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Big Crypto news this week, lets go
A US judge has ruled that Ripple (XRP) is not a security.
Insider Trading
Inflation and Rate Hikes
For anyone with skin in the “Can I continue trading Cryptocurrency” game, this ruling has massive implications. A years-ongoing lawsuit by the SEC has been settled this week, with the ruling coming down that XRP is not a security. Furthermore, the judge also said that “Institutional sales” of XRP did constitute securities exchanges according to the Howey Test.
The full implications of this have yet to be seen, but this does set intriguing precedent for the ongoing Coinbase vs SEC lawsuit regarding the accusation that Coinbase is operating an exchange for unregistered securities. If a crypto token isn’t a security and you aren’t facilitating institutional trading, then what unregistered securities are you trading?
It took negative seconds for the market to come to the same conclusion.
Yesterday, $COIN went +24% due to the SEC losing their Ripple, $XRP case.
The news came out at 8:27 am PST.
At 8:26 traders started going heavy into $COIN 84 & 85 calls expiring in ONE day.
Those went +860%, from $2.50 to $24.
Someone always knows.
Unusual. http
— unusual_whales (@unusual_whales)
10:53 PM • Jul 14, 2023
So, negative seconds, thats not a thing. Time machines aren’t real.
This means insider trading.
If it isn’t clear what I’m getting at…
The absolute clown known as Gary Gensler who runs the SEC, the agency tasked with investigating insider trading, has failed so horribly at his job that insiders are trading off of his own departments rulings. With zero repercussions. I sure would love that level of access!
Fire the man. Put in someone who will actually prosecute insider trading. If anyone outside of Politics and C-Suites had ever been as bad at their job as Gary Guzzler over there, they would have been fired on the spot. Rant over.
CPI came in cold this week.
CPI is down, so that means the Fed will stop raising rates, and start cutting them, right?
Right?
Hahaha, no.
The short version is that the supply-chain-issue inflation is well on its way to being abated. Now we’re dealing with the effects of the “sticky” stuff. Rent increases, wage increases, costs-of-services, things like that. Whether this will translate in to rate cuts by the end of the year remains to be seen, but that is what the market appears to price in, gapping up 1% when the data came out.
This comes in sharp contrast to Fed Governor Waller’s statements about the possibility of two more rate hikes this year, with no mention of a cut.
As the saying goes, don’t fight the Fed. They say more rate hikes, who are we to argue?
Final note, a fun tweet that agrees with a theory/thought I had a couple months back regarding the Fed Funds rate vs Debt/GDP ratio of the US.
My dearest, consider that the global economy had completely de-leveraged from the folly of the late 1920s, that debt to gdp was nearer 1x and not closer to 4x. The combination of today's rates and leverage equate uncannily to the 20%s of 1980. And we suffered the consequences, a… twitter.com/i/web/status/1…
— Hugh Hendry Eclectica (@hendry_hugh)
6:00 PM • Jul 15, 2023
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