Today's edition is brought to you by the daily newsletter that makes you smarter about everything crypto - all in under 5 minutes. Reach 265K+ readers now!
GM, this is Milk Road. We’re like that timeless classic song - always around when you need a pick-me-up and are ready to rock the crypto market.
Here’s what we got for ya today:
- The SEC sues Coinbase 🥊
- What’s next for crypto? 👀
- Web3 Wednesday: the best jobs in crypto 📝
- Louis Vuitton is launching a $42K+ NFT 🍪
Prices as of 7:30 AM ET
COINBASE GETS SUED BY THE SEC 🥊
Gary Gensler and the SEC army have been working overtime.
First it was Kraken. Yesterday there was a bombshell lawsuit against Binance. And today they are targeting Coinbase… again.
It’s a 101-page lawsuit, but say it with me “never let a Roader read more than 1 page”. So, we did all the reading for you.
Here’s what the SEC is saying:
- Coinbase has been operating a non-registered securities exchange. Even though they aren’t willing to provide guidance on complying with regulation…
- They have been acting as an unregistered broker. A broker helps investors buy and sell securities. So if the SEC thinks Coinbase is listing securities, then they also think that Coinbase is helping users buy and sell securities.
- Coinbase is an unregistered clearing agency. Similar to brokers, clearing agents are involved in the process of exchanging securities. They make sure that deals happen on time and both parties stick to their end of the bargain.
- They didn’t register the offer and sale of their staking program. After targeting Kraken’s staking service, it only makes sense that Coinbase would be next in line.
The crazy part? The SEC also claims that Coinbase has been breaking the rules since 2019.
But the SEC is the same entity that approved Coinbase to go public in 2021 when many of these “securities” were already tradeable.
And the U.S. government is no stranger to the platform. They’ve been using Coinbase to sell confiscated Bitcoin and will continue to throughout the year.
As if things couldn’t get worse, 10 state security regulators have formed a task force to support the SEC’s initiative.
These states issued a Show Cause Order saying that their local residents have been given staking rewards through an unregistered offering. Coinbase has 28 days to respond.
Here’s how the markets reacted:
- Coinbase’s stock opened the trading day down ~20%, but slightly recovered to close down 12%
- $BTC dipped slightly on the news release but bounced back to rally over 5% in the following hours
- $ETH followed in Bitcoin’s footsteps, jumping ~4% in the hours after
Here are some of the responses from Twitter:
Let’s be clear: the @SECGov complaint doesn’t mention this, but there is currently NO way for a platform like @coinbase to register as a securities exchange, broker, or clearing agent. That’s why they’ve been begging @SECGov for YEARS to give them a path to compliance.
— TuongVy Le 🍎🗽🛡️ (@TuongvyLe12)1:43 PM • Jun 6, 2023
Things the US government protects people from: ❌ Slot machines ❌ Oxycontin ❌ Microplastics ❌ Seed oils ❌ Non-bankruptable student loan debt ❌ 30% interest rate credit cards ✅ Cryptocurrency
— rektdiomedes (@rektdiomedes)7:04 AM • Jun 6, 2023
The SEC suing the same company that the US government is selling Bitcoin through is so astonishingly funny I might have a stroke
— laurence (@functi0nZer0)12:51 PM • Jun 6, 2023
SEC have fired all of their bullets. It makes no difference if they sue more. The market expects it. Sellers seem exhausted. BTC and ETH barely flinched. Fuck you Gary. All dips are for buying.
— Aylo (@alpha_pls)2:56 PM • Jun 6, 2023
Where was Gary when FTX and Celsius were committing blatant fraud?
— Ethersole (@ethersole)2:18 PM • Jun 6, 2023
TODAY'S MILK ROAD IS BROUGHT TO YOU BY..... MILK ROAD 🥛
We have one goal at Milk Road: make you smarter about crypto.
We do this by keeping it short, sweet, to the point, and without all the fluffy BS.
If you wanna take this sponsorship spot in the future and get in front of the Milk Roader Nation* - hit us up here and we'll be in touch. Plus, we’ll write the ad for you. It’s like getting someone to do your homework. You just get to sit back, relax, and cruise your way to an easy A+ ad.
Stay thirsty, my friends.
- The Milk Man
*Here are 3 milky, cold-hard facts about the Roader Nation:
1/ Our daily readership can fill up any stadium in the world (110,000+) 🏟️
2/ Over ⅔ are investors/traders 📈
3/ It’s the best concentration of smart, funny, good-looking readers in crypto 💃🕺
4/ Re-read #1-3
WHAT’S NEXT FOR CRYPTO? 👀
What. A. F*cking. Week. (and it’s only Wednesday)
After everything that’s happened, everyone is probably wondering two things this morning:
- Is it too early to put some liquor in my coffee? (it’s 5 o’clock somewhere, right?)
- What’s next for crypto?
Well, let’s talk about it.
First off, buckle up. This is only the beginning of the U.S. Crypto Regulation War.
Yes, it’s a war.
On one side: the U.S. government. (boo!)
On the other side: the crypto industry.
And just like any war, there’s always a secret operation like…Desert Storm. Cobra. Rolling Thunder.
In this war, the U.S. government is implementing Operation Chokepoint 2.0.
It’s a similar strategy the U.S. government used back in 2013 (in the original Operation Chokepoint) when it targeted businesses like online gambling, firearm sellers, etc.
The strategy: Launch investigations into these “bad” businesses, file tons of massive lawsuits, and target their banking partners until the bad businesses get choked out.
So far this year, we’ve seen:
- The biggest crypto exchanges - Binance, Coinbase, Kraken, etc - get sued by the SEC, CFTC, or another agency from the alphabet soup.
- Crypto’s three biggest banking partners - Silvergate, Signature, and SIlicon Valley Bank - getshut down or seized by the government. R.I.P to our fallen homies..
- Paxos, the issuer for BUSD (3rd biggest stablecoin in the world), get sued and forced to stop issuing its stablecoin.
- Tons of celebrities (and my childhood heroes) like Soulja Boy, Akon, Ne-Yo, and more get sued for promoting crypto projects.
We fully expect to see more moves like this in the near future.
How do we know? Because U.S. government officials are telling us to expect it. Literally.
Here’s what Gary Gensler (head of the SEC) said yesterday on CNBC:
Gary G: “Look, we don’t need more digital currency. We already have digital currency. It’s called the U.S. dollar. It’s called the euro. It’s called the yen. They’re all digital right now.”
On top of that, U.S. Senator Elizabeth Warren is building an “anti-crypto army” and is looking to propose a bill that would effectively ban crypto in the U.S. gulp
So yeah, don’t be surprised if U.S. government officials start chasing crypto like it was the modern-day O.J Simpson.
With all that being said, there are a few options for what happens next:
Option A: Crypto gets banned in the U.S., and slowly dies off.
Option B: Crypto gets banned in the U.S., but thrives elsewhere.
Option C: Crypto doesn’t get banned in the U.S., but gets heavily regulated.
Who knows what the hell happens, but we do know one thing…
Crypto doesn’t need the U.S government’s approval to succeed. In fact, that’s the whole point of crypto.
It was built as an alternative financial system. One where a centralized government can’t control or censor it.
So now that a centralized government is attacking crypto and calling it bad, what are we gonna do..put our tail between our legs, call it quits, and cry like a Gerber baby??
F*ck no. Momma didn’t raise no punk.
Sure, maybe if it was 2008 crypto might struggle to survive this.
But it’s 2023, baby! And crypto is going strong.
- People in Cyprus and Lebanon are using it as a solution to their own financial crisis’.
- Countries - like El Salvador and Central Republic of African - are adopting it as legal tender.
- Companies, governments, and retail investors around the world hold digital assets
Crypto is a lot like Pitbull - Mr. Worldwide.
So, don’t sweat it. Crypto has survived. And it will continue to survive.
Thank you for coming to my TED talk.
mic drop
- The Milk Man
WEB3 WEDNESDAY: THE BEST JOBS IN CRYPTO 📝
It’s Web3 Wednesday, Roaders! Let’s get straight to it.
Here’s the latest openings we’ve found:
- Senior Full Stack Engineer at SuperRare Labs - Remote
- Senior Backend Services Engineer at SuperRare Labs - Remote
- Partner Success Manager at Aptos - Palo Alto, CA
- Business Development Lead, Capital Markets, at Aptos - Remote
- Research Analyst at Anagram - Remote
- Web3 Content Marketing Manager at Chainalysis - Remote
- Sales Manager at Sphynx Labs - Remote
- Community Manager at Contribute - Remote
- Web3 Investment Associate at 3X Capital - Remote
P.S. - Are you trying to hire in Web3? Learn how to get your open jobs in front of 250K+ crypto enthusiasts here.
MILK & COOKIES 🍪
Louis Vuitton is dropping a new NFT collection, Via Treasure Trunks. Each NFT will cost ~$42K and holders will get access to upcoming Louis Vuitton products and immersive events.
Fractal launches a new web3 gaming studio FStudio. The goal? Enable video game developers to easily add crypto integrations into their games without having to code.
El Salvador secures $1B in commitments for a new BTC mining site. It will use solar and wind energy from El Salvador to power the mining operation. #Sustainability
Digital asset investment products saw outflows totalling $62M last week. That’s 7 straight weeks of outflows totalling $329M. Ouch.
Former owner of the Minnesota Vikings has been sentenced to 6+ years in prison for a crypto scam.
MILKY MEMES 🤣
HIT THE INBOX OF 250K+ CRYPTO INVESTORS
Advertise with Milk Road to get your brand in front of the Who's Who of crypto. The Roadies are high-income crypto investors who are always looking for their next interesting product or tool. Get in touch today.
What'd you think of today's edition?
Login or Subscribe to participate in polls.
ROADER REVIEW OF THE DAY
VITALIK PIC OF THE DAY
When ETH doesn't get name-dropped as a security in either of the SEC lawsuits
— Milk Road Images (@MilkRoadImages)12:54 PM • Jun 7, 2023
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
