0:02

Welcome to the Coin Stories News Block powered

0:04

by BitDeer. I'm Natalie Brunell and in the

0:06

span of just 10 minutes, roughly the time

0:08

it takes to mine a Bitcoin block, I'll

0:10

provide you with concise, insightful updates on Bitcoin

0:13

and the global financial landscape. Everything you need

0:15

to know in one place in one block.

0:17

Let's go. What is

0:20

Ethereum? Ever

0:23

since the spot Bitcoin ETFs were

0:26

approved earlier this year, there's been

0:28

a lot of speculation about whether

0:30

Ethereum ETFs would be approved next.

0:32

Reuters recently reported that many issuers

0:34

expect the SEC to deny their

0:36

ETH ETF applications after discouraging meetings

0:38

with the agency. VANEC will

0:40

be the first ETH ETF to hit its

0:42

deadline on May 23, which is

0:44

when the SEC will have to make

0:47

the decision to approve or deny it.

0:49

Bloomberg intelligence analysts Eric Beltunas and James

0:51

Saffert, who correctly predicted the spot Bitcoin

0:53

ETF approvals in January, now

0:55

give only a 35% chance of it being approved. Now,

0:59

you may be familiar that over the years

1:01

there has been intense debate about whether Ethereum

1:03

should be classified as a security or

1:06

a commodity like Bitcoin. Ethereum

1:08

proponents, of course, argue that it's

1:10

a commodity because the SEC and

1:12

CFTC have both made comments in

1:14

the past suggesting it's a commodity.

1:16

But new court filings now show

1:18

that the SEC has changed its

1:20

position. The information came to light

1:22

after major Ethereum development company Consensus

1:24

received a Well's notice from the

1:26

SEC, which is effectively a warning

1:28

that enforcement actions from the commission

1:31

are imminent. In response to the

1:33

Well's notice, Consensus sued the SEC

1:35

for threatening to regulate ETH as

1:37

a security, claiming that this was

1:39

a, quote, power grab and overreach.

1:42

But there was a bombshell in

1:44

this lawsuit. Consensus included an SEC

1:46

internal formal order that reveals that

1:48

the SEC has been classifying ETH

1:51

as a security since March 2023.

1:54

The document was an approved

1:56

order that gave SEC employees the authority

1:58

to investigate and subpoena

2:00

individuals and entities involved in the buying

2:02

or selling of ETH. Okay,

2:05

so this is big news. And

2:07

you might recall that Gary Gensler testified

2:09

before Congress in April last year after

2:11

this internal formal order was sent and

2:14

he refused to answer questions about how

2:16

the SEC classifies ETH. And

2:18

now consensus is challenging the SEC's

2:20

determination that Ethereum is a security

2:22

in the lawsuit, claiming of course

2:25

that it's a commodity. Ethereum co-founder

2:27

and CEO of ConsenSys, Joe Lubin,

2:29

didn't hold back his thoughts when

2:31

he wrote, quote, make no mistake,

2:34

if the SEC succeeds in defining

2:36

Ether as a security, the ensuing

2:38

registration requirements would render it unusable,

2:41

the modern day equivalent of banning

2:43

petrol. It may in effect

2:45

outlaw all buying and selling of the

2:48

digital commodity within the US except in

2:50

very special circumstances. This would signal the

2:52

end of Ethereum in the country, given

2:54

that Ether is vital for executing any

2:56

transaction on the network. Okay,

2:59

that's a lot to take in, but what's important

3:01

to reemphasize is how much regulatory

3:03

uncertainty exists around Ethereum and all

3:05

crypto outside of Bitcoin. And these

3:07

recent developments highlight exactly why Bitcoin

3:09

is so different. For starters, you

3:11

won't ever read a quote in

3:13

the Financial Times from one of

3:15

the Bitcoin's founders. Secondly, there

3:18

is 100% clarity surrounding Bitcoin and

3:21

the fact that it is a true commodity. Only

3:23

Bitcoin has the regulatory certainty that

3:26

makes it an institutional grade investable

3:28

asset. And the approval of the

3:30

spot Bitcoin ETFs and the subsequent denial

3:32

of these Ethereum ETFs will only highlight

3:34

this reality even more. I talked about

3:36

why the Ethereum ETF denials could be

3:38

a huge driver for Bitcoin adoption in

3:40

my recent conversation with Michael Saylor that

3:43

we shot in Las Vegas. So make

3:45

sure to hear what he had to

3:47

say. TLDR, there is

3:49

no second best. Turning

3:51

now to the Biden administration, planning to

3:53

veto a piece of legislation that would

3:55

make it easier for large banks to

3:57

custody Bitcoin. The House of Representatives.

4:00

This week voted to overturn a controversial

4:02

as he see accounting Rule Staff Accounting

4:04

Bulletin. One Twenty One also known as

4:06

As A Be One Twenty One Now

4:08

Without going to deep into the accounting

4:11

weeds, Se Be One Twenty One added

4:13

significant costs for banks, making it too

4:15

expensive for them to custody digital assets

4:17

on behalf of clients, so it effectively

4:20

blocked large banks from taking custody of

4:22

the coin. Shortly after the measure passed,

4:24

Biden issued a statement saying he will

4:26

veto the legislation if it reaches his

4:29

desk. His office. Wrote that overturning this

4:31

rules would introduce substantial financial instability

4:33

and market uncertainty. Now, regardless of

4:35

Biden, plan to veto at the

4:37

house has passed legislation and the

4:39

measure will now had to the

4:41

senate floor. This move is yet

4:43

another example of the Biden camps

4:45

history of opposing Bitcoin, But it

4:47

just so happens that this week

4:49

former President Trump was asked about

4:51

Bidens hostility against the broader digital

4:53

asset industry and listen to what

4:55

he had to say. Biden doesn't.

4:57

Even know what it is us

5:00

fighting for officer you for again

5:02

script or what sets was this

5:04

survey of the same officer in

5:06

general after says. He

5:08

has no idea of with. Dancers

5:11

were emergency. The democrats are very

5:13

much against his. And I

5:15

say there's a lot of people. Very much for

5:17

probably a lot of the people in this group.

5:20

Of I'm fine with it or one image who. it's good,

5:23

it's all as everything else. but I'm good with him. And

5:25

or if you want to be like crypto in

5:27

any form of comes with a lot of different

5:29

forms. If you are in favor of groups

5:31

are you will vote for said. It's

5:33

becoming more clear everyday that bitcoin is

5:36

becoming an issue politicians have to take

5:38

a stance on, and unfortunately, Biden has

5:40

chosen to be against Bitcoin. at least

5:42

for now, is a something big Winners

5:44

will keep in mind come election day.

5:48

cities lock is powered exclusively by bit

5:50

dear as a publicly traded leader but

5:52

you're not just mining their industry pioneer

5:55

standing alone as the only vertically integrated

5:57

technology focused bitcoin mining company with the

5:59

industry most experienced leadership team and

6:01

25% of the workforce

6:03

dedicated to R&D, BitDear is pushing the

6:06

boundaries of what's possible in Bitcoin mining.

6:08

Learn more at bitdear.com and explore

6:10

how they are pioneering the future

6:12

today. Ever since

6:14

the pandemic, the government has been running

6:16

fiscal deficits as a percentage of GDP

6:18

not seen since the global financial crisis,

6:21

and before that since World War II.

6:23

This historic level of spending is

6:26

happening despite the economy running hot,

6:28

inflation being elevated and the

6:30

unemployment rate still being at multi-decade

6:33

lows. Part of the reason

6:35

this is happening is that our politicians

6:37

are currently being advised by economists that

6:39

are pushing radical ideas like the government

6:41

can just print as much money as

6:43

it wants and deficits don't matter. This

6:46

is the message being passed along

6:48

to policymakers by MMT or Modern

6:50

Monetary Theory Proponents like Stephanie Kelton,

6:52

who recently released a new documentary

6:54

called Finding the Money. A

6:56

clip from that movie went viral showing Jared Bernstein,

6:58

the chair of the Council of

7:03

Economic Advisors, which advises President Biden,

7:05

trying to explain how the government

7:07

funds itself by printing money. So,

7:09

I mean, again, some of

7:11

this stuff gets some

7:13

of the language and concepts are just

7:17

confusing. I mean, the government definitely

7:19

prints money and it definitely lends

7:22

that money, which is why the government

7:24

definitely prints money and then it lends

7:26

that money by selling

7:28

bonds. Is that what they do? Yeah,

7:33

they sell bonds. Yeah,

7:36

they sell bonds. This clip is

7:39

beyond concerning. It seems as if

7:41

the man charged with advising our

7:43

president on economic policy has no

7:45

understanding of basic economics or how

7:47

our financial system works. And subsequently,

7:49

our leaders are being advised they

7:51

can print money and spend infinitely

7:53

with no consequences. And honestly, what

7:55

politician is not going to love

7:57

that advice? Of Course, this idea flies

7:59

in the eye. Of reason and

8:01

economics, there's a famous saying there is

8:03

no free lunch and it implies that

8:06

if something appears to be free while

8:08

there are always hidden cost somewhere, Billionaire

8:10

Stanley Druckenmiller touched on some of the

8:12

costs of government spending in a recent

8:15

interview on Cnbc. Listen in. The.

8:17

Department's. If.

8:20

I was a professor are given enough.

8:23

I'm. Basically. They.

8:25

Misdiagnose cove. And

8:28

thought it was. we're going into a

8:30

depression. On. The fed

8:32

it to. Are worried about a

8:35

to an early days. The. Serbs.

8:38

Eventually pivoted better late than

8:40

never, Treasury. Perjury

8:43

is still acting. Like. Learned

8:45

a person. It's not

8:47

hard to see why Druckenmiller is critical

8:49

of the Biden Demonstrations economic policies. Considering

8:51

the cost of living crisis many Americans

8:54

are facing today, the real cost of

8:56

high levels of government spending comes in

8:58

the form of inflation, which is a

9:00

hidden tax on every saver and worker

9:02

in the economy. A recent survey from

9:04

Harvard found that inflation is the number

9:07

one issue for eighteen to twenty nine

9:09

year old across all demographics. No matter

9:11

their race, gender, or political affiliation, I

9:13

think of these young people understood the

9:15

true source of inflation. The money

9:17

printing and reckless government spending. Then

9:19

they too would give the current

9:21

administration and s just like check

9:24

the miller. Are a finishing

9:26

up this week with a story from

9:28

the world of Bitcoin mining and exciting

9:30

new academic paper was published by Daniel

9:32

Baton and Dr. Murray. Rod Said provides

9:34

further evidence of Bitcoins ability to make

9:37

use of wasted energy sources such as

9:39

flared methane flared methane is access natural

9:41

gas at is burned off during oil

9:43

and gas production. Around one hundred forty

9:45

billion cubic meters of gas has flared

9:47

globally each year, and it is not

9:49

only wasteful, the harmful to the environment.

9:52

This paper concludes that Bitcoin miners could

9:54

be used to reduce. Methane emissions while

9:56

converting the otherwise wasted energy into

9:58

something of a. Comic value. The

10:01

paper went on to argue that

10:03

it's just one percent of the

10:05

Bitcoin network converts to vented methane.

10:07

It would eliminate the emissions equivalent

10:09

to nine billion miles driven by

10:11

an average gas powered vehicle. Having

10:13

papers like this is so important.

10:15

to be able to combat the

10:17

misconception that Bitcoin is bad for

10:19

the environments, and to provide proof

10:22

to policymakers that Bitcoin mining can

10:24

actually provide massive benefits to the

10:26

energy industry. and I'm sure many

10:28

reports like this will follow. And.

10:31

That's it for the news block powered

10:33

by Bit. The are your weekly bitcoin

10:36

and economic news update. I'm Natalie Burnout.

10:38

Make sure you subscribe to the shelves

10:40

and to our free newsletter at Natalie

10:42

Brunel.sub doc.com The show is for educational

10:44

purposes and should not be construed as

10:47

investment advice. Until next time. Keeps talking.