10th November 2023 > > Taiwan & the SEC.

tl;dr

Taiwan launches its domestic tokenisation industry. Defunding the SEC would have more positive outcomes than some other defunding campaigns I could name.

Market Snap

Market Wrap

A brief spike to $38k for BTC was triggered by a BlackRock statement that they are confident of approval for a spot BTC ETF by January. This was quickly followed by a filing from BlackRock for a spot ETH ETF.

Institutional adoption is just getting going.

Curious Cryptos’ Commentary – Taiwan and tokenisation

Taiwan’s regulator FSC (Financial Supervisory Commission) has approved an STO (security token offering) by Cathay Securities. The bonds have a six-year maturity, with a 3.5% coupon, and are limited by legislation to a maximum face value of 30mm TWD, less than $1mm.

The limit on size is due to some caution by the regulator about this new type of financial product. As this investment product grows, we should expect such restrictions to be eased.

This is another step on the path of the development of the tokenisation industry. This revolution will democratise investments, reap huge efficiencies for financial firms, make the process of capital allocation more efficient and effective, and demonstrably lower the cost of capital for business. It isn’t just me that thinks this. Larry Fink, CEO of BlackRock, said:

“I believe the next generation for markets and next generation for securities will be tokenization of securities.”

The tens of trillions of dollars that will flow into tokenisation rather puts the claim that cryptos have no use-case to shame.

Curious Cryptos’ Commentary – Defund the SEC!

A document with the catchy name of HR 4664 is the latest attempt to agree a federal budget for the US:

https://www.govinfo.gov/content/pkg/BILLS-118hr4664rh/pdf/BILLS-118hr4664rh.pdf

Congressman Tom Emmer has filed an amendment to this bill to restrict the SEC’s activities with regards to cryptos:

“My amendment prohibits the SEC from using taxpayer-funded resources to pursue enforcement actions against the digital asset industry until Congress passes legislation that authorizes regulatory enforcement jurisdiction.”

Though the amendment passed unopposed, the budget still needs to pass the committee stage. The last attempt to do so ended in failure, as neither side could agree whether the trajectory of debt growth for the US government should continue unabated, or be ever so slightly tempered, for one year at least. But Gary Gensler can be in doubt that the pressure is on. Over to Tom again:

“SEC Chair Gensler cannot continue to abuse the powers of his agency to fulfill a political agenda of driving the new and promising digital asset industry offshore.”