Web3 Week in Review: A Tale of the Best of Times and the Worst of Times
SEC turns up the heat and continues to attack crypto while Abu Dhabi readies $2 billion web3 fund
Gary Prepares for War – Clown Memes Were a Bad Idea
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SEC Chair Gary Gensler is making good on his threats to crack down on crypto-related activities, having issued a $30 million fine against Kraken last week and proposed amending a federal custody requirement requiring all exchanges to gain further regulatory approval.
He's not stopping there - the SEC is also going after Paxos for issuing BUSD, which they consider an unregistered security, and recently brought charges against Do Kwon and Terra Luna.
Even HOF basketball player Paul Pierce has been affected by Gensler's aggressive stance, having to pay a hefty fine of $1.4 million for promoting a scam EthereumMAX project - almost 6 times more than the amount he made from it.
Please stop with the clown memes already!
While Do Kown and Terra Luna should be held accountable for their actions, calling BUSD a security does not make sense. Gary is simply cherry-picking the weakest targets to gain power and influence for the ultimate goal of absolute control over crypto.
Brian Armstrong Ready for Battle
Brian Armstrong and Coinbase are taking a stand against Gary and the SEC in order to ensure that the US does not lose ground as a financial hub.
The SEC's stance against crypto has been met with resistance from the crypto community. While Brian Armstrong, CEO of Coinbase, is on the frontlines, Senator Bill Hagerty and SEC Comissioner Hester Pierce have also been vocal advocates and supporters of crypto. We need all the help we can get as we face a coordinated attack from the Biden administration.
The U.S. Securities and Exchange Commission (SEC) is showing much greater levels of aggression not seen since 2018. It’s currently unclear how this new level of enforcement will play out, however the stakes are high and the implications are massive.
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Inflation is a Bitch ain’t it?
Federal Reserve Chairman Jerome Powell's ongoing efforts to combat inflation have been unsuccessful, as evidenced by the Consumer Price Index (CPI) coming in at 6.4% year-over-year - higher than expected. Furthermore, CPI was revised upward for the November, December, and January months.
Additionally, shelter inflation is up +7.88% while rent inflation is up +8.56% while unemployment remains at historical lows.
Jerome Powell is determined to go down with the ship while continuing with his monetary policy of interest rate hikes which may not be having its desired effect.
Why is inflation still so high with so many aggressive rate hikes?
It could be the historic money printing to a track record of bad predictions from "leading economists" and the Federal Reserve. Regardless, it appears that at least two more rate hikes in 2023 are likely on the horizon, not that it really matters at this point.
The Markets DGAF
Bitcoin continues its rally from the lows of $16,000 in June to a current high of $25,000. Altcoins have also seen a significant growth in value over this period. Investors appear to be eager to move and take action, signaling that "degens" are sick of sitting on their hands and waiting.
It’s almost as if crypto investors are calling the SEC’s bluff and trolling Gary. Many believe that the worst is behind us and after just two more rate hikes, the market will “melt up.”
Abu Dhabi has recently made a big move into the web3 space, launching a $2 billion fund dedicated to investing in and supporting startups in the industry. This is great news for anyone looking to get involved in this growing sector as it shows that there is serious potential for growth.
With multiple billion dollar funds entering web3, crypto is here to stay and the US risks falling behind if it does not keep up with the growth of this industry. Gary's efforts to collect fines from those involved in cryptocurrency may have short-term benefits for his ego, but at the end of the day, it won't affect crypto's long-term success. Countries like Abu Dhabi are ready to take the lead whenever the US falters.
At the end of the day, crypto will outlast Gary Gensler. While he will win a few battles that will make headlines, he will ultimately lose the war.
Gm Gm, Really loving this piece and the work you do on Web3 Investor. I also run a web3 news substack for underrepresented creators called Facesofweb3. Would you be open to a recommendation exchange? Our subscribers need to be able to find each other!
Great job, once again!