Gary Gensler says the SEC will not herald a China-style crypto ban, however Congress might | Forex Information | Monetary and Enterprise Information

SEC chairman Gary Gensler.

  • SEC chairman Gary Gensler said the agency will not impose a China-like crypto ban because that authority rests with Congress.
  • Most tokens could be some form of security, he said at an SEC prudential hearing on Tuesday.
  • Gensler asked questions from a lawmaker who beat him up for “brutally” running over investors.
  • Sign up for our daily newsletter here, 10 things before the opening bell.

Gary Gensler said the Securities and Exchange Commission has no plans to ban cryptocurrencies as the authority actually rests with Congress, adding that most tokens pass the test of being some form of security.

The SEC chair did that Comments at a hearing in the House of Representatives Tuesday after Republican lawmaker asked Ted Budd if the U.S. Securities and Exchange Commission could follow China in imposing a blanket ban on cryptocurrencies.

“No. I mean, that would be a matter for Congress,” said Gensler.

“I think a lot of these tokens pass the tests of being an investment contract or note or other form of security that we bring into the SEC’s investor protection mandate,” he added.

The concern in the crypto world is that the U.S. government may restrict or ban digital assets, much like it did with gold in 1933. Gensler previously said that crypto exchanges must register with the agency because some of their tokens or products could be securities.

The People’s Bank of China Declared crypto transactions illegal Late last month, a move analysts said was in line with the central bank’s stance over the past decade.

“Our approach is really very different,” Gensler told the House Financial Services Committee.

He noted that the SEC is looking into how the industry can best protect investors and consumers, and comply with anti-money laundering and tax compliance laws. It would also be in the Problems that stablecoins could pose, he added.

Gensler’s comments echoed those recently made by Federal Reserve Chairman Jerome Powell, who said the Federal Reserve had no intention of banning cryptocurrencies.

At the same House hearing, Patrick McHenry asked Gensler on the SEC’s stance on digital assets and reprimanded him for being vague about what a digital asset actually is.

“Some of your comments have raised questions in the marketplace and made things less than clear,” said McHenry. “You made seemingly spontaneous remarks that move the markets, you disregarded rule-making by issuing an out of order statement, and you’ve essentially been rude to American investors.”

Gensler said the agency is following the Administrative Procedures Act, which requires a regulator to issue a general notice of the proposed rule.

McHenry asked Gensler if he a. have reviewed Safe Harbor Proposal created by SEC Commissioner Hester Pierce. The proposal aims to give developers of digital networks a three-year grace period to develop a platform with a registration exemption from federal securities laws.

“Commissioner Peirce and I discussed your thoughts on a possible safe haven,” said Gensler. “I think the challenge for the American public is that if we don’t monitor this and put in place investor protection, people will be hurt.”

Continue reading: Altcoins to Buy: These 15 little-known and undervalued tokens could see an ether-style spike due to significant developer interest, according to Bank of America

Elon Musk takes photographs at Biden, SEC anti-nuclear sentiment at Code

Elon Musk, CEO of Tesla, stands in the foundry of the Tesla Gigafactory during a press event. Year.

Patrick Pleul | Image Alliance | Image Alliance | Getty Images

SpaceX and Tesla CEO Elon Musk on Tuesday criticized President Joe Biden for saying his administration was “biased” against Tesla, saying that during a speech on stage at the Code Conference in Beverly Hills, California, unions “ seems to be controlled.

Musk also, in his typically disrespectful form, reiterated several of his previous taunts against state financial regulators at the Securities and Exchange Commission, reiterating his support for cryptocurrency and nuclear power, and saying he was there despite the recent antitrust and cryptocurrency attacks.

Beef with biden

Code host and Recode editor Kara Swisher asked Musk to explain the recent tweets he made rebuked President Joe Biden.

Musk sighed. “You know, Biden held this EV summit – didn’t invite Tesla. Invited by GM, Ford, Chrysler and UAW. “

“Does that sound a little biased or something? And you know, just – it’s not the friendliest administration. Seems to be controlled by unions, as far as I can tell. “

Swisher asked him if he was waiting to get former President Donald Trump back or to become president himself, and he said no in both cases.

About taxes

Swisher asked Musk, who is currently the richest person in the world, according to Bloomberg – To respond to criticism that while his companies have received many government contracts and subsidies, the CEO has avoided paying some taxes personally in the US through creative, albeit legal, accounting practices.

In June, investigative news site ProPublica reported on Musk’s tax bill as part of a massive analysis of billionaires’ finances. They found that Musk’s income tax bill was zero in 2018.

Musk insulted ProPublica’s coverage, calling it “tricky” and “misleading”.

Then he said the number was so small because he wasn’t getting a salary, so his cash compensation was basically zero. Instead, Musk borrows money in exchange for stock options that vest over time.

Since he had accumulated more and more shares in Tesla and SpaceX, he had “not really bothered” to take money off the table by selling a stake. The success of SpaceX and Tesla is far from certain, said Musk. “You have gone bankrupt many times. But I never tried to take money off the table.

The publicly traded Tesla has never notified shareholders that it was on the verge of bankruptcy.

When Musk’s stock options expire at Tesla, its marginal tax rate will be over 50%, the CEO said. “I have a number of options that expire early next year, so … a huge block of options will be sold in the fourth quarter – because I have to, or they will expire.”

“So are you going to pay a lot of taxes at some point?” said Swisher.

“Massive, yes,” said Musk. “Basically, a lot of what I sell will be taxes.”

He said critics might believe wealthy people borrowing against their stocks are “a ploy to get away from paying taxes”. But, he said, this is not uncommon and can be a risky move. “Borrowing for stocks is kind of fun and game until you get into a recession and hit the margin calls and then go to zero, which basically happens every time a recession hits.”

“I definitely put on the record and said that I think our stock price is too high in my opinion, and that hasn’t stopped the stock price from rising,” he said. “So … I don’t know – what should I do, you know? The audience laughed.

“I think it’s important to keep in mind that my actual tax rate is 53%. They’re trying to make it look like I’m paying very low taxes, but the reality is that my taxes are very high. … be paid out in the next three months due to options expiring, “he said.

When asked for comment by CNBC, ProPublica responded with the following statement from Editor-in-Chief Stephen Engelberg:

“Elon Musk’s remarks confirm the veracity of our reporting, which disclosed that he did not pay federal income taxes in 2018. As we have highlighted in our story, Musk has supported his lifestyle by borrowing money against his stock holdings, a textbook example for the known strategy. ” as ‘buy, borrow and die.’ We have pointed out in our history that his tax payments to the government over the past few years were only a tiny fraction of his multi-billion dollar asset appreciation. “

ProPublica sent Musk detailed questions before releasing her June story and he didn’t answer. At Tuesday’s conference, Musk said ProPublica was “not interested” in the truth about its finances.

“We remain interested in his comments on the US tax system or his own strategies to minimize his tax obligations,” Engelberg said on Wednesday.

On twitter

Swisher also asked Musk about his extensive and sometimes combative use of Twitter. “Go over us if you decide to tweet,” she said.

Musk answered Swisher in a sarcastic tone.

“Well, I think about it for hours. And I consult my strategy team,” he said, laughing with the audience. “Or maybe I’m exhausted and then brrrr-psshht! Path! Let me shoot me in the foot, bam! Now let me shoot me in the foot, bam! That describes some of my tweets. “

In 2018, the SEC sued Tesla and Musk for securities fraud after the CEO wrote on Twitter that he was considering making Tesla private for $ 420 per share and securing funding.

They eventually settled that lawsuit, with Musk and Tesla each paying a $ 20 million fine to federal agencies and Musk relinquishing his role as Tesla’s CEO. Musk also agreed to have his tweets reviewed by a compliance officer at Tesla before posting them if they contained material company information.

“Are you concerned about potential SEC involvement in your tweets?” asked Swisher.

Musk said, “What does that mean again? I know the middle word is ‘Elon’, but I can’t remember the other two words.”

She asked him to answer seriously. “Are you afraid they’ll say, ‘Elon, stop … tweeting.'”

“You mean the Short Selling Enrichment Commission?” Musk asked.

Both comments were allusions to insults Musk made on Twitter in 2020 and 2018, respectively, to the financial regulator.

Crypto and China

Tesla made waves in February when it announced it had bought about Bitcoin worth $ 1.5 billion. After the stocks were announced, the price of Bitcoin skyrocketed. In May, when Musk said on Twitter that Tesla stop accepting bitcoins as payment for his electric cars the price of Bitcoin has fallen.

When Musk tweets a recommendation for a specific coin – like he did with Dogecoin – its price tends to rise, at least temporarily.

When Swisher asked about regulating cryptocurrencies, Musk said the SEC should pull out.

“Just let it fly” he suggested.

The People’s Bank of China recently made all cryptocurrency-related activities illegal. Swisher asked Musk if he had any concerns about working in China or if he was concerned about US-China relations.

After praising Tesla’s employees and the vehicle assembly plant in Shanghai, Musk said he was “not particularly” concerned about China right now. As the pandemic subsides and face-to-face meetings resume, “trust” in China with tech companies and overseas companies would “go in a more positive direction,” Musk predicted.

Musk said he believes China may not accept the cryptocurrency in part because of the electricity shortage there and the huge amount of electricity required to mine Bitcoin. However, he also said that cryptocurrency’s potential to diminish the power of centralized governments could make China suspicious.

When Swisher said that Musk alone could “change the shares” of the cryptocurrency more than China did, Musk admitted it. She asked him if that was a good thing. “If it goes up, I suppose,” he said.

Space and energy

Swisher and Musk discussed at length about SpaceX, its competitors, plans to expand the Starlink satellite Internet service, and ambitions to make humanity a “multi-planetary species”.

During their SpaceX discussion, Musk took the opportunity to mock the phallic shape of Blue Origin’s rocket and berate Jeff Bezos for his space travel Company litigation.

“Can you explain, from a technological point of view, why it is this shape?” asked Swisher.

The characteristically rough Musk said, “If you’re only flying suborbitally, your rocket can be a little shorter, yes.”

Musk has stated that he doesn’t actually speak to her Amazon Founder, instead sub-tweets him – meaning he tweets about Bezos without addressing him directly.

When asked about SpaceX creation Light pollution This affected the work of astronomers, Musk said: “We are working very hard to ensure that our satellites do not interfere with their telescopes.” SpaceX could launch some new telescopes with the Starship vehicle, he said, that would have 10 times the resolution of the Hubble. He said that only amateur astronomers are complaining about SpaceX today.

At the end of the session, an audience member asked if Musk was concerned that utility companies might be able to generate and transmit enough electricity to power electric vehicles as they become more popular.

Musk estimates that electricity needs will roughly double as the world switches from gas-powered to electric vehicles.

“This will create a lot of challenges with the grid,” he said. He said he sees the demand as “impracticable” unless significant local electricity generation in households is added by means such as residential solar products such as those sold by Tesla.

In addition to rooftop solar, he said we need to add “large, sustainable power generation developments, mostly wind and solar” to the grid and combine them with battery packs to offset the intermittent nature of renewable energy.

As a final thought, Musk added:

“I’m kind of in favor of nuclear power too. And I’m kind of surprised by the public opinion against nuclear power. I’m not saying that we should build a whole series of new nuclear power plants. But I don’t think we should.” You have that in Germany and had to build a number of coal-fired power plants, and I honestly think that wasn’t the right decision. “

SEC Wrap-Up, Jeopardy! Fashion: A Take a look at Groups Across the SEC

OXFORD, miss. – In the second week of the football season, some teams looked pretty smart. A few others looked like they had no idea. You know, a hint like the kind they give on Jeopardy!

On Saturday, the SEC drew 11-1 against non-conference teams.

Here’s a look at last week’s games and the Jeopardy hint each team has for the future. I’ll get Still The Best College Football Conference for $ 500.

NO. 25 AUBURN 62, ALABAMA STATE 0

Why does Auburn even charge entry for sideshows like this one? Instead of playing against Bama State, Tuskegee is even closer and a Division II team, why not play against them? At least fans could see Jarquez Hunter break a school record with a 94 yard touchdown run. Well, it happened less than a minute to go in the third quarter, so there weren’t many fans left at the Jordan Hare Stadium to see it.

THE NOTE: We found out about Auburn on Saturday.
THE QUESTION: “What is nothing? What is absolutely nothing? “

SOUTH CAROLINA 20, EAST CAROLINA 17

Shane Beamer took his second South Carolina coaching victory dramatically when the 27th. The Carolina Defense didn’t allow a pirate quarterback to throw 80 yards or an ECU runner to throw more than 70 yards. It also seems that former assistant Zeb Noland is a real leader.

THE NOTE: It is the single most important question to ask any aspiring assistant coach.
THE QUESTION: “What other authorization do you have?”

PITT 41, TENNESSEE 34

In an underrated game, the Johnny Majors Bowl took place on Rocky Top Saturday. The Panthers took the lead at 27:20 at halftime and that was important as the two teams exchanged punches like boxers in the second half.

UT needs to find out his game in progress. The Vols lead rusher was the starting quarterback and the second lead rusher was the backup quarterback.

THE NOTE: This is why Rocky Top is so rocky upstairs.
THE QUESTION: “What are Tennessee fans asking for Josh Heupel’s head after just two games?”

NO. 13 FLORIDA 42, SOUTH FLORIDA 20

Quarrel about the quarterback? Which quarterback controversy? Oh, the one brewing in Gainesville, that’s the one. Starting quarterback Emory Jones threw for 151 yards in 14 completions for the Gators. Backup Anthony Richardson threw for 152 yards and two touchdowns on THREE completions.

THE NOTE: A thesaurus.
THE QUESTION: “What book does Dan Mullen have to read to find other words to replace ‘controversy’?”

IN THE. 5 GEORGIA 56, UAB 7

JT who? Georgia’s JT Daniels was unable to play due to an injury, so Stetson Bennett IV stepped in, throwing 288 yards and five touchdowns. The real newcomer Carson Beck also came into play and threw his first touchdown of his career.

After the Dawg defense had only given one field goal to Clemson in the beginning, they gave the Blazers only a single touchdown. The UGA defense is pretty good.

THE NOTE: If a backup quarterback succeeds, it’s a product of that coaching philosophy from the season before.
THE QUESTION: “What is ‘this year’s coaching team for the next season’?”

NO. 5 TEXAS A&M 10, COLORADO 7

Texas A&M not only lost its starting quarterback to Colorado, it almost lost the game and its high ranking. Losing Haynes King early in the game to a severe leg injury, the Aggies relied on replacement Zach Calazada to throw a 14-yard touchdown to Isaiah Spiller 2:41 in Denver to avoid the surprise.

THE NOTE: This is where you don’t look when facing non-conference opponents.
THE QUESTION: “What is too far to go to Arkansas on September 25th?

NO. 1 ALABAMA 48, MERCER 14

Even the announcers in Alabama sounded like Willy Wonka telling bad kids not to do bad things. “No stop. Please don’t,” Wonka said listlessly. Kudos to the Bama coaches who were able to get their team to play against a team that had never scored against them before Saturday.

THE NOTE: Nothing. I do not have anything.
THE QUESTION: “Why is Alabama playing against teams like Mercer?”

ARKANSAS 40, NO. 15 TEXAS 21

Wait what Arkansas not only won the game against the No. 15 Longhorns, the Hogs beat them too. Not only did Arkansas knock out the Horns in the first half, the Razorbacks also outperformed Texas in the second half, winning away from home. Any hog runner who handled the ball averaged at least 6.3 yards per rush.

THE NOTE: This team should be careful what they want for the future.
THE QUESTION: “What is Texas eagerly waiting for to join the SEC?”

MISSISSIPPI STATE 24, NC STATE 10

Use caution if you speak ill of a Mike Leach team. After battling Louisiana Tech at the season opener, Mississippi State took just 13 seconds to let NC State know the Wolfpack had a long day ahead of them.

Lideatrick Griffin took the opening kickoff and ran back 100 yards to score a touchdown before the cowbells could even ring in Starkville. From then on, the Bulldogs looked like a team that other SEC schools can’t overlook.

THE NOTE: So many teams in SEC West can win many games.
THE QUESTION: “What is it all, including the state of Mississippi?”

KENTUCKY 35, MISSOURI 28

It would be hard to choose a better game between SEC and SEC to start the season. Kentucky’s Will Levis and Chris Rodriguez, Jr. become one of the SEC’s most formidable quarterback-running-back duos. Rodriguez, Jr., ran for 206 yards and three touchdowns while Levis threw for 179 yards and one more score. Mizzous Conner Bazelak threw 294 yards and four scores.

THE NOTE: It sucks.
THE QUESTION: “What is the reaction if one of these teams had to lose this game?”

WELL. 20 OLE MISS 54, AUSTIN PEAY 17

There was no hangover from an opening week win, no episodes of a short week, nor one big deal that Lane Kiffin returned to the sidelines. Instead, fans got what they expected. Matt Corral threw five touchdowns in three quarters, the Rebels had explosive plays and the defense even scored.

THE NOTE: You are back …
THE QUESTION: “Who is the Landshark Defense?”

LSU 34, McNEESE STATE 7

In the weekly Take-Your-Son-to-Work game, LSU trainer Ed Orgeron’s group treated his son Cody’s McNeese State Cowboys. Cody threw a touchdown against Daddy’s team so that Father’s Day doesn’t get too uncomfortable in the Orgeron household.

One cool fact about McNeese: The Cowboys have lost two games this season. Both teams, LSU (FBS) and West Florida (D-2) became national champions in 2019.

THE NOTE: Another one.
THE QUESTION: “How many games does the LSU have before the Tigers get more serious?”

VANDERBILT 24, COLORADO STATE 21

Yes, Vanderbilt won a game. In fact, Vanderbilt won a street game. Vanderbilt won a game that gave Clark Lea his first college win. The Commodores could have wrapped this up, but instead, when the Rams leveled the game with a touch of more than three minutes, Vandy took over and hit the field in eight games to Joseph Bulovas’ game-winning 38-yard field goal. Anchor down!

THE NOTE: After a win, Vanderbilt’s chances of beating Stanford – who defeated Southern Cal Saturday – in Nashville this week.
THE QUESTION: “Which is not good, but it sure would be cool.”

By the way, I personally know two guys who performed at Jeopardy! Neither of my friends won, but both said Alex Trebek was a real gentleman. (Why should they lie? These two guys are sports presenters.) Rest in peace, Alex.

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Cash issues as Oklahoma, Texas look to leap ship to SEC

What better Missouri 10th anniversary gift to pull the trigger and join the Southeastern Conference than this: justification.

Texas and Oklahoma stole the show every media day this week as news leaked from the Longhorns and Sooners – closer than many initially thought Wednesday – to leave the Big 12 Conference for good.

Missouri and Texas A&M collapsed in 2011 after the uncomfortable 12-team alliance founded in 1996 collapsed under the weight of twin vices – ego and money. Texas and Oklahoma’s public pose to position themselves at the forefront while cashing the biggest checks drove away Colorado and Nebraska first and then the Aggies and the Tigers.

Two founding members of the Big Eight and another long-standing member (the Buffaloes) leave injured: rivalries have been severed, past stories have been muted.

But money has helped everyone move forward, and money is the driving force here too. But 10 years ago when eyes were roaming Colorado, Nebraska, Texas, and Oklahoma, Missouri was almost caught, and Sporting Director Mike Alden, Chancellor Brady Deaton, and others had to make sure the Tigers had a chair to sit on when – not if – those Music stopped.

Now? Missouri is gleeful.

On November 6, 2011, the SEC expanded membership to Missouri and has since remained at 14 members. The Tigers found a safe landing spot and could look on in amusement rather than anger if the internal divisions of the Big 12 ever reappeared.

According to some reports, Texas and Oklahoma could give up their commitments and join in time for the 2022 football season to start, while others have suggested that it is more financially likely that both will officially go after 2024-25 when the Big 12’s TV rights deal is finalized as an immediate exit would cost each school up to $ 80 million.

According to Dennis Dodd, who also reported that the other members of the Big 12 are considering giving the Sooners and Longhorns a bigger share of the conference revenue, neither representatives had a conference call on Thursday, highlighting the particular inequality that both Texas A&M as also prompted Missouri to contact the SEC, where both were treated as full members from day one.

If you’re a Missouri fan, I understand you have a few reservations about, uh, Texas specifically joining the SEC.

Texas A&M has taken on its oldest and fiercest rival to join the league: The Aggies like the football recruiting spot of being able to play in the SEC while staying in Texas. The entry of the Longhorns would tarnish that shine. The Aggies have worked hard to escape the pull of the Longhorns’ financial and political might, and now they seem to be withdrawn.

Texas, as always, will do its best to run the show if it joins the SEC, as it did at the Southwest and Big 12 conferences.

Will they be able to do it? Only time can tell. But that’s why I think Missouri won’t be a no to renewing a membership offer if the SEC votes on it. Texas A&M would have to drum up three other “no’s” to override things, but it’s very hard to imagine the other 13 schools rejecting the increased revenue that would come with the addition of Texas and Oklahoma.

The Missouri sports division was safer and financially better off after leaving the Big 12 for the SEC, which made that decision right then and now. It also seems clear that Missouri – and everyone else attending the conference – will be better off financially with Texas and Oklahoma joining.

In this scenario, the SEC would become the nation’s most powerful conference in the greatest sport of college athletics, and be ready to take a leadership role if this talk of breaking with the NCAA materializes.

And isn’t this about money anyway?