Check out this recent Forbes headline…
What could possibly go wrong?
You know, the one thing I always liked about crypto was the promise of democratized finance…
The idea that individuals could use crypto in a way that would allow them to no longer be shackled to the whims of big banks, overzealous regulatory bullies, and credit hustlers.
Of course, while that promise still represents the backbone of the crypto movement, today, cryptocurrencies themselves are really nothing more than a mechanism for trading, allowing you to play in the digital space but still ultimately cash out in fiat currency.
You make a bet on Bitcoin, for example, and then when you take your chips off the table, those chips have been converted into dollars.
People have certainly made small and large fortunes alike doing this very thing.
And I’d be lying if I said I haven’t personally benefited from various cryptocurrencies too.
The question is, now that the government is sinking its talons into it, how does this affect those who want to continue making quick cash off crypto?
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Just Like the Mafia
As reported by Forbes, U.S. Sens. Kirsten Gillibrand (D-New York) and Cynthia Lummis (R-Wyoming) have introduced the Responsible Financial Innovation Act, which would redefine the U.S. government’s relationship with Bitcoin and other cryptocurrencies:
Dubbed the Lummis-Gillibrand bill for short, it is the first major bipartisan attempt to create a comprehensive regulatory framework for digital assets in the U.S. If it becomes law, the bill would not only define many long-confusing terms and battles over jurisdiction but formally recognize digital assets as a legitimate part of the U.S. financial system, requiring regulators to study and clarify their positions on various issues.
Such a thing makes crypto purists cringe.
“Battles over jurisdiction"?
The keystone of crypto’s appeal is the fact that it’s completely decentralized.
There are no jurisdictions in a matrix of ones and zeroes.
“Recognizing digital assets as a legitimate part of the U.S. financial system”?
The U.S. financial system is the antithesis of legitimacy!
Here’s what Sen. Lummis has to say about the bill:
The Responsible Financial Innovation Act creates regulatory clarity for agencies charged with supervising digital asset markets, provides a strong, tailored regulatory framework for stablecoins, and integrates digital assets into our existing tax and banking laws.
This is not about fiscal responsibility or consumer protection. This is about power.
If crypto is not integrated into existing tax and banking laws, it cannot be effectively controlled by the state — and that makes it very difficult for the state to get its cut.
It’s like that scene in The Godfather Part II, when Don Fanucci says, “This is my neighborhood. You and your friends should show me some respect. You should let me wet my beak a little. I hear you and your friends cleared $600 each. Give me $200 each, for your own protection.”
Bottom line: A lot of people got wealthy — and continue to get wealthy — investing in and trading various cryptocurrencies. And the state wants to “wet its beak a little.”
Of course, either way, integrating crypto into the convoluted web of existing tax and banking laws won’t happen overnight. It’ll take years for the feds to enact this hustle. So in the meantime, we’ll continue to profit off the best-in-breed crypto assets that are offering the quickest cash.
In fact, in one of our newest Energy and Capital research reports, we outline three specific crypto assets that are absolutely crushing it. I strongly encourage you to read it now and pull in some quick cash before the feds ruin another good thing.
To a new way of life and a new generation of wealth… Jeff Siegel
@JeffSiegel on Twitter
Check us out on YouTube!Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.
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