Robinhood discloses SEC letter warning of potential enforcement actions: CNBC Crypto World

Robinhood discloses SEC letter warning of potential enforcement actions: CNBC Crypto World

today Bitcoin dips after climbing to $64,000 over the weekend Robin Hood says the SEC could be preparing enforcement actions against its crypto business and Chris Klein of Bitcoin Ira breaks down the macroeconomic environment’s impact on crypto markets welcome to cnbc’s crypto world I’m TAA mckel Bitcoin dipped into the red to start the week but that’s after it climbed up to The $64,000 level over the weekend by noon Eastern today Bitcoin had fallen back to $63,000 Ether also down this morning to just under $3,100 but salana is up trading at $153 okay let’s talk about the top stories Robin Hood says it could be preparing for potential enforcement action by the SEC the investing platform said in a filing today that it received a Wells notice from the regulator over the weekend which said it made a preliminary determination that Robin Hood could face potential enforcement action over its crypto business Robin Hood’s Chief legal compliance and corporate Affairs officer said the company believes its listed assets are not Securities in a blog posted today and that the company looks forward to engaging with the SEC to make clear just how weak any case against Robin Hood crypto would be on both the facts and the law the post also said Robin Hood crypto doesn’t list tokens or provide products that the SEC alleged are securities and past enforcement actions in February Robin Hood disclosed that it received subpoenas from the SEC regarding its crypto operations shares of the stock were up 1% as of noon Eastern the company is also due to report its earnings this Wednesday next federal prosecutors have accused former Executives of crypto lender cred of defrauding customers in a press release on Friday the Northern District of California announced a grand jury charged ced’s former CEO CFO and CCO with conspiracy wire fraud and more prosecutors alleged that the executives caused losses of customer cryptocurrency assets that could have a value exceeding $780 million cred was a service that claimed to pay out high yields for customer deposits but it filed for bankruptcy protection in 2020 all right going back to markets for our main story I spoke to Chris Klein co-founder of Bitcoin Ira about bitcoin’s price action over the weekend and how the macroeconomic environment is driving crypto prices let’s talk about the price action to start Bitcoin a little bit in the red today after you know kind of a big increase over not not a big increase but a nice increase back to The $64,000 level over the weekend so what do you make of the way we’re starting the week now uh you know it’s these dips and swings are are kind of expected uh in a POS having environment uh it’s it’s been seen in Prior Cycles before the difference I think that we’re seeing with this one that’s causing a little bit more unexpect unexpected results is we have this new cohort of ETFs that are involved uh they weren’t here for the last cycle like this uh and when you get uh ETFs it’s awesome right you get uh more mainstream adoption easier accessibility you also get a greater percentage of firsttime Bitcoin investors and these folks have to get used to things like what is a having uh the constant volatility uh the stream of celicious headlines that we see out there uh and always the claim that if it goes down 10% Bitcoin is dead uh so they have to get comfortable with these realities uh and this ongoing cycle you see it also happen happening with Sunday afternoons big pickup in the crypto markets in Sunday afternoons about three or four of the last five or six weekends uh and then there’s a cool off on Monday so that’s probably what we’re seeing here today so we have these two big catalysts we’ve been talking about them for months the having and the launch of the ETFs earlier this year those are behind us now so what is driving things um you know in the in the medium in the medium term uh is it is it the macro environment and what are you expecting from the price action going forward is it you know kind of the chop that we’ve been seeing or is there something that you are focused on as you watch the prices well nobody can deny that there’s a summer solstice with all investment vehicles uh at the macro level uh we are in an election year so that’s going to have a different cycle to it than traditional Summers uh you see some downward pressure already happening there’s always been that sell and may go away mentality but it’s not necessarily true when you have assets that are trading 247 these days uh one great thing and I think that we’re going to chase these accomplishments uh Bitcoin achieved the 1 billionth transaction this weekend uh probably didn’t have a lot to do with price moves but it’s a it’s a milestone in the network and it’s an exciting time uh what Mac why wait let me pause you there what does that mean you know we have so many new investors in this spacee over the last couple of years so how should they how should they see that what should that mean to them oh well just maturation of the market it’s starting to grow up it was it’s still a teenager right it’s about 13 14 years old but now it’s getting into the high school years and it’s starting to figure out itself and it’s growing uh and you’re going to have uh more of these these transaction of Milestones that happened I was joking with the person that told me the billionth dollar one today that I can’t wait for the trillionth dollar one and I’m sure we’re going to wait a lot less time to get to that point as more mainstream adoption starts to come in institutions have to wait 90 days like raas and some of these groups have to wait time periods to get fiduciary uh approval to add these assets so even though they launched uh in January AR we’re just now starting to see some of these larger institutions be able to deploy these types of assets so it should accelerate over time but it just goes to show you when I mean I I got into this game in 2016 2015 and I was late to some of these guys that were early adopters that were buying pizza with Bitcoins uh right when we were early in the network transactions to be at a billionth is just it’s a it’s something that you want to celebrate as a milestone as a network some good news out of the Federal Reserve last week I think that’s how Market took markets took it uh with j how saying that the next move from the FED is not likely to be a rate hike uh what does that mean to you you know we talk about correlations a lot here so yeah does Bitcoin kind of participate in this risk on momentum um what does something like that what J Powell said mean for Bitcoin specifically and uh you know given given the Catalyst that we’re coming off of now and this kind of you know reset wait and see moment that we’re in um how do you expect any more reaction yeah uh obviously uh we are Bitcoin is not in a vacuum so it exists amongst all these activities that are happening and it has some correlation uh to these it’s like other major assets uh they there’s this kind of buy the rumor sell the fact of every one of these meetings and announcements but I think that they are short-term distractions uh the fundamentals really haven’t changed we’re still kind of on a runaway train headed right towards the edge of a cliff with things like debt having to finance refinance and pay interest on that debt increasing because of these rates just as a country um think of it like our credit card which Americans have pretty maxed out credit cards it’s a most recent report from discover showed that so macroeconomic all these things are impacting uh Bitcoin uh but what’s happening what part of the reason why people love Bitcoin is its finite Supply and having enforces or reinforces that Reality by constraining the supply over time based upon the reward so at the time when that’s happening for the first time since June of 20122 the monetary Supply production has gone back into the positive so as crypto guys like to say are they turning the printers back on uh they most likely we might be headed in that direction uh this isn’t this again is an election cycle so a lot of things can happen uh up into that election and then for the first year after but we’re all not sitting in a vacuum and Bitcoin exists in this space in a whole new way with these ETFs so in general it’s a perfect storm for some exciting things to happen and getting off zero is pretty critical for anybody that’s looking at Bitcoin or crypto today it’s been almost six months since the launch of the ETF so to finish I just want to get a sense from you what um you know if your Connections in the ra Community what has the feedback been so far on these ETFs because that was really a big selling point um on the ETFs we heard so much about how there was this great need by the advisor Community uh because they had clients who were interested or they themselves were interested in talking about it with clients but you know they didn’t really have a vehicle for it um so what you know has the feedback been so far uh generally positive uh obviously they have to get comfortable with the market too they’re they’re more trained in the traditional asset type so this is a new world for them uh but the at the end of the day the markets are all better for it there’s access to something there’s untapped Capital this is a piece of that uh our platform is more focused on the individual retail uh outside of the Raa doing it within their retirement vehicle like an IRA a Roth seep simple uh but in general I think there’s a positive sentiment uh but there’s a comfort level that’s coming uh as we grow into it and they have to just like what uh there was a big kind of sell the rumor or buy the rumor sell the fact happening with Hong Kong uh last week uh there’s a lag to these things you don’t just turn a switch on and all of a sudden everybody’s buying ETFs market makers have to get into place uh approval uh with risk groups and and compliance have to happen and then inevitably you’ll start to seeing some more flows to them okay that’s all for crypto world today we’ll be back again tomorrow and we’ll see you then

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, Chris Kline, co-founder and COO of Bitcoin IRA, discusses what’s moving crypto markets after a weekend rally.

Chapters:
00:00 – CNBC Crypto World, May 6, 2024
0:24 – Bitcoin dips after weekend rally
0:43 – The headlines
2:22 – Bitcoin IRA’s Chris Kline

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Robinhood discloses SEC letter warning of potential enforcement actions: CNBC Crypto World