Democratic lawmakers on Monday urged a probe of <a href="https://www.dailywire.com/topic/cryptocurrency">cryptocurrency</a> companies’ mining activities and their impact on <a href="http://dailywire.com/topic/climate-change">climate change</a>.
Cryptocurrencies are “mined” as computers operate “proof of work” algorithms that solve complicated mathematical problems, thereby earning new tokens. According to the <a href="https://www.warren.senate.gov/imo/media/doc/2022.07.15%20Letter%20to%20EPA%20and%20DOE%20Re%20Cryptomining%20Environmental%20Impacts.pdf">letter</a> — signed by Sen. <a href="http://dailywire.com/topic/elizabeth-warren">Elizabeth Warren</a> (D-MA), Rep. <a href="http://dailywire.com/topic/rashida-tlaib">Rashida Tlaib</a> (D-MI), and other lawmakers — the amount of power used to procure the coins now rivals the total annual energy usage of countries like Norway or Sweden, and may surpass the reductions in greenhouse gas emissions ascribed to electric cars.
The letter urges Energy Secretary <a href="https://www.dailywire.com/topic/jennifer-granholm">Jennifer Granholm</a> and Environmental Protection Agency (<a href="https://www.dailywire.com/topic/environmental-protection-agency-epa">EPA</a>) Administrator Michael Regan to “require emissions and energy use reporting by cryptominers.”
“State and federal regulators currently know little about the scope of the problem. There is no national or state reporting requirement or compilation of the locations of cryptomining facilities in the United States, and no federal regulations specifically governing cryptomining,” the lawmakers explained. “Consequently, policymakers and the public do not have a comprehensive source of information about where these operations are located, how much energy they consume, and what their sources of energy are — and without the energy use and source reporting, there is a subsequent lack of data regarding the associated air emissions of pollutants or carbon dioxide.”
The letter was sent after many cryptocurrencies — <a href="https://www.dailywire.com/news/what-exactly-is-bitcoin-heres-how-the-worlds-largest-cryptocurrency-actually-works">decentralized digital money</a> that can be transferred between users’ virtual wallets — recently <a href="https://www.dailywire.com/news/bitcoin-plunges-below-20000-mark-as-crypto-freefall-continues">plummeted</a> in price. The exchange rate of <a href="http://dailywire.com/topic/bitcoin">Bitcoin</a>, for instance, fell from around $48,400 at the end of December to roughly $21,600 as of Monday. Exchange platform Coinbase is <a href="https://www.dailywire.com/news/crypto-winter-coinbase-to-lay-off-nearly-one-fifth-of-staff">preparing</a> to lay off 18% of its workforce, while the founders of cryptocurrency venture fund 3AC have been <a href="https://www.dailywire.com/news/bankrupt-crypto-entrepreneurs-nowhere-to-be-found-after-investors-come-knocking">nowhere to be found</a> as their company defaults on hundreds of millions in loans.
The lawmakers reached out to seven cryptocurrency companies in the United States, leading them to conclude that “cryptominers are large energy users that account for a significant — and rapidly growing — amount of carbon emissions.” Invoking the Clean Air Act, the letter urges the agencies to require energy consumption reports from entities mining the currencies.
“This collected data would enable valuable public policy activities, including better monitoring of energy use and trends, better evidence basis for policy making, improved data for national mitigation analyses, better abilities for evaluating technology policies for the sector, and better modeling of national and regional grid loads and transitions,” the lawmakers said.
Cryptocurrencies are particularly popular among younger Americans. The 2022 Investopedia Financial Literacy Survey showed that 28% of Millennials — those between the ages of 26 and 41 — expect to use the digital coins to <a href="https://www.dailywire.com/news/gen-z-millennials-are-relying-on-crypto-for-their-retirements">support themselves</a> in their retirements. Nearly 20% of Gen Z — those between 18 and 25 — said the same.
Warren has also <a href="https://www.dailywire.com/news/warren-asks-biden-administration-to-crack-down-on-cryptocurrencies">called</a> for a crackdown on the cryptocurrency sector due to a purported lack of regulation in the marketplace.
“I have become increasingly concerned about the dangers cryptocurrencies pose to investors, consumers, and the environment in the absence of sufficient regulation in the United States,” she wrote to Treasury Secretary Janet Yellen last summer. “However, as the demand for cryptocurrencies continues to grow and these assets become more embedded in our financial system, the Council must determine whether these trends raise concerns beyond investor and consumer protection and extend to broader systemic vulnerabilities that could threaten financial stability.”

Sen. Schumer, Rep.  Pressley and Sen. Warren Discuss Student Debt Cancellation At AFL-CIO Roundtable

Democrats Target Crypto Companies Because Their Carbon Footprints Are Too Big

Democrats Unveil New Line Of Attack On Cryptocurrencies

Climate Change

Cryptocurrency

Elizabeth Warren

Three Arrows Capital (3AC) founders Su Zhu and Kyle Davies are nowhere to be found after the <a href="https://www.dailywire.com/topic/cryptocurrency">cryptocurrency</a> hedge fund went <a href="https://www.dailywire.com/topic/economy">bankrupt</a>.
Beyond filing for bankruptcy earlier in July, the Singapore-based company defaulted on a $670 million loan and failed to repay $270 million to virtual currency exchange Blockchain.com, according to <a href="https://www.theverge.com/2022/7/11/23204465/three-arrows-capita-3ac-liquidators-crypto-hedge-fund-cant-find-founders-kyle-davies-su-zhu">The Verge</a>, even as the company reportedly had $3 billion in assets under management as of April 2022.
According to a July 8 <a href="https://www.documentcloud.org/documents/22083895-three-arrows-capital-liquidation">court filing</a>, Russell Crumpler and Christopher Farmer — two senior directors at Teneo, the company managing 3AC’s liquidation — have been unable to make meaningful contact with Zhu and Davies. The firm’s problems occur as leading cryptocurrencies — <a href="https://www.dailywire.com/news/what-exactly-is-bitcoin-heres-how-the-worlds-largest-cryptocurrency-actually-works">decentralized digital money</a> that can be transferred between users’ virtual wallets — <a href="https://www.dailywire.com/news/bitcoin-plunges-below-20000-mark-as-crypto-freefall-continues">plummet in price</a>. The price of <a href="http://dailywire.com/topic/bitcoin">Bitcoin</a>, for instance, fell from around $48,400 at the end of December to roughly $19,600 as of Tuesday.
The filing said that the liquidity of the firm’s assets increases the likelihood that Zhu and Davies will try to move their funds before investors can access them. “Here, that risk is heightened because a substantial portion of the Debtor’s assets are comprised of cash and digital assets, such as cryptocurrencies and non-fungible tokens, that are readily transferrable,” the document explained, noting that all parties involved “would be irreparably harmed if any disposition of the Debtor’s assets were to occur during the provisional period.”
Crumpler and Farmer said in the filing that they at one point were invited by Advocatus, the firm representing the two entrepreneurs, to join a Zoom call. Though two users named “Su Zhu” and “Kyle Davies” were present on the call, they remained on mute and did not turn on their cameras. Farmer claimed that he also attempted to locate the pair at company headquarters in Singapore but was met with a locked door and a pile of unopened mail. An emergency hearing is scheduled for July 12, according to <a href="https://www.reuters.com/legal/litigation/three-arrows-liquidators-asks-us-court-force-crypto-founders-cooperate-2022-07-11/">Reuters</a>.
Zhu broke his silence on Tuesday to <a href="https://fortune.com/2022/07/12/three-arrows-capital-3ac-founder-su-zhu-kyle-davies-insolvency-bankruptcy-court-administrator/">post</a> on social media that his “good faith” to cooperate with the liquidators was met with “baiting.” Letters from Advocatus included in his post claimed that Crumpler forfeited rights to acquire tokens from Israeli blockchain firm StarkWare.
Indeed, 3AC is far from the only cryptocurrency firm that has experienced financial issues in recent months. Exchange platform Coinbase is <a href="https://www.dailywire.com/news/crypto-winter-coinbase-to-lay-off-nearly-one-fifth-of-staff">preparing</a> to lay off 18% of its workforce.
“We appear to be entering a recession after a 10+ year economic boom,” Coinbase CEO Brian Armstrong said in a recent <a href="https://blog.coinbase.com/a-message-from-coinbase-ceo-and-cofounder-brian-armstrong-578d76eedb12">blog post</a>. “A recession could lead to another crypto winter, and could last for an extended period… Coinbase has survived through four major crypto winters, and we’ve created long-term success by carefully managing our spending through every down period. Down markets are challenging to navigate and require a different mindset.”
Cryptocurrencies are especially popular among younger Americans. The 2022 Investopedia Financial Literacy Survey indicated that 28% of Millennials — those between the ages of 26 and 41 — expect to <a href="https://www.dailywire.com/news/gen-z-millennials-are-relying-on-crypto-for-their-retirements">use cryptocurrencies to support themselves</a> in their retirement. Nearly 20% of Gen Z — those between 18 and 25 — said the same.
“For younger investors, cryptocurrency is clearly not just a fun asset to trade in order to make fast money,” Investopedia editor-in-chief Caleb Silver said. “They are depending on generating returns from cryptocurrency to build wealth and fund their retirement, which is concerning given the lack of education around investing in crypto, and the fact it is still not regulated by the industry.”

Price Of Bitcoin Reaches New High, As Inflation Rises At Level Not Seen In 30 Years

Bankrupt Crypto Entrepreneurs Nowhere To Be Found After Investors Come Knocking

3AC Founders Disappear After Firm's Bankruptcy

Bitcoin

Business

<a href="https://www.dailywire.com/topic/cryptocurrency">Cryptocurrency</a> continued its freefall, as <a href="https://www.dailywire.com/news/crypto-winter-coinbase-to-lay-off-nearly-one-fifth-of-staff">Bitcoin</a> fell below $20,000 Saturday and smaller tokens also shed value.
The value of Bitcoin dropped 9% in a 24-hour period to $19,217.81, according to Coin Metrics data. It was the lowest level for the benchmark cryptocurrency in one and a half years.
“Objectively, looking at the chart, there really is no viable support left,” <a href="https://twitter.com/PeterSchiff/status/1538108827547095042?s=20&amp;t=63ve3rKDtYpZgl4k7p7Rag">Europac.com Chief Economist Peter Schiff tweeted</a>. Most likely, Bitcoin will find short-term support along the long-term trend line around $6K.”
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
LATEST: Bitcoin falls below $20,000 for the first time since December 2020 ⬇️ <a href="https://t.co/q7cTL3ekXT">https://t.co/q7cTL3ekXT</a> <a href="https://t.co/mdbygMAMoY">pic.twitter.com/mdbygMAMoY</a>
&mdash; Bloomberg (@business) <a href="https://twitter.com/business/status/1538057271808237569?ref_src=twsrc%5Etfw">June 18, 2022</a></blockquote>
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Bitcoin has fallen 33% over the last week, dropping its total market capitalization to $370 billion from $580. Since hitting an all-time high of $67,567 on November 8, 2021, it has fallen more than 70%.
Other cryptocurrencies have also been pounded in recent days and even hours. Ether, the second-largest cryptocurrency, plunged 10% over the last 24 hours to $997.75, its lowest level since January 2021.
The currencies have always been volatile, but investors say aggressive interest rate hikes from the Federal Reserve and a liquidity crunch for big investors has accelerated the dive this time.
On Wednesday, the Fed <a href="https://www.dailywire.com/news/federal-reserve-takes-most-aggressive-action-to-fight-inflation-in-three-decades">moved to stem inflation</a> by raising the federal funds rate three-quarters of a point, the biggest one-time jump in nearly 30 years. The move prompted a dash from risky assets, including stocks and cryptocurrency.
Cryptocurrency investors were hurt last month by the total collapse Terra, a so-called stablecoin designed to be worth $1. It crashed to less than a penny, taking the associated coin, Luna, down with it and wiping out $60 billion in market capitalization.
In addition, this week billion dollar cryptocurrency bank Celsius <a href="https://www.cnbc.com/2022/06/14/celsius-liquidity-crisis-fuels-fears-of-crypto-market-contagion.html">halted withdrawals</a>, locking out investors and stoking fears it may be insolvent, according to <a href="https://www.cnbc.com/2022/06/18/bitcoin-sinks-below-20000-as-crypto-meltdown-intensifies.html">CNBC.com</a>. Celsius lends investors’ cryptocurrency holdings to other institutions.
Finally, cryptocurrency hedge fund Three Arrows Capital, which manages what was once $10 billion in cryptocurrency, reportedly faced bankruptcy after making a series of leveraged bets on cryptocurrencies including Bitcoin and Ether.
Three Arrows co-founder Zu Shu said it is “in the process of communicating with relevant parties and fully committed to working this out.” On Friday, the The Wall Street Journal reported the hedge fund may sell off assets as it hopes for another firm to save it from complete collapse.
Earlier this week, cryptocurrency exchange platform <a href="https://www.dailywire.com/news/crypto-winter-coinbase-to-lay-off-nearly-one-fifth-of-staff">Coinbase said it would lay off 18% of its workforce</a> amid the <a href="http://dailywire.com/topic/economy">downturn</a> in the <a href="http://dailywire.com/topic/cryptocurrency">digital asset</a> market.
“We appear to be entering a recession after a 10+ year economic boom,” Coinbase CEO Brian Armstrong said in a Tuesday <a href="https://blog.coinbase.com/a-message-from-coinbase-ceo-and-cofounder-brian-armstrong-578d76eedb12">blog post</a>. “A recession could lead to another crypto winter, and could last for an extended period.”

Bitcoin Plunges Below $20,000 Mark As Crypto Freefall Continues

Economy

Federal Reserve

Internet entrepreneur <a href="https://www.dailywire.com/topic/jack-dorsey">Jack Dorsey</a> and rapper <a href="https://www.dailywire.com/topic/jay-z">Jay-Z</a> are raising eyebrows over their initiative to teach people in <a href="https://www.dailywire.com/topic/new-york-city">Brooklyn</a> public housing about <a href="https://www.dailywire.com/topic/cryptocurrency">cryptocurrency</a>.
<a href="http://dailywire.com/topic/bitcoin">Bitcoin</a>, a form of <a href="https://www.dailywire.com/news/what-exactly-is-bitcoin-heres-how-the-worlds-largest-cryptocurrency-actually-works">decentralized digital money</a> that can be transferred between users’ virtual wallets, was among several cryptocurrencies to plummet in price over the last few months. The digital coin’s price fell from around $48,400 at the end of December to roughly $20,600 as of Wednesday.
Nevertheless, Jay-Z and Dorsey are personally funding the “Bitcoin Academy” — an initiative for residents in Marcy Houses public housing complex in New York to learn about cryptocurrencies. Jay-Z, whose real name is Shawn Carter, grew up in Marcy Houses.
“Bitcoin is becoming a critical tool for many in Africa and Central and South America,” Dorsey, currently serving as CEO of financial services company Block, <a href="https://twitter.com/jack/status/1534894502179180544">tweeted</a> last week. “We believe the same potential exists within communities in the US. Our goal is to prove that making powerful tools more available to people enables them to build greater independence.”
As Dorsey mentioned, El Salvador became the first nation to <a href="https://www.dailywire.com/news/el-salvador-makes-history-becomes-first-country-to-make-bitcoin-legal-tender">adopt</a> Bitcoin as a form of legal tender last summer. According to El Salvador’s government, the use of the cryptocurrency could fuel “financial inclusion,” noting that &#8220;70% of its population doesn&#8217;t have access to traditional financial services.” Last month, El Salvador <a href="https://www.cnbc.com/2022/05/09/el-salvador-buys-500-bitcoin-as-crypto-market-sell-off-continues.html">bought</a> $15.5 million in Bitcoin at nearly $31,000 — meaning that the nation lost more than one-third of its investment amid the most recent selloff.
“The vision for Bitcoin is that it doesn’t have barriers, but lack of access to financial education is a barrier,” the Bitcoin Academy website <a href="https://thebitcoinacademy.com/">says</a>. “This program aims to provide education, empower the community with knowledge, and get rid of some of the barriers so that residents can learn more about Bitcoin specifically and finance in general.”
The program will give residents MiFi devices, serve dinner twice per week through the summer, and offer a special “Crypto Kids Camp.”
Some, however, questioned whether Bitcoin is the best investment for those struggling to make ends meet given the uncertainty that characterizes the cryptocurrency space.
“They’re saying you’re going to have financial freedom, but that also means you’re getting access to cryptocurrency’s volatility and complexity,” Brookings Metro fellow Tonantzin Carmona <a href="https://techcrunch.com/2022/06/09/jay-z-jack-dorsey-bitcoin-academy-marcy-public-housing/">told</a> TechCrunch. “You’re getting access to a space that is rife with scams, fraud, hacks and all sorts of things, because there aren’t consumer protections in place as the technology currently stands.”
Earlier this week, cryptocurrency exchange platform Coinbase <a href="https://www.dailywire.com/news/crypto-winter-coinbase-to-lay-off-nearly-one-fifth-of-staff">revealed</a> concerns about a looming recession and “crypto winter,” announcing that the company would therefore lay off nearly one-fifth of its staff.
“While it’s hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment,” Coinbase CEO Brian Armstrong said. “Coinbase has survived through four major crypto winters, and we’ve created long term success by carefully managing our spending through every down period. Down markets are challenging to navigate and require a different mindset.”
Despite skepticism, cryptocurrencies remain popular among younger Americans. The 2022 Investopedia Financial Literacy Survey <a href="https://www.dailywire.com/news/gen-z-millennials-are-relying-on-crypto-for-their-retirements">revealed</a> that 28% of Millennials — those between the ages of 26 and 41 — expect to use cryptocurrencies to support themselves in their latter years. Nearly 20% of Gen Z — those between 18 and 25 — said the same.

Jay-Z

Jay-Z And Jack Dorsey Raise Eyebrows Over Plan To Help Brooklyn Public Housing Residents Buy Bitcoin

Jay Z And Jack Dorsey Want Brooklyn Public Housing Residents To Buy Bitcoin

Jack Dorsey

New York City

Cryptocurrency exchange platform Coinbase is preparing to lay off 18% of its workforce amid a <a href="http://dailywire.com/topic/economy">downturn</a> in the <a href="http://dailywire.com/topic/cryptocurrency">digital asset</a> market.
“We appear to be entering a recession after a 10+ year economic boom,” Coinbase CEO Brian Armstrong said in a Tuesday <a href="https://blog.coinbase.com/a-message-from-coinbase-ceo-and-cofounder-brian-armstrong-578d76eedb12">blog post</a>. “A recession could lead to another crypto winter, and could last for an extended period.”
<a href="http://dailywire.com/topic/bitcoin">Bitcoin</a>, the digital asset with the largest market cap, has plummeted from around $48,400 at the end of December to roughly $22,500 as of Tuesday — a 54% drop.
According to Armstrong, past “crypto winters” have decreased trading and thereby impacted Coinbase’s primary source of revenue. Although the company has grown 200% year-over-year since the beginning of 2021, Armstrong believes he “over-hired” amid the boom in popularity of digital currency products and services.
“While it’s hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment,” he said. “Coinbase has survived through four major crypto winters, and we’ve created long term success by carefully managing our spending through every down period. Down markets are challenging to navigate and require a different mindset.”
Cryptocurrencies — forms of <a href="https://www.dailywire.com/news/what-exactly-is-bitcoin-heres-how-the-worlds-largest-cryptocurrency-actually-works">decentralized digital money</a> that can be transferred between users’ virtual wallets — are especially popular among Millennials and members of Generation Z. The 2022 Investopedia Financial Literacy Survey revealed that 28% of Millennials — those between the ages of 26 and 41 — expect to <a href="https://www.dailywire.com/news/gen-z-millennials-are-relying-on-crypto-for-their-retirements">use cryptocurrencies to support themselves</a> in their retirements. Nearly 20% of Gen Z — those between 18 and 25 — said the same.
“For younger investors, cryptocurrency is clearly not just a fun asset to trade in order to make fast money,” Investopedia editor-in-chief Caleb Silver remarked. “They are depending on generating returns from cryptocurrency to build wealth and fund their retirement, which is concerning given the lack of education around investing in crypto, and the fact it is still not regulated by the industry.”
Indeed, just over one-quarter of American adults reported having “advanced” knowledge of cryptocurrency, while 49% have “beginner” knowledge.
The plummeting value of digital assets also impacts El Salvador, which became the first nation to adopt <a href="https://www.dailywire.com/news/el-salvador-makes-history-becomes-first-country-to-make-bitcoin-legal-tender">Bitcoin as a form of legal tender</a> last summer. According to El Salvador’s government, the use of the cryptocurrency could fuel “financial inclusion,” noting that “70% of its population doesn’t have access to traditional financial services.”
Last month, however, El Salvador <a href="https://www.cnbc.com/2022/05/09/el-salvador-buys-500-bitcoin-as-crypto-market-sell-off-continues.html">bought</a> $15.5 million in Bitcoin at nearly $31,000 apiece — meaning that the nation lost over one-third of its investment amid the most recent selloff.
El Salvador’s use of Bitcoin as legal tender represents “the first domino to fall in broader global adoption,” according to an analysis from accounting firm <a href="https://www.pwc.com/gx/en/financial-services/pdf/el-salvadors-law-a-meaningful-test-for-bitcoin.pdf">PwC</a>. Because over 20% of El Salvador’s gross domestic product (GDP) emerges from remittances — money sent to residents of the country from citizens working abroad — Salvadorans may benefit by using cryptocurrencies to avoid hefty transfer fees.
International financial institutions like the International Monetary Fund (IMF) and the World Bank have been hesitant to back El Salvador’s experiment over concerns related to macroeconomic stability and environmental implications.
Many economists and officials have been highly skeptical of cryptocurrencies and their surging popularity. IMF Managing Director Kristalina Georgieva said at the World Economic Forum last month that some forms of cryptocurrencies <a href="https://www.dailywire.com/news/head-of-imf-denounces-certain-types-of-crypto-as-pyramid-schemes-at-world-economic-forum-summit">not backed by assets</a> are a “pyramid” scheme, and Sen. Elizabeth Warren (D-MA) has repeatedly called upon regulators to <a href="https://www.dailywire.com/news/warren-asks-biden-administration-to-crack-down-on-cryptocurrencies">crack down</a> on the marketplace.

‘Crypto Winter’: Coinbase To Lay Off Nearly One-Fifth Of Staff

Cryptocurrency Company To Lay Off Nearly One-Fifth Of Staff Amid Recession Fears, Selloff

Recession

The House Committee on Ethics said in a statement on Monday that it has opened multiple investigations into outgoing Rep. Madison Cawthorn (R-NC).
The press release from the Committee comes after Cawthorn was defeated in the Republican primary for the seat representing North Carolina’s 11th District by Chuck Edwards, a three-term state senator and business owner.
The investigations into Cawthorn will look into his involvement with a cryptocurrency and whether he had an inappropriate relationship with a staffer.
&#8220;The Committee unanimously voted on May 11, 2022, to establish an Investigative Subcommittee,&#8221; the Committee <a href="https://ethics.house.gov/press-releases/statement-chairman-and-ranking-member-committee-ethics-regarding-representative-64">said</a> in a statement. &#8220;Pursuant to the Committee’s action, the Investigative Subcommittee shall have jurisdiction to determine whether Representative Madison Cawthorn may have: improperly promoted a cryptocurrency in which he may have had an undisclosed financial interest, and engaged in an improper relationship with an individual employed on his congressional staff.&#8221;
Cawthorn appeared to respond to the investigations by claiming on Twitter that they were coming from him because he was &#8220;a problem for the swamp!&#8221;
&#8220;Wow- I must still be a problem for the swamp! 👀,&#8221; he wrote. &#8220;They’re still coming after me!&#8221;
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Wow- I must still be a problem for the swamp! 👀
They’re still coming after me!
&mdash; Madison Cawthorn (@CawthornforNC) <a href="https://twitter.com/CawthornforNC/status/1528838805620654080?ref_src=twsrc%5Etfw">May 23, 2022</a></blockquote>
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Cawthorn had become a headache for House Republicans, especially the leadership, with his name constantly appearing in news stories that were unflattering for the party.
Just a few of the negative stories that he&#8217;s been involved in have included being detained multiple times at the airport for having a loaded gun on him, accusing his colleagues of having cocaine-fueled orgies without providing evidence, and having an embarrassing video and photographs emerge of him.
House Minority Leader Kevin McCarthy (R-CA) <a href="https://www.dailywire.com/news/madison-cawthorn-admits-his-claims-of-lawmaker-orgies-and-drug-use-were-exaggerated-gop-leader">addressed</a> the situation after Cawthorn accused his colleagues of having cocaine-fueled orgies, saying that he no longer trusted Cawthorn.
“I just told him he’s lost my trust, he’s gonna have to earn it back, and I laid out everything I find is unbecoming. And, you can’t just say, ‘You can’t do this again.’ I mean, he’s got a lot of members very upset,” McCarthy said. “In the interview, he claims he watched people do cocaine. Then when he comes in, he tells me, he says he thinks he saw maybe a staffer in a parking garage from 100 yards away.”
“It’s just frustrating. There’s no evidence behind his statements,” McCarthy continued. “And when I sit down with him … I told him you can’t make statements like that, as a member of Congress, that affects everybody else and the country as a whole.”

Donald Trump rally in North Carolina

Congress Opens Multiple Investigations Into Madison Cawthorn

Ethics

Kevin McCarthy

Madison Cawthorn

North Carolina

International Monetary Fund Managing Director Kristalina Georgieva said at the World Economic Forum on Monday that stablecoins not backed by assets are a “pyramid” scheme.
Earlier this month, TerraUSD and sister stablecoin Luna — which are linked to the value of the dollar by algorithms relying upon traders to arbitrage the two coins’ prices — plummeted in value, leading the cryptocurrency market at large to undergo <a href="https://www.wsj.com/articles/why-did-cryptocurrencies-terrausd-and-luna-unravel-stablecoin-price-crash-explained-11652462779">billions in losses</a>.
Georgieva pointed to stablecoins as “the area where the big mess happened.”
“If a stablecoin is backed with assets, one to one, it is stable. When it is not backed with assets, but it is promised to deliver 20% return, it’s a pyramid,” the Bulgarian economist <a href="https://www.cnbc.com/2022/05/23/imf-head-says-stablecoins-not-backed-by-assets-are-a-pyramid-hinting-at-ust.html">said</a> at a World Economic Forum panel moderated by CNBC. “What happens to pyramids? &#8230; They eventually fall to pieces.”
However, Georgieva is in favor of continuing the use of other cryptocurrencies — especially if they are <a href="https://finance.yahoo.com/news/imf-georgieva-urges-against-abandoning-175202539.html">subject to regulation</a>.
“I would beg you not to pull out of the importance of this world,” she continued. “It offers us all faster service, much lower costs, and more inclusion, but only if we separate apples from oranges and bananas,” she said, arguing that regulators around the world must establish safeguards for investors.
Indeed, Americans lawmakers such as Sen. Elizabeth Warren (D-MA) have repeatedly called upon regulators to <a href="https://www.dailywire.com/news/warren-asks-biden-administration-to-crack-down-on-cryptocurrencies">crack down</a> on cryptocurrencies.
“I have become increasingly concerned about the dangers cryptocurrencies pose to investors, consumers, and the environment in the absence of sufficient regulation in the United States,” Warren told Treasury Secretary and Financial Stability Oversight Council Chair Janet Yellen last year. “However, as the demand for cryptocurrencies continues to grow and these assets become more embedded in our financial system, the Council must determine whether these trends raise concerns beyond investor and consumer protection and extend to broader systemic vulnerabilities that could threaten financial stability.”
Leaders of the World Economic Forum have repeatedly called for <a href="https://www.dailywire.com/news/the-future-is-built-by-us-world-economic-forum-chairman-who-spoke-of-great-reset-of-capitalism">coordinated regulation</a> of the global economy.
“Let’s also be clear: the future is not just happening; the future is built by us,” World Economic Forum founder Klaus Schwab said on Monday. “We have the means to improve the state of the world, but two conditions are necessary: The first one, is that we act all as stakeholders of larger communities, so that we serve not only our self-interests but we serve the community. That’s what we call ‘stakeholder responsibility.’”
“And second, that we collaborate,” he continued. “And this is the reason why you find many opportunities here during the meeting to engage into… action and impact initiatives to make progress related to specific issues on the global agenda.”
Schwab has also faced criticism for his calls to leverage the COVID-19 crisis into a “Great Reset” of capitalism.
“To achieve a better outcome, the world must act jointly and swiftly to revamp all aspects of our societies and economies, from education to social contracts and working conditions,” he wrote in June 2020. “Every country, from the United States to China, must participate, and every industry, from oil and gas to tech, must be transformed. In short, we need a ‘Great Reset’ of capitalism.”

G20 Leaders Arrive For First Day Of Summit In Rome

Head Of IMF Denounces Certain Types Of Crypto As ‘Pyramid’ Schemes At World Economic Forum Summit

At World Economic Forum Summit, IMF Chief Calls Certain Crypto Assets 'Pyramid' Schemes

Janet Yellen

Stock Market

World Economic Forum

Millennials and members of Generation Z are relying heavily upon cryptocurrencies for their retirement savings, according to a poll released earlier this month.
The 2022 <a href="https://www.investopedia.com/financial-literacy-survey-5223919">Investopedia Financial Literacy Survey</a> asked over 4,000 American adults in the Gen Z, Millennial, Generation X, and Baby Boomer generations about their saving, investing, and taxpaying habits. Among other findings, the investment dictionary revealed that 28% of Millennials — those between the ages of 26 and 41 — expect to use cryptocurrencies to support themselves in their latter years. Nearly 20% of Gen Z — those between 18 and 25 years old — said the same.
Gen Z, Millennials, and Gen X also foresee their cryptocurrency assets yielding stronger returns than their holdings in stocks, real estate, or mutual funds.
“For younger investors, cryptocurrency is clearly not just a fun asset to trade in order to make fast money,” Investopedia editor-in-chief Caleb Silver explained. “They are depending on generating returns from cryptocurrency to build wealth and fund their retirement, which is concerning given the lack of education around investing in crypto, and the fact it is still not regulated by the industry.”
Indeed, just over one quarter of American adults reported that they have “advanced” knowledge of cryptocurrency — a form of <a href="https://www.dailywire.com/news/what-exactly-is-bitcoin-heres-how-the-worlds-largest-cryptocurrency-actually-works">decentralized</a> digital money that can be transferred between users’ virtual wallets — while 49% have “beginner” knowledge.
Meanwhile, only 49% of Americans have “advanced” knowledge of paying taxes. 47% have “advanced” knowledge of saving, 45% of borrowing and managing debt, and 36% of investing.
Young Americans also expect to stop working at younger ages than their parents and grandparents. The median age at which Gen Z expects to stop working is 57; for Millennials, Gen X, and Boomers, expected ages are 61, 64, and 68, respectively.
“Our relationship to money, investing and financial planning has radically changed in the past few years, as new asset classes like crypto and NFTs have emerged just as millions of people are taking their first steps into investing,” Silver added. “What hasn’t changed is the need for relevant financial education — but in a modernized curriculum that addresses these new financial products and services, designed to serve the people who are dependent on them to build their wealth.”
Data from credit bureau Experian released in 2019 <a href="https://www.cnbc.com/select/average-american-debt-by-age/">show</a> that the average American household finds itself in $90,460 in debt — from mortgages and student debt to credit cards and personal loans. Members of Gen Z owe an average of $9,593; Millennials, Gen X, and Boomers respectively owe $78,396, $135,841, and $96,984.
Research from the Federal Reserve Bank of Minneapolis <a href="https://www.minneapolisfed.org/economic-research/conferences/~/media/files/research/events/2014_05-22/Brown_Financial_Education.pdf">indicates</a> that “financial literacy reduces exposure to housing and consumption debt” and “reduces the prevalence of bankruptcy,” while leading to “a lower likelihood of having any outstanding debt.”

Cryptocurrency Automated Teller Machines in London

Gen Z, Millennials Are Relying On Crypto For Their Retirements

Generation Z

Millennials

On Wednesday, President Joe Biden signed an executive order which laid the groundwork for federal regulation of the cryptocurrency market, the potential development of a digital dollar, as well as setting the stage for the presentation of unregulated cryptocurrency as national security threats.
The <a href="https://www.whitehouse.gov/briefing-room/presidential-actions/2022/03/09/executive-order-on-ensuring-responsible-development-of-digital-assets/">order</a> calls for a review of the federal government’s approach to cryptocurrencies, as well as placing the United States as a leader in the global industry.
The ongoing Russian invasion of Ukraine is also being presented as a motivation for cracking down on cryptocurrency, with <a href="https://www.washingtonpost.com/business/2022/03/09/biden-crypto-executive-order/">The Washington Post</a> noting that “some U.S. policymakers have raised concerns about the potential for Russians to use cryptocurrencies to dodge sanctions, although others say the relatively small size of the asset market and the traceability of digital tokens make it an unworkable option for the Russians targeted with sanctions.”
“Today President Biden signed an Executive Order (E.O.) to establish the first-ever comprehensive federal digital assets strategy for the United States. The E.O. will help position the U.S. to keep playing a leading role in the innovation and governance of the digital assets ecosystem at home and abroad, in a way that protects consumers, is consistent with our democratic values and advances U.S. global competitiveness,” NEC Director Brian Deese and National Security Advisor Jake Sullivan announced in a <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2022/03/09/statement-by-nec-director-brian-deese-and-national-security-advisor-jake-sullivan-on-new-digital-assets-executive-order/">statement</a>.
“This E.O. marks an intensification of our efforts to promote responsible innovation in the digital assets space – innovation that works for all Americans, protects our national security interests, and contributes to our economic competitiveness and growth. Fundamentally, an American approach to digital assets is one that encourages innovation but mitigates the risks to consumers, investors, and businesses, broader financial stability, and the environment. We are clear-eyed that &#8216;financial innovation&#8217; of the past has too often not benefited working families, while exacerbating inequality and increasing systemic financial risk. This history underscores the need to build robust consumer and economic protections into digital asset development,” they continued.
“The approach outlined in the E.O. will reinforce U.S. leadership in the global financial system and safeguard the long-term efficacy of critical national security tools like sanctions and anti-money laundering frameworks. To these ends, the Order identifies the Administration’s policy priorities, both for cryptocurrencies and any future U.S. central bank digital currency, to help guide the evolution of the digital asset ecosystem in a way that is consistent with our values. Governments alone cannot solve these problems, and definitely not a government that operates in siloes,” they concluded. “This E.O. is the product of months of work with stakeholders across government, industry, advocacy, academia, and international allies and partners – to identify actions we can take to foster responsible innovation in the digital asset ecosystem. Its implementation will leverage the knowledge and distinct expertise of a broad range of stakeholders across the White House and Executive departments and agencies, and regulatory agencies. We remain committed to working with allies, partners, and the broader digital asset community to shape the future of digital asset systems in a manner that is safe, inclusive, and consistent with our democratic values. As this ecosystem evolves, so too will our approach.” 
Ian Haworth is a writer for The Daily Wire and contributor to Morning Wire. Follow him on <a href="https://twitter.com/ighaworth">Twitter</a>, <a href="https://www.facebook.com/ighaworth">Facebook</a>, and <a href="https://www.youtube.com/c/IanGHaworth">YouTube</a>.

Joe Biden

Biden Signs Cryptocurrency Executive Order, Looking To Develop Digital Dollar And Crack Down On National Security Threats

Ukraine

Canadian authorities have sanctioned 34 cryptocurrency wallets connected to the &#8220;Freedom Convoy&#8221; trucker protests in Canada, after Prime Minister Justin Trudeau announced he was taking even more aggressive measures to crack down on the protests.
Cryptocurrency news site <a href="https://www.coindesk.com/policy/2022/02/16/canada-sanctions-34-crypto-wallets-tied-to-trucker-freedom-convoy/">Coindesk</a> reported that the Ontario Provincial Police and Royal Canadian Mounted Police ordered all regulated Canadian financial firms to halt transactions from 34 crypto wallets tied to the Freedom Convoy and other truckers&#8217; protests around Canada, in accordance with the public emergency declared by Trudeau on Monday. <a href="https://www.theglobeandmail.com/business/article-rcmp-asks-cryptocurrency-exchanges-to-halt-trading-for-accounts/">The Globe and Mail</a>, a Canadian news outlet, confirmed that the police agencies ordered several crypto exchanges and financial institutions to “cease facilitating any transactions” with all of the wallets as part of an investigation “in relation to illegal acts falling under the scope of the Emergency Measures Act.”
“Any information about a transaction or proposed transaction in respect of these address(es), is to be disclosed immediately to the Commissioner of the Royal Canadian Mounted Police,” law enforcement wrote in a letter to the financial institutions, obtained by the Globe and Mail.
The police agencies, in conjunction with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), are investigating cryptocurrency donations made in support of the truckers. Coindesk reported that donors sent more than 20 Bitcoin, valued at around $870,000 or $1.1 million Canadian, through alternative platforms after a <a href="https://www.dailywire.com/news/breaking-gofundme-completely-shuts-down-massive-canadian-freedom-convoy-page-issues-statement">GoFundMe</a> account supporting the protests, with more than $9 million in donations, was suspended by the fundraising platform for allegedly violating its terms of service.
The Globe and Mail also reported that the RCMP sent letters to financial institutions asking them to cut off services and freeze the accounts of individuals identified as being involved in illegal acts in connection with the protests. “All financial service providers, including banks, covered by the federal Emergencies Act will need to diligently implement the required measures, as stipulated by the government in the corresponding Emergency Economic Measures Order, which are not expected to impact the vast majority of customers,” the Canadian Bankers Association said in a statement. The outlet noted that it is up to the individual banks to decide whether their customers meet that threshold, and whether they will follow through with blocking transactions.
<a href="https://www.gazette.gc.ca/rp-pr/p2/2022/2022-02-15-x1/pdf/g2-156x1.pdf">Trudeau&#8217;s order</a>, the first time Canada&#8217;s Emergency Measures Act has been used since its passage in 1988, declared the convoy protests a public emergency and empowered Canadian officials to &#8220;regulate or prohibit the use of property to fund or support the blockade, to require any crowdfunding platform and payment processor to report certain transactions to the Financial Transactions and Reports Analysis Centre of Canada, and to require any financial service provider to determine whether they have in their possession or control property that belongs to a person who participates in the blockade.&#8221;
Deputy Prime Minister and Minister of Finance <a href="https://www.dailywire.com/news/breaking-trudeau-announces-unprecedented-action-freezing-bank-accounts-of-freedom-convoy-protesters">Chrystia Freeland</a> said in a press conference shortly afterward that the order gave banks and financial institutions the power to “temporarily cease providing financial services where the institution suspects that an account is being used to further the illegal blockades and occupations.” The power extends to both personal and corporate accounts. Crowd-funding platforms like GoFundMe and <a href="https://www.dailywire.com/news/breaking-canadian-court-freezes-freedom-convoy-givesendgo-donations">GiveSendGo</a>, which have helped fund the continuing demonstrations, would fall under the enforcement of “Canada’s anti-money laundering and terrorist financing rules,” Freeland added.
“These changes cover all forms of transactions,” she said. “The illegal blockades have highlighted the fact that crowd-funding platforms and some of the payment service providers they use are not fully captured under the proceeds of the Crime and Terrorist Financing Act.”
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Canada Orders Freeze Of 34 Cryptocurrency Accounts Connected To ‘Freedom Convoy’

Canada

Freedom Convoy

As soon as March, the Biden administration could release its strategy in its effort to regulate Bitcoin and other cryptocurrencies, which the administration reportedly claims may be a national security issue.
According to <a href="https://www.bloomberg.com/news/articles/2022-01-21/white-house-is-set-to-put-itself-at-center-of-u-s-crypto-policy?sref=3REHEaVI">Bloomberg</a>, “The Biden administration is preparing to release an initial government-wide strategy for digital assets as soon as next month and task federal agencies with assessing the risks and opportunities that they pose,” Bloomberg <a href="https://www.bloomberg.com/news/articles/2022-01-21/white-house-is-set-to-put-itself-at-center-of-u-s-crypto-policy?sref=3REHEaVI" data-ol-has-click-handler="">reported</a>, adding:
<blockquote>The late-stage draft of the executive order details economic, regulatory and national security challenges posed by cryptocurrencies, said the people who asked not to be named discussing internal deliberations. &#8230; The administration is also expected to weigh in on the possibility of the U.S. issuing a government-backed coin, known as a central bank digital currency or CBDC, the people familiar with the talks said. But, according to one of the people, the administration is likely to hold off on taking a firm position, as the <a style="font-weight: inherit;" href="https://www.bloomberg.com/quote/13598Z:US">Federal Reserve</a> is still considering the issue.</blockquote>
“The recently passed bipartisan infrastructure deal requires cryptocurrency brokers — Coinbase, Crypton.com, Gemini, etc. — to <a href="https://www.cnbc.com/2021/11/09/how-bipartisan-infrastructure-bill-will-impact-crypto-investors.html" data-ol-has-click-handler="">disclose</a> the names and addresses of their customers. In order to coerce compliance with tax laws, the bipartisan infrastructure deal also required cryptocurrency brokers to provide the IRS, and each customer, with a Form 1099-B detailing exchanges, withdrawals, and holdings,” <a href="https://www.theblaze.com/news/the-biden-administration-is-preparing-to-regulate-bitcoin-citing-national-security-concerns?utm_source=dlvr.it&amp;utm_medium=twitter">The Blaze</a> noted, continuing:
<blockquote>The U.S. government has been preparing to regulate the cryptocurrency market for a while now. Prior to the Biden administration endorsing the idea of regulating crypto, there was a <a href="https://www.foxbusiness.com/politics/biden-spurns-powerful-dem-cryptocurrency-regulation-nfastructure" data-ol-has-click-handler="">bipartisan coalition</a> in the U.S. Senate pushing for it to be regulated.</blockquote>
Historian Niall Ferguson <a href="https://www.bloomberg.com/opinion/articles/2022-02-06/niall-ferguson-crypto-s-cold-winter-will-give-way-to-a-red-hot-future">explained</a>,
<blockquote>You can tell it’s a bear market for crypto because the usual suspects have been tweeting about it. &#8230; How much lower could Bitcoin go? It is worth recalling that, after the price of Bitcoin peaked during its first bubble — at $1,137 on Nov. 29, 2013 — it dropped by 84% to $183 just over a year later, on Jan. 14, 2015.
This pattern was repeated four years later, when the price peaked at $19,041 on Dec. 17, 2017, and bottomed out a year later at $3,204 — a cumulative drop of 83%. Were this historical pattern to repeat itself exactly, the price would fall to a low of $11,515 this November, 83% below its peak in November of last year.
However, such a plunge seems unlikely for two reasons. First, Bitcoin is a much larger asset than in the 2010s, with its market cap peaking at just shy of a trillion dollars last year. &#8230; Second, while Bitcoin remains a highly speculative investment, it is less speculative than it was a decade ago, based on measures of 30-day volatility and institutional adoption. &#8230;
Applying financial history to the future, I expect this crypto winter soon to pass. It will be followed by a spring in which Bitcoin continues its steady advance toward being not just a volatile option on digital gold, but dependable digital gold itself; and DeFi (decentralized finance) defies the skeptics to unleash a financial revolution as transformative as the e-commerce revolution of Web 2.0.</blockquote>

Biden Set To Regulate Bitcoin, Cryptocurrencies, Reportedly For ‘National Security Challenges’

Biden Administration

Facebook-backed Diem Association has sold its assets to Silvergate Capital Corp, a bank which focuses on cryptocurrency, according to the company. This move essentially ends the Big Tech icon’s foray into the world of cryptocurrency, having previously hoped to encourage billions of Facebook and Instagram users to use its own cryptocurrency.
“Silvergate Capital Corporation today announced that it has acquired intellectual property and other technology assets related to running a blockchain-based payment network from the Diem Group, further investing in its platform and enhancing its existing stablecoin infrastructure. Silvergate is uniquely positioned to leverage this technology to further solidify its position as a leader in the digital currency industry,” Silvergate announced in a <a href="https://ir.silvergate.com/news/news-details/2022/Silvergate-Purchases-Blockchain-Payment-Network-Assets-from-Diem/default.aspx">statement</a>.
“The assets acquired by Silvergate include development, deployment and operations infrastructure and tools for running a blockchain-based payment network designed to facilitate payments for commerce and cross-border remittances,” Silvergate added. “The network, which has been operating in a pre-launch phase, was built by a world-class group of engineers over a two-year development cycle with architectural quality evidenced by its security, reliability and scalability. Included in the acquisition are proprietary software elements critical to running a regulatory-compliant stablecoin network.”
According to Silvergate, the aggregate value of the transaction was $182 million.
&#8220;Despite giving us positive substantive feedback on the design of the network, it nevertheless became clear from our dialogue with federal regulators that the project could not move ahead,&#8221; Diem Association CEO Stuart Levey said in a <a href="https://www.cnn.com/2022/02/01/tech/facebook-diem-association-dissolving/index.html">statement</a>.
“The sale was the culmination of several years of struggle for Meta&#8217;s fintech unit, which lost most of its leadership, including director David Marcus, amid an exodus of staffers in the fall,” <a href="https://www.foxbusiness.com/technology/facebooks-cryptocurrency-venture-to-wind-down-after-asset-sale-to-silvergate">Fox Business</a> reported. “It also throws into question how Meta plans to handle commerce in the metaverse, a futuristic digital environment that Chief Executive Mark Zuckerberg has heralded as ‘the successor to the mobile internet.’”
In 2020, David Marcus <a href="https://about.fb.com/news/2020/05/welcome-to-novi/">announced</a> a rebranding of Facebook’s cryptocurrency venture, Libra, which was changed to Diem. 
“Today, we’re excited to introduce Novi — the new name and brand for the digital wallet that will help people send and hold Libra digital currencies,” Marcus said. “While we’ve changed our name from Calibra, we haven’t changed our long-term commitment to helping people around the world access affordable financial services. Whether you’re sending money home to support the family members who supported you, or you’re receiving money from your friends no matter where they are, the Novi wallet will make money work better for everyone.”
Libra, the original name, was first announced in June 2019.
“Congrats to my former colleagues and friends, as well as to [Silvergate Bank]. We all gave our whole hearts, blood, sweat and tears to what I will always call Libra. We were mission driven and were in it for the right reasons (that remain as valid today as they were then),” Marcus said in response to the news that Facebook’s cryptocurrency objective had come to an end. “Here&#8217;s to yet another chapter with a maybe more ‘acceptable’ promoter driving the vision forward. There will be ample time in the future for me to properly reflect on the behavior of certain politicians and regulators along the way, but for now&#8230; onward!”
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">
Here&#39;s to yet another chapter with a maybe more &quot;acceptable&quot; promoter driving the vision forward. There will be ample time in the future for me to properly reflect on the behavior of certain politicians and regulators along the way, but for now&#8230; onward!
&mdash; David Marcus &#8211; dmarcus.eth (@davidmarcus) <a href="https://twitter.com/davidmarcus/status/1488281478869913605?ref_src=twsrc%5Etfw">January 31, 2022</a></blockquote>
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Ian Haworth is an Editor and Writer for The Daily Wire. Follow him on Twitter at<a href="https://twitter.com/ighaworth"> @ighaworth</a>.

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