The Man Behind The Crypto Crackdown!! What’s Coming?!

What if I told you that the ongoing Crypto Crackdown is being coordinated by A member of the Federal Reserve well our Research suggests that Michael Barr the Fed's vice chair for supervision could Be playing a key role his recent speech About keeping crypto out of the banking Sector is the clearest evidence so far That he may well be pulling the strings Now to give you an idea of what Michael Has in mind he announced that the FED Will be establishing a team to address Quote unregulated stable coins shortly Before usdc lost its Peg a coincidence I'm sure today I'm going to give you a Quick bit of background about Michael Summarize what he said in his recent Speech and tell you what it could all Mean for the crypto Market Questions If you've never heard of Michael Barr Here's what you need to know Michael is A lawyer who has spent most of his Career jumping between Academia and the U.S government Michael is known for being one of the Architects of the Dodd-Frank Act the law Passed after the 2008 financial crisis Before you roll your eyes consider the Following the Dodd-Frank Act basically Legalized Bank balins in the United States and paved the way for similar Legislation around the world thanks to Dodd-Frank the money you have at the

Bank may be used to bail out that bank The next time there is a financial Crisis The Dodd-Frank Act also created the Consumer Finance Protection Bureau or Cfpb the cfpb was proposed by Elizabeth Warren the most anti-crypto politician In the United States The cfpb was allegedly behind the Original operation choke point which Secretly cut off certain industries from The banking sector The fact that the cfpb was proposed by An anti-crypto politician and was Allegedly behind an operation to unbank Certain industries in the past means it Could be behind the current operation to Unbank the crypto industry now Unfortunately there's no way of knowing For certain the cfpb operates with next To no oversight Despite being funded by the fed and Accounting for as much of 12 of the Fed's total annual budget the cfpb is Not overseen by fed officials nor by U.S Politicians Michael may have some Insight into this secretive agency given He co-authored the law that created it And seems to be friends with Elizabeth It seems that Michael also included Something for himself in the Dodd-Frank Act II that's because Dodd-Frank also Created a new position at the FED can You guess which position it is that's

Right it's the vice chair for Supervision the same position that Michael holds as of last summer Funny that Now if you watched our first video about Michael from last September you'll know That he also happens to be anti-crypto And even specified that one of his Short-term goals was to go after the Crypto industry back then I warned that Michael would use his powers to the Fullest extent and well here we are On that note you should know that Amendments were made to the Dodd-Frank Act in 2018 which significantly reduced The powers that Michael would have in His current position as it so happens The recent banking crisis could result In these amendments being rolled back Giving Michael yet more power If you watched our recent video about Jerome Powell's testimony you'll know That Michael just so happened to be Reviewing Capital requirements at banks In the lead-up to the banking crisis It's almost as if Michael knew the Banking crisis was coming and was Getting his recommendations ready in Advance So the speech I'll be summarizing today Was given by Michael the day before the Banking Crisis began to unfold it Suggests that he and his anti-crypto Allies plan on using the crisis to

Justify cutting the crypto industry and Especially stable coins out of the Banking system this is because crypto And especially stable coins are direct Competitors to Fed now for reference fed Now is a fast payment system that will Be released by the FED between May and July this year fednow is analogous to a Central bank digital currency system It's essentially a step towards the Creation of a digital dollar Now Michael mentioned in September that He was also focused on fed now so with That context in mind let's analyze Exactly what Michael said about crypto In his recent speech As with Michael's previous speech this One took place at a think tank based in Washington DC called the Peterson Institute for international economics Michael was introduced by a Georgetown University Professor named Anna gelpin Who later held a very interesting Interview with him Michael started his speech by saying That the FED wants to learn from the Recent turmoil in the crypto markets he Said that the FED doesn't want to stifle Innovation but wants there to be strict Crypto regulations especially around Stable coins this is exactly what Jerome Said in his testimony the previous day Michael went on to highlight how he had Spoken with college students who had

Lost money in crypto and acknowledged That around 20 percent of American Adults have either held or still hold Crypto He then presented an interesting Dichotomy regulation can support Innovation or support existing Institutions this dichotomy is Interesting because it's a tacit Admission by Michael that crypto is a Threat to existing institutions he said That too much regulation stifles Innovation whereas too little regulation Threatens existing institutions Obviously Michael and his colleagues ER Towards protecting the status quo Michael also admitted that regulation Tends to have a hard time keeping up With Innovation he went on to claim that Blockchain technology is beneficial not Cryptocurrency he claimed that the Benefits of crypto are quote Inconsistent with reality and said that Crypto adoption is quote contagious Michael also said that crypto adoption Is ultimately due to The Narrative of it Being outside of government control and A hedge against inflation when it's Clearly correlated to other assets He accurately pointed out that most of Crypto claims to be decentralized but Most of crypto is actually centralized You can find out what decentralization Actually means using the link in the

Description I digress Michael continued by talking about how The collapse of FTX was one of many Crypto catastrophes and claimed that Crypto is attractive to criminals Despite the fact that almost every Transaction is publicly viewable and Therefore traceable He concluded that crypto poses a threat To the banking sector naturally Michael Cited the collapse of silvergate bank as Evidence of this threat and likely sees The recent collapse of Signature Bank as Additional evidence he then revealed That the FED is working with International authorities to ensure that There is no regulatory Arbitrage nowhere For crypto to run to Michael also Revealed that any bank with current or Prospective crypto clients must notify The fed and that Banks should not be Holding any crypto on their balance Sheets Something tells me that these banks will Be subject to the additional Capital Requirements Michael has been planning For weeks Michael then stressed that Banks need to be aware of the quote Liquidity risks associated with Stablecoin deposits a reference to the Fed's most recent crypto warning in February Michael revealed that the FED Will continue to publish warnings about Crypto with other Regulators namely the

SEC and OCC Considering that every one of these Crypto warnings has magically resulted In a crypto Crackdown or catastrophe Shortly afterwards this Revelation Suggests that crypto isn't out of the Woods just yet Michael then explicitly Stated that the fed and its allies will Continue to Target stable coins in their Warnings that's because Michael believes That all stable coins must be subject to Oversight by the FED because stablecoin Adoption could be exponential and this Risks massive runs on stablecoin Reserves now this is yet another tacit Admission from Michael that stable coins Are direct competitors to Fed now and Cbdcs After Michael finished his speech Anna Started her interview the first question Was eye-opening and it was whether the Collapse of silvergate was quote cryptos Dodd-Frank moment in other words was the Collapse of silvergate the Catalyst that Will lead to the creation of another Concerning set of laws what's odd is That Michael didn't say yes and part of Me thinks that's because he knew that Silvergate was only the first to fall in Any case he conceded that it was a Wake-up call and a clear signal to the FED that it needs to use its existing Powers to cut crypto out of the banking Sector especially stable coins noticing

That he was eager to talk about stable Coins Anna asked Michael what the FED Had in mind regarding stablecoin Oversight considering that stable coins Are like money market funds Anna also Added that the best way of getting rid Of private money like stable coins is With public money Cbdc's Michael said that stable coins Are quote unregulated and unsupervised Specifically that stable coins are quote Unregulated money market funds operating On payment rails this is exactly what SEC chairman Gary Gensler has been Saying and Michael said that Jerome is On the same page as well Anna then asked Michael something along The lines of how long it will take for The FED to crack down on stable coins Michael didn't give a direct answer but Implied it would be soon I suspect that The SEC will do most of the heavy Lifting by trying to designate stable Coins as Securities note that the SEC Could be suing paxos over its issuance Of busd at any moment as we're now past The 30-day Wells notice period Coinbase's recent delisting of busd Further adds to the fud Depending on the sec's reasoning with Busd we could see D listings of other Stable coins by U.S exchanges anyways Anna went on to ask Michael whether the Feds Crackdown on stable coins is in any

Way related to cbdc's not surprisingly Michael danced around the question However he did admit that the financial Stability oversight cancel or f-stock Has been actively discussing stablecoin Regulation recently for those unfamiliar Fsoc is a U.S government agency Consisting of members drawn from the fed The treasury Department the FDIC and Multiple other U.S Regulators fsoc also Has members from the cfpb which is not Surprising given that fsoc was also Created by Dodd-Frank presumably with Michael's input anyhow Anna then asked Michael a good question and that's why The crypto Crackdown is happening now And whether new crypto regulations will Be required Michael said the crypto Crackdown is happening now because small Banks were effectively hiding their Crypto exposure and have learned the Hard way Regarding crypto-specific regulations Michael said that existing regulations Will be enough now this is concerning Because existing regulations were Written long before Financial Technologies like cryptocurrencies Existed they are very out of date but Michael and his allies don't seem to Care once Anna was finished asking Questions she opened the floor up to the Audience one chap asked Michael about The eu's crypto-specific regulations

Michael said that the U.S is unlikely to Create crypto-specific regulations and Will likely adapt existing regulations So that they apply to the crypto Industry Michael then dropped a bombshell and That's that the regulation by Enforcement that we've seen from the fed The SEC and other Regulators will Continue until Congress has addressed Crypto regulations this is terrifying Because Congress may not address crypto Regulations until after the next Election Michael then dropped another bombshell In response to a follow-up question by Anna and that's that the FED has been Working closely with the financial Stability board or FSB on global crypto Regulations note that the FSB is Expected to release its Global crypto Regulation recommendations this upcoming June If you watched our recent video about The fsb's D5 regulations you'll know That there's a high likelihood that it's Regular crypto regulation Recommendations are probably going to be Very bad Luckily some jurisdictions such as the UK and the EU have started creating Their own pro-crypto regulations anyhow Another chap then asked Michael whether He sees stable coins and cbdcs as two

Separate things Michael said that right Now the use case of stablecoins is Limited to crypto and tacitly admitted That the FED wants to keep it that way Michael also revealed something very Significant about stable coins with Cbdc's the government will track every Transaction and control saving and Spending with stable coins however if They were to become a payment method the Government would not be legally allowed To do any of these things Michael Admitted that this was an advantage Stablecoins have over cbdc's Anna then asked Michael to talk about The losses related to investing in Crypto Michael took a banking angle for his Answer he said that banks have limited Exposure to crypto and the FED wants to Keep it that way The takedown of signature by the fed and Its allies suggests they're not playing Around Now Anna's last question was the same as Her first what about the Dodd-Frank Moment in crypto Michael said that it's Up to Congress to create a Dodd-Frank Type law for crypto he reiterated that In the absence of such a law the FED Will continue using its existing Authorities I.E continue cracking down On crypto This brings me to the big question and

That's what Michael Barr's comments mean For the crypto Market well in short they Suggest that the crypto Crackdown in the United States is just getting started And it won't end until Congress has come Up with some reasonable crypto Regulations to rein in The Regulators as I mentioned earlier this may not happen Until after the next election this is Because the original operation choke Point only ended in 2017 one year after A Republican government was elected in 2016. assuming we see the same timeline With operation choke point 2 it could Take until 2025 for that to end now that Said I reckon there's only so much Damage that Michael and his colleagues Can do to the crypto industry between Now and then besides the fact that Crypto companies and projects will be Setting up shop overseas crypto being Cut out of the U.S banking sector could Be the bottom so to speak so far we've Seen all the crypto friendly Banks taken Down but many big banks are still Servicing crypto companies and projects Including stablecoin issuers based on Michael's comments it's possible that The bottom of this crypto Crackdown will Be marked by a debanking of one or more Stablecoin issuers This hasn't happened yet which logically Suggests that the crypto Crackdown isn't Over yet given that the fed and other

Regulators want to blame the banking Crisis on the crypto industry it's Possible that debanking stablecoin Issuers will be one of the solutions They propose there are many ways this Debanking could manifest itself for Example if they really wanted to they Could go after the reserves that are Backing stable coins may I remind you That it was recently reported that Tether was keeping almost half of its Reserves in the United States The anti-crypto cabal could come up with A reason to seize or freeze tether's Reserves pending some arbitrary Investigation they could claim sanctions Of Asian illicit activity or merely take Issue with the fact that tether is based Overseas and unregulated the fed and its Anti-crypto allies could also Target Circle by pointing to usdc's recent De-pegging and the run on redemptions That it caused they could claim that had This run been larger it could have Further destabilized the banking sector Recall that the SEC is also on the cusp Of officially suing paxos over its Issuance of busd now I have no idea what Their reasoning will be but they could Repeat the debunked claim that binance Was involved in illicit activity and That busd was somehow a part of it they Could say the same about usdc and usdt Although this is all spec regulation

It's evident that the fed and its cabal Are intent on cracking down on stable Coins and this hasn't really happened Yet what this will look like is anyone's Guess but I bet it will happen before The FED releases fed now given that Stable coins are seen as its direct Competitor this means that it's possible We could see a stable coin Crackdown in The United States pretty soon You'll know it's here if the crypto Market crashes and because I'll be Keeping you updated at every step of the Ordeal make no mistake though whatever They throw at us crypto Will Survive so I'll leave you with this thought There's a saying in investing called Don't fight the FED which is a reference To the effects that the fed's rate hikes Inevitably have on the market Not Financial advice but I would not Suggest fighting the FED when it comes To this crypto Crackdown you probably Won't win There's a time and a place to fight the FED on crypto but the time and the place Are both further along in the future From where I'm standing it looks like The real crypto fight will begin in 2025 When central banks start holding Cryptocurrency on their balance sheets There sure are some tough battles ahead Folks but I'm confident crypto will win Out in the end

Foreign [Music]


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