Written by TheFanNJ Date: 2/16/2023
The topic of discussion has become #stablecoins, and since the United States Government and most importantly the SEC (Securities and Exchange Commission) has now taken interest in Stablecoins and NFTS. The SEC believes that many unregistered coins that are backed by centralized US banks are securities. And a tax frenzy, plus a misinformed #JoeBiden #Administration has been proposing bans and hard restrictions on the flow of cash that is backed by the American Dollar. The crack down on Cash App, Robinhood, and crypto currency has the democratic audience in a self-inflected sword fight, that they are losing to themselves. Democrats continue to fall on their own sword following leaders in the Senate like #BernieSanders and #ElizebethWarren, with this tax on wealth that is simply just not there. Democrats are getting greedy with their tax on 1,000 billionaires, that leads to heavy taxes on the 819 million: millionaires. Those imposed taxes have been pushed down to the consumer — with heavy inflated prices, low returns on 401k or anything that isn’t backed by the US Treasury.
Building an NFT that is backed by the dollar, is hard. One, you’ll need a license from a state to organize one. And getting one is even harder based on the state’s requirements. In the state of New Jersey, which is where most NFT companies are flocking to in order to set up shop. Angel Investors are a huge thing in setting up a base for Stable Coins.
Two, the requirements on becoming an Angel Investor are even harder; an investor doesn’t have to register in New Jersey if they have a resume of handling $1.5 million in cash or assets and earn $250k per year. There are laws that are pending in New Jersey that will make this requirement even harder, thus making it even demanding to register and start your own blockchain. Coinbase, which is a large trading platform for Stablecoins have released a statement on why the USA should back cash equivalent assets or NFTS (also known as) Digital Assets.
Stablecoins or NFTs that have cash equivalents such as Certificate of Deposits are not securities and are based on the value of the American Dollar. Some of these assets are properties based on the contracts whether they are built in Web3x or traditional blockchains. Which means, there is a ledger, a 30-day holding period, a 60-day lock and in most cases if the lock is in a certificate of deposit, then the maximum exchange limit on the assets is 36 months, or 5 years. This making stablecoins, or NFTS that are backed by a Bank, not a security but digital properties. NFTs or Stablecoins that are backed by a bank register property in the bank of their choice making it an asset to the bank. Securities that are asset based normally don’t have to be monitored by the SEC, even though they follow all the rules guided by (FinCen). Stablecoins that are groomed by the United States, is a good thing to strengthen the dollar, and digital currencies are more impactful than the unlimited power of the purse most of these banks possess.
As of right now, Chase Bank and many of the fortune 500 banks, can print money out of thin air. These banks have that type of equity, and they aren’t viewed as securities. Even though they are monitored by the SEC, banks have been devaluing the dollar. Allowing Digital Currencies to formulate in a decentralized setting can strengthen the dollar. Because the coin would have to be backed and secured before it is set to the market.
Hoodville News 