⏳ The SEC is running out of SEConds

Our Web3-enabled crowdfund is off to the races with almost 60 people invested from 3 continents already!

Gooood morning, Rainmakers! ☀️

As always, I have two captivating topics for you to dive into:

1️⃣ ⏳ The SEC is running out of SEConds: There were over $14B in losses and scams in 2021 from crypto-related activities! When will the SEC step up?

2️⃣ 🤏 Gemini has the upper hand: If the majority of cryptos are deemed illegal, Gemini is in a great spot!

Without further ado, it's time to…

Get liquid 💧

🙅‍♂️ The SEC is failing us big time

Enough is enough.

The US is supposed to be the most powerful economy on the planet, but right now we are acting more like a developing country.

Okay, that may be dramatic, but can you blame me?

Canada has approved multiple Bitcoin Spot ETFs, China has an active CBDC (shows advancement, I don't necessarily like these), and many jurisdictions have provided regulatory clarity on security tokens and crypto.

Instead of having an ego, we should learn from our allies up North and follow suit.

That's just the tip of the blockchain iceberg though.

The SEC's main objective is to protect the investor, and I still believe that to be the case, but some of their recent decisions and lack thereof have me scratching my head.

A large mistake that comes to mind is the Ripple (XRP) court case.

The SEC is claiming XRP is an unregistered security, which has been an ongoing court case for over a year now.

The problem isn't whether it is a security or not, the problem is the impact these claims have had on investors.

When the court case started, XRP was delisted from crypto exchanges, and billions of dollars of losses were felt by thousands!

The worst part is this technically wasn't even a scam, it was the SEC trying to do what was right but ended up making matters way worse.

From the scam perspective, according to CNBC, scammers took $14B in just 2021 alone! 🤯

At this point, everyone seems to be asking for clarity, but it feels like we are met with false hope and a light at the end of the tunnel that never seems to ever arrive.

The pressure is mounting on the SEC to do something here in a productive way.

At the same time, this is truly unprecedented territory, so I can also respect the fact they are doing all they can to make the right decision.

However, what they definitely should not be hesitating on is security token regulation.

Security tokens are the perfect combination of blockchain and compliance together.

They follow all the securities laws with the blockchain technology layer on top of it... it's that simple.

The time is now for regulatory clarity in a way that protects investors, yet promotes the innovation of blockchain for the masses.

🆙 🤏 Gemini has the upper hand

Did you know that Gemini received the approval to trade security tokens back in January?!

Yep, they announced they were approved by FINRA for their BD/ATS Gemini Galactic Markets!

Coinbase, who I'd argue is their largest competitor, looks to not have the upper hand.

Although there were rumors they acquired a BD/ATS in 2018, I can't tell if it still exists today.

If any coins trading on Coinbase or Gemini is seen as illegal securities - then, in theory, they can simply have them traded on their respective ATSs, but not on Coinbase if they don't have the licensure.

Coinbase is feeling the heat lately with accusations pointing to them listing unregistered securities on their exchange.

Coincidentally, as I was writing this newsletter I came across this tweet:

Gemini and all current security token marketplaces are in great shape to take on this potential scenario.

Bring on the security tokens, but let's do it in a way that investors don't get hurt!

💦 What else is Drippin’

1. The INX Digital Company Announces U.S. Listing on OTCQB Exchange Under Symbol INXDF: You can now own INX in multiple trading venues - it's also listed on the NEO Exchange.

2. Tradeteq launches trade finance-backed tokens on XDC blockchain: A new security token has entered our realm!

3. Episode 4: Tokenization For Institutions: Real Estate Tokenization | Security Token Market & Arca: Security Token Market and Arca get together for another fascinating conversation on real estate tokenization!

Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.

Disclosures:

• No money or other consideration is being solicited, and if sent in response, will not be accepted;

• No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is filed and only through the platform of an intermediary (funding portal or broker-dealer); and

• A person’s indication of interest includes no obligation or commitment of any kind.