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GM, this is The Crypto Explorer, our headlines are so hot, you might want to keep a fire extinguisher nearby!
Here's what we got for you today:
Fed raises interest rates despite banking turmoil
Do Kwon has been arrested!
SEC serves Coinbase
Fed Raises Interest Rates Despite Banking Turmoil
In a move that surprised absolutely no one, the Fed bumped interest rates by a quarter of a percentage point (its ninth consecutive rate increase).
They're hoping to control inflation, which is currently at its highest level in over four decades.
The Federal Reserve announced that it would raise interest rates by 25 basis points, pushing them to the range of 4.75% to 5% ti.me/3LIS7gL
— TIME (@TIME)
8:33 PM • Mar 22, 2023
In response to the news, Bitcoin rose by over 1%, while Ether lost 1.1%.
This just goes to show that you can't please everyone, not even in the exciting world of crypto. 🤣
The stock market seems to be taking the news in stride as well, with the S&P 500 and Nasdaq Composite indexes rallying slightly, rising about 0.4% and 0.5%, respectively.
The FED Chairman, Jerome Powell remains optimistic that a "pathway" to a soft landing still exists, they're "just trying to find it." 😀
Which is like searching for a needle in a haystack, but with the fate of the economy on the line. No pressure! 💆♂️
Do Kwon Has Been Arrested!
Do Kwon got caught with his pants down... well, not literally, but with falsified documents at the airport in Montenegro!
The country's prime minister Dritan Abazovic even retweeted his arrest, so you know it's serious.
U PODGORICI UHAPŠEN JEDAN OD NAJTRAŽENIJIH SVJETSKIH BJEGUNACA
Crnogrska policija lišila je slobode lice za koje se sumnja da je jedan od najtraženijih bjegunaca, južnokorejski državljanin Do Kwon, suosnivač i izvršni direktor Terraform Labs sa sjedištem u Singapuru.
1/2— Filip Adzic (@filip_adzic)
12:51 PM • Mar 23, 2023
Yeah, I know… I can't read Bosnian too. 🤷♂️
So, here's the translation:
"Montenegrin police have detained a person suspected of being one of the most wanted fugitives, South Korean citizen Do Kwon, co-founder and CEO of Singapore-based Terraform Labs,"
Kwon has been the target of several investigations and was even on Interpol's red notice after stablecoin terraUSD (UST) and its $40 billion ecosystem imploded last year, sending shockwaves across the crypto markets.
Now that he has been caught, what next? 🤔 (let me know your thoughts).
SEC Serves Coinbase
SEC strikes again! And this time around, it’s Coinbase taking the hit.
The SEC served a Wells notice to Coinbase for alleged securities violations.
The notice just means that an enforcement action is on the way and it targets Coinbase’s spot market, staking service, Coinbase Prime, and Coinbase Wallet.
Sorry, Coinbase! 😥
1/ Today Coinbase received a Wells notice from the SEC focused on staking and asset listings. A Wells notice typically precedes an enforcement action.
— Brian Armstrong (@brian_armstrong)
9:29 PM • Mar 22, 2023
Coinbase has expressed dissatisfaction with the SEC's engagement on digital assets, claiming that the agency has not been fair or reasonable.
The company states that it has submitted multiple proposals about registration over several months, but the SEC has not responded to any of them.
This is a perfect ex:
- CB has 30+ meetings with SEC
- Spends millions drafting a registration proposal despite that literally being the SEC's job
- Gets ghosted by SEC for 9+ mo
- Promised meeting for clarity with SEC cancelled on 1 day notice
- CB sued for being a bad actor???— Collins Belton (@collins_belton)
10:03 PM • Mar 22, 2023
“Regulatory uncertainty in the crypto industry is getting worse”, Coinbase said. “Instead of developing a regulatory framework for crypto, the SEC is continuing to regulate by enforcement only.”
It's like the SEC is that one teacher who never gives out the syllabus and just expects you to figure everything out on your own and still punishes you for not getting it right.
It's clear that the SEC and Coinbase are not exactly seeing eye to eye, let's see how this pans out.
That's all we have for today.
We'd love to hear your feedback.
Until then, see you tomorrow, or on Twitter, if you're there: @danielakpobare
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.
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