I just donated $1 million in bitcoin (15.47 BTC) to @realDonaldTrump and will be voting for him in November. Here’s why:
Over the past few years, the Biden Administration has openly declared war against crypto. It has weaponized multiple government agencies to bully, harass, and sue the good actors in our industry in an effort to destroy it. This Administration's actions have been nothing short of an unprecedented abuse of power wielded entirely for twisted political gain at the complete expense of innovation, the American taxpayer, and the American economy. There is nothing the Biden Administration can do or say at this point to pretend otherwise.
Some of the lowlights include the following:
The weaponization of the banking system against crypto companies and their principals. Known colloquially as Operation Choke Point 2.0, this starts with the OCC (a federal agency that licenses and regulates national banks) and the FDIC (a federal agency that provides deposit insurance to banks) giving “guidance” and instructing banks behind closed doors not to bank crypto companies. Any bank that doesn’t follow orders is threatened.
The conversation goes something like this: “That’s a nice bank you got there. It sure would be a shame if something were to happen to it because you bank some crypto folks.” If this tactic is not enough to scare a bank into line, the examiners will be sent in to turn everything upside down. This will almost certainly lead to some “finding” — show me the bank and I’ll show you the crime — that results in a massive fine or new supervisory rules and conditions that cripple a bank’s ability to operate. The risk is simply too great. Banks can either choose not to bank crypto companies or have that choice made for them.
These agencies have God-mode over banks because they can yank their license or FDIC deposit insurance at any time citing “safety and soundness” concerns. That is why they can behave like characters out of the Godfather and intimidate banks into dropping any customer or customer segment they want. This behavior of de-banking entire industries that are completely legal, but ideologically out of favor, began during the Obama Administration, when President Joe Biden was Vice President. It was nicknamed Operation Choke Point 1.0 back then and is a well-documented stain on the Obama Presidency. The Biden Administration has dusted off the playbook and has been running it at full speed against the crypto industry.
The blast radius has extended beyond crypto companies to individuals who work at them. I personally have lost multiple bank accounts because I own crypto and my investment firm @winklevosscap has as well.
The weaponization of the Securities and Exchange Commission (SEC) against crypto. The Biden Administration’s SEC has not written a single rule for the crypto industry to help any of its participants understand how to navigate the regulatory landscape for this new asset paradigm. This is by design.
By not writing any new rules for crypto, the SEC can disingenuously say that the existing rules — based on a 1946 Supreme Court decision about a citrus grove in Florida, issued before most homes had a telephone and 50 years before the advent of the commercial Internet — are fit for purpose. They are not.
Here’s one example. If ether is a security, an open question up until 48 hours ago, then you would be breaking securities laws if you sent ether to a friend from your smartphone to their smartphone. Why? Because only a broker dealer is allowed to transfer a security. And it can only do so to another broker dealer. From this example alone, anyone can understand how classifying a crypto like ether as a security would gut its utility and destroy its ability to usher in a decentralized future. It’s like asking an automobile to behave like a horse. Yet that is the position the Biden SEC has taken towards almost every crypto. It does this not because it doesn’t understand the consequences, but because it does. These are exactly the consequences it wants. To kill crypto.
By taking the ridiculous position that almost every crypto is a security, the Biden SEC has given itself the plausibility and carte blanche to bring litigation against any crypto project and company in the United States. The game is simple. Make it impossible to comply, then sue everyone for not complying. And that’s exactly what the Biden SEC has done over and over again to good actors in the space. Instead of the SEC hashing out rules for crypto — something that could be done in a matter of days — rules will be written years from now by judges and juries who determine that the SEC acted in bad faith and was wrong all along. The time and economic waste will be tremendous. The damage will be done. But that’s the point.
The Biden Administration has polluted the mission and corrupted the integrity of these agencies. All of them are led by unelected bureaucrats appointed by President Biden to carry out his marching orders. The moral compass of these foot soldiers is political gain and their higher calling is political power. Congress never granted them the statutory authority to determine the fate of the crypto industry or any other legal industry in America and they are totally unqualified to act as the gatekeepers of economic life in our country. That is the role of the market.
And yet the crypto industry is not alone. The Biden Administration has consistently attacked American business across the board and villainized its greatest heroes. The crime is always success and the reward is always ridicule, fines, and even more red tape. But to be clear, the Biden Administration doesn’t hate success outright. Only the kind that lives outside of its control. Once it figures out how to confiscate or coerce it, the Biden Administration becomes quite enthusiastic about success, gleefully manipulating it or redistributing it in a transparent attempt to buy votes. Over a long enough time scale, it's easy to see how these policies will lead to the destruction of our economy and our country.
Capitalism lifts people up. When allowed to flourish properly, it is the greatest generator of wealth and prosperity the world has ever known and it's the only economic system that can achieve all of this peacefully, while upholding the freedom and dignity of every individual who participates. With certain conditions in place — like the ability for anyone to incorporate a company, open a bank account to accept customer payments, and operate in the open market without government interference — innovation and wealth creation will thrive unbounded. Remove any one of these building blocks and you will have an entirely different system with entirely different results. This is exactly what the Biden Administration has done to the crypto industry and many other industries in America. It has been dismantling our economic way of life and the system that made America the greatest country in the world. And it has done this solely for its own power, control, and political ambition.
Of all the capitalist experiments, America has been the greatest. I have seen and experienced this first hand many times.