A Lose-Lose Scenario
The Trump Vortex Expands While Biden Panders To Crypto Crowd
Before we dive in today, I’d like to wish all Americans who are reading a Happy Memorial Day!
Thank you to all who have served or are currently serving.
On this day, I like to remember my grandfather, who dropped out of high school to fight authoritarianism in Europe during World War II.
While America certainly isn’t without it’s flaws, I’m happy to live in a country in which I can write this newsletter without the fear of being thrown in jail or worse.
Editor’s note: Please click on images to access articles, videos and podcasts.
This past week was potentially the biggest week in the history of Bitcoin/crypto as it pertains to American politics.
I’ll offer a quick recap before getting into the implications of what transpired.
Bitcoin & Crypto’s Big Week In American Politics
Thursday, May 16 (Yes, I know this is technically over a week ago) - The Senate votes to overturn Staff Accounting Bulletin (SAB) No. 121, an SEC regulation that required crypto assets held on a company’s balance sheets be treated as liabilities and be recorded at fair value. Here’s a quote from a Forbes article that covered the issue/vote well:
The recent legislative action to overturn SAB 121 is a resounding statement against what many saw as an undue regulatory overreach that hampered the ability of banks to do business in the modern economy. The vote in the Senate was particularly telling, with a decisive 60-38 tally that included bipartisan support.
Yet another resounding rejection of the SEC’s overreach and yet another big check in the loss column for the Biden/Warren/Gensler regime.
More solid coverage on this issue in the following Politico article:
(Seethe, Liz. Seethe.)
Monday, May 20 - FDIC Chairman Martin Gruenberg to resign after a report detailing widespread sexual harassment within the FDIC comes out. Gruenberg, the man who presided over the SEC while all of this sexual abuse was taking place, was also the person behind both Chokepoint 1.0 and 2.0. With Chokepoint 2.0, the FDIC took aim at the crypto industry, attempting to debank as many crypto platforms as possible in a completely unconstitutional manner. Turns out Gruenberg should have been more focused on all of the women in his organization being abused versus pretending to care about protecting Bitcoin/crypto investors.
Tuesday, May 21 - Trump announces he’ll be accepting crypto donations for his presidential campaign.
Wednesday, May 22 - Financial Innovation Technology for the 21st Century Act (FIT21) passed in House vote. This bill would provide a regulatory framework for digital assets.
Thursday, May 23 - House passes CBDC Anti-Surveillance State Act. This anti-CBDC (Central Bank Digital Currency) bill with overwhelming support from Republicans and almost zero support from Democrats (one of the many reasons I can’t support the Democrats anymore). CBDCs enable The Fed + the US government to have unbridled control over and surveillance of your finances. It’s a tool that China currently uses to help impose social credit scores.
To answer the question from Trey, a politically liberal guy and host of The Progressive Bitcoiner, Democrats were more focused on making sure non-US citizens have the right to vote in US elections.
Now at least we know why the Biden administration has been leaving the southern border wide open. Its needs votes, which it likely assumes it will get from undocumented immigrants. (For the record, I’m pro-immigrant. I taught immigrants in NYC for the better part of a decade. I also happen to be pro borders, as you can’t have the rule of law without them.)
Thursday, May 23 - The SEC approves spot ether ETFs. The SEC was most likely pressured from Biden to approve these ETFs in response to Trump saying he’ll accept crypto donations. I love the light that shines on just how corrupt our institutions are. All of the verbal diarrhea you’ve heard from Gensler over the years about why crypto ETFs can’t be approved was literally meaningless. (And I say this as someone who mostly doesn’t like crypto ETFs — the spot bitcoin ETFs included.)
Friday, May 24 - Biden looking to hire a meme manager because he’s losing the youth vote. Your tax dollars hard at work, folks.
Saturday, May 25 - In a speech at Libertarian convention, Trump says he’s pro-Bitcoin/crypto and that he’ll pardon Silk Road founder Ross Ulbricht.
If you don’t know who Ross Ulbricht is or why he should be pardoned, please read this article.
So, where does this leave US voters in this upcoming election? In a lose-lose scenario.
If you support Bitcoin (or crypto more broadly), believe that only US citizens should have the right to vote in US elections (What a radical notion, right?) and don’t believe in the Fed + the US gov’t having complete control over your financial life, then voting Democrat doesn’t make much sense.
If you think Trump is a con man who proved when he was president that most of what he said he’d do while in office was a lie (“drain the swamp” lol), then voting Republican doesn’t make much sense.
Some people from the Bitcoin/crypto space have completely chugged down the Trump Kool Aid, while other more principled people in the space haven’t (which I respect):
And props to the team at Reason — a Libertarian publication — for not pretending Trump is all of a sudden a Libertarian:
He’s far more of an authoritarian than a Libertarian.
Here’s my take on Trump saying he’ll free Ross:
With all of that said, here’s how I think most Bitcoin enthusiasts are feeling:
Personally, I won’t be voting for Biden or Trump, even if Biden does change course.
If Biden is elected, the US likely won’t lead when it comes to Bitcoin, which will be detrimental not only to US citizens but to the world in many regards, as US regulation tends to be copied and pasted in other jurisdictions.
If Trump is elected, we’ll end up seeing further erosion of our democracy (not that Democrats enabling open borders and wanting non-US citizens to vote doesn’t also add to that) and a possible authoritarian takeover of the US.
I’ll vote third party not because I think it really makes a difference, but more because I think Biden and Trump are both morally wrong for the US.
We’re in a lose-lose scenario here.
Decades of bad decisions have led to this, and there will be no easy resolution.
One of the only things that gives me hope these days is the fact that Bitcoin exists and that it’s a tool that people around the world can use regardless of how corrupt their political leaders are.
One last thing — I published a piece this week on the founder of Cashu, a Bitcoin ecash protocol that enables people to use their Bitcoin privately.
If you’re looking to learn more Bitcoin, CBDCs and transacting privately — much like the way we do with cash — you’ll want to check this piece out:
Thanks for reading, don’t get too bummed out, and have a great week!
Best,
Frank
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