Crypto lobbying groups sue SEC over expanded dealer rules: CNBC Crypto World

Crypto lobbying groups sue SEC over expanded dealer rules: CNBC Crypto World

today a group of crypto lobbyist sues
the SEC the Philippines tells Apple and
Google to remove binance from their app
stores and Adam Sullivan of cor
scientific breaks down what’s next for
the minor after the latest Bitcoin
having welcome to cnbc’s crypto world
I’m TAA mckel cryptocurrencies holding
study this morning with Bitcoin hovering
right around $66,500 ether meanwhile
Rising to 3225 and Unis swap trading at
about
$8 let’s talk about the top stories a
group of crypto lobbyists is suing the
SEC over an update to its rules
regarding dealers back in February the
agency adopted rules that added
significant Market participants to the
definition of dealers which falls under
the purview of the regulator well on
Tuesday the crypto Freedom Alliance of
Texas and the blockchain association
filed suit against the SEC and chairman
Gary gendler in federal court saying the
agency’s newly EXP a definition of a
dealer goes too far they argue it could
Encompass people participating in
digital assets that don’t engage in
conduct that resembles dealing now we
reached out to the SEC about this
lawsuit and a spokesperson said the
commission undertakes rule making
consistent with its authorities and laws
governing the administrative process and
will vigorously defend the final dealer
rules in court at the same time two
lawyers with the SEC have reportedly
resigned after a federal judge
sanctioned the regulator for gross abuse
of power in a crypto lawsuit we reached
out to the SEC about this story too and
a spokesperson said the agency doesn’t
comment on Personnel matters next
Venezuelan Oil Company pdvsa reportedly
wants to use tether to skirt us
sanctions according to Reuters as the
Biden Administration reinstates a
Venezuelan oil ban the company is
looking to the largest stable coin by
market cap tether to minimize risk of
freezing accounts last week the
country’s oil Minister Pedro tea told
Reuters that digital currencies might be
the preferred method of payment for some
oil contracts tether told CNBC that it
respects the sanctions list and is
committed to freezing sanctioned
addresses we also reached out to the
Department of Treasury but didn’t hear
back right away yesterday the Department
of Justice unsealed an unrelated
indictment charging individuals from the
Venezuelan run Oil Company alleging
evasion of us sanctions in 2019 and
finally the Philippines Securities and
Exchange Commission is ordering for the
removal of binance from App Stores the
regulator announced it sent notices to
both Google and apple requesting the
removal of the crypto trading app the
requests emphasize the believed threat
binance poses to Filipino investors and
that it operates in the country as an
unregistered Securities broker CNBC
reached out to binance Apple and Google
but didn’t immediately hear back the
regulator warned of blocking binance
back in November the same month The
Exchange reached a Monumental settlement
with the US doj that included the
resignation of founder and then CEO
Chang Pang
Xiao all right for our main story we’re
still watching crypto markets and miners
after the fourth having for the network
last Friday I spoke with Adam Sullivan
CEO of core scientific about how the
publicly traded minor prepared for this
latest having event and what’s next for
the
company well thank you so much for
joining us we just had bitcoin’s forth
having and it came just months after
your company exited bankruptcy relisted
on the NASDAQ and then just recently
announced an expansion of your facility
in Denton Texas what is your strategy
after this most recent having and is the
expansion in Texas part of that strategy
in the face of smaller block rewards
yeah so Bitcoin creates abundant energy
by its very nature and so what we looked
to do and the approach that we took from
the very beginning was to find lowcost
stranded energy in locations that were
also viable for other use cases you know
what what you saw with our expansion
inent in Texas is that you know we not
only believe that urot and the Texas
Market more broadly is a very strong
Market not only for Bitcoin mining but
also for potentially other use cases as
well so we’re definitely focused on
continuing to build out our Bitcoin
mining footprint over the course of the
next few years but we’re also going to
look to continue to expand to other
business lines as a way to monetize our
asset base in the best way possible we
saw Bitcoin transaction fees surge
immediately after the having and then
they came right back down just as
quickly are you hopeful that transaction
fees will continue to climb and
supplement that lost mining Revenue
especially with things like ordinals and
what could drive that since you know
last year we saw that big spike another
similar Spike recently um and it’s not
just that big spike and then it
continues so what could start to bring
that Trend back yeah I mean what we’re
seeing right now is the runes really in
the PO having world has been almost 50%
of the transactions that occur directly
after the having obviously supporting
Bitcoin miners you know Bitcoin miners
we we love to see transaction fees
higher on the nwor and so from our
perspective we’re very supportive of any
projects that are developing directly on
on the layer one and are transacting
actually on bitcoin so from our
perspective we obviously applaud the the
runes launch and I think going forward
it’s something that we can’t expect to
see right we can’t expect to see
transaction fees stay this high for an
extended period of time when you look
back throughout the course of of the
Bitcoin Network you know you see blips
maybe they last as long as a month in
terms of higher transaction fees but
transaction will come back down and
that’s going to have a major effect on
the Bitcoin Network because what we’ve
seen is profitability stay high enough
where not many machines have actually
come offline and so we expect to see
over the course of the next you know one
to two months we’ll start to see that
normalize as transaction fees start to
come back down and then the
profitability also comes down with it
and that’s going to remove a lot of the
older generation equipment and some
higher power cost sites from actually
being able to participate in the
network uh crypto world’s McKenzie
sigalos reported on miners potentially
turning to AI to brace for SL revenue
from mining is that something core would
consider given the Boom in AI right now
absolutely uh you know what we like to
do is maximize the value of our asset
base our asset base has access to low
cost and a lot of megawatts at each of
our sites um so all of our sites are
really ideal for also hosting HPC from
the perspective of there many of our
locations are located next to Major
Metropolitan markets meaning they’ll
have low latency which is a requirement
as part of HPC and Ai and so we
announced our first deal uh earlier this
year uh with with cor weave and we’re
going to continue to explore any way
that we can maximize the value of our
assets today that looks like it’s AI as
the demand for AI is extraordinarily
strong but we’re going to continue to
evaluate more opportunities down the
road in any way that we can maximize the
value of our asset base what are the
plans for for specifically this year as
you look to continue your comeback in
2024 yeah our comeback has been strong
uh we emerged earlier this year uh and
we’re continuing to grow you know we
announced our first expansion of 72
megawatts you know just extending our
infrastructure lead on the industry and
we’re going to continue to refresh our
machines over the course of 2024 to not
only increase our ex aash exposure but
also increase our margin profile so it’s
about protecting our existing asset base
and Bitcoin has been been a very
profitable Enterprise for us uh over the
course of the past seven years since we
entered this industry and as part of
this we’re also adding on you know kind
of a secondary component to this which
is continuing to evaluate our asset base
and that’s why you know we’ve been we’ve
been talking a lot publicly about you
know we’re evaluating different
potential contracts on the AI side
because it’s tremendous value it brings
stable free cash flow to an industry
right now where Bitcoin miners are faced
with high volatility and so figuring
ways to make our revenue streams our
free cash flow streams much more stable
and much more easily to project you know
five years 10 years down the road you
know that’s going to add value to the
base of our business right now which is
Bitcoin mining turning to bitcoin itself
what is your outlook for the asset this
year more broadly the big Catalyst seem
to be here already we’ve had the spot
ETFs we’ve had the having so what’s next
and what what are you tracking when you
watch the price of Bitcoin yeah I think
the big question is whether the ETFs for
the launching pad for allowing Bitcoin
to Rally post hav or whether we saw that
rally preh hav you know there’s still
some Catalyst on the horizon when you
look back at previous havs the time
period at which Bitcoin rallied post
having has elongated over time and so
you’d expect to see that most likely in
kind of the six to n month time period
just based on looking at that Trend
elongating over time and then we also
have some other cus as well such as the
Hong Kong ETF which I think will provide
some Tailwinds to bitcoin price over the
course of
2024 okay that’s all for crypto world
today we’ll be back again tomorrow and
we’ll see you then
[Music]

CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, Adam Sullivan, CEO of Core Scientific, discusses the miner’s strategy after the fourth Bitcoin halving.

Chapters:
00:00- CNBC Crypto World, April 23, 2024
0:22- Bitcoin holds steady
0:34- The headlines
3:13- Core Scientific’s Adam Sullivan

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Crypto lobbying groups sue SEC over expanded dealer rules: CNBC Crypto World