Crypto - why do we need them?

The CFTC complain against Zhao Changpeng, Samuel Lim and Binance is really quite something.

https://www.msn.com/en-us/money/companie...r-AA198mDc

The CFTC alleged that Binance violated federal law to solicit U.S. users for millions in revenue, a potentially existential threat to the exchange.
Binance, its CEO Changpeng Zhao, and its former compliance officer, Samuel Lim, are all named in the complaint.
CNBC previously reported on how Binance engages in similar activity to solicit mainland Chinese users.

Some snippets here of the crazy details:

https://adragonhoard.blogspot.com/2023/0...arges.html

Or just read the CFTC complain directly... it's crazy

https://www.courtlistener.com/docket/670...on-v-zhao/

After almost every major financial center has fully banned Binance, I reckon US is the biggest winner here.

It allowed a "local Binance version" to strive, let it operate freely for a while, come in and investigate them when the party is over and then fine them 4 billion dollars. Pretty sure Janet Yellen can't see the irony here and who cares when the coffers are richer by 4billion.

Binance CEO Changpeng Zhao pleads guilty as part of broad pact with US authorities

"we are operating as a fking unlicensed securities exchange in the USA bro."

"'we need a banner ‘is washing drug money too hard these days - come to binance we got cake for you.'"

That lack of controls, according to the Treasury Department, meant Binance failed to prevent and report suspicious transactions with terrorists — including Hamas' Al-Qassam Brigades, Palestinian Islamic Jihad (PIJ), Al Qaeda, and the Islamic State of Iraq and Syria.

"Binance turned a blind eye to its legal obligations in the pursuit of profit," Treasury Secretary Janet Yellen said Tuesday. "Its willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform."

https://finance.yahoo.com/news/binance-c...39906.html

Binance restricted countries:
https://www.datawallet.com/crypto/binanc...-countries

Understanding Bitcoin mining
https://x.com/TheGuySwann/status/1928617026588741967

I am not a crypto bro (nor own any crypto), but I think this bill make sense - regulating cryptocurrencies/products by ensuring that they are backed by assets. This is just like all the other securitization financial products (MBS, CLNs, CLOs etc) that had been produced over the many decades.

Although the bill has only just passed the Senate, but it should be a done deal since some Senate Democrats actually supported the bill and the Republicans control the House of Rep.

US Senate passes stablecoin bill in win for crypto, Trump

If signed into law, the stablecoin bill would require tokens to be backed by liquid assets – such as US dollars and short-term Treasury bills – and for issuers to publicly disclose the composition of their reserves on a monthly basis.

https://www.businesstimes.com.sg/interna...ypto-trump

P.S. I do take some offence with the name "stablecoin" since it may give people a false sense of security. But you have to give it to the inventor.

(18-06-2025, 10:54 AM)weijian Wrote: I am not a crypto bro (nor own any crypto), but I think this bill make sense - regulating cryptocurrencies/products by ensuring that they are backed by assets. This is just like all the other securitization financial products (MBS, CLNs, CLOs etc) that had been produced over the many decades.

Although the bill has only just passed the Senate, but it should be a done deal since some Senate Democrats actually supported the bill and the Republicans control the House of Rep.

US Senate passes stablecoin bill in win for crypto, Trump

If signed into law, the stablecoin bill would require tokens to be backed by liquid assets – such as US dollars and short-term Treasury bills – and for issuers to publicly disclose the composition of their reserves on a monthly basis.

https://www.businesstimes.com.sg/interna...ypto-trump

P.S. I do take some offence with the name "stablecoin" since it may give people a false sense of security. But you have to give it to the inventor.

I thought a central bank's digital currency make plenty of sense (as what PBOC is moving towards).

In general, a commodity defined as "a basic raw material that is frequently used as inputs in the production process to produce other goods/services and can be standardized in the trading market". I don't have a CFA but cryptos definitely doesn't sound like a commodity.

US House passes stablecoin legislation, sending bill to Trump

If signed into law, the stablecoin bill would require tokens to be backed by liquid assets, such as US dollars and short-term Treasury bills, and for issuers to publicly disclose the composition of their reserves on a monthly basis.

The Clarity Act, which passed 294-134, would critically define when a cryptocurrency is a security or a commodity and clarify the Securities and Exchange Commission’s jurisdiction over the sector, something crypto companies aggressively disputed during the Biden administration.

Crypto companies have argued that most tokens should be classified as commodities instead of securities, which would enable platforms to more easily offer those tokens to their customers by not having to comply with a raft of securities laws.

The House also passed a bill prohibiting a central bank digital currency, which Republicans say could violate Americans’ privacy. The issue had been a sticking point in House discussions this week.

https://www.businesstimes.com.sg/interna...bill-trump