The SEC Just Killed Crypto Lending

SEC Killed Crypto Lending. How to Lend Crypto. BlockFi and SEC.

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Here’s what went down… BlockFi agreed to pay $100M in fines for violating securities laws. The thing is, crypto lending and crypto staking is becoming more and more popular.

For the longest time it’s felt almost too good to be true.. Why would I keep my money in the bank if I can earn 8-15% by lending crypto?? But the SEC may be looking to put a stop to it.

Could the SEC be in the right here? Or is this simply a case of laws being outdated for new technology? On the one hand.. It’s no secret that there’s countless crypto scams.. That a little crypto regulation could be helpful. On the other hand.. Is this 90 year old document the best pamphlet to follow??

In this video we'll be breaking down what is happening with BlockFi and the recent crypto news around crypto lending, what this means for your investing, and the future of crypto lending.

Timestamps:
RIP BlockFi
0:29 Here's What Happened
1:37 How This Affects You
2:39 What's Going on Now.
3:01 Offer
3:19 Technology and Controversy
5:35 The Solution...?
6:38 The Future of Crypto Lending
9:12 Important Points

*I am not a financial advisor. This is not financial advice. Some of the above links may be affiliate links*

[brendosapien]

Blockfi is being fined a hundred million dollars for doing what fractional reserve banking has done for decades, but actually serving their customers for the service of lending out their money (instead of just their shareholders). In this case, the customers ARE the shareholders, but the legacy system will fight it tooth and nail.

[peterpuller]

I cringe every time the government gets involved in anything..

[LameMule]

BlockFi - fined $100M for violating securities law

Wall Street Hedge Fund - fined $275k once per year for false reporting and blatant manipulation

Thanks SEC, always looking out for (your overlords' wallets) the little people.

[thomasnoh]

Times like this make me thankful staking exists.

[tluck_]

Man I hope Blockfi Fights through This important for the crypto industry as a whole !!!

[deanfraiser]

This is direct centralization on what crypto is all about, if sec puts limits to DeFi earning, decentralization is going nowhere

[xflasch]

Thank you. Been dying for you to do a video like this. I knew it was coming and while I’ve spent hours researching couldn’t find too much. Your amazing.

[garywilson]

Max, your content is CRAZY informative! Thank you, Sir :-)

[id]

SEC: How do you provide that gain to your customers? You must be a scam. Give us 100 000 000 dollars! That same money you got from your customers.
Let's see you scam now, you filthy scammer! (stuffing money in their pockets)

[Davidk]

I never hear of Gemini having any gov issues with their "earn" program, how are they getting around it?

[raw-earth-exploits]

If crypto is considered “property” by the IRS and treasury regulation, why is the sec involved? And hearing a lot about how crypto should be regulated to not be scammed, there are more scams and scandal in the legacy financial institutions and the products that they are offering.

[PhantomSavage]

Been waiting for this one with growing concern.

I'm fairly certain BlockFi will be able to pay the fine this time, but what happens if the SEC imposes another fine for continued violation and BlockFi isn't able to cover it? Or if the SEC freezes all assets of the company entirely for investigation?

Could I get permanently locked out of my Crypto?

[stevenp]

Max
Can you do a podcast on what the sec does with the money they fine organizations? Do they give some of it back to the people impacted, or are they just leveraging the government to steal money from all taxpayer's and investors?
Thank you. You do awesome research!

[NoName-wsqv]

Hi Max.. great job with the research as usual. Can you do a video about un-banking maybe mortgages and getting off the financial grid?

[iBoardRepair]

I've been watching your channel for awhile. Thanks for giving us real and useful info!

[garywilson]

Of course! I went back & checked out some of your early uploads... You've clearly found your niche. Keep it coming :-)

[mac]

The Crypto community needs to become a 'Band of Brothers' when a lawsuit is brought by the SEC that ends up favoring Wall Street Banks then the Brothers chip in for the lawsuit.

[Cliffxcore]

if they know we will do more defi side stuff they will probably go harder on the KYC to wallets. Which will be hard if not impossible to police. So this could get very interesting. To me this looks like a very big over reach for control. They will just label their efforts something like this... "we are doing it for the children..." Or " we are fighting against terrorism" something of that sort.

[BobbyGiggz]

Dude, COMMON ENTERPRISE is interpreted as 'Publicly available investment', which it is. Anyone can sign up for this investment contract.
Which is why making it available to accredited investors only is preferred by SEC.
The only DECENTRALIZED Crypto Lending protocol is AAVE, CRV, and UNISWAP Liquidity pools.
It's not available to institutional investors, and some are riddled with smart contract bugs. It's a tough spot to be in.

[Sicaoisdead]

It’s ridiculously archaic to regulate an industry which has only been about for around 10 years, with legislation that was about before the conception of even the internet! National Governments love new tech when it keeps their fiat growing, but when it comes to money for the people, it’s evil and must be fought.