History has been made: crypto is in the official GOP platform:
Republicans will end Democrats’ unlawful and unAmerican Crypto crackdown and oppose the creation of a Central Bank Digital Currency. We will defend the right to mine Bitcoin, and ensure every American has the right
1/5 I’m thrilled to announce that I’m joining
@Paradigm
as Chief Legal Officer, helping
@matthuang
and
@fehrsam
expand the outstanding firm they founded only four years ago alongside the best Legal and Policy teams in the industry.
Must-read piece wherein
@RSSH273
takes on the Gensler SEC's claim that crypto should "just come in and register." It's just not true, and it never has been.
Others have already expressed incredulity at the weak legal basis for this Wells notice. Consider that clearly established.
But this is not about the SEC's incompetence or stupidity. Far from it.
This is part of a larger plan, mapped out and executed with precision,
OpenSea has received a Wells notice from the SEC threatening to sue us because they believe NFTs on our platform are securities.
We're shocked the SEC would make such a sweeping move against creators and artists. But we're ready to stand up and fight.
Cryptocurrencies have long
Puzzling, amateur-hour political mistake.
For those unaware this means *regulated financial institutions* cannot hold crypto for clients. It makes NO sense.
1/ As Republican delegates pack their bags for Milwaukee,
@Paradigm
today released a poll with
@EchelonInsights
on crypto sentiment among GOP voters. In short, Republicans totally disagree with the Warren-Gensler worldview of centralized control. They want financial freedom.
This is bad take, even discounting for the limitations of
@axios
shorthand journalism.
Entrepreneurs in Silicon Valley are not considering Trump because of “taxes.”
Entrepreneurs in Silicon Valley are considering Trump despite all the social consequences in knee-jerk Blue
The 1/5 Americans who have bought/own crypto are per AOC, “special interests” and apparently also “disgusting” and “abnormal.”
Progressives seem to be on a mission to take down Biden.
People everywhere need to understand how disgusting and abnormal it is for special interests to dump nearly $15 million to unseat a member of Congress in a primary.
This is corruption. It is a core threat to American democracy. It also fuels Trump.
Support Jamaal Bowman.
8/ As a country, we should *not* be in the business of rewarding unaccountable bureaucrats, who do not respect the will of the courts or the 1/5th of Americans who own crypto, with 6 more years of job security.
6/ This week Crenshaw may be re-confirmed. Why? Folks need to be asking some hard questions: does her allegiance to shadow president Elizabeth Warren trump the rule of law? Does President Biden even know he nominated her again?
just in case anyone is still falling for the Gensler SEC's "come in and register" schtick, here is part III in
@RSSH273
's terrific series dismantling the idea that it's possible
2/ For all the Dem talk about lawlessness these days following the SCOTUS decision on presidential immunity, it’s perplexing they would confirm a Commissioner who thumbed her nose at the DC Circuit and wrote a vehement dissent on the SEC’s [required] spot BTC ETF approval.
I know everyone is making fun of this but there are powerful people in the US of A who literally actually share this worldview.
To state the obvious, imagine your worst enemy in charge of the definition of misinformation or hate speech, able to toss you into prison for
Repeat after me: financial regulators *cannot* use regulatory power to silence views they disagree with, kill industries they just don't like, or coerce "desirable" behavior.
Biden Administration, take note: Operation Chokepoint 2.0 is un-American and an abuse of power.
For those in the tech industry just arriving at the Chevron party, let me introduce you to the man who made it possible for us to reign in the administrative state.
Want to build nice things that make the world a better place? Senate control matters.
4/ Even Gary Gensler bowed to this obviously correct conclusion by the DC Circuit. But not Caroline Crenshaw. In this dissent, she twisted herself into knots to justify disregarding the Court’s explicit command. What happened to respecting rule of law?
Serving at the
@SECGov
for two years has been an honor.
We’ve filed 1,500 enforcement actions & overseen tens of thousands of registrants.
We’ve proposed rules to make our markets more efficient, competitive, transparent, resilient—and worthy of the public’s trust.
More 🎥👇
3/ In Grayscale Investments v. SEC, a Court of R and D appointed judges held 3-0 that the SEC failed to provide a “coherent explanation” for why it did not approve Grayscale's spot Bitcoin ETF app, acting “arbitrarily and capriciously” in violation of the APA.
5/ When conservatives worry about unaccountable bureaucrats, this is exactly what they mean. Thankfully Loper-Bright trimmed the sails of Chevron, but we still need public servants who do the right thing!
7/ Or is this part of a Gensler plan to ensure a Dem Commission majority in 2025 — forcing a newly-elected President Trump to oust him? Such a Commission balance would mean no reg rollbacks, no crypto pivot, even with an R-appointed chair.
2/ Let's start with a jarring stat: 72% of GOP voters are at least somewhat concerned they could lose access to financial services because of their political or religious views.
Are you a 2024 federal political candidate who wants to take crypto contributions? Do you want your favorite candidate to take crypto contributions? Pull up a chair. [Remember, I am *A*lawyer, but I am not *YOUR* lawyer, so DM me if you need a good campaign attorney rec]
Crypto firms can "register as an exchange" with
@SECGov
about as easily as the average 60+ Member of Congress could "register to play football" with
@SEC
Who benefits from the passage of the
#NotFIT4PurposeAct
:
✅Wealthy
#crypto
firms that have chosen not to register w/the
@SECGov
or otherwise comply w/the securities laws
Who stands to lose:
❌Ordinary investors trying to build wealth
1/ In addition to Coinbase's filing in the
@LEJILEX
case today, heavy-hitting state AG's led by
@AGIowa
just filed a remarkable smackdown of the SEC. Details in thread.
A busy, busy day ahead. First up:
@Coinbase
filed an Amicus Brief in support of
@LEJILEX
and the Crypto Freedom Alliance of Texas suit against
@SECgov
’s overreach and regulation by enforcement campaign towards the digital asset industry. 1/5
Harris is a no-show again for the latest crypto roundtable. But don't worry, she's really into crypto. She gets it. Progress is being made. We just can't point to anything at this time.
Judicial conservatives not up to speed on the Gensler SEC’s unlawful, unconstitutional war against crypto should pay attention now.
Crypto will be ground zero in post-Loper-Bright caselaw.
This piece by Iowa SG is your first reading assignment.
Thrilled to welcome
@AlexanderGrieve
to Paradigm. Alex is well known as a fighter for crypto, and he embodies our technical, founder-first approach to policy. We couldn't be more excited to welcome him to the team.
5/ Interest in crypto is growing among Republicans: 87% of crypto-owning Rs stated an intent to buy more crypto in the next 12 months, and 13% of non-crypto-owning Rs said they were likely to buy crypto for the first time in the next 12 months.
3/ That *any* Americans fear personal retribution by financial regulators should shock & shame those federal financial regulators. But maybe it’s actually their goal? Get in line, or lose your bank account.
Kyle, this is a dated argument that has been proven wrong time after time. If you dig into the cultural, economic, and technological core of crypto, I think you’ll come away an ally. Here are just a few data points for your consideration:
In this oped,
@DaveMcCormickPA
argues
#NEW
: All Committee Republicans—led by Chairman
@PatrickMcHenry
—sent a letter to
@SECGov
Chair Gensler blasting him for trying to force digital asset trading platforms to "come in and register" under his non-existent registration process.
👇 Read more 🔗
4/ 67% of GOP voters say they are dissatisfied with how the financial system in America works today. And 28% currently own or have bought crypto, higher than the 19% national average among all voters we found in our March 2024 poll.
Yep: A comprehensive review by
@NYcryptolawyer
of EVERY federal appellate case to address Howey confirms no court has EVER held that 1) an asset that is the object of an investment contract is itself a security, or 2) transfer in a secondary market is a securities transaction.
The Ripple case is a monumental development in establishing that a token is separate and distinct from an investment contract it may or may not be part of. Now, let’s make it law. 👇
The mask drops.
Even if you *don't like* crypto, consider: should your financial activity be default-private or default government record?
With every power you give the federal government, imagine it in the hands of your *worst enemy*
One of the best parts about working at
@paradigm
is the opportunity to collaborate with
@samczsun
- his contributions are already legendary and will further multiply with this important effort.
Today, we're launching the latest
@_SEAL_Org
initiative, and it's going to change crypto security forever. It's called SEAL-ISAC, and this is why we need it
1/ Last week, the SEC IG released a report detailing the adverse impact on recruiting crypto-knowledgeable talent posed by the SEC’s requirement that hires divest their crypto holdings.
@paradigm
has some thoughts.
4/5 If you are a lawyer, policy professional, compliance officer, or a technologist with a love for explaining your trade to laypersons, Paradigm is hiring. :)
History has been made: crypto is in the official GOP platform:
Republicans will end Democrats’ unlawful and unAmerican Crypto crackdown and oppose the creation of a Central Bank Digital Currency. We will defend the right to mine Bitcoin, and ensure every American has the right
1/ Sanctions are a critical tool for protecting the US, and they can and must coexist with keeping critical infrastructure neutral. Our new paper shows how the base layer of crypto - the beating heart of the system - must remain neutral.
10/ Battleground candidates defending crypto –
@CaptainSamBrown
,
@DaveMcCormickPA
,
@BernieMoreno
, and others – have strong support for their positions. Those on the fence, join us … you’ll be in good company.
1/ Today,
@paradigm
filed comment with the
@CFPB
on their proposed “Larger Participants Rule,” re digital wallets used in consumer payments. The CFPB targeted this
@Apple
/
@PayPal
/
@CashApp
, but the rule would also capture crypto wallets & all kinds of onchain activity.
7/ Republicans want Congress to do something about crypto regulatory unclarity, and they think elected reps should take the lead in crafting crypto regulatory frameworks – NOT unelected bureaucrats.
8/ As Congress tackles crypto, policymakers should know that 94% of Republicans say their personal financial transactions *should remain private.* (The IRS should also take heed as they finalize the wallet portion of their broker regs.)
I’ve started a bit of Title IV tonight, but sadly, this bill is just too voluminous to tackle in one evening. Expect the second part of this deep dive tomorrow, likely in the afternoon. 105
Excellent explainer on CA's new Bitlicense-style proposal 👇
Concerning breadth, even more concerning is seemingly no requirement on *regulators* to review applications quickly & grant licenses promptly. (anyone who has been through processes like this knows what I mean)
So, California is about to pass a law analogized to New York's controversial BitLicense law
Curious about what the law does and its implications for crypto in the Golden State, especially if you're a small biz? We've got you covered: long thread.
In a culture with more shame, the people responsible for this would have resigned and left public life.
Instead they are still around doing revisionist history.
Big new annual report on kids shows "decades of lost progress" due learning loss during - and even after - Covid.
Math & reading scores keep falling.
Many kids just simply stopped going to school, with nearly 15 million "chronically absent" even post-Covid in 2022.
This
Ron DeSantis policy breadth is 💯:
✅CBDC = social credit system and massive financial surveillance.
✅Contrary to Fed belief, "the Constitution does not say it is only 'ideal' that you get a law passed. You would HAVE to get a law passed."
✅"If I am the president, on Day 1, we
Hi, former campaign finance lawyer here.
1. Are you familiar with the concept of a JFC, which is not a Super PAC, but can under federal law take a $300k contribution? Here’s Biden’s.
2. Is the Biden Super PAC also a loophole or is that one a patriotic vehicle of free speech?
Of course what Maguire meant was that he had donated $300k to a Super PAC that's supposedly independent of Trump. But the fact that he said he donated the money "to President Trump" tells you the Super PAC loophole is just a way for rich ppl to evade contribution limits.
2/5 Crypto has recently been on a roller coaster ride. But the ups and downs are just noise. Today’s builders will democratize finance, create a more equitable internet, and bring us tools that help humans exchange goods, services, opinions, and information trustlessly.
There’s been lots of news in the last 24 hours, but it’s possible that the most consequential event amidst all this will be the Supreme Court’s decision in a case known as Loper Bright.
Basically, it will trigger a sea change in all regulations.
Thread.
South Dakota’s long history of attracting trust companies has added a new chapter: An emerging niche of companies specializing in holding cryptocurrency.
Both Gary Gensler's SEC and Lina Khan's FTC have:
- Rejected advice of career staff
- Put high-profile lawsuits ahead of clear rules & pragmatic settlements
- Have pursued YOLO lawsuits unsupported by facts
- Lost high-profile cases this week
That Gavin is losing this debate to
@RonDeSantis
is no surprise.
But one click deeper: That he did not realize *how bad* it would be for him is a great example of the smug progressive mindset.
Facts matter.
What does it say about the underlying psyche of a political appointee when they are equally afraid of:
1. Decentralized internet
2. Centralized AI tech except controlled by someone other than them
Good piece. But on the “why is this assault happening” questions, I’d say there are two underlying reasons.
1) Techlash has progressed to where you couldn’t pass the Telecommunications Act of 1996 today
2) Idea of a decentralized internet isn’t that appealing to many in DC.
At moments like these, I am always proud to have worked for Mitt Romney. The partisan hacks on ~both~ sides who hated on him over the years can eat their blue checks
Putin cowers behind his big table in what looks like a mausoleum where honesty and integrity have gone to die. Meanwhile, Zelenskyy demonstrates remarkable courage and leadership. The bravery of him and the Ukrainian people has galvanized the spirit of freedom around the world.
The people who do this have no foresight. What do you think happens when your political foe can later use the sledgehammer of government to enforce the precedent you just set?
Regulators singling out business activities should alarm all Americans.
It doesn’t matter if it’s cryptoassets, firearms, or any other lawful business, using banking regulators to advance political agendas should not be tolerated.
crypto twitter,
@RonDeSantis
has -
1. the horsepower to understand these issues at a principle and detail level.
2. the demonstrated backbone to force change.
3. actual ability to win.
lethal combination.
“Biden's war on bitcoin and cryptocurrency will come to an end when I become president.”
— Gov. Ron DeSantis (R-FL), while outlining his economic policy plan in New Hampshire
3/5 Over the next few years, I look forward to working with the exciting, cacophonous web3 community to tell our story and definitively flatten the meme that our technology is just a solution in search of a problem.
5/5 Thank you to the amazing founders of Brex,
@pedroh96
and
@hdubugras
for giving me the privilege of working with them. Crypto founders:
@brexHQ
is web3 friendly and open for business!
"The events surrounding SVB involved a very specific and narrow set of circumstances unrelated to crypto, but they set a backdrop for a nuanced public discussion regarding moneyness in the digital age — and crypto’s vital role in the future." Great work by
@brendanpmalone
Don’t be misled that Judge Torres ruled that sometimes XRP is a security and sometimes it isn’t. That’s exactly the opposite of what she ruled: XRP itself is NEVER a security. “ Page 15: "XRP, as a digital token, is not in and of itself a ‘contract, transaction[,] or scheme’
Extremely cool move by
@bchesky
and
@Airbnb
- hosts, drivers, food deliverers are not "supply" - they're people and platform stakeholders. Act accordingly.
@BillHughesDC
@RepCasten
His comparison doesn’t even make sense. What he is really calling for is to hold the flour company liable. But who needs precision when you’re grandstanding I guess. 🤷🏻♀️
🔥
@CaptainSamBrown
gets it:
Crypto "is a system that grants true financial autonomy to the individual, without the intrusions into private personal information by third party (or government) monitoring"
More outstanding work from
@RSSH273
and the team at Lehotsky Keller - "The Department’s theory for sanctioning Tornado Cash is that Tornado Cash is a Frankenstein-like creature, assembled from disparate components that, when combined, become a legal person." 🤖