GM. This is Milk Road. We’re like a big city cocktail that costs under $15 – refreshing, affordable, & extremely rare.
Here’s what we’re serving up today:
Congress grills Gensler ⚔️
Web3 Job Openings 📝
Nike’s First “Dot Swoosh” Release 🍪
Today's edition is brought to you by Hoxul, a first of its kind integration of blockchain and luxury real estate.
CONGRESS VS. GARY G. ⚔️
We had ourselves an ultimate showdown yesterday, ladies and gents.
It was Gary Gensler (SEC Chair, crypto public enemy No. 1, etc.) vs. Congress. The reason for the brawl? How the SEC regulates the crypto industry.
The whole thing lasted ~3 hours, and since ain’t nobody got time for that (except us!) we rounded up the highlights for you.
Here ya go:
1/ Gensler couldn’t (wouldn’t?) answer if ETH was a security
Listen, dodging questions has a time & a place. I’m an expert myself when my mom calls to ask if I’m flossing regularly.
But Gary took it to the next level. Senators asked him at least a half dozen times if ETH was a security, and Gary just pulled a:
He said things like “it depends on the facts and the law” and “Mr. Chair, you would not want me to prejudge…”
(Reminder that Gensler said in February that all tokens except Bitcoin are securities.)
So why does this matter? Because Gensler said over and over Tuesday that the space has all the clarity it needs to comply.
But he couldn’t give a clear answer on how ETH should be regulated.
Gary Gensler getting grilled on whether he thinks ETH is a security or commodity
— sassal.eth 🦇🔊 (@sassal0x)
Apr 18, 2023
2/ He thinks crypto laws are clear. Everyone else says otherwise.
Gensler thinks existing TradFi rules can work in regulating crypto.
So in his mind, the rules are clear – crypto is just choosing to be non-compliant.
The existing laws don’t mesh perfectly with crypto platforms. He’s even acknowledged that, as lawmakers pointed out in an open letter.
He still urges the industry to register with the SEC. Even though he hasn’t specifically explained to crypto firms how to comply.
That’s why some are worried the U.S. could fall behind in crypto innovation. Crypto companies could leave since it’s all so confusing.
Gary referenced that in the hearing:
"We're trying to drive it to compliance, and if they're not complying with the laws, then they should not be offering their products to U.S. investors.”
3/ He’s all for a new regulatory framework for stablecoins though
One senator asked if he’d support Congress in drafting that up.
He said yes… only if the SEC/CFTC could still crack down on fraud.
4/ One congressman is trying to oust Gary from the SEC
Rep. Warren Davidson intro-ed a bill last week that would remove Gary as SEC chairman. Homeboy’s not playin’ around…
And he brought it up at the hearing, too:
“Chairman Gensler, your record of failures to protect investors and abuses of power make it clear that we need to restructure” the SEC, Davidson said.
Statement: “To correct a long series of abuses, I am introducing legislation that removes the Chairman of the Securities and Exchange Commission and replaces the role with an Executive Director that reports to the Board, where all authority resides. Former Chairs of the SEC will… https://t.co/3aP3rJvk1m
— Warren Davidson 🇺🇸 (@WarrenDavidson)
Apr 18, 2023
5/ Gensler said he doesn’t own any crypto, including Bitcoin
Neither does his staff – SEC ethics rules prohibit it.
Crypto Twitter pointed out that that’s kinda like being a lifeguard without knowing how to swim though.
Especially because he taught a Blockchain and Money course at MIT before joining the SEC.
Much of Chair Gensler’s pitch to other policymakers is that he understands crypto because he taught a course on it. But how was he competent to teach a course about something he’s never actually touched?
— Justin Slaughter (@JBSDC)
Apr 18, 2023
6/ Gensler said it’s AI that’s the most transformative tech of our time, not crypto
Did an AI bot force him to say that? Blink if you can hear us, Gary.
The Milk Road Take: The hearing did not make our boy Gary look good. Keep in mind, these things are always gonna be total political theater.
But critics think the SEC is regulating crypto by enforcement. He didn’t do much to reassure them otherwise Tuesday.
Gary, you might want to stay off Twitter for a while…
Someone needs to send Gary Gensler a Get Wells Soon Notice after today.
— The Wolf Of All Streets (@scottmelker)
Apr 18, 2023
The “come in & register” line is so tired @garygensler. No one believes you anymore.
The SEC has *never* issued comprehensive guidance about *how* to register. Only one firm who has gone in is still operating in the US in a meaningful way.
No more lies!
— Ryan Selkis 🪳 (@twobitidiot)
Apr 18, 2023
Posey: Did you direct staff to look into FTX?
Gary: I directed the staff to look into crypto intermediaries, yes. We filed a number of actions on FTX and SBF in December/January.
FTX collapsed in November.
Thanks for your protection Gary.
— Hsaka (@HsakaTrades)
Apr 18, 2023
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WEB3 WEDNESDAY 📝
Welcome back to Web3 Wednesday – where we save you time tracking down the coolest jobs in Web3.
Time to polish off those resumes, cover letters, and Twitter profiles.
Here are some openings we found this week for all you Roadies:
Marketing Lead at Monad Labs – Remote
Community Manager at MagmaByte – Remote or Seoul
Head of Copy at Status – Remote
Web3 Investment Analyst at RockTree Capital – Remote (US)
Cryptoasset Data Analyst Intern at Coin Metrics – Boston, MA
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 🍪
Total crypto market cap increased by ~50% in Q1, from 829B to 1.2T. Bad quarter to be a Bitcoin bear. 🐻
Nike’s digital collectible initiative, Dot Swoosh, announces its first release. Bringing the infamous Air Force 1 to the blockchain.
ETH daily staked volume exceeds withdrawals for the first time. Within a week of the Shapella upgrade. Things are looking bright for Vitalik and Co.
Microstrategy converts company emails to BTC lightning network. Michael Saylor eats, sleeps, and talks emails Bitcoin.
Safemoon exploiter made a deal with developers to return $7.1M. Adding to a positive trend of returned funds to hacked protocols in 2023.
MILKY MEMES 🤣
That's a wrap for today. Meet us on Twitter to talk all about it. It’s kinda like a family BBQ but better – no screaming kids, awkward photos, or drunk uncles telling weird stories (@MilkRoadDaily)
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GM, let’s have a day https://t.co/7TlsJh1Q9M
— Milk Road (@MilkRoadDaily)
Apr 19, 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.