Damn Chico why are you so bullish!? That might have been what some of you were saying after Monday’s 2021 $100k video. Well, here we look at both sides of the coin. Dam Chico why are you so bearish!? Let me tell ya, cuz it’s time for Chico Crypto! Well, yes things are looking tasty for Bitcoin and some of the big US players at the top the Coinbase IPO, from what I can see, is in the green light from the SEC.
Elad Roisman is in, while Jay Clayton is out, and Elad days before his appointment to the chairman, was supporting the New York Stock Exchanges rule change for direct listings, which is obviously for the planned early 2021 Coinbase IPO. But Elad, he was appointed by the Trumpster, he was one of the four commissioners of the SEC who could have taken the spot.
The others, Hester Pierce Republican. Allisson Lee, Democrat & Caroline Crenshaw Democrat. Thus when Joe presumably takes office January 20th, one of the Democrat commissioners may be appointed, Allisson Lee or Caroline Crenshaw, while the search for a new commissioner begins or one of the current commissioners end up with the chairman spot.
So, do these 4 commissioners share the same views?? Will there be many shakeups at the SEC with transition?? Well, the two Democrats Crenwhaw and Lee put out their own statement on the direct listings. And yes as we can see, the Commission approved this for the NYSE.
But also from Crenshaw and Lee at the bottom, they say regarding the NYSEs specific rule, Unfortunately, the rule fails to address very real concerns regarding protections for investors. As a result, we are unable to support this specific approach And they list their concerns below. The 20th is in just 22 days and we may have a new temporary chairman, who isn’t a fan of this direct listing process.
So will they be able to flip the switch? And stop this rule change before it gets started? Well, Bloomberg covered the rule change when it happened last week, in an article titled Silicon Valley Wins as SEC Allows New Direct Listing and they said this Getting the rule done under SEC Chairman Jay Clayton, who was appointed by President Donald Trump, might prove important for the exchange and Silicon Valley.
That’s because there’s no guarantee an SEC chief picked by President-elect Joe Biden would approve NYSE’s proposal It doesn’t look like it a new rule would have to be constructed and passed by the new chief and commission, which would take some time, and like I showed Monday, Coinbase is looking to do it early 2021 so I think this was pushed through with a purpose.
So that is not necessarily bearish Chico so what the freak is?? Well, there is the slight possibility that the house of cards I’ve been covering for a long time, could get hit harder than some want to believe.
I’m Talking about Tether USDT. So we all know the New York AGs Case is still ongoing, against those in charge of the dark stable coin. But there was something else that came out right before Christmas, that could have implications for Tether.
The Treasury released a statement titled President’s Working Group on Financial Markets Releases Statement on Key Regulatory and Supervisory Issues Relevant to CERTAIN Stablecoins Yes certain, and this certain part of the statement is important. Depending on its design and other factors, a stable coin may constitute a security, commodity, or derivative subject to the U.S.
Federal securities, commodity, and/or derivatives laws. If so, the federal securities laws, and/or the Commodity Exchange Act (CEA), would govern the stable coin itself, transactions in, and/or participants involved in the stable coin arrangement.
So that means, the DOJ has ruled a stable coin can be ruled security. It’s possible now for something like Tether, to be ruled security & the issuers of it, Bitfinex, Ifinex & others could face a lawsuit, as XRP did from the SEC.
So what would happen if Tether USDT was ruled security? Well, you see how all the exchanges delisted XRP? The same thing would happen, all exchanges would delist and stop the trading of USDT that wouldn’t be good for this run it’s not a coincidence, that since September the Supply of Tether has grown by 54 percent, from 13.5 billion to over 20.8 billion, that’s an average growth of 1.8 billion per month, beginning in September.
And here is a Twitter influencer, Andrew Rennhack, who understands what’s going on with the markets, giving him a follow, his profiles in the description. November 29th, when BTC was under the 20k level, looking like it would not break, he tweeted this. The Bitfinex BTC/USDT premium got away. The spread is only a few dollars now.
Tether is back to parity and printing $600M/week. I hate to say it, but this is bullish. BTC currently costs $18.3k. Probably headed for ATH. $25k BTC this month would not surprise me at all.
Well, he was pretty much spot on with that, and he followed that tweet up with this, on Christmas and a picture of the USDT supply of which Bitfininexd retweeted. He said I told you $25k was coming this month. $30k is probably coming next month.
As long as tether keeps printing $100M/day and the peg holds, BTC is going higher. Not from legitimate demand, but from fraud. This all collapses when the peg breaks That is bearish, that would take the wind right out of a $100k Bitcoin RUN.
So the big question is Tether going to face the other regulators in 2021? Like the SEC? Well, I think what’s happening with the AG, the gathering of evidence ties right into what the DOJ just did. December 9th, The last thing we heard regarding the AGs case was this.
From Attorney James, she said the evidence documentation handover could be finalized in the coming weeks And the deadlines for each to voice their positions, post document handover for the AG and Ifinex was extended but would be coming, next year early January 15th or just 17 days away.
Now depending on how Tether acted, the evidence will show Tether could face a whirlwind of other lawsuits, as it could fit right into the basket of stable coin security. If you haven’t noticed, Tether, in the face of the New York Regulators, hasn’t stopped what they are doing. Business is running per usual, as to what’s going on.
But in the face of the SEC, it is not up to Tether to shut down the business, the industry shuts them out. Just like XRP is getting delisted from the exchange after exchange, Tether would to the lifeline of the crypto markets be killed, not from the inside out but from the outside in.
Per example, you had Coinbase suspiciously decided to announce they would be suspending the trading of the XRP next month, even before anything was set in stone, XRP isn’t ruled security yet and what’s super weird to me, Even Chinese exchanges, who have nothing to do with the US, decided to suspend trading a kill shot, that XRP could do nothing about, from the outside.
So things are getting weird on one hand, you clearly have the SEC preparing Coinbase for its IPO. Then on another hand, you have the SEC going after XRP, and possibly down the road stable coins like Tether?? The only thing that makes sense to me is either too thingsCoinbase knows Tether has been propping up the Bitcoin markets, and they are trying to pull off the IPO unloading their shares through direct listing before the Tether plug is pulled or Coinbase is getting prepped to take over the crypto markets, with the probable Tether kill shot and when the dust settles.
Coinbase is in a position to do just that, with the second most dominant stable coin, USDC who already plays nice with the regulators, fulfilling any of their requests. So, I’ve come to realize, without Tether, its very unlikely $100k is hit in 2021.
But with Tether operating per normal, it’s very possible. Monday’s video was made in the light of Tether operating as it has since March of this year. This one was made in the light of Tether having trouble with the SEC And right now, it’s way too early to call if Tether will have any of those troubles but like always, I’ll be attempting to bring you the latest greatest, both sides of the coin.
And we get a Tether update January 15th Cheers Ill see you next time!.