View this email in your browser

EMBARRASSED US REGULATORS ARE FIGHTING AN UPHILL BATTLE AGAINST FINANCIAL FREEDOM

The Securities and Exchange Commission's decision to close down Kraken's staking business and Paxos's BUSD product will understandably be viewed negatively on newswires across the globe but a little bit of context is required. Certain sections of the US political administration have taken a reactive approach to crypto post FTX, but I do not see any major reason to be alarmed. Regulators were not very supportive during the Trump administration either and crypto has developed by leaps and bounds during this time. It is a pity that the US is not taking a more collaborative approach but innovation will continue - even if its outside of US borders.

TLDR: Decentralised financial technologies remain difficult to regulate and the world needs this force for financial freedom so developers, entrepreneurs, investors and consumers will continue to experiment with it in spite of reactive US regulators.

CONCLUSIONS

• The US Executive’s approach to crypto has shifted from dismissive to reactive

• Regulators are embarrassed post FTX and clawing back credibility

• Context required, no structural change in policy

• Awaiting clarity on stablecoins and application of securities law

• Decentralised protocols are difficult to regulate

• US crypto industry temporarily negatively impacted, pushing some innovation offshore

• Reactive regulators are missing the wood for the trees, crypto is not going anywhere

• Nigeria highlights the need for crypto adoption, no matter the legislation

Full article

On the personal front, we will be in South Africa during April and May. Looking forward to catching up with many of you during that time.

Rob Price, CFA

SHARE THIS CONTENT WITH YOUR NETWORK

The information contained or attached herein is not intended to provide, and should not be relied upon for, accounting, legal or tax advice or investment recommendations. This presentation may contain forward-looking statements that are within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. This email is for informational purposes only and does not constitute an offer to sell, or the solicitation of an offer to buy, any security, product, service of Sound Money LLC as well as Sound Money Capital LP and Sound Money Capital (BVI), whether an existing or contemplated fund, for which an offer can be made only by such fund’s Confidential Private Placement Memorandum and in compliance with applicable law. Past performance is not indicative nor a guarantee of future returns. Please consult your own independent advisors. All information is intended only for the named recipient(s) above and is covered by the Electronic Communications Privacy Act 18 U.S.C. Section 2510-2521. This email is confidential and may contain information that is privileged or exempt from disclosure under applicable law. If you have received this message in error please immediately notify the sender by return email and delete this email message from your computer. Copyright 2023 Sound Money LLC. All Rights Reserved.

NOT INVESTMENT ADVICE; FOR INFORMATION ONLY

PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS

Copyright (C) Want to change how you receive these emails?You can update your preferences or unsubscribe