ok As a wise philosopher once said “opinions are like a$$holes…everyone has one!”. Everyone seems to have an opinion on the cases that the SEC recently brought against Coinbase and Binance and just to prove this philosopher correct, I intend to add my two Gweis to the pot.
So, I assume everyone is familiar with the basic facts of the story. In an eventful week, Gary “Gollum” Gensler brough charges against both Binance and Coinbase, alleging that both are involved in illegal activities, selling, and profiting from dealing in unregistered securities. These charges were well telegraphed by the significant level of FUD that has been put out by the fake-stream media and the Wells notice recently issued to Coinbase. I believe this is just the latest step in what is a well-orchestrated attempt to takedown crypto by the financial elites that control all Governments and the various fake regulatory bodies whose role it is to “protect the public” (Yeah……right!). To explore my conspiratorial views on this whole undertaking, please refer to my article on the topic:
The cases brought against Coinbase and Binance are quite different, and I believe will lead to quite different outcomes. Firstly, with respect to Binance, the SEC charges Binance and CZ personally with illegally commingling client funds in a criminally negligent manner, along with operating an unregistered exchange and selling unregulated securities. With CZ its become personal as he was instrumental in bringing down goldenballs SBF. The more I reflect the more obvious it is that SBF was a patsy – either witting or unwitting and his role was to create the conditions in the US for the SEC to bring in hardline regulation. It’s the classic Hegelian dialectic of ‘problem-reaction-solution’. Knowing what they want the end game to be they manufacture a problem (e.g. COVID-19) which then creates an outcry and the public demanding the solution which is what the powers that be wanted to implement from the start. The problem here is that CZ blew the cover on the operation prematurely before SBF had been able to create maximum havoc in the industry.
For his troubles, they are going to nail him. CZ is not the acceptable face of crypto which as we know is actually a nice, MIT educated, nerdy Jewish boy who engages in polyamorous couplings with frumpy vixens on Adderall. The fake-stream media is being used to demonise CZ as a public hate figure, flaunting his wealth with private yachts and using customer’s funds for his own enrichment. Whether there is any truth to these allegations is irrelevant but since this is what SBF was doing, its not difficult for an easily manipulated public to believe this. Again, this is the classic strategy of ‘projection’, to accuse your enemy of doing exactly what you have been doing. The public is being whipped up into a jingoistic frenzy “did you notice that he says he’s Canadian, but he actually looks a bit Chinese? He must be a China Communist Party plant and can’t be trusted. For sure he is trying to steal the identities and wealth of innocent hardworking Americans and to deliver them to his CCP overlords. We can’t let him get away with these outrages!”
The case against Coinbase is quite different. The SEC is only alleging that they are operating as an unregistered exchange and selling unregistered securities. The fact that the SEC approved their business model and allowed them to list in 2021 is quickly forgotten, along with the fact that the SEC has not provided a framework for determining if a crypto is a security nor have they provided a mechanism for exchanges such as Coinbase to register.
There is no way that these cases will be resolved anytime soon. Look at the Ripple case…after 3 years and $200m in legal fees we are still waiting for a determination. What you can be sure of is this will be expensive to litigate, and it will take years. The outcome of the Ripple case will certainly have a bearing on how these cases progress, but you can be sure that both of these businesses will defend themselves vigorously.
My personal opinion is that Binance will seek to settle this case and avoid it going to court. No doubt this will be a settlement north of a $1 billion and it will end up with Binance no longer operating in the USA. In the long run this probably clears the field for Coinbase to eventually move into the number 1 spot and so steely balled investors such as Cathie Wood are loading up on cheap Coinbase shares.
I think though that Coinbase will not settle and will look to stare down the turd-like Gensler in court. Brian Armstrong is demonstrating fearless leadership for the embattled industry and will emerge as a hero and historic champion. Brian’s responses have been thoughtful and logical and backed by data’s whereas CZs tweets seem emotional and petulant at times. What is there not to like about Brian? He has the same first name as the slightly alcoholic, Ivy League dropout dog from Family Guy and the surname of the first man to set foot on the moon (allegedly…but that’s another conspiracy theory for another day). “That’s one small satoshi for a man, one giant zettahash for mankind”. I look forward to him engaging in one-to-one combat with the evil and charmless Gary “Gollum’ Gensler.
So, all is not lost. The SEC is now in its endgame. It has shot its bolts, laid all its cards on the table and the matter will ultimately be resolved in the courts. Whilst I am not entirely confident that the USA legal system is truly independent, I am hopeful that common-sense will prevail and that the outcome is a clear set of guidelines upon which the industry is able to build a profitable and sustainable future. I am also hopeful that the SEC will be permanently damaged by this episode of overreach and that it will destroy Gensler's career.
What do you think? Do you agree that Brian is the one that we have been waiting for? Will he slay the evil hobgoblin Gensler? Can the SEC maintain any credibility going forward?
