Why Bitcoin could emerge stronger from the U.S. crypto crackdown

The Crackdown on crypto in the US seems To be far from over its latest victim is By us the world's largest exchange which Was sued last week by the commodity Futures Trading commission for allegedly Evading U.S customer restrictions laws While many in the industry cities as a Coordinated attempt to stifle crypto Innovation in the country not everyone Is so worried about it Corey Clipson the CEO of swan Bitcoin remains confident That Bitcoin will emerge stronger from The Crackdown and even welcomed the Lawsuit against virus the non-bequine SharePoint industry dramatically Up and of course there was going to be Backlash but is Bitcoin really immune From the US government's pressure and How could the demise of centralized Exchanges possibly favor Bitcoin Adoption I try to find out in my Conversation with core clipsen the CEO Of swan Bitcoin I'm Giovanni on this Show we challenge the ideas that shaped The world of crypto in each episode we Assess a crypto narrative a Macroeconomic Outlook or especially Disruptive technology only the most Solid ideas will make it to the other Side You were saying that in the moment we Are now it's one of the greatest moments In history for Bitcoin a lot of people Might ask themselves how come we are

Seeing so much turmoil going on in the Banking system in crypto how come this Is so great time for Bitcoin according To you yeah the way I'm looking at this This moment in time here in 2023 is we Have a banking crisis that just happened At least the first stage of it TBD it's Roiling a bit we'll see if there are Other shoes to drop so the last time That we had a banking crisis to talk About we've really only had one in the Lifespan of Bitcoin which is only 14 Years and that was 2013. it was the Cyprus bailin which really only affected Pretty much like Rich oligarch types From you know the Eastern block Basically storing money in Cyprus kind Of knew the risks there and they Basically decided to soak those people And and take their money essentially Um and also they were probably like a Tenth of a percent the number of people Who were sort of That knew something about Bitcoin that Were following it that we're interested In it versus where we are today and so With a Western World banking crisis That's much much bigger and with a Thousand times more people knowing about It and we're not already sort of in a Bull market so you know there's Four-year Cycles until there's not it's A meme that's very strong I think we Have a setup for the first ever

Extended duration bull market it might Be choppy it might go up might go down Whatever but I think instead of sort of Uh packing our bull market into like Four to six months which is what's Happened in 2013 2017 2021 I think we Have a really good shot of this creating A circumstance where you can talk about Bitcoin and get people interested in Bitcoin and get them buying Bitcoin for The first time or get people buying more Bitcoin uh over probably like a two-year Period could be even three years Something like that you know I would Like just to touch upon what happened in The latest few days this week big news Was the lawsuit against uh minus binus Is of course one of the biggest if not The biggest cryptocurrency Exchange in The world basically the U.S Regulators Are accusing buyers of violating trading Derivatives rules in the in in the US And also encouraging customers that are In the US the To bypass restrictions you kind of Welcome this thing around binance that Happened saying that's uh basically it's A good thing so can you explain why you Think it's a good thing yeah so I don't Know about welcomed I think uh I forecast I would say that this would Happen I think any time that uh You know basically the the truth about Altcoins is laid bare and that it's

Proven that they're you know basically Just just lottery picks or gambling or Pump and dump schemes or whatever it is The classic like Affinity marketing I Love Bitcoin buy my coin like Cesius said his portfolio is like 99 BNB That's what he tries to promote he wants BNB to go to the Moon he doesn't care About Bitcoin he doesn't promote Self-custody you know except Occasionally but for the most part you Know he want he wants all your money and He wants you to turn trades through These altcoins and he wants to use his Market makers to paint the tape and make It pretend like these things are good And keep on taking listing fees and Giant token piles from these new VC back Projects and Insider schemes and just Kind of keep the casino going the bytes Case seem to be included in a broader Broader Trend as you already mentioned In the US Regulators are going down pretty hard on The crypto industry in the U.S Especially on the connections between The crypto industry and the banking System so a lot of people call it the Operation Shock Point 2.0 as this sort Of Coordinated attack on crypto in the US Do you see uh this coordinated attack Happening do you agree with this view so It's not coordinated

By some group of people like plotting Some kind of you know effort just snuff Out crypto there's plenty of banks that Want to that want to serve normal Businesses that have good operations uh What I think is happening is there's a Backlash that obviously would happen as All of these scams and all of this Mismanagement is uncovered so you know Basically the the outright fraud of Celsius and Alameda FTX the dramatically Inept and incompetent risk management of Gemini Genesis uh three hours Capital Was both scamming and mismanaging uh Voyager and block fight dramatic Mismanagement and tons of marketing Misrepresentations you know kind of False marketing and so you can brand it Operation choke point 2.0 if you want to But that's generally going to be kind of Uh you know kind of a self-serving label Put on something To make it seem like there's a bad guy That's trying to do something to you When it's really just kind of a Collection of actions that would Naturally have occurred regardless of Whether it's coordinated or not so it's Kind of crypto blockchain VCS pushing The idea of operation show Point 2.0 Making it sound like that's something That's like branded and organized but Really it's just wow the the non-bitcoin coin industry dramatically

Up and blew up and lost everybody tons Billions of dollars worth of money and Exposed themselves uh for being full of Scams and of course there was going to Be backlash Right but I guess that the main point a Lot of people in the industry are making Is that yes we had the last year a bunch Of Bad actors that really Um really uh kind of compromise the Reputation of the industry that doesn't Exclude there are also good actors in The industry that want to play according To the rules you know there is a Spectrum obviously like I think you know Coinbase obviously is trying to do the Profit maximization thing and I don't Think they're you know moral but what They're doing is not illegal yet for the Most part it may be ruled illegal in the Future but you know they're basically Trying to play the the clean casino game You know promote promote the casino Games let people have fun trading Whatever it is Um so yeah I mean they're dramatically Cleaner than you know machenski and Celsius or SPF and FTX obviously as as Our you know Kraken and and Gemini too Yeah but one of the main points here is That the SEC has been going after these Companies using this uh approach which Is defined as a regulation by Enforcement by which

Um basically they the Gary Gessler came Out saying that practically all Cryptocurrencies have to be defined as Securities except Bitcoin do you see Gases approach to crypto to the crypto Industry as the right one I don't know if it's right or not but I Mean the SEC is doing its job uh which Is to you know basically protect people From Ponzi schemes and scams and Unregistered Securities and at least Anything that is a security require it To register and play by the same rules As the rest of the tradfi industry you Know if you are in DC and you've been Banging on if you've been banging the Drum for a couple of decades saying like I want to get rid of the SEC and you Know I think that you know Ponzi Schemers should be able to send direct Mail to nursing homes and try to get old People into Ponzi schemes and like you Just totally against regulation and That's you're just anarcho libertarian Whatever Um that's totally fine that's morally Consistent but to want to have security Regulation for the but not for me which Is what the altcoin industry wants and They want basically all of these other Schemes and scams and pump and dump Things to continue to be regulated but Just not their little Nook Um I think is just uh hypocritical you

Are running a Bitcoin early company Which is uh Swan Bitcoin and you have Been sort of uh yeah pointing out at all These troubles that are affecting other Cryptocurrencies while a Bitcoin is uh Basically shining uh out of the city out Of the situation as the winner in a way But what I want what I wanted to ask you Is that even Bitcoin only companies in The US are being affected by this Crackdown that we are seeing even you That's one Bitcoin you had your Corporate account shot by Citibank back In October without any sort of Explanation so yeah I was wondering how Can you see this trend as positive even For for a Bitcoin company Yeah I mean that's that's obviously Super Annoying It's because a lot of People don't have the same opinion or Aren't educated and they just think of The crypto industry because that's how The sort of affinity marketing scheme Has worked over the last six seven years Which is like there's the crypto Industry in Bitcoin as part of it Whereas really there's Bitcoin and then There's 22 000 altcoins which are a Totally different category it's a Different asset class Um and obviously Banks aren't up to Speed on this necessarily and so they Just include it all in like one risk Category and so if they find out that

You're doing Bitcoin and they do a scan And they're uncomfortable with it for Some reason you never get to know Um but the good thing is if you have a Business that is simple like Swan where We're you know basically just a Brokerage with a bunch of financial Services and products Um it's very easy to understand it's no Problem whatsoever to go right out the Door cashier's check in hand and just Open an account with any of the 10 000 Other Banks there's plenty of banks that Will serve you for an operating account Where you just making payroll and paying Vendors and things like that okay so Just to rub up the discussion I wanted To touch upon something that I read on Twitter so uh you have been quite vocals About what's going on with binance kind Of uh As you said for seeing its demise and The welcoming uh this the situation that That binuses is going through as Positive for Bitcoin because you said That buyers is slowing down Bitcoin but On the other hand a lot of people are Pointing at the fact that the binance Like coinbase are extremely popular Platforms that have been onboarding uh Tens of thousands of people into Bitcoin In the last years and so they were Extremely beneficial for Bitcoin Adoption

Yeah I mean my take there is like Bitcoin onboards people into Bitcoin as People find out about it and then they Look for a place to buy it and there's Always going to be a place to buy Bitcoin and so the activity the primary Marketing activity of coinbase and of Binance is to Market all coins it's it's I love Bitcoin buy my coin is Basically the the whole game orange Washing right you know these people they Actually understand what Bitcoin is and They've chosen to go the path of you Know trying to monetize as long as the Window is open for monetizing through All coin trading they'll do it right Because the profits are just Dramatically higher than just being an Honest on-ramp for Bitcoin Um or even in exchange for Bitcoin Obviously people need to buy a need to Sell Um so yeah I mean I think that uh I Think that basically all coins in Particular since 2017 have siphoned away Demand from Bitcoin and basically any Action that you can take to speed up the Adoption of Bitcoin makes it less likely That a U.S government-led coordinated Attack on bitcoin and bitcoiners can Happen and anything that you're doing to Slow down Bitcoin adoption makes it more Likely that essentially the forces of Tyranny coalesce in a contra Bitcoin

Movement cool okay I think that we can Wrap up here the discussion query it was Super cool as always to debate with you These issues and yeah let's see how this Virus thing plays out Yeah let's see well thanks again as Always for having me on Giovanni I Always enjoy speaking with you


Coinbase is a popular cryptocurrency exchange. It makes it easy to buy, sell, and exchange cryptocurrencies like Bitcoin. Coinbase also has a brokerage service that makes it easy to buy Bitcoin as easily as buying stocks through an online broker. However, Coinbase can be expensive due to the fees it charges and its poor customer service.

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