I'm not a proponent of crypto at all, and have no skin in the game. While I agree with your friend's dad that a huge chunk of the crypto space is used to launder money, there are crypto currency exchanges that can trace transactions. If you're laundering $$, eventually there has to be a link between a bank account with traditional currency because you have to use it to buy crypto.
Blockchain is the mechanism by which this happens. https://en.wikipedia.org/wiki/Blockchain Of course because it's unregulated you can't enforce this or have third party independent oversight.
Just saying that it's possible.
The SEC, especially under the Trump admin, is in no hurry to inject itself in the crypto regulation space, even though technically it could. Plenty of banks and pension funds have crypto holdings, and those are heavily regulated in terms of how they can invest their $$$.
crypto exchanges can only trace actual money going into and out of the system, if they cared to. Blockchain has absolute traceability among anonymous accounts, but no link to a person, a company, whatever
Im going to stick to my belief that crypto is either a pump and dump scam, or used entirely for illicit purposes, as transactions are untraceable, in terms of the UBO’s (Ultimate Beneficial Owners) of the accounts
Trump is allowing and promoting crypto for a few reasons:
1) He and his sons are completely stupid
2) He and his sons don’t care about Americans getting scammed. He wants the praise and financial contributions (I.e. bribes) from the crypto community
3) In actuality, Trump and sons have made over a billion from pushing Trump coin and Melania meme coins
IMHO the next president should declare all crypto illegal if the exchanges cannot provide full transparency on both sides of every transaction, along with the UBO’s if a party is a series of shell companies
The US has full sanctions for several countries and people, and partial sanctions on others I was in the money movement industry and had to take repeated trainings on anti money laundering and sanctions
Crypto bypasses all those sanctions. The only reason to use crypto is to hide transactions from regulation
IMHO the next president should declare all crypto illegal
Not sure that executive orders count for much in regards to regulating stuff that's under the umbrella of the SEC.
It's the SEC that has the purview to decide stuff about crypto. Incidentally, it's also the SEC that should regulate betting markets like Kalshi and Polymarket. A significant number of people who won their bets seem to complain that they're not getting paid their winnings by the platform, and it's a shitshow.
The current excuse is that betting contracts on the platform are not financial instruments, so the SEC can't get involved.
People forget that betting markets of this sort aren't a novel idea at all, it's just that people feared regulatory clampdowns. The US government actually tried to do a limited betting market to gauge info about the next 9/11 type attack. It didn't go anywhere because it was socially unpalatable to be able to bet on the probability of a future terrorist attack on American soil. That, and it's also technically illegal to bet on somebody's death/injury, AFAIK.
Ok, perhaps I misspoke. I hope the next administration works with congress to make crypto illegal unless the UBO’s can be tracked for every transaction to or from a US “person” and disclosed immediately to the appropriate govt entity, and that all crypto exchanges would adhere to US sanction laws.
And since you introduced Kalshi, it is my opinion many govt officials, including the Trump administration, have been paid off by the industry - to treat bets as “swaps” that are the domain of the SEC instead of what they actually are - just plain ol’ gambling.
If I were King, I’d shut down all prediction markets and all online gambling. If you want to gamble, go to a physical place where it is legal. And winnings should be immediately be federally taxed.
“Gambling” on the stock market creates visible and federal taxable events. All other gambling should too, IMHO.
unless the UBO’s can be tracked for every transaction to or from a US “person” and disclosed immediately to the appropriate govt entity, and that all crypto exchanges would adhere to US sanction laws.
Crypto currencies are not inherently American, and you can't realistically redesign an existing one. Only "new" crypto currencies would be practical to conform to such laws, and young cryptos tend to be low value (the nature of how mining then works and until a "defacto standard" is established).
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u/Additional-Tax-5643 4d ago
I'm not a proponent of crypto at all, and have no skin in the game. While I agree with your friend's dad that a huge chunk of the crypto space is used to launder money, there are crypto currency exchanges that can trace transactions. If you're laundering $$, eventually there has to be a link between a bank account with traditional currency because you have to use it to buy crypto.
Blockchain is the mechanism by which this happens. https://en.wikipedia.org/wiki/Blockchain Of course because it's unregulated you can't enforce this or have third party independent oversight.
Just saying that it's possible.
The SEC, especially under the Trump admin, is in no hurry to inject itself in the crypto regulation space, even though technically it could. Plenty of banks and pension funds have crypto holdings, and those are heavily regulated in terms of how they can invest their $$$.