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coin-river-blog · 5 years

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U.S. House Rep. Alexandria Ocasio-Cortez and other New York politicians just chased off 25,000 Amazon jobs that could have created salaries of at least $115,000 jobs each. Unfazed and stunningly arrogant, these politicians are taking a victory lap following their dubious success.

AOC’s Cringeworthy Response To Amazon Decision

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CCN reported earlier today that Amazon had scrapped the spacious campus it had planned to build in Long Island City, Queens, which would have created roughly 25,000 well-paying jobs. The residual job creation was estimated to be an additional 67,000 jobs.

The cheers that followed Amazon’s decision to pull out of New York are misguided and troublesome. Too many politicians seem tone-deaf to traditional ideals, like job creation, in their relentless effort to denigrate anything related to big money.

Following Amazon’s announcement, some of the loudest cheers came from Alexandria Ocasio-Cortez. The freshman member of the U.S. House of Representatives had previously described the e-commerce giant’s HQ2 plans as “creeping overreach.”

Thursday, she proclaimed victory and showed once again she doesn’t see the destruction her misguided ideas can cause.

She tweeted:

Anything is possible: today was the day a group of dedicated, everyday New Yorkers & their neighbors defeated Amazon’s corporate greed, its worker exploitation, and the power of the richest man in the world. https://t.co/nyvm5vtH9k

— Alexandria Ocasio-Cortez (@AOC) February 14, 2019

If that wasn’t enough, she followed up with comments that indicate it’s about her, not her constituents.

A reporter caught up with Ocasio-Cortez Tuesday, and she seemed oblivious to the fact that her district is out thousands of jobs and billions of dollars. Even more aggravating is her suggestion that she possesses a concrete, viable plan that would be better than Amazon’s firm plans.

She stammered to the reporter:

“We were subsidizing those jobs so for… the city was paying for those jobs. So frankly, if we were willing to give Amazon three…if we were willing to give away $3 billion for this deal, we could invest those $3 billion in our district ourselves if we wanted to.”

Amazon Stops Just Short of Calling Out Ocasio-Cortez by Name

Amazon will no longer build a 25,000-employee corporate campus in Queens. | Source: Shutterstock

In explaining why it couldn’t move forward with building in New York, Amazon strikingly said it was due to the politicians.

In its statement about the cancellation, Amazon said:

“While polls show that 70% of New Yorkers support our plans and investment, a number of state and local politicians have made it clear that they oppose our presence and will not work with us to build the type of relationships that are required to go forward with the project we and many others envisioned in Long Island City.”

On the opposite end of the spectrum, New York City Mayor Bill de Blasio attacked Amazon for abandoning its HQ2 plans.

He said:

“You have to be tough to make it in New York. We gave Amazon the opportunity to be a good neighbor and do business in the greatest city in the world. Instead of working with the community, Amazon threw away that opportunity.”

Maybe Ocasio-Cortez Should Retake Basic Math

Once again, Ocasio-Cortez falls a little short in basic math here. Even CNBC’s Andrew Ross Sorkin took her to task. He pointed out that this would have been a subsidy only if the state got nothing back for giving it.

Sorkin expressed his disagreement in terms of the huge missed opportunity.

“It’s one thing to win the war on Twitter, it’s another when it happens in real life, and it happens to real people with real jobs and real families. I don’t get that upset about a lot of things. “[This] wins a great Twitter war. It looks great on Twitter, but in real life, it’s a very different story.”

New York to Miss out on $27 Billion from Amazon HQ2

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The politicians seem to be missing some good old-fashioned economics logic. Sorkin broke it down like this. The $3 billion in subsidies will provide a massive return on investment in the form of economic spending and growth.

“[The state] would have effectively been paying out $3 billion in incentives for what would have likely been the equivalent of $27 billion over 25 years. You can play with the math, and you can tell me that there were going to be additional costs, and there likely would have been, but if I handed you $3 billion and you gave me $25 billion back, or you gave me $15 billion back, or $10 billion back, that could have been used for roads, schools, police, and subways, I think that’s a good deal.”

That slight from the De Blasio was even more unsettling because the mayor had ostensibly negotiated the deal in good faith.

“Then it seems he hit them on the way out the door today.”

These reactions are silly, childish and not productive. Beyond the loss of Amazon and its associated $27 billion in economic growth, they signal to other major companies that perhaps states like progressive-leaning New York aren’t as friendly to businesses as officials seem to hoodwink people into believing.

Lots Of Cheering Now Turning Into Lots of Crying For Others

As the politicians bask in the glory of running off a major corporation that could have provided jobs for their constituents, they seem to be ignoring others who will be negatively affected.

A lot of moves had started to be made after Amazon announced plans that it would build in Long Island City. For example, over the course of the 14 weeks since the announcement, contracts to buy homes, mostly condos, jumped a mind-boggling 181% compared to the same period a year ago, according to CNBC. Now you have to wonder if those people who signed those contracts will try to pull out.

Other Finalists Put Up ‘We Still Want You’ Signs

Long Island City won out over 19 other cities that Amazon chose as finalists that wanted the company to build their headquarters in their locales.

Arlington, Virginia’s local government reassured residents that Amazon still planned to proceed with its new HQ2 campus in Crystal City.

They tweeted:

Statement from Arlington County Board Chair Christian Dorsey on Amazon: "After speaking with an Amazon representative earlier today, we have confirmed that we are moving forward as planned with Amazon’s upcoming headquarters in Arlington – nothing has changed." (1/3)

— ArlingtonVA (@ArlingtonVA) February 14, 2019

Summing up the fallout for New York City, Council Minority Whip Joe Borelli said it nearly perfectly, in an interview with Fox Business:

“Amazon was facing local politicians who weren’t going to negotiate in good faith for the real challenges that would befall anybody developing a large area of the city.”

Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.

Alexandria Ocasio-Cortez Image from Win McNamee / Getty Images / AFP

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bubblesweets6-blog · 5 years

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5 Reasons You Might Have Stomach Pain After Eating (or other not-so-fun bowel symptoms that don’t really belong in a title)

Have you ever considered trying a parasite cleanse to get rid of digestive upset? Or maybe you think cutting gluten or going grain-free could eliminate your stomach pain after eating. Let’s dig a bit deeper into the potential causes of irregular bowels.

This post is from contributing writer Mary Voogt of Just Take A Bite.

Do you wonder if something is “off” with your gut? Do you experience stomach pain after eating or other awkward symptoms?

Irritable bowel syndrome (IBS) is the most common functional gastrointestinal disorder seen by doctors. Studies show that worldwide rates range from 9–23% and U.S rates generally in the area of 10–15%. There are between 2.4 and 3.5 million annual physician visits for IBS in the United States alone. However, a much smaller percent of the adult population has actually been diagnosed with the condition (about 5-7%). IBS is more common in women than it is in men.

IBS is a functional disorder of the GI tract that covers a broad scope of symptoms. IBS is often what doctors diagnose when they don’t know what else to call someone’s irregular bowel habits that don’t involve a structural component.

If you have inconsistencies with your daily bowel movements along with gut pain or discomfort, especially stomach pain after eating, you may have come to the conclusion on your own that you have IBS, or that something is clearly not working right.

But what’s regular? With the list below you can pinpoint common irregular bowel habits that people with IBS, colitis, Crohn’s tend to have. It also includes symptoms related to dysfunction of the small intestines and large intestines.

Note: Crohn’s Disease and colitis are both classified as intestinal bowel disease, not “irritable bowel syndrome/IBS,” but in the end, if nutrition is going to help heal your gut, it’s all just semantics. I (Katie) just thought you should understand that difference if you’re talking to a doctor or looking up issues online.

Common Irregular Bowel Habits & Symptoms

First, let me explain what I mean by irregular bowels. I’m referring to not only how the bowel movements come out but also symptoms in the gut that go along with the bowel movements.

Irregular bowels could be demonstrated by the frequency or infrequency, the shape, size, color, smell, whether you strain or whether you have to run to the toilet, or maybe wipe a lot once you are done eliminating. It could be that you go once per day every day then one week you skip every other day or go numerous times a day – in other words you have no set normal pattern, it’s always changing.

See if you recognize any of these symptoms as your own:

Alternating diarrhea and constipation

Stools hard or difficult to pass

Less than one bowel movement per day

Stools have corners or edges, are flat or ribbon shaped

Stools are not well formed but loose instead

Mucus in the stool

Blood in the stool

Food allergies

Abdominal bloating 1 to 2 hours after eating

Specific foods make you tired or bloated

Pulse speeds after eating

Anus itches

Coated tongue

Fungus or yeast infections

Yeast symptoms increase with sugar, starch or alcohol

History of parasites

Excessive foul smelling lower bowel gas

Cramping in lower abdominal region

Bad breath or strong body odors

How are all these symptoms of irregular gut function possibly related?

There are five core reasons for gut pain and irregularity, and they can be discovered when you know your current biochemistry (remember, bio-individuality is the key to health). I find the majority of people with gut discomfort are suffering due to functional reasons (how something works) vs. structural issues (how the pieces are put together or may be broken). These functional reasons, found through avenues such as elimination diets, rotation diets, blood tests and hair analysis, can be corrected through a game plan unique to the individual.

If you’ve had a long-term issue with irritable bowel, it may be wise to check with a gastroenterologist to ensure there are no structural problems. I struggled with constipation and horrible colon spasms for many years before I was finally diagnosed with a rectal prolapse. I had tried various medications and diets without relief. No amount of dietary changes could have fixed it. A structural problem requires surgery.

So if you don’t find any relief with dietary changes be sure to look into structural abnormalities of your digestive system. I found relief of my major symptoms after surgery. Then I could turn to diet to fix the rest.

5 Reasons You May Have Irregular Bowels and Stomach Pain

Many people need numerous areas of their health addressed in order to have regular, consistent, normal bowels on a daily basis, as well as no complaints related to the gut itself. There are five core reasons to troubleshoot why you may have irregular bowels.

1. Food Allergies

“It is estimated that 10 to 20 percent of us have food sensitivities. Food sensitivity reactions, also called delayed hypersensitivity reactions and in the past called “serum sickness”, occur when IgA, IgG and IgM antibodies are triggered in response to foods, chemicals, and bacterial toxins. The most common antibody reactions are IgG to mold and foods; exposure to molds and foods is quite high compared to pollens. These IgA, IgM and IgG responses are called “delayed” sensitivity reactions because the symptoms they cause can take from several hours to several days to appear, which makes it very difficult to track down the offending food or substance.” (from Digestive Wellness; by Elizabeth Lipski, Ph.D., CCN, CHN)

Allergies and intolerances are directly associated with the health of the small intestine. Most everyone alive today has several food sensitivities they are not aware of that could be hampering their health. Mineral imbalances and high heavy metal levels could be the cause of your food sensitivities. Correcting the imbalances through diet and supplements will improve your tolerance to foods.

You may also need to try a very specific diet, like a low FODMAP diet (learn more about it here!). If you want a systematic approach to gut healing you can try the Gut Thrive in Five protocol.

If you have a child struggling with stomach pain, irregular bowels, food allergies and picky eating you can learn how to tailor his diet to get on the road to healing. Find out how in my book Why Won’t My Child Eat?!. You can also get more information on my site Just Take A Bite. We’ve dealt with so many allergies. Here are my top ten tips for helping to reduce and even remove allergies.

2. Leaky Gut

Anything that can overstimulate the pores in the lining of the small intestine and keep them open too long is said to cause leaky gut.

According to Mind, Body, Green:

When your gut is leaky, things like toxins, microbes, undigested food particles, and more can escape from your intestines and travel throughout your body via your bloodstream. Your immune system marks these “foreign invaders” as pathogens and attacks them.

Examples of the overstimulaters may include food allergies, alcoholism, Celiac Disease, certain drugs, Giardia and other parasites, intensive illnesses, malnutrition, pancreatitis and many more. This, in turn, leads to symptoms related to IBS, Crohn’s or colitis.

3. Candida

Did you know that 1/3 of the world’s population is affected by candidiasis?

Candida is a fungal infection and is a type of fungi in the yeast family which is why it is commonly called a yeast infection. Candida is found in most everyone and in small amounts should still allow a person to be in good health. It is a yeast found in our guts and in the vagina as well. Normally, it is controlled by good microbes and causes no complications.

However, candida can grow and get out of hand if one creates the right environment, like after a round of antibiotics or while on the birth control pill. Yeast and fungus slow down a person’s oxidation rate or metabolic rate. Candida thrives in an alkaline medium. Slow oxidizers run alkaline and are more susceptible to candida. In order to resolve candida, you must correct the biochemistry.

A key underlying cause of candida is a copper imbalance. Copper is one of the body’s main ways to kill yeast. When copper is unavailable to the body for use, the body can’t get rid of the yeasts properly.

If someone has low zinc or a copper imbalance they can do all the candida diets or cleanses under the sun, but never truly correct the core underlying imbalance with candida in their body. Balancing the body’s biochemistry can correct chronic issues with candida without the need for a specific anti-candida remedy or cleanse. This is a much gentler approach and a better long-term solution.

Note from Katie: Here’s my story of discovering and battling candida. 2016 update to my story. You’ll want some quality probiotics, for starters – for any gut issue, really:

Some Quality Probiotics

Some of these I’ve used, some I’m planning to use, and some have been recommended by friends and professionals alike. It’s good to remember a few things about probiotics: 1. People should get different colonies of probiotics, so switching brands/strains every so often (6 weeks?) is good practice. 2. What works great for one person’s needs doesn’t always work for another. These can be very different! A one-day trial to Probiotic Advisor might help you get up on current research quickly if you’re really digging in; otherwise, here are some to narrow down the thousands of brands out there:

Miessence Liquid Probiotic – notes: this is the easiest for kids to take because it’s liquid on a spoon, no powder to hide in smoothies and no capsules to swallow. If you’re on a no-sweetener diet of any kind, it does have agave so could be a no-no. Gluten-free.

Miessence Powder Probiotic – notes: must be hidden in a smoothie but is less expensive than the above. Not gluten-free. Helped me beat a candida rash when nothing else could.

Biokult – highly recommended by many, including the GAPS diet

Thrive Probiotics – this one can be taken during antibiotics and not be rendered ineffective, which almost all other probiotics are! (use the coupon KS10 for 10% off!) (also found on Amazon)

Perfect Supplements Prescript Assist – soil-based; read the description at the page for more details on what that means (use the coupon KS10 for 10% off!) (also found on Amazon)

Klaire Labs Pro-biotic complex V-caps or Ther-Biotic Complete (25 billion CFU)

Probiophage DF (7 dairy-free strains)

Transformation Enzymes (5 billion CFUs by may get through digestive tract…)

Primal Blueprint (6 strains, 10 billion CFUs)

Pharmax high potency (4 strains + FOS) or long-term HLC maintenance (2 strains)

Pro-Bio from Enzymedica (8 strains)

Syntol from Arthur Andrew Medical (13.6 billion CFUs with prebiotic, spore germinating blend, yeast cleanse)

ProBio 5 from Plexus has been recommended many times, but it’s also, I think, an MLM so it’s possible the recs weren’t so authentic…?

Dr. Mercola’s probiotics (use the coupon KS10 for 10% off!)

4. Parasites

Parasites are very persistent and can linger for a long time, they can also hide quite well and learn to become resistant to antibiotic treatment. Their presence can further contribute to ill health.

The symptoms of parasites can present like any other digestive problem, such as chronic diarrhea, pain, constipation, bloating, gas, unexplained weight loss, fatigue, abdominal cramping, bloody stools, irritable bowel syndrome and more. They may play a role in some cases of inflammatory bowel disease (IBD).

If you have a child that seems to eat non-stop and never get full, parasites could be the culprit.

The symptoms tend to come and go cyclically due to the life cycle of whatever parasite may be involved. If you see a cyclical pattern of digestive complaints you can suspect parasites. Take heart, a parasite ‘cleanse’ can rid you of these pesky buggers if you are persistent enough. Note from Katie: We’ve got info here on parasites, too.

5. Stress & Tired Adrenals

Chronic stress raises the adrenal hormone, cortisol, which degrades the gut lining and contributes to leaky gut.

The stress response, also known as ‘fight or flight’, is meant to be short-lived. However, people in modern day society do not get a chance to recover from stress or rebuild their tired adrenals. Yes, it has happened to me too! I shared all about how my body was slowing down while life kept moving. Excess stimulation of the adrenal glands from stress causes blood flow to the digestive tract to decrease. Which means your body can’t properly digest food.

Stress causes one to be in sympathetic mode vs. parasympathetic mode — the state the body needs to be in to actually digest food. When was the last time you ate in a relaxed state? When was the last time you did not have stress, anxiety or worries in your life? The majority of us are suffering from poor digestive health ailments due to this one issue alone.

Even drinking too much water can impact your metabolism and adrenal health. Taking steps to improve your metabolic health will improve your digestive health. Also, getting adequate sleep will improve your adrenal health.

For females, imbalanced reproductive hormones, as well as cortisol, can impact digestion. It is all related via the HPA (hypothalamus, pituitary, adrenal) Axis.

Want to learn more? We have an interview about adrenal health with Lydia Shatney NTP, our former contributing writer Bethany, and myself (Katie). Don’t miss it!!

Stomach pain after eating is so common in our culture. But it doesn’t have to be! Figure out which of these five reasons for irregular bowels is your culprit (or maybe it’s more than one!) and take steps to fix it. Taking a functional approach will keep you free of medications and lead to a happier, healthier life.

What is your biggest digestive complaint?

*DISCLAIMER

Please note that I am not a licensed medical professional. I do not diagnose, treat, or prescribe for any illness or health issue. The information or advice provided here should not be construed as medical advice. If you choose to use any of the natural remedies or advice discussed here, you will be taking responsibility for your own health and wellness.

Source: https://www.kitchenstewardship.com/5-reasons-you-might-have-stomach-pain-after-eating/

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mccartneynathxzw83 · 5 years

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Dow Slides Below 26,000 While Another Dip Spooks Bitcoin

The US stock market is quiet heading into February’s final trading session, with Dow futures virtually unchanged after the index slipped below 26,000 on Wednesday. The bitcoin price, meanwhile, has recovered above $3,800 while the cryptocurrency market braces for Ethereum’s second attempt at activating its long-anticipated Constantinople hard fork.

Dow Futures Bounce Around 26,000

Dow Jones Industrial Average futures recovered from earlier losses to inch above the 26,000 mark. As of 8:51 am ET, futures tracking the index were trading at 26,0007, down 1 point, implying an opening bell gain of 28.84 points. S&P 500 futures lost 3 points or 0.11 percent, and Nasdaq futures performed somewhat worse with a loss of 16.25 points or 0.23 percent.

Futures tracking the Dow (blue), S&P 500 (red), and Nasdaq (orange) were volatile ahead of Thursday’s open.

On Wednesday, the Dow closed below 26,000 for the first time since Feb. 21, dropping 72.82 points or 0.28 percent to end the day at 25,985.16. The S&P 500 edged 0.05 percent lower to close at 2,792.38, while the Nasdaq gained 0.07 percent and closed at 7,554.51.

Wall Street Yawns as Trump-Kim Summit Ends in Chaos

Wall Street mostly ignored the abrupt conclusion to US President Donald Trump’s summit with North Korean leader Kim Jong Un, which ended early after negotiations reached a stalemate and neither side was willing to budge.

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According to Trump, Kim demanded that the US lift economic sanctions on North Korea, something the US was unwilling to do.

“Basically, they wanted the sanctions lifted in their entirety and we couldn’t do that,” the president said. “They were willing to de-nuke a large portion of the areas that we wanted, but we couldn’t give up all of the sanctions for that.”

Trump Administration Sends Mixed Messages on US-China Trade War

The White House is struggling to keep its story straight on the state of the trade war. | Source: Shutterstock

More worrisome is the White House’s mixed messaging on the state of the US-China trade negotiations. When Trump formally delayed the imposition of new tariffs on Chinese imports beyond the March 1 deadline, he said that the negotiations were in “advanced stages.” The president has also said that the two countries are “very, very close” to a deal.

However, US Trade Representative Robert Lighthizer seemed to throw cold water on Trump’s optimism during a House Ways and Means Committee hearing on Wednesday.

“Let me be clear: much still needs to be done both before an agreement is reached and, more importantly, after it is reached, if one is reached,” he said.

youtube

Lighthizer did temper that negativity by stating that the US and China are “making real progress,” but he took a hard stance on the importance of holding out for an “enforceable” deal that forces China to make real changes to its economy.

“I don’t think we should accept anything that doesn’t have structural changes and is enforceable. Absolutely not,” he said.

Mixed messaging on the trade deal has been a problem in the past. Three weeks ago, National Economic Council Director Larry Kudlow said the US and China were “miles” apart, just one day after US Treasury Secretary Steven Mnuchin suggested that a February deal was attainable. Such conflicting positions have introduced yet another degree of uncertainty to the US stock market, and this confusion has resulted in several volatile trading sessions.

Bitcoin Recovers from Sub-$3,700 Dive

The cryptocurrency market enters the US trading session on a minor day-over-day decline.

On Wednesday, the bitcoin price made its first significant movement since Sunday, diving as low as $3,658 and sinking to its lowest level since Feb. 8.

The bitcoin price endured a sharp drop below $3,700 but quickly bounced back above $3,800.

However, the flagship cryptocurrency fully recovered from that sharp drop within a matter of hours and continues to trade near $3,820, as it has done throughout the week.

Ethereum Hard Fork Scheduled to Activate at 3 pm ET

Traders should pay particular attention to Ethereum’s Constantinople/St. Petersburg hard fork, which is scheduled to activate at approximately 3 pm ET.

In addition to introducing a variety of network upgrades, the fork will permanently reduce the ethereum block reward, which could tilt the supply/demand ratio in the favor of long-term investors.

As CCN reported, the fork was originally scheduled for Jan. 16 but scrapped at the last minute after security researchers disclosed a potential vulnerability.

The ethereum price is holding steady ahead of today’s 3 pm hard fork.

Crucially, the fork is not contentious, so it should not result in the creation of a splinter cryptocurrency, as was the case with the most recent Bitcoin Cash hard fork.

The ethereum price is holding relatively steady in the hours leading up to the fork. The second-largest cryptocurrency is trading at $135, down about 1.18 percent for the 24-hour period.

The overall cryptocurrency market cap stands at $130 billion, having fallen approximately $1.1 billion or less than 1 percent over the past 24 hours.

Price Charts from TradingView.

Original Source https://ift.tt/2H8iThi

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adrianjenkins952wblr · 5 years

Text

Dow Slides Below 26,000 While Another Dip Spooks Bitcoin

Dow Futures Bounce Around 26,000

Futures tracking the Dow (blue), S&P 500 (red), and Nasdaq (orange) were volatile ahead of Thursday’s open.

Wall Street Yawns as Trump-Kim Summit Ends in Chaos

youtube

According to Trump, Kim demanded that the US lift economic sanctions on North Korea, something the US was unwilling to do.

Trump Administration Sends Mixed Messages on US-China Trade War

The White House is struggling to keep its story straight on the state of the trade war. | Source: Shutterstock

However, US Trade Representative Robert Lighthizer seemed to throw cold water on Trump’s optimism during a House Ways and Means Committee hearing on Wednesday.

“Let me be clear: much still needs to be done both before an agreement is reached and, more importantly, after it is reached, if one is reached,” he said.

youtube

“I don’t think we should accept anything that doesn’t have structural changes and is enforceable. Absolutely not,” he said.

Bitcoin Recovers from Sub-$3,700 Dive

The cryptocurrency market enters the US trading session on a minor day-over-day decline.

On Wednesday, the bitcoin price made its first significant movement since Sunday, diving as low as $3,658 and sinking to its lowest level since Feb. 8.

The bitcoin price endured a sharp drop below $3,700 but quickly bounced back above $3,800.

However, the flagship cryptocurrency fully recovered from that sharp drop within a matter of hours and continues to trade near $3,820, as it has done throughout the week.

Ethereum Hard Fork Scheduled to Activate at 3 pm ET

Traders should pay particular attention to Ethereum’s Constantinople/St. Petersburg hard fork, which is scheduled to activate at approximately 3 pm ET.

In addition to introducing a variety of network upgrades, the fork will permanently reduce the ethereum block reward, which could tilt the supply/demand ratio in the favor of long-term investors.

As CCN reported, the fork was originally scheduled for Jan. 16 but scrapped at the last minute after security researchers disclosed a potential vulnerability.

The ethereum price is holding steady ahead of today’s 3 pm hard fork.

Crucially, the fork is not contentious, so it should not result in the creation of a splinter cryptocurrency, as was the case with the most recent Bitcoin Cash hard fork.

The ethereum price is holding relatively steady in the hours leading up to the fork. The second-largest cryptocurrency is trading at $135, down about 1.18 percent for the 24-hour period.

The overall cryptocurrency market cap stands at $130 billion, having fallen approximately $1.1 billion or less than 1 percent over the past 24 hours.

Price Charts from TradingView.

Original Source https://ift.tt/2H8iThi

#IFTTT #Cryptocurrency and Bitcoin

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vanessawestwcrtr5 · 5 years

Text

Dow Slides Below 26,000 While Another Dip Spooks Bitcoin

Dow Futures Bounce Around 26,000

Futures tracking the Dow (blue), S&P 500 (red), and Nasdaq (orange) were volatile ahead of Thursday’s open.

Wall Street Yawns as Trump-Kim Summit Ends in Chaos

youtube

According to Trump, Kim demanded that the US lift economic sanctions on North Korea, something the US was unwilling to do.

Trump Administration Sends Mixed Messages on US-China Trade War

The White House is struggling to keep its story straight on the state of the trade war. | Source: Shutterstock

However, US Trade Representative Robert Lighthizer seemed to throw cold water on Trump’s optimism during a House Ways and Means Committee hearing on Wednesday.

“Let me be clear: much still needs to be done both before an agreement is reached and, more importantly, after it is reached, if one is reached,” he said.

youtube

“I don’t think we should accept anything that doesn’t have structural changes and is enforceable. Absolutely not,” he said.

Bitcoin Recovers from Sub-$3,700 Dive

The cryptocurrency market enters the US trading session on a minor day-over-day decline.

On Wednesday, the bitcoin price made its first significant movement since Sunday, diving as low as $3,658 and sinking to its lowest level since Feb. 8.

The bitcoin price endured a sharp drop below $3,700 but quickly bounced back above $3,800.

However, the flagship cryptocurrency fully recovered from that sharp drop within a matter of hours and continues to trade near $3,820, as it has done throughout the week.

Ethereum Hard Fork Scheduled to Activate at 3 pm ET

Traders should pay particular attention to Ethereum’s Constantinople/St. Petersburg hard fork, which is scheduled to activate at approximately 3 pm ET.

In addition to introducing a variety of network upgrades, the fork will permanently reduce the ethereum block reward, which could tilt the supply/demand ratio in the favor of long-term investors.

As CCN reported, the fork was originally scheduled for Jan. 16 but scrapped at the last minute after security researchers disclosed a potential vulnerability.

The ethereum price is holding steady ahead of today’s 3 pm hard fork.

Crucially, the fork is not contentious, so it should not result in the creation of a splinter cryptocurrency, as was the case with the most recent Bitcoin Cash hard fork.

The ethereum price is holding relatively steady in the hours leading up to the fork. The second-largest cryptocurrency is trading at $135, down about 1.18 percent for the 24-hour period.

The overall cryptocurrency market cap stands at $130 billion, having fallen approximately $1.1 billion or less than 1 percent over the past 24 hours.

Price Charts from TradingView.

Original Source https://ift.tt/2H8iThi

0 notes

teiraymondmccoy78 · 5 years

Text

Dow Slides Below 26,000 While Another Dip Spooks Bitcoin

Dow Futures Bounce Around 26,000

Futures tracking the Dow (blue), S&P 500 (red), and Nasdaq (orange) were volatile ahead of Thursday’s open.

Wall Street Yawns as Trump-Kim Summit Ends in Chaos

youtube

According to Trump, Kim demanded that the US lift economic sanctions on North Korea, something the US was unwilling to do.

Trump Administration Sends Mixed Messages on US-China Trade War

The White House is struggling to keep its story straight on the state of the trade war. | Source: Shutterstock

However, US Trade Representative Robert Lighthizer seemed to throw cold water on Trump’s optimism during a House Ways and Means Committee hearing on Wednesday.

“Let me be clear: much still needs to be done both before an agreement is reached and, more importantly, after it is reached, if one is reached,” he said.

youtube

“I don’t think we should accept anything that doesn’t have structural changes and is enforceable. Absolutely not,” he said.

Bitcoin Recovers from Sub-$3,700 Dive

The cryptocurrency market enters the US trading session on a minor day-over-day decline.

On Wednesday, the bitcoin price made its first significant movement since Sunday, diving as low as $3,658 and sinking to its lowest level since Feb. 8.

The bitcoin price endured a sharp drop below $3,700 but quickly bounced back above $3,800.

However, the flagship cryptocurrency fully recovered from that sharp drop within a matter of hours and continues to trade near $3,820, as it has done throughout the week.

Ethereum Hard Fork Scheduled to Activate at 3 pm ET

Traders should pay particular attention to Ethereum’s Constantinople/St. Petersburg hard fork, which is scheduled to activate at approximately 3 pm ET.

In addition to introducing a variety of network upgrades, the fork will permanently reduce the ethereum block reward, which could tilt the supply/demand ratio in the favor of long-term investors.

As CCN reported, the fork was originally scheduled for Jan. 16 but scrapped at the last minute after security researchers disclosed a potential vulnerability.

The ethereum price is holding steady ahead of today’s 3 pm hard fork.

Crucially, the fork is not contentious, so it should not result in the creation of a splinter cryptocurrency, as was the case with the most recent Bitcoin Cash hard fork.

The ethereum price is holding relatively steady in the hours leading up to the fork. The second-largest cryptocurrency is trading at $135, down about 1.18 percent for the 24-hour period.

The overall cryptocurrency market cap stands at $130 billion, having fallen approximately $1.1 billion or less than 1 percent over the past 24 hours.

Price Charts from TradingView.

Original Source https://ift.tt/2H8iThi

0 notes

courtneyvbrooks87 · 5 years

Text

Dow Slides Below 26,000 While Another Dip Spooks Bitcoin

Dow Futures Bounce Around 26,000

Futures tracking the Dow (blue), S&P 500 (red), and Nasdaq (orange) were volatile ahead of Thursday’s open.

Wall Street Yawns as Trump-Kim Summit Ends in Chaos

youtube

According to Trump, Kim demanded that the US lift economic sanctions on North Korea, something the US was unwilling to do.

Trump Administration Sends Mixed Messages on US-China Trade War

The White House is struggling to keep its story straight on the state of the trade war. | Source: Shutterstock

However, US Trade Representative Robert Lighthizer seemed to throw cold water on Trump’s optimism during a House Ways and Means Committee hearing on Wednesday.

“Let me be clear: much still needs to be done both before an agreement is reached and, more importantly, after it is reached, if one is reached,” he said.

youtube

“I don’t think we should accept anything that doesn’t have structural changes and is enforceable. Absolutely not,” he said.

Bitcoin Recovers from Sub-$3,700 Dive

The cryptocurrency market enters the US trading session on a minor day-over-day decline.

On Wednesday, the bitcoin price made its first significant movement since Sunday, diving as low as $3,658 and sinking to its lowest level since Feb. 8.

The bitcoin price endured a sharp drop below $3,700 but quickly bounced back above $3,800.

However, the flagship cryptocurrency fully recovered from that sharp drop within a matter of hours and continues to trade near $3,820, as it has done throughout the week.

Ethereum Hard Fork Scheduled to Activate at 3 pm ET

Traders should pay particular attention to Ethereum’s Constantinople/St. Petersburg hard fork, which is scheduled to activate at approximately 3 pm ET.

In addition to introducing a variety of network upgrades, the fork will permanently reduce the ethereum block reward, which could tilt the supply/demand ratio in the favor of long-term investors.

As CCN reported, the fork was originally scheduled for Jan. 16 but scrapped at the last minute after security researchers disclosed a potential vulnerability.

The ethereum price is holding steady ahead of today’s 3 pm hard fork.

Crucially, the fork is not contentious, so it should not result in the creation of a splinter cryptocurrency, as was the case with the most recent Bitcoin Cash hard fork.

The ethereum price is holding relatively steady in the hours leading up to the fork. The second-largest cryptocurrency is trading at $135, down about 1.18 percent for the 24-hour period.

The overall cryptocurrency market cap stands at $130 billion, having fallen approximately $1.1 billion or less than 1 percent over the past 24 hours.

Price Charts from TradingView.

Original Source https://ift.tt/2H8iThi

#IFTTT #Cryptocurrency and Bitcoin

0 notes

bobbynolanios88 · 5 years

Text

Dow Slides Below 26,000 While Another Dip Spooks Bitcoin

Dow Futures Bounce Around 26,000

Futures tracking the Dow (blue), S&P 500 (red), and Nasdaq (orange) were volatile ahead of Thursday’s open.

Wall Street Yawns as Trump-Kim Summit Ends in Chaos

youtube

According to Trump, Kim demanded that the US lift economic sanctions on North Korea, something the US was unwilling to do.

Trump Administration Sends Mixed Messages on US-China Trade War

The White House is struggling to keep its story straight on the state of the trade war. | Source: Shutterstock

However, US Trade Representative Robert Lighthizer seemed to throw cold water on Trump’s optimism during a House Ways and Means Committee hearing on Wednesday.

“Let me be clear: much still needs to be done both before an agreement is reached and, more importantly, after it is reached, if one is reached,” he said.

youtube

“I don’t think we should accept anything that doesn’t have structural changes and is enforceable. Absolutely not,” he said.

Bitcoin Recovers from Sub-$3,700 Dive

The cryptocurrency market enters the US trading session on a minor day-over-day decline.

On Wednesday, the bitcoin price made its first significant movement since Sunday, diving as low as $3,658 and sinking to its lowest level since Feb. 8.

The bitcoin price endured a sharp drop below $3,700 but quickly bounced back above $3,800.

However, the flagship cryptocurrency fully recovered from that sharp drop within a matter of hours and continues to trade near $3,820, as it has done throughout the week.

Ethereum Hard Fork Scheduled to Activate at 3 pm ET

Traders should pay particular attention to Ethereum’s Constantinople/St. Petersburg hard fork, which is scheduled to activate at approximately 3 pm ET.

In addition to introducing a variety of network upgrades, the fork will permanently reduce the ethereum block reward, which could tilt the supply/demand ratio in the favor of long-term investors.

As CCN reported, the fork was originally scheduled for Jan. 16 but scrapped at the last minute after security researchers disclosed a potential vulnerability.

The ethereum price is holding steady ahead of today’s 3 pm hard fork.

Crucially, the fork is not contentious, so it should not result in the creation of a splinter cryptocurrency, as was the case with the most recent Bitcoin Cash hard fork.

The ethereum price is holding relatively steady in the hours leading up to the fork. The second-largest cryptocurrency is trading at $135, down about 1.18 percent for the 24-hour period.

The overall cryptocurrency market cap stands at $130 billion, having fallen approximately $1.1 billion or less than 1 percent over the past 24 hours.

Price Charts from TradingView.

Original Source https://ift.tt/2H8iThi

#IFTTT #Cryptocurrency and Bitcoin

0 notes

simonconsultancypage · 5 years

Text

Guest Post: Judge Reverses Blockvest Decision: ICOs are Securities

John Reed Stark

In a February 14, 2019 order, Southern District of California Judge Gonzalo Curiel entered an order reversing his earlier decision on the same issue and concluding that the digital tokens offered by cryptocurrency company Blockvest LLC represented “securities” within the meaning of the federal securities laws. In the following guest post, John Reed Stark, President of John Reed Stark Consulting and former Chief of the SEC’s Office of Internet Enforcement, takes a look at Judge Curiel’s ruling and what it many mean for future securities litigation involving digital currency offerings. A version of this article previously was published on Securities Docket. I would like to thank John for allowing me to publish his article as a guest post. I welcome guest post submissions from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. Here is John’s article.

**************************

In an ICO St. Valentine’s Day Massacre, the Honorable Judge Gonzalo Curiel of the United States District Court for the Southern District of California reconsidered and reversed his November 2018 Blockvest decision, sending a powerful message about the illegality of so-called initial coin offerings.

As an early critic of Judge Curiel’s original Blockvest opinion (before he reversed himself last week), today I feel vindicated and have written this article to discuss the details of his extraordinary turnabout. But before we get to Judge Curiel’s unusual ICO death blow, let’s start from the beginning of this intriguing legal course of events.

Some Background

Companies and individuals are increasingly considering initial coin offerings (ICOs) as a way to raise capital or participate in investment opportunities. While these digital assets and the technology behind them may present a new and efficient means for carrying out financial transactions, they also bring increased risk of fraud and manipulation because the markets for these assets are less regulated than traditional capital markets. In fact, ICO markets are barely regulated at all.

Moreover, as SEC Chairman Jay Clayton has stated, tokens and offerings that feature and market the potential for profits based on the entrepreneurial or managerial efforts of others contain the hallmarks of a security under U.S. law. Along these lines, the SEC has been on an ICO enforcement rampage, bringing slew of cases against ICO promoters, typically alleging charges of out-and-out fraud as well as a failure to register with the SEC.

Judge Curiel’s Original Blockvest Decision (Before he Reversed Himself)

On November 27, 2018, in a matter involving an allegedly fraudulent ICO by a company called Blockvest, Judge Curiel denied an SEC motion for a preliminary injunction against the promoters of the Blockvest ICO.

For ICO true believers, exuberance was in the air as news banners proclaimed that for the first time in history, a U.S. federal judge held that an ICO was not a security and therefore outside of SEC jurisdiction. Some examples of the headlines:

“Judge to SEC: You Haven’t Shown This ICO Is a Security Offering” (The Recorder)

“US Court Dismisses SEC’s Claims That Blockvest Sold Unregistered Securities,” (BTC Thereom.com)

“Monumental: Federal Court Rules Case in Favor of Crypto ICO Against SEC” (CCN)

“SEC Fails to Show Court Blockvest Tokens Are Securities” (Bitcoin.com)

“SEC Fails to Show Court Blockvest Tokens Are Securities.” (Dachcoin)

“SEC Handed Setback on Whether Digital Tokens Are Securities” (Bloomberg)

The only problem with the above headlines and so many other headlines just like them? They were all dead wrong then and they are even “more dead wrong” now.

Back in December, 2019, just after Judge Curiel’s initial decision, in an article about the Khalid and Mayweather SEC enforcement actions, I wrote exhaustively about this ICO “fake news,” decrying the misleading headlines; scratching my head at Judge Curiel’s curious decision; and criticizing ICO promoters for their self-serving propaganda. My take was that Judge Curiel had erred; that ICO promoters were misreading Judge Curiel’s decision; and that the resultant optimism was sorely misguided.

The SEC Blockvest TRO

News about the SEC’s Blockvest enforcement matter first came to light on October 11, 2018, when the SEC announced that it had obtained a temporary restraining order (TRO) halting a planned ICO of digital tokens called “BLVs.” The order also halted ongoing “pre-ICO” sales by the company, Blockvest LLC and its founder, Reginald Buddy Ringgold, III.

The unsealed SEC complaint alleged that Blockvest falsely claimed its ICO and its affiliates received regulatory approval from various agencies, including the SEC. According to the SEC’s complaint, Blockvest and Ringgold, who also goes by the name Rasool Abdul Rahim El, were using the SEC seal without permission, a violation of federal law, and falsely claiming their crypto fund was “licensed and regulated.”

The complaint also alleged that Ringgold promoted the ICO by creating a fictitious regulatory agency, the “Blockchain Exchange Commission,” or “BEC,” which he claimed “regulates” the “Blockchain Digital Asset Space,” supposedly to “protect” digital asset investors. But the SEC alleges that BEC is not a regulator at all. It falsely conjures similarities to the SEC: its logo is similar to the SEC’s; its mission statement is cribbed from the SEC’s own; and its offices share the same address as SEC headquarters. The Blockvest website allegedly linked directly from the BEC seal to the SEC’s website. Ringgold allegedly promoted the Blockvest offering and the BEC side-by-side, further conveying a false veneer of legitimacy to the Blockvest ICO.

Blockvest and Ringgold also allegedly misrepresented Blockvest’s connections to Deloitte, a well-known accounting firm, and continued their fraudulent conduct even after the National Futures Association (NFA) sent them a cease-and-desist letter to stop them from using the NFA’s seal and from making false claims about their status with that organization.

Judge Curiel issued the TRO, freezing the defendants’ assets and granting other emergency relief. A hearing was eventually scheduled for November 16th, 2018, to consider continuing the asset freeze and issuance of a preliminary injunction.

The SEC’s complaint charges Blockvest and Ringgold with violating the antifraud and securities registration provisions of the federal securities laws. The complaint seeks injunctions, return of ill-gotten gains plus interest and penalties, and a bar against Ringgold to prohibit him from participating in offering any securities, including digital securities, in the future or making misrepresentations about regulatory approval.

Judge Curiel Denies the SEC’s Preliminary Injunction Request

On November 27, 2018 Judge Curiel denied the SEC’s request to continue the TRO and extend that order into a preliminary injunction – and set the case for trial.

Judge Curiel held that, at this stage of the case, the SEC had not shown that the BLV tokens were securities under the Howey Test, a decades-old test established by the U.S. Supreme Court for determining whether certain transactions are investment contracts and thus securities.

The Howey Test

In a typical ICO, virtual coins or tokens are distributed by a company to the public in exchange for another cryptocurrency or fiat currency. These coins or tokens come with particular rights, such as: a right to access to a future service once the ICO is launched; a right to redeem the token for a currency or service; or a right to receive future profits from the company (like a dividend).

To determine how traditional securities regulation applies to ICOs, the four-pronged Howey Test, derived from the 1946 Supreme Court decision in SEC vs. W.J. Howey Co., states that a security is an investment contract in which a person 1) invests their money; 2) in a common enterprise; 3) with an expectation of profits; 4) based on the efforts of the promoter or a third party. In order to be considered a security, an offering must meet all four prongs.

Rather than prospectuses, token issuers put out so-called “white papers” describing the platform, software or product they are trying to build, and then investors buy those tokens typically using widely-accepted cryptocurrencies (like bitcoin and ethereum) or fiat currencies like the U.S. dollar. These issuers also often employ promoters and facilitators to generate interest, excitement and participation in the ICO.

Historically, the courts and the SEC have taken an extremely broad view of whether any kind of investment is a security. Indeed, the definition of “security” under Section 2(a)(1) of the Securities Act of 1933 (and the nearly identical definition under Section 3(a)(10) of the Exchange Act of 1934) includes not only a number of specific types of financial instruments, such as notes, bonds, debentures and stock, but also broad categories of financial instruments, such as evidences of indebtedness and investment contracts. The definition of security was crafted to contemplate not only known securities arrangements at the time, but also to encompass any prospective instruments created by those who seek the use of the money of others on the promise of profits.

The DAO 21(a) Report

On July 25, 2017, the SEC provided important initial guidance on its views of whether ICOs are securities when it released a Section 21(a) Report of Investigation on its findings regarding the token sale by The DAO. The SEC’s Report of Investigation found that tokens offered and sold by a “virtual” organization known as “The DAO” were securities and therefore subject to the federal securities laws.

In making this determination, the SEC focused on whether the efforts of others were “the undeniably significant ones … that affect the failure or success of the enterprise.” The SEC found that the so-called curators of the DAO played the requisite role. The curators held themselves out as experts in, among other matters, the blockchain protocol, determined which projects would be voted on by DAO Token holders, addressed security issues and more generally held itself out in marketing materials as a group that investors could rely on for their managerial efforts.

The SEC also concluded that the voting rights of the DAO Token holders were limited, noting, “[e]ven if an investor’s efforts help to make an enterprise profitable, those efforts do not necessarily equate with a promoter’s significant managerial efforts or control over the enterprise.” The SEC concluded that the voting rights of DAO Token holders was largely “perfunctory.” Since they could only vote on projects approved by the curators, token holders did not receive sufficient information to vote in a meaningful way, and there were no means to obtain additional information.

Equally important, the SEC also noted: that the widely dispersed DAO Token holders could not identify and effectively communicate with each other; that there was a large number of them; and that they could not be deemed to be in a position to effectuate meaningful control.

The SEC message to the purveyors of ICOs was clear: ICOs are very likely selling plain-old shares of stock fancifully masquerading as tokens — and their offer and sale would need to be registered under the Securities Act or qualify for an exemption from registration. In other words, painting stripes on a horse does not make it a zebra.

Blockvest Fights Back

Blockvest asserted that its offering was not an ICO, but was rather a “Pre-ICO” for a group of 32 “test” investors, and the BLV tokens were only designed for testing its platform. Judge Curiel seemed to buy into this notion, stating:

“While defendants claim that they had an expectation in Blockvest’s future business, no evidence is provided to support the test investors’ expectation of profits.”

The SEC responded to Blockvest’s defense by noting that various individuals wrote “Blockvest” or “coins” on their checks and were provided with a Blockvest ICO white paper describing the project and the terms of the ICO. But Judge Curiel still found that, without further discovery, there remained disputed issues of fact which could only be properly determined at trial, stating:

“Plaintiff and Defendants provide Starkly different facts as to what the 32 test investors relied on, in terms of promotional materials, information, economic inducements or oral presentations at the seminars, before they purchased the test BLV tokens. Therefore, because there are disputed issues of fact, the Court cannot make a determination whether the test BLV tokens were securities under the first prong of Howey. (emphasis in original) . . . As to the second prong of Howey, Plaintiff has not demonstrated that the test investors had an “expectation of profits.” While Defendants claim that they had an expectation in Blockvest’s future business, no evidence is provided to support the test investors’ expectation of profits. ‘By profits, the Court has meant either capital appreciation resulting from the development of the initial investment . . . or a participation in earnings resulting from the use of investors’ funds. . . . At this stage, without full discovery and disputed issues of material facts, the Court cannot make a determination whether the BLV token offered to the 32 test investors was a security. Thus, Plaintiff has not demonstrated that the BLV tokens purchased by the 32 test investors were “securities” as defined under the securities laws.”

What investors actually believed about Blockvest will undoubtedly be revealed during trial. Granted, if Blockvest’s assertions were true i.e. that the investors had no expectation of any profit, then ruling that the tokens were not securities might have made sense. But given the hundreds of pages the SEC filed in a slew of declarations, websites, chat transcripts, videos and other evidence set forth meticulously in the SEC complaint, this assertion not only defied common sense – it was laughable. No one invests in an ICO without the expectation that they will make some sort of profit – why else invest? It would be like buying a company’s stock solely to receive a discount on its products, and not a very attractive investment principle.

Blockvest Essentially Consented to the Preliminary Injunction

What so many commentators missed in their analysis of the initial Blockvest decision was that Judge Curiel believed that Blockvest and Ringgold had arguably consented to the preliminary injunction, leaving him with little reason to grant a motion mandating that the defendant do something that they have already agreed to do. Judge Curiel notes:

“While there is evidence that Ringgold made misrepresentations shortly after the complaint was filed and prior to having retained counsel, Ringgold, with counsel, now asserts he will not pursue the ICO and will provide SEC’s counsel with 30 days’ notice in the event they decide to proceed. By agreeing to stop any pursuit of the ICO, Plaintiff does not oppose the preliminary injunction concerning compliance with federal securities laws. Therefore, Plaintiff has not demonstrated a reasonable likelihood that the wrong will be repeated. Because Plaintiff has not demonstrated the two factor test to warrant a preliminary injunction, the Court DENIES Plaintiff’s motion for preliminary injunction” (emphasis in original)

What Did the Blockvest Ruling Actually Mean?

While arguably flawed. nothing in Judge Curiel’s ruling prohibited the SEC from taking Blockvest and Ringgold to trial. Rather it just meant that the SEC had not met the hefty burden required to receive a preliminary injunction of proving (1) a prima facie case of previous violations of federal securities laws, and (2) a reasonable likelihood that the wrong will be repeated.

Judge Curiel simply determined that, at that particular stage (in November 2018), without full discovery regarding the disputed issues of material facts, he could not decide whether the BLV token were securities. Moreover, since Blockvest and Ringgold had agreed to stop the ICO and provide 30 days’ prior notice to the SEC if they ever intended to move forward with their ICO, Judge Curiel decided no reasonable likelihood that the wrong would be repeated. As a result, Judge Curiel denied the SEC’s motion for a preliminary injunction.

Despite what many of the Blockvest-related headlines implied (though at least two commentators from Baker & McKenzie were spot-on, see here), this was not a victory for the ICO industry or a setback for the SEC. Most importantly, Judge Curiel’s ruling did not mean that the SEC was going to reconsider its current ICO enforcement posture.

Judge Curiel’s Reversal

On February 14, 2019, in a stunning and extraordinary reversal from his November decision, Judge Curiel sent shockwaves through the ICO industry. Specifically, Judge Curiel granted the SEC’s bid for a preliminary injunction against Blockvest after the SEC asked him to reconsider, based upon, “a [now] prima facie showing of Blockvest’s past securities violation and newly developed evidence which supported the conclusion that there is a reasonable likelihood of future violations.”

In his decision, Judge Curiel turned his attention away from the “32 test investors” and the “pre-ICO” arguments of his original decision and focused instead on a straightforward analysis of the offer proposed by Blockvest to all potential investors.

Applying this analysis to Section 17(a) of the Securities Act, Judge Curiel stated unequivocally that Blockvest’s promotion of digital tokens, met the definition of a security established under Howey:

“The court concludes that the contents of defendants’ website, the white paper and social media posts concerning the ICO of the BLV tokens to the public at large constitute an ‘offer’ of ‘securities’ under the Securities Act.”

Per Judge Curiel, Blockvest’s website and white paper urged people to pay for BLV tokens with digital or other currency, and the website said any funds raised would be pooled together in what could be considered a common enterprise. Noting that all of the aspects of the Howey Test had been met, Judge Curiel wrote:

“Finally, as described on the website and white paper, the investors in Blockvest would be ‘passive’ investors and the BLV tokens would generate ‘passive income.”

Why Judge Curiel did not apply the above analysis in his original order is not clear. Judge Curiel states:

“The Court did not directly address this alternative theory in its original order and based upon the additional submitted briefing concludes that Defendants made an ‘offer’ of unregistered securities which violated Section 17 (a). “

Under any circumstance, the Judge cured his error and moved on, with a very thoughtful and thorough application of Section 17(a) to all of Blockvest’s various promotional efforts, which were exhaustively documented by the SEC (websites, social media, etc.) in its court filings.

Reasonable Likelihood That the Wrong Will be Repeated

In my December 2019 article, I was dumbfounded by Judge Curiel’s cavalier disregard of the seemingly egregious evidence of Blockvest’s alleged fraud amid the reams of inculpatory documents submitted to the court by the SEC. How had such an outrageous cache of evidence not convinced Judge Curiel of the likelihood of future violations by Blockvest?

Apparently, Judge Curiel took a closer look at the SEC’s meticulous filings of suspicious evidence — and he agreed with me. Specifically, Judge Curiel backtracked on his prior analysis and now recognized the likelihood of future harm by Blockvest, stating:

“In the instant motion, the Court grants a partial reconsideration and concludes that Plaintiff has presented a prima facie case of violations of Section 17(a), which creates an inference that Defendants will likely violate the securities law in the future if not enjoined . . . The misrepresentations on Defendants’ website postings include falsely claiming their ICO has been “registered” and “approved” by the SEC, falsely claiming their ICO has been approved or endorsed by the CFTC and the NFA by utilizing their logos and seals, falsely asserting they are “partnered” with and “audited by” Deloitte, and falsely creating a fictitious regulatory agency, the BEC, with a fake government seal, logo, and mission statement that are nearly identical to the SEC’s seal, logo and mission statement. Ringgold does not dispute that these false representations were on the website; instead, he claims that mistakes were made . . . The Court recognizes that Defendants could have reasonably made a mistake as to their SEC filings as they had hired a compliance attorney; however, the Court questions Defendants’ mistake concerning the creation of fictitious agency, BEC, utilizing a nearly identical seal, logo and mission statement as the SEC to provide a false appearance that the ICO had regulatory approval and was safe. “

Judge Curiel also noted with dismay that Blockvest had attempted to file certain documents which Blockvest’s counsel had apparently previously refused to file for fear of violating Rule 11 of the Federal Rules of Civil Procedure (i.e. concerns that the documents contained information or arguments which were not grounded in fact). Moreover, Blockvest’s counsel had submitted a motion for their withdrawal. These facts exacerbated Judge Curiel’s already growing view of the potential for future violations by Blockvest, and he stated:

“[I]n the motion to withdraw as counsel, defense counsel explained that the firm found it necessary to terminate representation due to, inter alia, Defendants instructing defense counsel to file certain documents that counsel could not certify under Federal Rule of Civil Procedure 11.6 . . . In fact, when defense counsel declined to file the documents, Defendants attempted to file such documents with the Court without counsel’s permission or signature and the documents were rejected by the Court Clerk . . . . While Defendants have been notified of defense counsel’s intention to withdraw as well as the pending motion to withdraw as counsel, they have yet to find substitute counsel. In light of the Court’s order granting defense counsel’s motion to withdraw as counsel, the Court has concerns whether Defendants will resume their prior alleged fraudulent conduct.”

Looking Ahead

Despite the initial headlines and continuing ICO euphoria, the SEC did not stymie or otherwise adjust its ICO dragnet because of the initial Blockvest decision. Rather, the SEC dug in and redoubled its efforts — and Judge Curiel noticed. In fact, Judge Curiel deserves a lot of credit for his willingness to reconsider his initial decision; for his open mind; and for his reflective opinion.

Now that Judge Curiel has eliminated the confusion spawned from his original decision, the SEC will clearly stay the course of the guidance SEC staff first issued on July 25, 2017, during the genesis of their ICO regulatory efforts, codified in the: 1) SEC Investor Bulletin warning investors about ICOs; and 2) SEC 21(a) Report of Investigation explaining how ICOs are unlawful.

As for SEC Chairman Jay Clayton? He must be particularly pleased with Judge Curiel’s reversal. Judge Curiel resoundingly reinforced Chairman Clayton’s view of ICOs, which Chairman Clayton had already shouted from the rooftops during his 2017-18 personal crypto-tour. Back then and ever since, Chairman Clayton has asserted that cryptocurrency tokens looked like securities and were susceptible to fraud and chicanery by insiders, management and better-informed traders and market participants. Indeed, Chairman Clayton told everyone who asked (including Congress):

“I believe every ICO I have ever seen is a security . . . ICOs should be regulated like securities offerings. End of Story.”

Thanks to Judge Curiel we all received a surprise Valentine’s Day gift. The stars in the ICO regulatory sky are once again aligned; the SEC enforcement division has an even clearer path and mandate to police ICOs; and we can all sleep a little better.

Perhaps ICO promoters, operators and other crypto-related supporters will take heed from Judge Curiel’s Blockvest decision reversal and clean up their acts. But then again, given ICO purveyors’ fanaticism and worldwide misinformation campaign, I am (still) not betting on it.

_________________________

John Reed Stark is president of John Reed Stark Consulting LLC, a data breach response and digital compliance firm. Formerly, Mr. Stark served for almost 20 years in the Enforcement Division of the U.S. Securities and Exchange Commission, the last 11 of which as Chief of its Office of Internet Enforcement. He has taught most recently as Senior Lecturing Fellow at Duke University Law School Winter Sessions and is currently teaching a cyber-law course at Duke Law School. Mr. Stark also worked for 15 years as an Adjunct Professor of Law at the Georgetown University Law Center, where he taught several courses on the juxtaposition of law, technology and crime, and for five years as managing director of global data breach response firm, Stroz Friedberg, including three years heading its Washington, D.C. office. Mr. Stark is the author of “The Cybersecurity Due Diligence Handbook.”

The post Guest Post: Judge Reverses Blockvest Decision: ICOs are Securities appeared first on The D&O Diary.

Guest Post: Judge Reverses Blockvest Decision: ICOs are Securities published first on http://simonconsultancypage.tumblr.com/

0 notes

coin-river-blog · 5 years

Link

Square’s CEO Jack Dorsey has announced that the payments startup’s ‘small way to give back’ to the cryptocurrency ecosystem is to hire up to four full-time crypto engineers and one designer.

#BitcoinTwitter and #CryptoTwitter! Square is hiring 3-4 crypto engineers and 1 designer to work full-time on open source contributions to the bitcoin/crypto ecosystem. Work from anywhere, report directly to me, and we can even pay you in bitcoin! Introducing @SqCrypto. Why?

— jack (@jack) March 20, 2019

Dorsey disclosed that the decision was influenced by Square’s development lead, Mike Brock:

Join CCN for $9.99 per month and get an ad-free version of CCN including discounts for future events and services. Support our journalists today. Click here to sign up.

Last week I was considering my hack week project, and asked @brockm: “what is the most impactful thing we could do for the bitcoin community?” His answer was simple: “pay people to make the broader crypto ecosystem better.” This resonated with me immediately, so we’re doing it.

Gift to the Bitcoin Community but Crypto Engineers will be Reporting to Jack Dorsey

In his announcement, Dorsey stated that the crypto engineers and the designer will be reporting directly to him. This raises the question of whose interests the bitcoin developers will be serving – Square’s or the bitcoin community’s? And there are various other concerns that are bound to arise.

For instance, if the commercial interests of Square are threatened by a development in Bitcoin technology will the Square-affiliated developers be given free rein to continue doing their work? Being a wealthy and a high-profile Silicon Valley figure, will Dorsey’s power extend to having an outsized influence in the bitcoin development community via his hirelings?

If so, what steps will be taken to ensure that this does not happen? And will this be harmful to Bitcoin’s anti-centralization stance?

Jack Dorsey Promises Crypto’s Philosophy and Goals Will be Safeguarded

In his tweet announcing the move, Dorsey was aware of the issues that are bound to be raised.

Jack Dorsey, interim CEO of Twitter and CEO of Square, insists that the recruits will not be hired to further Square’s commercial interests. REUTERS/Mike Blake/Files

Consequently, he stated that Square’s commercial interests would not compromise the core philosophy and goals of cryptocurrency:

These folks will focus entirely on what’s best for the crypto community and individual economic empowerment, not on Square’s commercial interests. All resulting work will be open and free.

Do we Take his Word for it?

Across Silicon Valley, the CEO of Square and Twitter has been one of the most fervent bitcoin believer and advocate. During last year’s Consensus event, Dorsey said he was rooting for bitcoin to be adopted as the internet’s native currency:

The internet deserves a native currency; it will have a native currency. I don’t know if it will be Bitcoin or not. Hope it will be. I am a huge fan.

Dorsey has also previously said that he wants to be actively involved in driving cryptocurrencies to the mainstream. This was one of the reasons he launched the trading of bitcoin on Square’s Cash App last year in January.

Square’s Revenues and Profits From Bitcoin Growing

While this has been a positive for the cryptocurrency ecosystem it has also been good for Square. Last year revenues and profits in this segment grew consistently. In the first half of 2018 revenues were $71 million while profits came in at $0.6 million. During the second half, bitcoin revenues rose to $95 million while profits increased to $1.047 million.

The Square CEO has also made personal investments in bitcoin as well as in bitcoin startups. Last year he participated in Lightning Labs’ seed funding round which raised $2.5 million. And recently, Dorsey revealed that he has been maxing out the $10,000 weekly limit of bitcoin purchases on Cash App.

youtube

While this is not proof of the independence and free rein that the crypto engineers he is hiring will have, it certainly has left no doubt that Jack Dorsey has skin in the game. And that might be a good thing for Bitcoin.

0 notes

lawfultruth · 5 years