This Worries Me!! White House Crypto Crackdown Coming?!

Back in March U.S President Joe Biden Signed an executive order about Cryptocurrency which instructed all Relevant government agencies to produce Reports about crypto and how to regulate It the deadline for these reports was Earlier this month and last week the White house put together a summary of These reports as well as their Regulatory recommendations today I’m Going to explain what the White House’s Crypto framework says in simple terms And tell you exactly what it could mean For the crypto Market Foreign The document I’ll be discussing today is Titled quote fact sheet White House Releases first ever comprehensive Framework for responsible development of Digital assets It was published on the 16th of September and I’ll leave a link to the Full text in the description if you’re Interested Now the White House’s crypto framework Begins with a juicy statistic and that’s That around 16 of Americans hold crypto As part of their personal portfolios This is a few percentage points shy of The 21 of Americans who have ever held Crypto according to research by NBC News Respect to the hodlers The authors go on to explain that crypto Has the potential to quote reinforce U.S

Leadership in the Global Financial System however they caution that these Potential benefits come with risks and Cite terror’s collapse in May as an Example without naming any names What’s odd is the author’s claim that Terrorist collapse caused 600 billion Dollars of damage to the crypto Market In the months that followed This is Highly debatable as there were other Macro factors that caused the crypto Market to go lower namely the stock Market which was also crashing around That time In any case the authors touch on Biden’s Executive order about cryptocurrency From back in March and explained that All the relevant agencies have spent six Months putting together their respective Reports the result is a series of policy Recommendations related to six areas of Focus in the executive order These are quote consumer and investor Protection promoting Financial stability Countering illicit Finance U.S Leadership in the Global Financial System Financial inclusion and Responsible innovation The authors reveal that a total of nine Reports were provided to the White House By U.S agencies we summarized one of Them last weekend and you can find out What crazy things that report said using The link in the description

Now the authors also reveal that these Nine reports quote reflect the input and Expertise of diverse stakeholders across Government industry Academia and Civil Society Obviously there are a lot of loaded Terms here and it certainly begs the Question of exactly which Personnel they Consulted What’s particularly questionable is that These reports focus on quote helping Cutting-edge U.S firms find footholds in Global markets now I’m not sure who Needs to hear this but crypto isn’t About private companies establishing Global dominance it’s about competition Between decentralized Developers Naturally the authors also single out Crypto mining as an area of concern and Call for quote Common Sense efficiency Standards I reckon what counts as common sense Depends on who you ask and as the saying Goes common sense is not that common If that wasn’t spooky enough the authors Say the reports call on the Federal Reserve and the treasury Department to Accelerate the development of a central Bank digital currency or cbdc They even call for the creation of a Quote interagency working group to Develop a digital dollar this is more Significant than you think because it Suggests that the Federal Reserve and

Treasury Department could eventually Become one and the same in fact some Would say this is inevitable given the Trend towards hypercentralization in the Financial system spooky stuff indeed Now the rest of the crypto framework Gives a summary of the policy Recommendations for the six areas of Focus I mentioned earlier you’ll recall I hope that one of these is quote Consumer and investor protection which Has been used to justify all kinds of Things in recent years In this case the authors go straight for The jugular quote digital assets pose Meaningful risks for consumers investors And businesses Not surprisingly there is absolutely no Mention of the rewards that come with Greater risks nor the benefits of Cryptocurrency instead the authors focus On the negatives including cryptos Volatility and the lack of transparency Around cryptocurrency Interestingly they cite a study by The Wall Street Journal from 2018 which Found that a quarter of cryptocurrency Icos had transparency issues that’s Actually not as bad as I thought In all seriousness the authors take it One step too far when they claim that Quote outright fraud scams and theft in Digital asset markets are on the rise According to FBI statistics reported

Monetary losses from digital asset scams Were nearly 600 percent higher in 2021 Than the year before Now there seems to be some sleight of Hand going on here because crypto prices Were much higher in 2021 than they were In 2020. as such it’s to be expected That the monetary losses from crypto Scams would be much higher in Fiat terms While staying the same in terms of Frequency very sneaky indeed Unfortunately the real facts and stats Are not of much concern to the authors And they reveal the steps the current Administration will take to address Consumer and investor protection in Cryptocurrency First it will instruct the Securities And Exchange Commission or SEC and the Commodities Futures Trading commission Or cftc to quote aggressively pursue Investigations and enforcement actions Against crypto projects and companies Looks like the SEC is ahead of the curve On that one Second it will instruct the Consumer Financial Protection Bureau or cfpb and Federal Trade Commission or FTC to quote Monitor consumer complaints and to Enforce against unfair deceptive or Abusive practices If the cfpb sounds familiar that’s Because it’s one of the many Organizations that were created as part

Of the Dodd-Frank Act in 2010 For reference the Dodd-Frank Act was put Together by Michael Barr in the Aftermath of the 2008 financial crisis As it so happens Michael Barr is the Current Vice chair for supervision at The Fed This is significant because this Position was also created by the Dodd-Frank Act more about that and what It means for the crypto Market using the Link in the description Now the third step the current Administration will take to protect Consumers and investors will be to Instruct various agencies to quote Address current and emergent risks in Cryptocurrency I couldn’t help but notice that the Authors don’t clarify what kinds of Risks the administration is concerned About Finally the current Administration will Instruct the financial literacy Education commission or Fleck to quote Help consumers understand the risks Involved call me crazy but I don’t think They’ll be talking very much about the Benefits of crypto It also reminds me of the international Monetary fund or imf’s campaign to Educate about that is promote cbdc’s and Educate about AKA discredit Cryptocurrency in countries around the

World what would we do without these Unaccountable International Organizations eh Now the second set of crypto policy Recommendations relates to financial Conclusion and this is where the authors Drop some more juicy statistics quote Roughly seven million Americans have no Bank account another 24 million rely on Costly non-bank Services as a random Fact I first heard this statistic when Listening to the testimony of Cryptocurrency CEOs earlier this year Which we also summarized by the way Believe it or not but around five Percent of Americans are unbanked and Another 14 are underbanked meaning they Use non-bank services for finance Rather than leaning into these efficient Non-bank Services provided by the Private sector the author’s focus on the Fed’s upcoming fed now fast payment Service as the solution Note that fast payment services are a Precursor to cbdcs according to the bank For international settlements or bis Now to the author’s credit they do admit That some cryptocurrencies can make Financial Services more accessible but Also note that there’s still lots of Work to be done on that front This is a valid point but it again begs The question of which cryptocurrencies The authors are referring to probably

Stable coins Regardless the current Administration is Clearly dead set on the fednow payment Service this is because it’s the first Step to addressing Financial inclusion Which will be to quote encourage the Adoption of the FED now service in the U.S economy what’s particularly scary is That this step includes using fednow Payments quote in the context of Distribution of disaster emergency or Other government-to-consumer payments Note that taxation and emergency relief Is how governments around the world will Likely achieve the adoption of cbdcs and Because there can’t be any competition To these cbdc’s the Second Step the Administration will take is to instruct Regulators to crack down on non-banking Entities this presumably includes Cryptocurrency exchanges as many of them Offer services similar to Banks In addition the administration will Quote align Global Payments practices Regulations and supervision protocols This means that there will be no escape From these dystopian systems once They’re implemented or at least that’s The idea To ensure that these dystopian systems Are adopted at all the administration Will instruct the National Science Foundation or NSF plenty of acronyms in Today’s video aren’t there to research

Quote behavioral economics in the Context of fast payments basically Figure out how you can convince Americans to adopt the fed’s dystopian Technology As a fun fact the bis estimates that Between 4 and 12 percent of people will Voluntarily adopt cbdc’s in developed Countries the question then is how They’ll convince those who will not Voluntarily adopt cbdc’s knowing Governments the answer will probably Involve a lot of force and financial Censorship Anyways the third set of crypto policy Recommendations relates to financial Stability here the authors highlight the Fact that the crypto market and the Existing Financial system are becoming More intertwined They specify that stablecoins is where Most of these connections are On that note I should explain why Regulators are so concerned about stable Coins in short it’s because most stable Coins are backed by U.S government debt If stable coins become too big and there Is a run on their stablecoin issuer they Could dump these treasury’s assets on The open market this is why it’s a bit Silly to use the collapse of terror’s UST stablecoin as an example of how much Damage crypto could do to the existing Financial system I suppose the authors

Don’t want to reveal that centralized Stable coins are a way of subsidizing U.S government spending What the authors do reveal is that the Financial stability oversight Council or Fsoc will be publishing a report about The risk crypto poses to financial Stability in October this report will be More significant than you think and That’s for two reasons First the fsoc was also created by the Dodd-Frank Act if you watched our Aforementioned video about Michael Barr It really looks like he’s eager to use His powers and the powers of these Agencies to crack down on crypto when The next financial crisis comes around This ties into the second reason why the Fsoc’s upcoming report is so important And that’s because it will be released Around the time the crypto Market will Likely be seeing its bear Market lows This would make it the perfect time for Michael and Co to exercise their powers More about that in the description Now the authors go on to reference the Stablecoin report put together by the President’s working group on financial Markets last year as a place for Policymakers to start we actually Summarized that report too and I Recommend checking that video out sooner Rather than later link is also in the Description

Funnily enough the current Administration only identifies two steps It is planning to take to address the Financial stability risks supposedly Posed by cryptocurrency the first is Quote the treasury will work with Financial institutions to bolster their Capacity to identify and mitigate cyber Vulnerabilities The second step is similarly strange and That’s to quote identify track and Analyze emerging strategic risks in Cryptocurrencies The fact that the authors couldn’t Identify any concrete Financial Stability risks caused by Cryptocurrencies in these two steps Suggests that there aren’t any at least Not yet Now the fourth set of crypto policy Recommendations relate to advancing Quote responsible innovation The authors start with another statistic And that’s that around half of the most Valuable tech companies in the world are Based in the United States this might Have something to do with all the Backdoor deals these tech companies have With U.S intelligence agencies but hey Let’s not go there Ironically the authors underscore the U.S government’s role in facilitating Technological innovation in the private Sector

If you’re wondering just how Innovative The Government Can Be check out our Recent video about weather modification Link will be in the description of Course Now factual conspiracies aside the Authors jump straight to the steps that The administration will take to preserve The peculiar dynamic between the public And private sectors The first step will be to instruct the Office of Science and Technology policy Or ostp to quote develop a digital Assets research and development agenda If you watched our aforementioned video About one of the White House’s reports You’ll know that the ostp isn’t all that Scientific Meanwhile the aforementioned NSF will Quote back social science and education Research that develops methods of Informing educating and training diverse Groups of stakeholders Sounds good on the surface but there Always seems to be something bad lurking Down below with these crypto initiatives Now the Second Step will be to instruct The treasury Department and other Financial Regulators to quote provide Innovative U.S firms developing new Financial Technologies with regulatory Guidance best practices sharing and Technical assistance This could actually be a very good thing

If done right because institutional Investors have been itching for the Regulatory Clarity they need to invest In cryptocurrency the regulatory Uncertainty caused by ethereum’s Transition to proof of stake is Particularly concerning to both retail And institutions alike The third step will be to instruct Various environmental Regulators to you Guessed it quote track digital assets Environmental impacts develop Performance standards as appropriate and Provide local authorities with the tools Resources and expertise to mitigate Environmental Harms The authors ad that quote opportunities Exist to align the development of Digital assets with transitioning to a Net zero emissions economy and improving Environmental justice This makes me wonder if they really will Ban proof of work and whether they’ll Use some unscientific justification to Do so Now the fourth and final step is Interesting as it involves quote Establishing a standing Forum to convene Federal agencies industry academics and Civil Society to exchange knowledge and Ideas that could inform Federal Regulation standards coordinating Activities technical assistance and Research support

If the getting of all hands on deck to Address cryptocurrency is not a sign That the government are threatened by Crypto adoption I don’t know what is Anywho the fifth set of crypto policy Recommendations relate to the status of The United States as a leader of the Status quo of global Finance as well as The country’s Financial competitiveness Incredibly the authors commence by Saying the quiet part out loud quote Today global standard setting bodies are Establishing policies guidance and Regulatory recommendations for digital Assets the United States is working Actively with its Partners to set out These policies in line with our goals In other words unelected International Organizations such as the financial Action task force or fat F act in Accordance with the interests of the United States what’s even more telling Is that the authors explain that the United States has a quote valuable Opportunity to partner with countries Still developing their digital asset Ecosystems in other words the U.S is Positioned to ensure that its dominance Of the Global Financial system continues To ensure all of the above the Administration will take the following Steps first it will Leverage The Power Of international organizations like the Fat F to ensure quote U.S values find

Their way into cryptocurrency note this Is code for financial control and Financial surveillance not freedom and Liberty Second the administration will instruct Various government agencies to partner With similar government agencies around The world oddly enough this step does Not include any mention of Cryptocurrency so maybe it’s just a way Of sneaking in some more Global Governance stuff Third the administration will help Developing countries develop their Digital asset infrastructure if the Imf’s help is anything to go by this Aid Will come with lots of strings attached Fourth the administration will quote Help cutting edge U.S financial Technology and digital asset firms find A foothold in global markets for their Products This step also doesn’t mention crypto But I have a feeling this is a reference To regulated stablecoin issuers like Circle If you missed the memo Circle has Started releasing stable coins for other Fiat currencies notably the euro I Reckon it would be in the interest of The United States for Circle to provide Its digital currency infrastructure to Countries in Europe it’s certainly in The interest of BlackRock which backs

Circle more about Blackrock in the Description Anyhow the sixth set of policy Recommendations relate to the favorite Topic of anti-cryptocritics and that’s Illicit activity in cryptocurrency The authors Begin by revealing that the United States has been the entity Pushing for kyc around the world the Authors then say something extremely Concerning and that’s quote While our efforts have strengthened the U.S financial system digital assets some Of which are pseudonymous and can be Transferred without a financial Intermediary have been exploited by Bad Actors If you don’t understand why this is so Concerning consider that every single Cryptocurrency is pseudonymous and that Every single cryptocurrency can be Transferred without a financial Intermediary they’re not talking about Privacy coins here they’re talking about All cryptos This rhetoric is consistent with the fat F’s end game of killing crypto by Labeling any crypto transaction or Activity that doesn’t involve a Regulated intermediary as high risk and Over time the fat F will pressure Countries to cease providing services to Individuals and institutions who are High risk

As expected the authors go on to give Examples of crypto being used by Bad Actors for illicit purposes and I Couldn’t help but notice that they Didn’t provide any statistics as Concrete evidence That’s probably because they know that Only 0.15 of all crypto transactions are Related to illicit activity for context Between two and five percent of all Fiat Transactions are related to illicit Activity this is despite all the Extensive kyc and AML that’s been Enforced around the world by the fat f As a matter of fact it seems that the Fat F’s so-called recommendations have Done next to nothing to reduce illicit Finance over the last 30 years All they’ve done is create a Multi-billion dollar industry of Compliance companies and Justified lots Of government overreach more about all That in the description now when it Comes to the steps the current U.S Administration will take to combat Illicit activity in cryptocurrency the First will be to call on U.S politicians To expand the bank secrecy act to all of Crypto the authors explicitly state that This coverage will include defy and nfts This means that every crypto transaction Worth more than 10 000 US Dollars would Have to be reported to the authorities

Including peer-to-peer crypto Transactions which you’ll recall the Authorities want to get rid of Case in point the administration will Also push politicians to quote raise the Penalties for unlicensed money Transmitting which presumably means Going after D5 protocols and possibly Even crypto wallets It will also push politicians to let the Department of Justice quote prosecute Digital asset crimes in any jurisdiction Where a victim of those crimes is found To my understanding this means the US Government could go after crypto crimes Anywhere in the world Now the Second Step the administration Will take is to instruct the treasury Department to publish two reports about The illicit Finance risks of defy and Nfts these reports will be released by The end of February and by July next Year respectively we’ll be sure to cover Those when they come out Now the third step the administration Will take is to quote continue to expose And disrupt illicit actors and address The abuse of digital assets the details Of this step suggest we will see more Sanctions against crypto projects and Protocols like tornado cash The fourth step the administration will Take is to work with the private sector To make sure it understands the illicit

Financing risks of cryptocurrency I Suspect this will include labeling Certain crypto activities as high risk As per the fat F’s game plan I also couldn’t help but notice that the Authors reveal that quote the cfpb and Independent agency also voluntarily Provided information to the Administration as to risks arising from Digital assets this is suspicious as You’ll recall that the cfpb was created By the Dodd-Frank Act which was written By an individual who seems to be out to Kill cryptocurrency watch out Now the final part of the White House’s Crypto policy recommendations relate to A digital dollar cbdc it seems that this Was snuck in as well since it wasn’t Exactly emphasized at the beginning of The fact sheet The authors start by talking about all The benefits that a digital dollar would Bring benefits that could just as easily Be achieved by an existing non-bank Entity or cryptocurrency these include Financial inclusion cross-border Payments you know the usual talking Points It’s towards the end of the first Paragraph where the authors reveal the Real reason why the U.S government wants A digital dollar and that’s because it Could quote help preserve U.S Global Financial leadership and support the

Effectiveness of sanctions As the recent sanctions against Russia’s Central Bank have shown however these Two goals seem to be mutually exclusive No same country would adopt a digital Dollar if it meant the U.S government Could effectively turn off its economy At the flick of a switch This degree of power would be possible If the USD maintains its Reserve Currency status in a digital form hence Why the two goals are mutually exclusive Either the USD remains neutral to be the World’s Reserve currency or it is Weaponized at the expense of this status The more you know Now the authors reveal that quote the Administration has developed policy Objectives for a U.S cbdc system which Reflect the federal government’s Priorities for a potential U.S cbdc Put differently the ball is already Rolling towards the creation of a Digital dollar The authors reiterate that the treasury Department will work hand in hand with The Federal Reserve to develop a digital Dollar again foreshadowing the Possibility of these two entities Merging as many have predicted And of course there was no mention of All the downsides of a cbdc if you’ve Watched any of our videos about cbdc’s You’ll know that they will give

Governments the power to decide how you Spend where you spend and what you spend Your money on and even how much you can Save That’s just on the individual level at The economic level cbdcs will make Borrowing extremely expensive due to Their effects on Bank lending and Profitability good luck getting a Mortgage It’ll also mean that the stock market Itself will be manipulated think Robin Hood blocking trades during the GameStop Saga but on steroids So this brings me to the big question And that’s what the White House’s crypto Framework means for the crypto Market To be blunt it’s not good it’s clear That the current Administration wants to Crush cryptocurrency If you’ve seen any of our summaries of Crypto related testimonies this should Not come as a surprise Logically then it means that the success Of the crypto policy recommendations Laid out in the framework ultimately Depends on what happens during the next Election Cycles in the United States It looks like pro-crypto politicians Will gain ground in the upcoming Midterms but at this point it’s anyone’s Guess as to what the outcome of the 2024 Election will be That’s going to be the more significant

Election since it’s around the time the Next crypto Bull Run should come take Note If pro-crypto politicians do gain ground In the upcoming midterms then I reckon Most of these anti-crypto policies will Never be pursued then again so many of Them are being undertaken by unelected Officials that have been appointed by Anti-crypto politicians so it’s Uncertain One thing is for sure however and that’s That a wave of Regulation is coming to The crypto industry some of it will be Reasonable and we could see large Institutional inflows as a result it’s The unreasonable regulation that we must Be on the lookout for this includes Labeling of all crypto related Activities as high risk as a way of Choking off and eventually killing the Industry Given that the United States is behind The international organizations engaging In this kind of Guerrilla regulation American voters might be the ones who Decide what comes next for crypto at the End of the day as such I strongly Suggest that any American viewers inform Themselves about pro-crypto candidates In their areas you’ll notice that Pro-crypto politicians sit on both sides Of the aisle so you should be able to Find one you can support regardless of

Your political Stripes I’ll leave a link To coinbase’s crypto politician tool in The description if you need it and I’ll Leave you with this thought The crypto world is counting on you to Make sure Financial Freedom continues Financial Freedom is required for Everything else last I checked freedom Is an American value so let’s see it Ring And that’s all for today’s video about The White House’s crypto policy Recommendations if you found it Informative feel free to share it so Other American crypto holders know What’s at stake remember to smash that Like button to give us a boost in the Algorithm And subscribe to the channel And ping that notification Bell so you Don’t miss our next spicy crypto summary While you wait for that you can check Out coin Bureau clips for behind the Scenes and live streams and check out The coin Bureau podcast for in-depth Crypto discussions that will blow your Mind Feel free to follow me on Twitter Tick Tock and Instagram and join my telegram For daily crypto updates you can’t Afford to miss If you’re wondering what cryptos I’m Holding during this bear Market Subscribe to My Weekly Newsletter to Find out it’s also where I give you my

Predictions for what comes next And if you want to support the channel Head on over to the coinbureau merch Store and get yourself some crypto Apparel that will keep you warm this Winter You can find your way there and to all The other resources I mentioned using The links in the description thank you All so much for watching and I will see You next time till then stay cool stay Safe and stay crypto [Music]