Hodder Law Weekly Newsletter - March 18, 2023
Hello everyone, I hope you are all having a great week! The price of Bitcoin as of Friday, March 17 at 4:30 p.m. EST is $26,803.
Headlines.
U.S. Treasury, FDIC and Federal Reserve will guarantee all deposits at SVB, and Signature Bank. Customer deposits at these banks will be guaranteed by the Federal Government. Quantitative easing and the devaluation of the US dollar with reduced purchasing power is the real cost to every American when institutions are bailed out by the government.
Crypto bank Signature slides on Friday amid troubles at Silicon Valley Bank, Silvergate. The ramifications of the FTX collapse are still being felt with traders now betting against publicly traded banks with high exposure to crypto and tech companies. The collapse of Silicon Valley Bank is the largest failure of a U.S. bank since the 2008 global financial crisis.
Unofficial World Record set for highest amount of P2P Bitcoin Lightning transactions paid in 3 Minutes. There were 71 P2P transactions in 3 minutes and 33 seconds using the Lightning Network sets a new world record for most Bitcoin transactions in the shortest time possible. The Praia Bitcoin team did this in Brazil using local merchants and children proving bitcoin can be for anyone!
Central banks’ digital currency plans face public backlash. There are approximately 85 central banks around the world developing digital currency projects. All of these central banks are participants in the Bank for International Settlements system which someday could help usher in a global system of surveillance and control through a worldwide interconnected CBDC system.
SWIFT to conduct more tests with CBDC project. The Society for Worldwide Interbank Financial Telecommunication is working on connecting digital currencies from central banks around the world. International organizations like the IMF and BIS are also calling for cooperation among central banks to usher in a more globalized monetary system.
How U.S. judges might save crypto from the SEC. With the Legislative branch of the U.S. government (Congress) largely clueless about crypto, Executive branch organizations have wielded unyielding power; often through regulation by enforcement actions demonstrated by the SEC. Fortunately, the U.S. system checks and balances with a Judicial branch, which has recently provided some stunning counterpoints in recent court cases.
Barney Frank coauthored the Dodd-Frank 'too big to fail' law. Now he says his bank's failure was a message about 'dealing with crypto.' Until Sunday, Frank was also a director at Signature Bank, which was taken over by the FDIC on the weekend. Although regulators had options to work with the FDIC to insure deposits on Friday, they waited until Monday when it was already too late. Frank told the Associated Press, “This was just a way to tell people, ‘We don’t want you dealing with crypto.’”
HODLCast.
Watch the latest HodlCast on my YouTube channel. We’re on the brink of a major black swan event in the banking sector which lost $90 billion of market cap last Thursday and Friday. Silvergate Bank failed on Thursday and announced a voluntary liquidation, and Silicon Valley Bank (SVB), the US’s 15th largest bank by deposits, collapsed because of risky investment practices and poor management decisions. While all the regulators were focusing on crypto’s risk to the banking sector, they forgot to notice the amount of long-term debt suffering in the fed’s rising interest rate environment.
Hodder Law Firm Blog.
Silicon Valley Bank Collapse. The banking sector has been hit hard this past week. Read my take on the largest bank failure since the 2008 financial crisis, on the Hodder.Law website.
Stay safe out there! A client of mine told me he is using IntraFi Network Deposits, which helps financial institutions access FDIC insurance on deposits larger than the typical insurance limit.
Your brain is like a super-computer, and your self-talk is the program it will run.
Make it a great week! Sincerely, Sasha Hodder Hodder Law sasha@hodder.law www.hodder.law
