11th October 2024 > > Ohio & the SEC.
- Mark Timmis
- Oct 11, 2024
- 2 min read
tl;dr
Ohio’s Senatorial race could prove very interesting for cryptos. The SEC’s flat-earther beliefs come to the fore once more.
Market Snap
Market Wrap
The overnight sell-off to £59k was driven by US CPI falling to 2.4% not 2.3% as expected.
That price reaction was ridiculous. All economic statistics are inaccurate to an extent greater than the tiny reported difference. According to futures prices the probability of a 25bp cut at the next FOMC (aka market manipulation by bureaucrats who do not live in the real world) actually increased despite the miss.
Markets can be so irrational. Blame it on the central bankers, for they are the ones at fault.
Curious Cryptos’ Commentary – Ohio
Putting aside the presidential part of the election, there is an important side-show in Ohio.
The current Senatorial incumbent, Sherrod Brown, is leader of the Senate Banking Committee, and a key member of Elizabeth Warren’s ridiculously self-titled anti-crypto army. Brown is a major stumbling block to the adoption of crypto legislation that would neutralise the SEC’s regulation by enforcement that is so damaging to the crypto industry.
The challenger to Brown is Bernie Moreno, who is a crypto entrepreneur. His background has meant a wall of cash has flowed into his campaign coffers from crypto supporters, not least the single-issue PAC Defend American Jobs, whose name is an ironic reference to an online campaign run by Warren based around one of her anti-capitalist rants.
Recent polls are showing that the difference between the two contenders for share of voting intentions is now within the margin of error of the polls.
Oh, happy days if Brown goes down.
Curious Cryptos’ Commentary – The SEC is at it again
The SEC has filed a civil enforcement action against Cumberland DRW LLC, which provides a broking service for cryptos:
The charge is laid bare:
“… Cumberland has acted as an unregistered dealer by buying and selling crypto assets offered and sold as securities for its own accounts as part of its regular business.”
As Cumberland self-identifies as “one of the world’s leading liquidity providers”, at first glance the SEC case looks strong.
Except that it isn’t.
…
Cumberland has come out fighting stating that it will not change its business practice in any shape or form:
In essence, Cumberland claims it has done all it can to become a registered broker-dealer, and that Gary Gensler’s frequent reference to “just come in and register” is designed to be a Catch-22.
This is not the first time that Cumberland has defied Gensler. The statement reminds us that they beat him when he was Chair of the CFTC when the case against Cumberland was thrown out as it was “based on little more than an ‘earth is flat’ conviction”.
Oh, let us hope this new case gets to court before Gensler’s petty and damaging tenure as Chair of the SEC winds down to its inevitably sorry and dismal close.
Curious Cryptos' Meme Corner
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