Something FISHY is going on… 🚨 SEC Crypto Shakedown ⚠️

Tracking it's going to be forced now to end 
its crypto staking program in the U.S and   Pay a 30 million dollar fine to settle charges 
from the SEC the agency said Kraken had failed   To register the program whereby investors earn a 
yield in return for locking up their tokens and   Allowing them to be used to facilitate track 
transactions on the blockchain it's the sec's   First Crackdown on staking as you may or may not 
know the SEC recently took Massive Action Against   U.S cryptocurrency exchange Kraken forcing 
them to shut down their U.S crypto staking   Service deeming it illegal that's s-t-a-k-e not 
s-t-e-a-k and forcing them to pay a 30 million   Dollar fine now I am personally I'm not on the 
side of big exchanges I'm for the people I'm for   The Everyman this is interesting to me however 
because Kraken arguably as far as exchanges go   Has a history of being relatively ethical or at 
the very least Kraken has a history of acting   In good faith yeah so we recently completed 
a proof of reserves audit it's the second in   Our company's history we pioneered this process 
about seven years ago when we did the first one   In the industry and since then there have been 
other companies that have done it but we're by   Far the largest venue to have done this in recent 
history and what it does is allows the users to to   Confirm for themselves through cryptography that 
we actually control the coins that that we say   We do you know that we hold for them that that 
you know they can prove cryptographically that   In a quote-unquote like Bank Run type scenario you 
know where if everyone came for their withdrawals   At the same time that we would be able to serve 
those withdrawals so the SEC missed Celsius they   Missed three Arrow Capital they missed FTX whom 
Gary had regular meetings with up until the end   So they missed all of these entities that were 
literally doing actual harm to retail investors   But they're going after Kraken it seems off Gary 
even put out this quaint little video so dumb   Retail investors like us can understand remember 
if you have a stake that's s-t-e-a-k if you   Have a steak meant for two and cut it into three 
pieces it's still the same amount of steak that's   Why it's so important that these companies and 
platforms comply with the Securities Law after all   The Securities laws regardless of what you think 
of steak or staking they're good for investors So the SEC charges Kraken with failing to register 
they failed to register as in if they just would   Have registered everything would have been okay so 
why didn't they register what if Kraken couldn't   Register what if Gary Gensler saying crypto firms 
need to come in and register is fake the sec's own   Commissioner Hester Pierce essentially confirms 
this statement on the Securities and Exchange   Commission's own website by commissioner Hester M 
Pierce directly after the SEC took action against   Kraken she says this today the SEC shuts down 
kraken's staking program and counted it as a   Win for investors I disagree and therefore 
dissent Kraken operated a service through   Which its customers could offer their tokens 
up for staking the customers earned Returns   The company earned a fee the SEC the commission 
argues that this staking program should have been  

Registered with the SEC as a Securities offering 
whether one agrees with this analysis or not it   Could be your opinion that they should register it 
could be your opinion that they shouldn't register   The more fundamental question is whether the SEC 
registration would have even been possible could   They even have done it she goes on to say in the 
current climate crypto related offerings are not   Making it through the sec's registration pipeline 
she goes on to say that we have known about crypto   Staking programs for a long time she should have 
been more involved with issuing clear guidance but   Instead of taking the path of thinking through 
staking programs and issuing guidance we again   Chose to speak through an enforcement action using 
enforcement actions to tell people what the law is   In an emerging industry is not an effective 
or Fair Way of regulating moreover staking   Services are not uniform so one-off enforcement 
actions and cookie cutter analysis does not cut   It most concerning though is that our solution 
to a registration violation mission is to shut   Down entirely a program that has served people 
well now the program will no longer be available   In the United States and Kraken is enjoined 
from ever offering a staking service in the   United States registered or not ever again so 
think about this folks Gary Gensler and the SEC   Could have put out clear guidance on crypto 
staking and could have given U.S exchanges a   Month or so to update their terms but instead 
they use enforcement to cash grab 30 million   And shut down Kraken staking this is a clear move 
to stifle Innovation and cut off the availability   For retail to earn income on their staked crypto 
most likely other exchanges will voluntarily shut   Down their staking services to avoid fines and 
investigations under the SEC to me this raises   Two huge questions number one is the SEC trying 
to stifle crypto innovation in the United States   I think that there is a common view that your 
office is using all available means effectively to   Keep crypto out of the mainstream Financial system 
through enforcement accounting rules inspections   Clearly there's not real guidance yet on custody 
and this may very well be a reasonable policy   Choice if that's the choice the question is if 
that's a choice why not just say it publicly   We're using all available tools we're talking 
directly to Market participants we take the   Meetings we say this is how you comply there's a 
handful of tokens that have actually registered   The intermediaries the storefronts if 
you wish the casinos that people are uh   Investing in and investing at need to properly 
comply and disentangle these bundled products   The business model that they've set up as is Rife 
with conflicts and so we've been very candid with   Them I've done it in multiple speeches since 
I came to the agency will continue to engage   With technology neutral but if this field has any 
chance of survival and success it's time tested   Rules and laws to protect the investing public 
disclosure full fair and truthful disclosure   Address conflicts and disaggregate these 
bundled businesses and don't have your hand   In the customer's pocket using their funds 
or your own um the other huge question that  

This raises is is coinbase next after all it was 
originally Brian Armstrong the CEO of coinbase   Who before Kraken got hit he put out this tweet 
we're hearing rumors that the SEC would like to   Get rid of crypto staking in the U.S for retail 
customers and it was originally the coinbase CEO   Responding to the Kraken news on Twitter defending 
them saying things like this there was no way for   Crypto firms to come in and register it was 
fake and today Brian Armstrong tweeted this   Coinbase staking services are not Securities we 
will happily defend this in court if needed so   Gary Gensler just be straight with us is coinbase 
next so how does this though differ for example uh   From some of the other firms out there 
including coinbase who offer yield products   Whether you caught the labels don't matter 
uh long ago Supreme Court Justice Marshall   Said this so eloquently uh it's not about the 
labels it's about the underlying economics and uh   This really should put everyone on notice in this 
Marketplace whether you call it lend whether you   Call it earn whether you call it yield whether 
you offer what's called an annual percentage   Yield apy that's doesn't matter if somebody's 
taking their tokens and transferring it to that   Platform the platform controls it and guess what 
happens if they go bankrupt you stand in line at   The bankruptcy court there's a saying in crypto 
that says not your keys not your coins so those   Other platforms should take note of this and seek 
to come into compliance do the proper disclosures   And registration and the like now a silver 
lining is that if you self-custody and stake   Through self-custody like ethereum for example 
you're in complete control there's nothing they   Can do to you even Gary Gensler himself admitted 
this in the video there's an expression in crypto   Not your keys not your crypto and actually 
self-custody staking Solutions like ethereum   And ethereum products actually pumped on the news 
of the crack and Crackdown but still it seems that   There's something fishy going on at the SEC and 
their own commissioner Hester M Pierce even had   Some harsh words to say and again she's on team 
SEC and she said this I can only imagine what's   Really going on make sure you subscribe to our 
Channel this is a developing story we're going to   Be updating you on this throughout the next couple 
of weeks so stay tuned because I honestly coinbase   Might be next but it's also possible that the SEC 
is next Kraken CEO calls on Congress to protect   The U.S crypto industry following settlement with 
the SEC overstaking program and Congress is about   To launch a probe into the SEC and specifically 
their handling of FTX and Sam bankman freed more   On this as it develops subscribe to the 
channel like the video see you tomorrow