Trader Top 9: Crypto Drama in US Senate


Welcome back to another Trader Top 9! Who would have ever guessed that the key issue in a $1 trillion (!) spending bill would be cryptocurrency and the definition of "broker". Despite the amendment failing to pass in the Senate as part of the bill, the industry remains upbeat knowing that people are finally paying attention and educating themselves. Lots to dig into this week!

9. On Friday, Binance US CEO, Brian Brooks, recently hired to clean up Binance's image as they expand in the US, did a serious mic drop. What does this mean as Binance looks for its third US CEO of the year with regulatory threats looming?

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8. The bi-partisan Wyden-Lummis-Toomey amendment to the $1T infrastructure bill failed to pass after 87 year old Sen. Shelby objects after not getting more military spending. The bill ultimately passes with the overly broad "broker" definition intact. Did the White House get what it wanted? How many of the involved decision makers even understand what the legislation means and the impact on growth?
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7. Tether, the stablecoin backing most crypto transactions, has slowly been disclosing more. On Monday, they released info on the credit ratings of its commercial paper, disclosed an increase from 2% to 24% in T bills, but still left plenty of questions that we'll need to wait on.
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6. AMC, everyone's favorite meme stock and theater chain, announced during their earnings call plans to accept Bitcoin as payment in the near future. CEO Adam Aron seems to understand his new shareholders well.
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5. Shocking news came on Tuesday, as Poly disclosed what is the largest known DeFi hack. Amazingly, the hacker announced they'd be returning some assets and actually participated in a little Q&A. Strange world we're living in!
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4. In recent weeks, we've shared news of the global regulatory crackdowns in crypto and in particular on exchanges. This week has had major news affecting both Poloniex and Bitmex, arguably two of the largest exchanges several years ago whose fortunes have since faded. But with each settled enforcement action or removal of some FUD, the crypto community seems to strengthen and gain further legitimacy.
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3. Then after the bell, Coinbase announced blowout earnings driven by 8.8 million Monthly Transacting Users. The numbers are astonishing!
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But nearly all of Coinbase's revenue comes from extremely high fees on retail investors. How long can this last? Retail users should at a minimum execute trades on Coinbase Pro, where fees max out at 50 bps, while other exchanges like Kraken and Binance US offer even lower fees.

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2. And what about NFTs? Many see Non-Fungible Tokens as either a joke or a sign of irrational exuberance in the market. However, Fred Wilson shared some insight as to why NFTs matter. It's worth checking out!
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How traders really spent their week...

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1. Institutional adoption, responsible for a lot of the price action we saw in Q4 2020 thru Q1 2021, is starting to make headlines again. What could this mean for the prices of Bitcoin, Ethereum, and alt coins? Time to place your bets!

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