The SEC Is Intentionally Destroying Bitcoin Maximalism By Not Enforcing Securities Laws

The SEC Is Intentionally Destroying Bitcoin Maximalism By Not Enforcing Securities Laws

When a noncompliant government teams up with noncompliant citizens, what you get is a confusing mess. For many Bitcoin maximalists, their world views rested on the idea that a government would actually follow and enforce the rules that they wrote. They made their bets forgoing the opportunity to make enormous amounts of money by listing memecoins, speculating on NFTs, and issuing blockchains featuring innovative tech. Their bet was on compliance, but in the end, it appears that defiance is winning.

Many Bitcoin maximalists decried the shitcoinery and scamming that was going on, with the expectation that the clearly illegal behavior was not just morally abhorrent, but also spit in the face of those who complied. While Bitcoin had a immaculate conception, therefore making it not a security, the shitcoins that followed did not. The maximalists knew that Satoshi studied hard to pass the Howey Test before launching his coin. He knew that removing himself from the equation only added legitimacy to the idea that in the eyes of the SEC, Bitcoin was not a security because of it lacking centralized leadership.

But now as Barron Trump is teaming up with heavy hitters like Andrew Tate and Martin Shkreli to pump a meme shitcoin, it seems like their gambles have failed. Just yesterday, as if to only solidify the SEC's betrayal of the maximalists, the regulating body dropped a lawsuit against Consensys. First they failed to make Ripple comply, then they just gave up trying to make anyone comply. Is the SEC now setting the conditions for there to be somewhat free markets in the world of cryptocurrency, which should be exciting to the junior Austian economists out there, or are they personally just trying to see what the market thinks of the various noncompliant tokens like Robert Breedlove once did?

Example of how Bitcoin maxamalism couldn't convince Saylor to custody his funds with $wan instead of Coinbase

While the shitcoiners have worked tirelessly to lobby the SEC to be noncompliant, the Bitcoin maximalists have failed to lobby the SEC to be compliant. They were blinded by hubris and failed to see that core government officials had no intention of ever actually following the rules. The promises of quick and easy money from listing meme tokens, combined with the convenience of using such tools to launder money into the cold storage of noncomliant politicians, overpowered their obligations to enforce the law.

While the CIA has been laundering money and acting noncompliantly ever since it's inception, cryptocurrency has created a more convenient way to launder money. With cryptocurrency, there is no need to fly cargo planes with pallets of cash into Afghanistan and Iraq, only to funnel the money back to the US. Now the money can be sent digitally to Kiev, and returned digitally in the form of cryptocurrency.

There is ongoing speculation from many maximalists that these shitcoiners are the true maximalists as they appear to be leveraging deceiving strategies in order to acquire more Bitcoin in the end. One thing is clear which is that following the rules does not appear to be a successful strategy to acquire more Bitcoin, as the SEC's non enforcement of their own rules, clearly is resulting from the strategy of trying to destroy those pesky maximalists who want to prevent them from pumping their bags through forcing compliance.

Now the question remains, how will the maximalist camps continue forward? Will they continue to comply with a noncompliant organization? Or will they join the shitcoiners in noncompliance. Unfortunately for many cryptocurrency users, while securities laws will not be enforced, KYC and AML laws will likely continue to be, that is unless you are above those laws like so many in government.

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