Will the FTX Scandal Bring Down 'Crypto'?

Jeff and Bob discuss whether the FTX scandal will be used to justify new "crypto" regulations or even the creation of a central bank digital currency.

00:00 Introduction
01:15 FTX and Regulations on Crypto
10:17 Sam Bankman-Fried
15:09 Leveraging Crypto and Banking
23:16 Central Bank Digital Currencies (CBDCs)

[Paul-A]

Sam Bankman-Fried is like if an Ayn Rand villain came to life. He portrayed himself as a philanthropic investor driven by an altruistic philosophy only to be revealed to be a con artist funneling money to politicians while colluding with them to enact regulation.

[ChimpOnComputer]

Hahaha the amount of crypto bots that ended up in this comment section is absolutely hilarious.

[NomenNescio]

Please don't include the word crypto in the title, it attracts spam comments.

[nordicwillness]

I wish they did this show twice a week on more subjects. Jeff and Bob's intake is extremely valuable and refreshing to hear compared to a lot out there.

[NomenNescio]

I need my weekly dose of Bob, it brings sanity to my world.

[willosee]

The idea that we need regulation is insane. After every other disaster politicians think more regulation will help. The actual custodial provisions concerning equities if renamed and repurposed could easily cover these types of assets.

[kendreamer]

Is owning gold or other hard assets the only thing the little guy can do to avoid loss?

[DanJohnsonAffordableAviation]

Good coverage on that subject, Jeff and Bob. Please help remind everyone that bitcoin and the rest of what’s called crypto are not the same.

[justinjozokos]

What a coincidence. I just started reading my copy of ToM&C

[joeziahbabb]

I'm just glad companies like goldmoney offer easy and liquid gold ownership, they don't leverage out your gold its just a service for those of us who use gold for savings etc...

[modelmark]

SBF saying the run up from 10k to 60k was due to leverage and we are still higher @40k at the time of the video, makes you think we will go down to 10k. There is also the argument SBF was short btc because he didn't have btc in possession while users thought they were long. Unfortunately he swapped it for total crap coins.

[awest]

About that coach who molested kids and structured his blackmail payments: that was Dennis Hastert, former speaker of the house. Ironically, he championed the very "patriot act" that made structuring illegal. That might be the only good outcome of that legislative monstrosity.

[Minder]

Jeff: "Joined, as always, by my friend and colleague, Dr. Bob Murphy"

Bob: *missed half the episodes*

Hahahahaha

[davealbin]

Neel way my TA during my undergrad days at Univ of IL.

[bigqueue]

Wonderful podcast, and I'm not sure why I haven't subscribed to it. I guess I haven't subscribed to it here on YouTube but I have with my podcast reader which I haven't used as of late.

[ThePattersonPod]

Great work on this episode. Really appreciate the insight into refuting the need for regulation and the info about pad laws.

As a side note, why have I heard no one make a pun with SBF’s middle name? Seems like frac banking could be worked in there

[cosmicrays]

One thing I would point out is that, if cryptocurrency is all that people say it is, then that makes it a tremendous threat to the regime, and they will *eventually* find an excuse to regulate it - if not today, then tomorrow.

However, if those regulations are effective in stopping cryptocurrency, then it was never fit for its purpose in the first place. These events are necessary stress tests.

[runderwo]

This wasn't a classic bank collapse driven by leverage and concentrated withdrawals. SBF stole customer deposits to bail out his failing company Alameda Research. This is really a question of how to discourage fraud in cases where the fraud is so big that restitution is unavailable.

[Tenebrousable]

I am filled with regret. For all who are involved.

[PSht.]

The problem is not in leverage and loans. Gov.control will not change anything - brokers and other firms will simply appear. The only way out is to separate exchanges and customer accounts. Somehow to encrypt and close access to customer transactions.