 1800s was it was private.

GG fails to recognize that the fiat experiment we began in the 1970's is as destined to fail as every other similar attempt in history. 

Distributed ledger technology provides for a public, government-agnostic currency whose inflation/deflation can't be altered by political whim. 

GG's inability to appropriately synthesize the history of money is only matched by his inability to envision DLTs future.  

Edited by RobertHarpool
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GG will only succeed after he has established himself as an honest broker.  That means settling with Ripple (because this case should never have happened) and exculpating SEC's reputation from that of Clayton and Hinman who had close financial links with the ETH foundation.  Hinman and Clayton abused their positions to promote ETH (an out of date failed project) and hamper ETH's competition.  So far Gensler has aligned himself with this corruption.

After he has cleaned up his own sagging reputation he should confer with crypto for advice about where the regulations would be most effectively leveraged to stop the abuse of ICOs without killing the innovation.  

I do not think GG is capable of working outside the brief given him by the dark forces that put him at the top of the SEC.  I actually think he is a stupid man without a vision or moral compass.  He looks to me to be a waste of time. 

He's an idiot:

 

Edited by Julian_Williams
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3 hours ago, RobertHarpool said:

GG fails to recognize that the fiat experiment we began in the 1970's is as destined to fail as every other similar attempt in history. 

Distributed ledger technology

I'm pretty sure that the "Greenback" came out of the 1860s Civil War, and made a standard of value that has lasted till today.

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39 minutes ago, KarmaCoverage said:

I'm pretty sure that the "Greenback" came out of the 1860s Civil War, and made a standard of value that has lasted till today.

I am guessing that the reference is to the Dollar being backed by gold until whenever it stopped being backed by gold.

https://bancroft.berkeley.edu/ROHO/projects/debt/terminationgolddollar.html :-

Quote "Richard Nixon's August 1971 decision to suspend the convertibility of dollars into gold was one of the most important chapters in modern economic history. Nixon's move, which was precipitated by rising U.S. balance of payments deficits, ended the system of fixed exchange rates that had been established at the Bretton Woods conference of 1944 and ushered in a regime of floating rates."

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