MCS Crypto News - Issue #12

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Happy Monday to you crypto fanatics.

If you’ve taken even a short swim in the crypto waters - you’ll surely have noticed that there is absolutely ZERO transparency from regulators. For U.S. crypto users and crypto corporations alike, It's been a turbulent journey navigating the maze of regulations.

The United States government and the Securities and Exchange Commission (SEC) have adopted an anti-crypto stance, casting a shadow of skepticism over the innovative digital assets. Regulatory clarity? Well, that doesn’t seem to be in their vocabulary. Instead, what we've witnessed is a "regulation-by-enforcement" approach, where crypto companies have been subject to punitive actions without clear guidance, all in the name of "consumer protection."

But does this approach truly make us feel protected? I sure don’t feel protected. Instead, I feel limited. Shouldn’t I be able to do whatever I would like with my money? After all, it is MY money. You too deserve this freedom.

Rather than fostering innovation and growth, the Biden Administration and the S.E.C have been roadblocks on the path to crypto adoption and development.

📉 Historically Anti-Bitcoin?

The US government's stance on Bitcoin and cryptocurrencies has been nothing short of skeptical, with concerns spanning from potential illicit use to destabilizing traditional financial systems.

They have given zero regulatory clarity - and have simply used a “regulation-by-enforcement” approach to cram down punishments on crypto companies that they deem unsafe. All in the name of “consumer protection.” Do you feel protected? I don’t. I feel held back - and so does the crypto industry.

📊 US Government: One of Bitcoin's Largest Holders?

Recent reports, however, shed some light on an interesting tidbit of information that I’m sure the government wants you to overlook.

According to an analysis by crypto firm 21.co, the US government may have become one of the largest holders of Bitcoin. Despite selling a portion of its holdings earlier this year, they are estimated to still hold over 194,000 BTC, valued at approximately $5.3 billion. These figures are, remarkably, considered conservative estimates.

🔍 The Stealthy Accumulation Strategy

The US government has not gotten this bitcoin through purchasing it. That would make them appear bullish on the commodity. Instead, they’ve made significant seizures, including 51,326 BTC in March 2022, 94,643 BTC from the Bitfinex Hack in February 2022, and a whopping 69,369 BTC from the Silk Road seizure in November 2020.

The government's Bitcoin stash is securely stored offline in encrypted hardware wallets under the custody of the Justice Department and the Internal Revenue Service.

🔁 Selling Bitcoin through Auctions and Exchanges

In the past, the US government used auctions to dispose of seized Bitcoin, with the most notable one being in 2014 when billionaire Tim Draper bought 30,000 BTC. However, recent years have seen a shift, with the government quietly selling Bitcoin through crypto exchanges. In March 2023, the government confirmed the sale of 9,118 BTC on Coinbase via a public filing.

🛡️ Keeping Up the Facade

One could argue that this might be part of a broader strategy. By appearing to maintain a skeptical stance while discreetly accumulating Bitcoin, the US government is ensuring that it doesn't look outright bullish on crypto.

As they continue to "fight" crypto, they accumulate slowly through various methods, ensuring they have a substantial Bitcoin stash when they inevitably change their tune.

Watch out for this - I guarantee that the U.S. will become pro-bitcoin within the next 10 years. Trust me, you’ll want to accumulate some for yourself before they do. Remember - there are only 21 million BTC - and that’s all there ever will be! 📈🤔

💡 A Game-Changing Court Decision

The SEC has chosen not to appeal a court's decision, signaling a potential turning point in the path towards a Bitcoin ETF.

This decision follows an August ruling by the D.C. Circuit Court of Appeals, which declared the SEC's denial of Grayscale Investment's application to convert the Grayscale Bitcoin Trust (GBTC) into an ETF as "arbitrary and capricious." The court emphasized that federal agencies must "treat like cases alike."

💬 Awaiting the Next Move

While this decision is a promising sign for Grayscale's Bitcoin ETF aspirations, it's not an automatic green light. The court is expected to request the SEC to revisit Grayscale's application. At this point, the SEC still holds the authority to deny the application on different grounds, which Grayscale could challenge in court once more.

⏭ What's Next for Bitcoin ETFs?

This development opens up possibilities for other entities, such as BlackRock and Fidelity, which have also filed for Bitcoin spot ETFs and are awaiting approval from the SEC.

📜 The Regulatory Journey Continues

The crypto community eagerly awaits the unfolding of the next chapter in the regulatory saga.

We see these ETF’s as an inevitability. The SEC is simply stalling as long as they can. Pack your bags accordingly.

That’s all for today. We’ll see you tomorrow for MCS Crypto 101.

Thank you so much for subscribing to Make Crypto Simple.

Chris Schawel


^{The content provided in this newsletter is for entertainment purposes only and should not be construed as financial advice. All information, including but not limited to market analysis, price predictions, and investment strategies, is purely speculative in nature. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. We are not responsible for any losses incurred as a result of the information presented in this newsletter.}