Trader Top 9: Congress and SEC Take Aim at Crypto

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Welcome back to another Trader Top 9! The regulatory pressure we've seen in recent weeks continues to increase. This time it was dangerous language in the giant bipartisan infrastructure bill as well as some big statements from SEC Chairman Gensler. Despite all this, we continued to see positive developments within the crypto community.

9. Binance continues the retreat we talked about last week, this time reacting to increasing regulatory enforcement in Europe.
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8. And in a major threat to the crypto community, US legislators apply an overly broad definition of "broker" in determining tax reporting rules as part of the massive infrastructure bill. This week, the community defended itself and appears to be forcing positive changes.
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7. Meanwhile, Gary Gensler, recently appointed chairman of the SEC, and previously assumed by many to be crypto-friendly, makes the most aggressive statements to date about the SEC's perceived enforcement powers and scope. CFTC Commissioner Quintenz says, "Not so fast!"
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6. As you can imagine, leading cryptocurrency exchanges and operators are taking note of the regulatory threats on the horizon. FTX CEO, Sam Bankman-Fried, discloses that he now spends over 5 hours a day on regulation, which could instead be going to product or customers.
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5. Despite all the regulatory threats, Google once again begins allowing crypto ads as long as companies are properly registered with FinCEN.
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4. Pivoting to traditional markets for a moment... A week after IPO'ing, options on Robinhood are listed as the stock doubles over a 2-day period. This was short-lived, however, as major investors announced a big dump.
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3. Many are debating the true impact of today's Ethereum hard fork. One of the largest of several changes aims to make transaction fees more stable and predictable. This also paves the way for Ethereum 2.0, which would see it transition from proof-of-work to proof-of-stake. The price of ETH is up 50% over the past two weeks.
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2. Notorious hedge fund manager "Stevie" Cohen makes a major move into crypto, with a big deal announced today with Messari, a leading provider of crypto analytics.
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1. Presented without comment.

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