CRYPTO STABLECOIN USDC & CIRCLE UNDER INVESTIGATION BY THE SEC
Very clearly, usdc is under investigation from the sec, a lot of acronyms but uh. In all honesty, it just equals potentially a little pushback and well take a look at exactly whats going on, but uh well. Take a look at the usdc versus sec. Uh were gon na. Take a look at a little deeper dive as far as like gary gensler whos, the head of the sec, and how he views stable coins, and why uh? These will be a um, a problem if it is actually deemed as a security and, lastly, were gon na talk about fighting back where uh individuals are talking are fighting back to the irs, saying, hey all the information you guys keep taking from me from all these Exchanges, you cant do that because its against my constitutional right so take a look at all those things, but first take a look whats going on into the market. So today, thats pretty good day. I mean uh its uh friday. Cant beat that weekends almost here and were at 2.28 trillion now weve dropped a little bit and ive seen it go up to like 2.36 2.37. So, in all honesty we are down, and the sentiment today is a little bearish, if not neutral, which is kind of odd, because, like the price has gone up so much, you would think that uh people like so they would be so uh, happy and theyd be So uh, you know fomo like its gon na go on forever, but thankfully we are a group of smart people and we realize that things cant go up forever and thats.
Why? I think that uh as things go up, we are all expecting a little bit of a pullback which were seeing right now, maybe uh throughout the weekend, but we will see anyhow, that is a sentiment from trade the chain you want to take a look at uh Sentiment analysis links in the description uh as far as coins theres, really not much. As far as like action going on like there, i mean one hour: change everythings down across the board 24 hours, so on is up two percent, but its been kind of lagging uh. Its been okay this week, five or six percent, but yeah everythings, just kind of just mozing along not a big deal file coin of seven percent, but you know it. It is what it is so thats whats going on in the market lets, take a look at whats, going on as like a deeper sense and uh were going to go over market data, and we just implemented this last two days seems to be do pretty. Well. What we try to do is take a look at on chain analysis and things that are going on within the market. So the first thing we always like to take a look at is whos getting liquidated right all of the different traders out there and nothing against traders good for you guys. Hopefully, this is only a very small percentage of your portfolio that youre uh leveraged trading with like one percent or two percent, but hey im, not here to tell you what to do.
Youre an adult, so uh weve got uh as far as liquidations the single. Let me see ill blow this up: the single largest uh liquidation, having a bitmex for 1.57 million, its not a bad day right, its not billions, its okay in the last 24 hours uh. As far as liquidation people getting wrecked 135 million. Then we take a look at uh, the bitcoin futures market. We can see which way the wind is blowing as weve got. What are the longs? What are the shorts and you can see as far as like longs, okay, x, binance and those things were seeing like uh theres, a little bit of a sideways action, maybe even more prone to a little bit of the shorts and thats. What we have on as far as the futures market now take a look at a little on chain analysis. Take a look at all miners outflows. We know that as miners start to sell – and they have a pretty good amount of bitcoin price usually starts to go down a little bit and we can see this here. Let me blow this up and bring this up here, and we can see that yeah weve got a little bit of miners selling a little bit more and what do we have? We had a peak and a little bit of a drop down, so the miners keep uh selling. I would definitely keep a look on that, because that usually means that the price uh will usually go down also as far as exchange reserves, as people start to uh sell off their uh crypto.
What do they have to do? They have to put it onto uh. These exchanges so well see the price. This is for bitcoin. The price will go up, but, as we uh start to see things itll start to uh accumulate in the exchanges. So just make sure that if you see uh exchanges starting to have a lot of reserves uh on there, that means that people are probably gon na sell and the same thing with ethereum. You can see on the top left hand corner here uh. We had a lot of people that uh are as far as exchanges. They had a lot and, of course, over here, not too much, and that means that uh people were taking it off, but now theyre looks like theyre coming right back and putting it right back on the exchanges to sell. So what does that mean? Well, exactly what happened today a little bit of a downward uh price action, and then i was like take a look at the correlation between whats going on with uh our market and then, of course, all the uh traditional markets. As you know, everythings down s p, 500, nasdaq, dow russell 30, us dollar index bitcoin index is up a little bit. Hey, look at that so uh as far as correlation yeah, not so much, maybe a little bit but thats what we got and then uh. Lastly, just so, we see a little bit charts im, not a chart person, so i was going with this very quickly and uh.
What we can see right here is that this down here is the rsi, its a relative strength index when this goes up. It means that things are overbought. This is for bitcoin and uh when we go above 70. This is for my parameters. It tells me that things are pretty much overbought and we can kind of see that if were looking at this, what happened here, as we start to go up, things were just being just overbought and overbought and at some point people got to sell and thats what They did when it went above 70 bam. Then we take a look back its the same type of thing once we go above those parameters, so here we are again and uh theres a big peak and then sell off. We go up again and a peak and itself and so on and so forth. So today it makes a lot of sense that people were selling just a little bit but heres a nice little marker, which is a little bit of green and not a lot of space, so it means a little indecision and then finally, i just want to make This make mention so we see like. Oh no people are selling off its going to be awful, its, not the bad news really youd have set to zoom out and take a look at the time frame. So this is from will clemente analyst. He usually works with pomp. I believe, and he says look.
This is great news. Uh there we have an all time high of 85 percent of bitcoin supply, hasnt moved in at least three months. So what does that mean? That means that a lot of people are holding on to their bitcoin because they believe, i believe, and maybe you believe that q4 is going to be fireworks so thats what we have as far as the market goes. Let me know what you think about that in the comments section now lets get into the meat and potatoes usdc versus the sec. Getting into it. Uh issuer circle cooperates with the sec after receiving investigative subpoena, so heres. What is going on uh usdc issuer circle has a slow its under investigation by the sec. This is no surprise. Uh looks like gary gansler is out for stable coins. Well, go on that in a second, the company says its fully cooperating with the commission were going to investigation whats the uh whats, the alternative. I have no idea. Uh circle had crossed past the sec efforts, fined 10 million for infringements of its uh subsidiary. The polonium and it says, uh circle, the issue of stablecoin usdc is coming investigation because of uh, which was funny because investigation by the sec, according to regulatory filings, that its submitted to the regulator. So, of course, they have to file with the sec everything theyre doing and because theyre our public traded company as far as circle – and they said, hey youre, investigating us just so you guys know and the company stated in its october s4 filing in july 2021.
We received an investigative subpoena from the sec enforcement division, requesting documents and information regarding certain of our holdings, customer programs and operations, and then it just kind of gets into the little nitty gritty. But this is the crux of it right here for gary gensler, stable coins are securities and they fall within the ambit of the sec, and the question you might want to ask yourself is: why is that? Why does gary think that well get to that? In a second but first i just want to show you this the thing with circle. I dont understand why theyre saying well, you know we want to see everything else because in actuality circle uh, they have been audited theyve been audited by some pretty big companies and they have been proven that as far as like the audit goes, they have enough to Actually back everything so thats the first thing so thats a good part uh. You might see some other things about tether out there, which may or may not be good. I dont want to get to that. I just dont use tether. I just use usdc thats, just my personal choice and when we take a look at this well, why would the sec start to crack down on circle well its because, unfortunately, uh circle is very open and what they try to do. Is they try to say? Look, we have nothing to hide, heres everything and the sec loves that, because coinbase did the exact same thing and said: hey well meet with you and well sit down with you, and they said thanks so much heres.
Your wells notice, uh were going to sue the pants off you if you try to do any kind of urn or any type of yield type of programs, so dont even think about it. So for all your coinbase uh users, you could have actually gained a bunch of yield on a plethora of your of your cryptocurrencies uh, but the sec which works for you says you cant have anything. Essentially, that is what happened. So the question then becomes. Why is gary so mad or so up in arms about stable coins, and i kind of see his point actually i see where he is, but i dont really see why he is so. What im gon na do is uh wed actually cover this. There was a senate hearing committee and it was uh. Senator toomey asked him and drilled him on some questions. Just this three minutes out of this hour, plus long video is really all you need to know. So just take a listen, so some are, and some arent is basically what youre, saying and im concerned that the sec has not provided sufficient definition for and and explained how it would apply the howie test, which i think is the uh court standard for determining when Something is an investment contract, so, for instance, stable coins do not have an inherent expectation of profit, theyre just linked to the dollar. Now you might use them in an attempt to make a profit but thats a thats, a second order activity.
Is it your view that stable coins themselves can be securities um? I think its best senator. They may well be securities as as uh thurgood marshall wrote in the reeves opinion um in uh, defining the scope of the market that it congress wished to uh, regulate congress painted a broad rush and it actually included about 35 different things inside the definition of a Security, okay, ive just got limited time here, so i acknowledge that um heres. My problem, though i think what you just said was that they may be securities or that some are securities um to me. A stable coin. Doesnt meet the second prong of the howie test that there has to be an expectation of profits from the investment, and so if it doesnt meet the howie test, it looks to me like its not a security. Now maybe youve got a good argument for why some are and some arent. My whole point is: i think we need to have clarity on this. I think you should publicly disclose this. Apparently, there are private conversations where you work with people who are proposing particular structures, and you give them advice. Your staff gives them advice. I just think we ought to have that publicly and we certainly shouldnt be taking enforcement action against somebody without having first provided that clarity. Well um senator this. This congress and uh could change the laws, but the laws that we have right now have a very broad definition of security, including a note including an investment contract and the like, and our my predecessor, uh chair, clayton and others actually put out a lot of guidance With regard to the howie, i i just, i just got to push back a little bit on that it.
It is broad, but its well defined. There is a very specific litany of the instruments that constitute securities. As you know, this better than i do investment contract is one of them and there is a court decision that lays out the prongs for what constitutes an investment contract im. Just saying, as a layman, who can read english when i read those tests stable coins dont seem to meet that test to me. Maybe im wrong, but if i can mis interpret this, i think others could too and some clarity, public clarity, i think, would be helpful. I see the red light, but i agree with you that that some of these tokens have been deemed to be commodities. Many of them are securities and the supreme court has weighed in a number of times you, you noted the howie test. I weve talked about the reeves test was in the 1990s as well has weighed in, and i think that theres a fair amount of clarity over the years, so theres some very funny things about gensler and his responses. First of all, i dont think he really ever answered the question. He said its very broad, and then he talks about how you know what they are still a a security and im pretty well set on that even to me makes it crystal clear, hes like well. Why is it that you havent, given us clarity but behind closed doors, youre slapping everybody with legislation and going hey? If you do anything, were going to sue you, but were not going to tell you exactly what it is.
The things that hes talking about just does not jive and does not make sense. It is up to you to determine what that is, and i would love to hear your comments in the comments section as to why whats going on, but what it really all comes down to. Is this circles going to cooperate uh theyre, going to help to theyre going to help with the sec to determine whatever it is, and hopefully they can help them flesh it out. Does this mean that usdc and everythings going to kind of crumble and everything else? No, it just means theyre under investigation. It just means that theyre theyre peering into stable coins, which we knew was going to happen, because that is where guns was going and even jerome powell uh for the head of the central banks is like hey. You know what uh these stable coins we got to regulate them, so there is a big thing about just stable coins and it seems to me like crypto. At least some of them are gon na get a pass like bitcoin ethereum. Anyhow, let me think about that. In the comment section and uh lets go on to our last piece, which is about fighting back. I think this is like a its uh, how people really want to really fight back to their governments and uh theres, one guy doing it, not all heroes, wear capes! This is a crypto user asks. The first circuit to curtail irs collection of records and whats going on here is youre going to love this.
So in 2017 the irs won a ruling that granted the government access to transaction records belonging to more than 10 000 customers of coinbase inc. Last april, the government obtained a similar ruling to see records from circle and who and what a circle well, the ones we just talked about with usdc anyhow kind of funny irs is, but it says here this actually, even though they did get all this information, it Actually confirmed the irss suspicion, which was that uh coinbase customers were not paying their fair share of taxes and they actually collect another 25 million dollars and thats. Why uh here in the states? Uh president, joe biden is really beefing up the irs because he wants all that money because he wants to print as much as he possibly can and tax the tar of everybody and thats. Where were at so uh when we get when we talk about taxes, its important, because if you want to get it its, not how much you make its, how much you keep and if you get taxed up to oblivion, doesnt make sense. Anyhow to finish this up. James harper contends of the irs. This is the guy james harbor. Remember this guy james harper contends that the irs violated his constitutional rights when it obtained records of his transaction uh, and this is what all comes down to. The question will come down to an interpretation of the u.s supreme courts. Ruling last may, in cic services versus the irs harper contends that the supreme courts ruling clears the way from the challenge what he considers an unconstitutional caesar of his records seizure of his records, and then it goes into a bunch of uh legal mama, jumbo and uh.
You can read that, and i will link that in the description, but really it all comes down to is this. If you dont like way that the governments training you you need to fight back, you need to do the things that you need to do within legal parameters to make sure that you get whats coming to you and you, because youve done a lot hard work. So why not? Which leads me to my last point, which is this: we did a video not too not too long ago and its a tax free, crypto ira at i trust and uh. If you dont, like paying taxes, i have a crypto ira and whats great about that. I did a video and it goes over a traditional ira set by array, roth ira, which is the one that i have, which means that everything you put into this roth ira. You pay zero percent in taxes, zero, zero point zero. So if you put bitcoin when it was at five thousand dollars – and you just let it appreciate, then you took it out when it was uh, 50, 000 or 60 000 or maybe 250 000. Whenever it is and you take it out, he pays zero in taxes. Zero: this is how peter thiel made up five billion dollars was with a roth ira. He put all of his uh stocks that he got from paypal when it first came, because he was one of the founders he let it appreciate massively.
They took it out paid zero taxes and its legal, and that is the things that we all need to do if we want to get ahead in the game again, legally and thats, exactly what i do. So if you want to take a look at, i trust crypto ira, uh theres a link in the description in all the links in all my videos. Even this video right here to scroll down itll, say i trust crypto ira. The video we just talked about is right. There you get one month free with this link, also check out uh masterworks if youre looking into a different asset class to be uncorrelated as far as fine art, multi million dollar pieces in uh, whatever you want to do. Anyhow, so that is what is going on today and uh. That is it for everything. So look if you uh made it all the way to the end. First of all, i want to say thank you. I appreciate it if you like these types of videos, go ahead and give it a thumbs up. Also consider subscribing now the things we are uh talk about are uh every day and they are time sensitive, so go ahead and uh check it out, subscribe and ill.