Jacob Shulman

FinTech enthusiast. Corporate associate. Tweets are my own.

[Alexander Grieve @AlexanderGrieve]

Excellent letter from @SenTuberville, @RepBlaine, @RepDonaldsPress, @RepRalphNorman, and @RepMarkAlford highlighting the glaring inconsistencies between under-oath Congressional testimony from @PrometheumInc CEO Aaron Kaplan and Prometheum’s very own SEC filings.

[Adam Cochran (adamscochran.eth) @adamscochran]

Wait…

Binance is saying they don’t have enough native BCH to cover withdrawals…

But the BCH on BSC where they tell you to withdraw, is supposed to be backed 1:1 by native BCH on Binance…

Should be impossible for this to be out of sync…?

[Tom Howard @_TomHoward]

Ok so 10k/day tweets now have a going rate of $8/mo.

Now we know the time value of tweets, we can establish Tweet futures markets.

With Tweet futures markets, we can extrapolate a vol surface and start a Tweet options market.

Then we ask Gary if Tweets are securities or not.

[Jake Chervinsky @jchervinsky]

All of the anti-crypto SEC apologists came out of the woodwork yesterday to criticize the paper @MTCoppel and I wrote explaining why Chair Gensler must recuse himself from crypto-related enforcement decisions.

We must be on to something.

Read it here:
https://t.co/xgJ09o5qFq

[@nikhileshde.bsky.social @nikhileshde]

Prime Trust, Nevada Financial Institutions Division file for receivership for crypto custodian https://t.co/q7ZszgyIvS

[miles jennings @milesjennings]

Think the 2 biggest questions about Prometheum that remain unanswered are:

1. How will the listing of a digital asset on Prometheum be anything other than a death sentence for most projects?

2. How will they get around the disclosure requirements of Rule 144 or Rule 15c2-11?

On the first point, if a digital asset has a functional purpose but is deemed to be a security, then it's highly likely that its functional purpose will be negated. For instance, even if ETH had an issuer and that issuer agreed that ETH was a digital asset security and wanted to list on Prometheum, the recognition of ETH as a security would destroy the functionality of the Ethereum blockchain. The blockchain would no longer be able to issue ETH to validators and users wouldn't be able to expend ETH to pay fees, because now all of those transactions would be securities transactions. As a result, the Ethereum blockchain couldn't continue to function.

On the second point, it's theoretically possible that a combination of Rule 144 and Rule 15c2-11 could be used to trade "digital asset securities" on an ATS. But they can't facilitate such trades without the information required by those rules being made publicly available. That information includes audited financials and other information that isn't relevant to the price of a given digital asset and that no issuers make available. So how will Prometheum do it? Aaron regularly deflected questions on this subject, so I don't think they have a plan, but at the end of the episode he indicated that he thought on-chain data might actually be more useful for investors.

So, my suspicion continues to be that there's another step to this parlor trick. If Gensler's back is against the wall (ie, if it looks likely that Congress will move forward with a market structure bill), he may provide extremely narrow No Action Letter relief regarding the disclosure requirements for "digital asset securities" under these rules. This would enable Prometheum to list a few digital assets and continue the illusion of there being a compliant pathway, which could dissuade Congress from acting on market structure. Meanwhile, the NAL would enable the SEC to maintain strict control over the listing of digital assets (a power Congress never intended them to have) and drive the industry to move outside the U.S.

[Laura Shin @laurashin]

❤️‍🔥 What is Prometheum? A compliant path for crypto or a catch-22?

The debate about the SEC-friendly trading platform rages on.

🤼 Co-CEO Aaron Kaplan spars with Paradigm lawyer @RSSH273 over the state of U.S. crypto regulation.

🔊 Full episode: https://t.co/Qhm2mgFgUu

[Paul Grewal @iampaulgrewal]

We couldn't wait until our deadline next week to address the SEC's response to the June 6 order from the Third Circuit. It is unusual for the government to defy a direct question from a federal court. But the SEC’s evasive response goes further, as we set out today. 1/5

[@nikhileshde.bsky.social @nikhileshde]

Looks like @FinancialCmte @FSCDems have scheduled two @SECGov hearings for Thursday, June 22 -- at 9:00 a.m. "Oversight of the SEC," at 10:30 a.m. "Oversight of the SEC’s Division of Trading and Markets." No other details yet
https://t.co/8aFQ6DzRON
https://t.co/ceOGjKLP9O

[Jacob Shulman @shulmanjacob]

@nikhileshde Time to apply to law school, specifically the Crypto Twitter University School of Law.

[Marisa Tashman Coppel @MTCoppel]

1/ Today @BlockchainAssn FOIA'd the SEC seeking information (docs & comms) about Prometheum and the ATS.

In the midst of aggressive SEC enforcement, Prometheum gets approval for first-of-its-kind Special Purpose Broker-Dealer (SPBD) for digital asset securities.

Suspicious…

[Tech Council Ventures @TechCouncilVen]

Happening this week: @WeAreTechUnited BetterCapital Conference, a part of North to Shore!
Join Steve Socolof, Managing Partner Tech Council Ventures, and Jay Estefani Castillo, Founding Principal m]x[v Capital, on 6/15, 1PM, Standing Out to Investors panel https://t.co/NBX3cf2VuP

[Ram Ahluwalia CFA, Lumida @ramahluwalia]

SEC policy says that Dogecoin, a worthless meme token, is a commodity.

So Coinbase can list it and Americans can inevitably lose money.

Filecoin, has the promise of passing dividends to investors. So Coinbase can’t list it.

Crypto securities laws are broken. How to fix 👇

[@nikhileshde.bsky.social @nikhileshde]

Important dates in SEC v Binance:

* June 12, 2023: Deadline for @Binance and @BinanceUS to respond to @SECgov's application for a temporary restraining order
* June 13, 2023, 2pm ET: Hearing scheduled on the motion for a TRO

@CoinDesk

[Rodrigo @RSSH273]

Today, @paradigm commented on the @SECGov's proposed redefinition of “exchange"

Through haphazard rulemaking, the SEC inappropriately attempts to bring crypto trading platforms, including DEXs, under its remit and regulate them as securities exchanges

https://t.co/ibv2u1n9VU

[New York Metro Weather @nymetrowx]

What a difference 24 hours makes! Air quality remains poor, but we've seen quite an improvement in near-surface smoke and visibility since yesterday in NYC.

[Emily Meyers @EmilyMMeyers]

1/ Remember: @Coinbase sued the SEC first.

Because of that suit, the 3d Circuit handed the SEC an order TODAY with 7 days to respond.

This means the SEC may have to issue crypto rules, and this could happen faster than legislation.

Let’s dig in to what happened

[TuongVy Le @TuongvyLe12]

Let’s be clear: the @SECGov complaint doesn’t mention this, but there is currently NO way for a platform like @coinbase to register as a securities exchange, broker, or clearing agent. That’s why they’ve been begging @SECGov for YEARS to give them a path to compliance.

[Jake Chervinsky @jchervinsky]

SEC: our mission is to protect investors

Also SEC: reviews Coinbase's business model, approves Coinbase to go public, allows Coinbase to sell stock to retail investors

Then SEC: alleges Coinbase's business model is illegal and tanks stock by 20% causing losses to investors

???

[Jacob Shulman @shulmanjacob]

Looking forward to attending the #BetterCapital Conference next week. Thank you, @WeAreTechUnited and @PhilMurphy and others at the @NJGov office who assisted in organizing. #North2Shore

[TechUnited:NJ @WeAreTechUnited]

Ready to propel your startup to new heights?📈

Join us at BetterCapital Conference on June 15th at Asbury Lanes for inspiration and education.

Don't miss out on incredible speakers!

Check out the lineup and get your FREE ticket here: https://t.co/N6MzHrXDYT.