23rd November 2024 > > The SEC & Charles Schwab.

tl;dr

Gensler kills his subordinates with fake kindness. Charles Schwab is our kind of investment manager.

Market Snap

Market Wrap

The market remains very strong with a new ATH at $99.6k.

Any minor glimpse of the tiniest pullback is bought with a vengeance. By the same token, there is a wall of retail sellers with a 99.5 handle. We could be ranging here for days, until the sell side is exhausted, exposing shorts to the risk of rapid and violent carnage.

Curious Cryptos’ Commentary – The SEC

Following Gensler’s acceptance of total defeat in his battle against privacy, freedom, and liberty by stepping down as Chair of the SEC, and thus signposting the end of Operation Choke Point 2.0, we have some more cheering news.

SEC Commissioner Jaime Lizárraga is also retiring from the fray.

Lizárraga was prone to giving us pointless insights such as “digital asset values are highly volatile”. Stating the obvious doesn’t help anyone, but he did get into trouble with his boss for precisely this comment as it makes it plain that cryptos are assets, rather than mere speculative securities used by terrorists and money launderers. My insider tells me that Gensler got more than a touch upset with Lizárraga. Allegedly, stuff was thrown around Gensler’s office as a result.

Most damningly of all, Gensler had this to say:

"At the SEC, he has been an excellent partner in our work to protect investors, facilitate capital formation, and ensure markets work for investors and issuers alike."

If Gensler really thinks that about you, you were in the wrong job at the wrong time, matey boy.

More interestingly, the scope for appointing a majority of pro-crypto commissioners to the SEC grows by the day.

Curious Cryptos’ Commentary – Charles Schwab

Charles Schwab has always been ahead of the game.

In those three or four years running up to the dotcom boom that burst shortly after the Millenium, Charles Schwab was one of the few (only?) online brokers focussing on tech stocks. Fortunes were made and lost, but as both winners and losers were consenting adults that wasn’t the concern of Charles Schwab. They are mere facilitators in the process of capital allocation, the only tool which has allowed humankind to progress upwards from an agrarian subsistence lifestyle.

Rick Wurster will soon be the new CEO of Charles Schwab, and we do like the cut of his jib.

Though complimentary about crypto-focussed exchange traded products, Rick has higher ambitions:

“We also would like to directly offer crypto. We’ve been waiting on a change in the regulatory environment … and we’re confident that we think that will come in short order.”

Rick is alluding to the imminent demise of SAB 121 which prevents regulated firms from offering crypto custody services to clients. Removing this barrier will unleash another wave of demand from institutional clients for Rick is not pushing this agenda for any reason other than satisfying his customer base.

Firms like Vanguard – who deny their clients any crypto exposure – should probably start to take notice before plummeting into irrelevance.