 Welcome to Digital Asset News, a good top stories in crypto, and by down a bite-sized piece of state, just as the thumbnail states very clearly, USDC is under investigation from the SEC. A lot of acronyms, but in all honesty, it just equals potentially a little pushback. And we'll take a look at exactly what's going on. But we'll take a look at USDC versus SEC. We're going to take a look at a little deeper dive as far as like Gary Gensler, who is the head of the SEC and how he views stable coins and why these will be a problem if it is actually deemed as a security. And lastly, we're going to talk about fighting back where individuals are fighting back to the IRS saying, hey, all the information you guys keep taking from me from all these exchanges, you can't do that because it's against my constitutional right. So we'll take a look at all those things. But first take a look at what's going on into the market. So today, it's a pretty good day. I mean, it's Friday, can't beat that weekend's almost here. And we're at 2.28 trillion. Now, we've dropped a little bit and I've seen it go up to like 2.36, 2.37. So in all honesty, we are down. And the sentiment today is a little bearish, if not neutral, which is kind of odd because like the price has gone up so much, you would think that people like so it would be so happy and they'd be so, you know, FOMO like it's going to go on forever. But thankfully, we are a group of smart people. And we realize that things can't go up forever. And that's why I think that as things go up, we are all expecting a little bit of a pullback, which we're seeing right now, maybe throughout the weekend, but we'll see. Anyhow, that is a sentiment from trade the chain. You want to take a look at sentiment analysis links in the description. As far as coins, that's really not much as far as like action going on like there. I mean, one hour change, everything's down across the board 24 hours. So on is up 2%, but it's been kind of lagging. It's been okay this week, five or six percent. But yeah, everything's just kind of just mowsing along. Not a big deal. File coin is 7%. But, you know, it is what it is. So that's what's going on in the market. Let's take a look at what's going on as like a deeper sense. And we're going to go over market data. And we just implemented this last two days seems to be do pretty well. And what we try to do is take a look at on chain analysis and things that are going on within the market. So the first time I always like to take a look at is who's getting liquidated, right? All of the different traders out there and nothing against traders. Good for you guys. Hopefully, this is only a very small percentage of your portfolio that you're leveraged trading with, like 1% or 2%. But hey, I'm not here to tell you what to do. You're an adult. So we've got, as far as liquidations, the single, let me see, I'm going to blow this up, the single largest liquidation having a bit max for 1.57 million. It's not a bad day, right? It's not billions, it's okay. And the last 24 hours, as far as liquidation, people are getting wrecked 135 million. Then we take a look at the Bitcoin futures market. We can see which way the wind is blowing as we've got one of the longs, one of the shorts. And you can see, as far as like longs, okay, X, Binance and those things, we're seeing like there's a little bit of a sideways action, maybe even more prone to a little bit of the shorts. And that's what we have on as far as the futures market. Now, take a look at a little on-chain analysis, take a look at all miners' outflows. We know that as miners start to sell, and they have a pretty good amount of Bitcoin, price usually starts to go down a little bit. And we can see this here, let me blow this up and bring this up here. And we can see that, yeah, we've got a little bit of miners selling a little more. And what do we have? We had a peak and a little bit of a drop down. So the miners keep selling, I would definitely keep a look on that because that usually means that the price will usually go down. Also, as far as exchange reserves, as people start to sell off their crypto, what do they have to do? They have to put it on to these exchanges. So we'll see the price. This is for Bitcoin. The price will go up. But as we start to see things, it'll start to accumulate in the exchanges. So just make sure that if you see exchanges starting to have a lot of reserves on there, that means that people are probably going to sell. And the same thing with Ethereum, you can see on the top left-hand corner here, we had a lot of people that are as far as exchanges at a lot. And of course, over here, not too much. And that means that people were taking it off. But now, there looks like they're coming right back and putting it right back on the exchanges to sell. So what does that mean? Well, that's what happened today, a little bit of a downward price action. And then I would like to take a look at the correlation between what's going on with our market and then of course, all the traditional markets. So you see, you know, everything's down, S&P 500, NASDAQ, Dow, Russell 30, US dollar index. Bitcoin index is up a little bit. Hey, look at that. So as far as correlation, that's so much, maybe a little bit, but that's what we got. And then lastly, just so we see a little bit of charts, I'm not a chart person, so I was going on this very quickly. And what we can see right here is that this down here is the RSI, so relative strength index. When this goes up, it means that things are overbought. This is for Bitcoin. And when we go above 70, this is for my parameters, it tells me that things are pretty much overbought. And we can kind of see that if we're looking at this, what happened here, as we start to go up, things were just being just overbought and overbought. And at some point, people got to sell and that's what they did when I went above 70. Bam. Then we take a look back. It's the same type of thing. Once we go above those parameters, so here we are again. And there's a big peak and sell off, we go up again, and a peak and a sell off and so on and so forth. So today, it makes a lot of sense that people were selling just a little bit. But here's a nice little marker, which is a little bit of green and not a lot of space. So it means a little indecision. And then finally, I just want to make this make mention. So we see like, Oh, no, people are selling off, it's going to be awful. It's not the bad news. Really, you have set to zoom out and take a look at the time frame. So this is from Will Clemente analyst. He usually works the pump, I believe. And he says, look, this is great news. We have an all time high of 85% of Bitcoin supply hasn't moved in at least three months. So what does that mean? That means that a lot of people are holding on to their Bitcoin because they believe, I believe maybe you believe the Q4 is going to be fireworks. So that's all we have as far as the market goes. Let me know what you think about that in the comment section. Now let's get into the meat potatoes. USDC versus the SEC getting into it. Issuer Circle cooperates with the SEC after receiving investigative subpoena. So here's what is going on. USDC, your issuer circle has a slowed some investigation by the SEC. This is no surprise. Looks like Gary Gensler is out for stable coins. We'll go on that in a second. The company says it's fully cooperating with the commission. We're going on the investigation. What's the alternative? I have no idea. Circle had crossed paths with the SEC after it was fined 10 million for infringements of its subsidiary, the Polonian X. And it says circle the issuer of stable coin USDC is coming under investigation, which was funny because investigation by the SEC according to the regulatory filings that it's submitted to the regulator. So of course, they have to file with the SEC everything that they're doing and because they are public traded company as far as circle. And they said, Hey, you're investigating us just so you guys know. And the company stated in its October S4 filing in July 2021. We received an investigative subpoena from the SEC enforcement division requesting documents and information regarding certain of our holdings, customer programs and operations. And then it just kind of gets into the little nitty gritty. But this is the crux of it right here for Gary Gensler. Stable coins are securities and they fall within the ambit of the SEC. And the question you might want to ask yourself is, why is that? Why does Gary think that? We'll get into that in a second. But first, I just want to show you this, the thing with circle, I don't understand why they're saying, Well, you know, we want to see everything else because in actuality circle, they have been audited, they've been audited by some pretty big companies, and they have been proven that as far as like the audit goes, they have enough to actually back everything. So that's the first thing. So that's a good part. You might see some other things about Tether out there, which may or may not be good. I don't want to get into that. I just don't use Tether. I just use USDC. That's just my personal choice. And when we take a look at this, well, why would the SEC start to crack down on circle? Well, it's because, unfortunately, circle is very open. And what they try to do is they try to say, Look, we have nothing to hide. Here's everything. And the SEC loves that because Coinbase did the exact same thing and said, Hey, we'll meet with you, and we'll sit down with you. And they said, Thanks so much. Here's your Wells notice. We're going to sue the pants off you if you try to do any kind of earn or any type of yield type of programs. So don't even think about it. So for all your Coinbase users, you could have actually gained a bunch of yield on a plethora of your of your cryptocurrencies. But the SEC, which works for you says you can't have anything. Essentially, that is what happened. So the question then becomes, why is Gary so mad or so up in arms about stablecoins? And I kind of see his points. Actually, I see where he is, but I don't really see why he is. So what I'm going to do is we had actually covered this. There was a Senate hearing committee, and it was Senator Toomey asked him and drilled him on some questions. Just this three minutes out of this hour plus long video is really all you need to know. So just take a listen. So some are and some aren't is basically what you're saying. And I'm concerned that the SEC has not provided sufficient definition and explained how it would apply to how we test, which I think is the court standard for determining when something is an investment contract. So for instance, stablecoins do not have an inherent expectation of profit. They're just linked to the dollar. Now you might use them in an attempt to make a profit, but that's a that's a second order activity. Is it your view that stablecoins themselves can be securities? I think it's Senator, they may well be securities. As Thurgood Marshall wrote in the Reeves opinion, in defining the scope of the market that it Congress wish to regulate, Congress painted a broad brush and it actually included about 35 different things inside the definition of a security. Okay, I've just got limited time here. So I acknowledge that. Here's my problem, though. I think what you just said was that they may be securities or that some are securities. To me, a stablecoin doesn't meet the second prong of the how we test, that there has to be an expectation of profits from the investment. And so if it doesn't meet the how we test, it looks to me like it's not a security. Now maybe you've got a good argument for why some are and some aren't. My whole point is I think we need to have clarity on this. I think you should publicly disclose this. Apparently there are private conversations where you work with people who are proposing particular structures and you give them advice or your staff gives them advice. I just think we ought to have that publicly. And we certainly shouldn't be taking enforcement action against somebody without having first provided that clarity. Well, Senator, this Congress and could change the laws, but the laws that we have right now have a very broad definition of security, including a note, including an investment contract and the like. And my predecessor, Chair Clayton and others actually put out a lot of guidance with regard to the how we I just I just kind of push back a little bit on that. It is broad, but it's well defined. There is a very specific litany of the instruments that constitute securities. As you know, there's better than I do. Investment contract is one of them. And there is a court decision that lays out the prongs for what constitutes an investment contract. I'm just saying as a layman who can read English, when I read those tests, stablecoins don't seem to meet that test to me. Maybe I'm wrong. But if I can misinterpret this, I think others could too. And some clarity, public clarity, I think would be helpful. I see the red light, but I agree with you that that some of these tokens have been deemed to be commodities. Many of them are securities. And the Supreme Court has weighed in a number of times. You noted the how we test. We've talked about the Reeves test was in the 1990s as well as weighed in. And I think that there's a fair amount of clarity over the years. So there's some very funny things about Gensler and his responses. First of all, I don't think you really ever answer the question you said is very broad. And then he talks about how, you know what, they are still a security and I'm pretty well set on that even to me makes it crystal clear is like, well, why is it that you haven't given us clarity, but behind closed doors, you're slapping everybody with legislation and going, Hey, if you do anything, we're going to sue you, but we're not going to tell you exactly what it is. The things that he's talking about just does not jive and does not make sense. It is up to you to determine what that is. And I would love to hear your comments in the comments section as to why what's going on. But what it really all comes down to is this, circles going to cooperate. They're going to help. They're going to help with with the SEC to determine whatever it is. And hopefully they can help them flesh it out. Does this mean that USDC and everything's going to crumble and everything else? No, it just means they're under investigation. It just means that they're, they're peering into stable coins, which we knew was going to happen because that is where Gensler is going. And even Jerome Powell for the head of the central banks is like, Hey, you know what, these stable coins, we got to regulate them. So there is a big thing about just stable coins. And it seems to me, like crypto, at least some of them are going to pass like Bitcoin and Ethereum. Anyhow, I'm going to just think about that in the comment section. And let's go on to our last piece, which is about fighting back. I think this is like, it's how people really want to really fight back to the governments. And there's one guy doing it, not all heroes wear capes. This is a crypto user asks the first circuit to curtail IRS collection of records. And what's going on here is going to love this. So in 2017, the IRS want a ruling that granted the government access to transaction records belonging to more than 10,000 customers of Coinbase, Inc. Last April, the government obtained a similar ruling to see records from circle and who and what is circle well, the ones we just talked about with USDC. Anyhow, kind of funny. IRS is but it says here, this actually, even though they did get all this information, it actually confirmed the IRS suspicion, which was that Coinbase customers were not paying their fair share of taxes and they actually collect another $25 million. And that's why here in the States, President Joe Biden is really beefing up the IRS because he wants all that money because he wants to print as much as he possibly can and tax the tariff of everybody. And that's where we're at. So when we get to when we talk about taxes, it's important because if you want to get it, it's not much you make. It's how much you keep. And if you get taxed up to oblivion, it doesn't make sense. Anyhow, to finish this up, James Harper contends of the IRS. This is the guy James Harbor. Remember this guy? James Harper contends that the IRS violated his constitutional rights when it obtained records of his transaction. And this is what all comes down to. The question will come down to an interpretation of the U.S. Supreme Court's ruling last May in CIC Services versus the IRS. Harper contends that the Supreme Court's ruling clears the way from the challenge what he considers an unconstitutional seizure of his records. Seizure of his records. And then it goes into a bunch of legal mumbo jumbo and you can read that and I will link that in the description. But really, what it all comes down to is this. If you don't like way that the government's training you, you need to fight back. You need to do the things that you need to do within legal parameters to make sure that you get what's coming to you and you, because you've done a lot of hard work. So why not? Which leads me to my last point, which is this. We did a video not too long ago and it's a tax-free crypto IRA at iTrust. And if you don't like paying taxes, I have a crypto IRA. And what's great about that, I did a video and it goes over traditional IRA, SEP IRA, Roth IRA, which is the one that I have, which means that everything you put into this Roth IRA, you pay 0% in taxes, 0, 0.0. So if you put Bitcoin when it was at $5,000 and you just let it appreciate, then you took it out when it was $50,000 or $60,000 or maybe $250,000 whenever it is and you take it out, you pay 0 in taxes, 0. This is how Peter Thiel made a $5 billion was with a Roth IRA. He put all of his stocks that he got from PayPal when it first came because he was one of the founders. He let it appreciate massively, then he took it out, paid 0 taxes. And it's legal. And that is the things that we all need to do if we want to get ahead in the game. Again, legally. And that's exactly what I do. So if you want to take a look at iTrust crypto IRA, there's a link in the description in all the links in all my videos, even this video right here to scroll down. It'll say iTrust crypto IRA, the video we just talked about is right there. You go one month free with this link. Also, check out Masterworks if you're looking into a different asset class to be uncorrelated as far as fine art, multi-million dollar pieces in whatever you want to do. Anyhow, so that is what is going on today. And that is it for everything. So look, if you made it all the way to the end, first of all, I want to say thank you. I appreciate it. If you like these types of videos, go ahead and give it a thumbs up. Also consider subscribing. The things we talk about are every day and they are time sensitive. So go ahead and check it out. Subscribe. And I'll see you on the next one.