Biden’s Bitcoin Boogie
Hey Joe, where you going with that executive order in your hand?
I’m going down to the Treasury. You know I told ‘em to research crypto, man.
Huh … and that’s pretty cool.
Wait … wait. Wait! Pretty cool? Joe Biden? That Joe Biden? What you talking about, Willis?
I get it, Great Ones. I get it. President Joe Biden isn’t the most popular guy right now, and that’s putting it mildly. Heck, some people can’t even agree that Biden is actually president.
But you know who Biden is popular with right now? Crypto traders.
This morning, President Biden signed an executive order to address the lack of rules or guidelines for cryptocurrencies like Bitcoin (BTC).
Actually, news of the executive order broke last night when the Treasury Department accidentally leaked Janet Yellen’s statement on it before President Biden had officially signed it.
Now, you might think that rules and guidelines are a bad idea for an asset that was specifically designed to avoid rules and guidelines.
But the funny thing about investors is that we actually like specific rules and guidelines … at least when they don’t go too far.
And that’s the great thing about Biden’s executive order — it doesn’t go too far. Here’s a quick quote from the order:
Clearly, that doesn’t tell us much of anything. It’s typical political language, but the order itself goes into more detail. For instance, Biden calls for the Treasury and government agencies to cooperate on six critical areas:
• Consumer protection.
• Financial stability.
• Illegal activity.
• U.S. leadership and competitiveness.
• Including U.S. financial organizations.
In short, Biden’s executive order is heavily focused on protecting you, the investor, from the kind of shenanigans that have plagued the NFT market … and the cryptocurrency market, for that matter.
According to Biden, he wants regulators to “ensure sufficient oversight and safeguard against any systemic financial risks posed by digital assets.”
Remember the Dogecoin pump-and-dump that Elon Musk may or may not have instigated? That’s what we’re talking about here. That or the freaking NFT monkeys that were stolen. I still don’t understand those…
Basically, as long as the Treasury doesn’t take its policy recommendations too far, we’re all good.
The crypto community is embracing the cautious approach. For instance, Cameron Winklevoss, co-founder of cryptocurrency exchange Gemini, had this to say:
But you don’t have to take my word — or even Winklevoss’s word — on how much the crypto market approved of Biden’s executive order.
Bitcoin surged more than 10% on the news. How’s that for a resounding endorsement?
But wait! There’s more…
President Biden also called on the U.S. Treasury to research “the technological infrastructure and capacity needs for a potential” central bank digital currency. You know … the ol’ digital dollaroo?
Now, you might be concerned about crypto competition from an official digital U.S. dollar. But, if you’re a regular Great One, I should hope that particular concern passed quickly.
Remember, one of crypto’s core designs is to avoid the government’s prying eyes. Well … those prying eyes will most definitely be all over a digital dollar. Point for bitcoin, I believe.
The fact of the matter is that President Biden’s executive order just accomplished what cryptocurrency advocates have been striving toward for the past decade: legitimacy.
Despite all the focus on consumer protections and regulations and a digital dollar, President Biden, in one single executive order, has legitimized cryptocurrencies in a very, very big way.
From here, we wait to see how far Janet Yellen’s Treasury goes with its recommended regulations.
That, Great Ones, could be the next big pivot point for bitcoin and the rest of the crypto market. And with very, very big investors and global banks dropping billions on cryptocurrencies … I have a feeling Yellen’s Treasury will err on the side of caution.
Or … I could be wrong, and this time next year, we’ll all be doing our best Brad Majors impression: “Damn it, Janet.”
Stay tuned to Great Stuff to find out! Isn’t this thrilling?
And according to Ian King, something even bigger is coming for the crypto market…
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Remember when Amazon (Nasdaq: AMZN) was accused of anticompetitive practices that favored the e-commerce colossus’ products over other third-party sellers?
Well, according to “people familiar with the matter,” an antitrust subcommittee has sent a very strongly worded letter to the U.S. Justice Department demanding that Amazon be investigated for criminal obstruction of Congress.
Sounds serious … is it?
Well, lying under oath about cagy marketing practices certainly isn’t great for Amazon’s image if the company is indeed investigated and found wanting in a court of law.
But if you’re asking me whether this will have any material impact on Amazon’s stock over the long term … I’ll take “No” for 600, Alex.
The future’s looking uncertain for personalized “style” service Stitch Fix (Nasdaq: SFIX), whose full-year financial forecast lacked the key fixins Wall Street wanted served.
Even though many white-collar workers are dressing up again to go back into an office, that post-pandemic style shift isn’t translating into sales for unlucky Stitch Fix.
The company reported a net loss of $30.9 million (or $0.28 per share) in its recent quarter, and now expects flat to lower revenue over the next 12-month period. That’s bad, considering even negative Nancies on Wall Street expected an 8.1% revenue uptick over the coming year.
Without key consumer confidence coming from within Stitch Fix’s own camp, doubt spread throughout the Street and shares plunged 13%.
Lightning may not strike the same place twice for most companies, but that old axiom clearly doesn’t apply to the god of RVs and motorcades: Thor Industries (NYSE: THO).
Thor thundered 6% higher this morning after delivering surprise earnings that came in 40% above analysts’ expectations. The Street surmised Thor would bring in $3.40 per share over the previous quarter. But in true “hold my beer” fashion, Thor made a whole $4.79 per share (ooooh, ahhhh).
The only potential nail in Thor’s tire is the cost of steel and other raw materials, which could be impacted by rising inflation. Basically: “Things be expensive these days” … and if cost increases trickle down to customers, it could eat into Thor’s overall profits. We’ll have to wait and see.
I know many of you cow-milk-loving miscreants are firmly in camp “I can’t go for that” when it comes to alternative milk matters.
But before you write the industry off entirely, you might wanna check out Oatly’s (Nasdaq: OTLY) most recent revenue beat.
The plant-based milk peddler came out smelling like … well, oats in the fourth quarter, with revenue topping $185.9 million versus the $178.0 million expected.
Part of this boon undoubtedly comes from Oatly’s partnership with Starbucks (Nasdaq: SBUX), which put Oatly milk in all its stores back in the spring of 2021.
Oatly stock climbed nearly 3% higher following today’s earnings announcement, leaving investors happy that they sowed their wild OTLY shares early and are now reaping the rewards.
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It’s that time again, Great Ones!
Time to make bubbles with our spit?
What? No. Finance first, Animaniacs later.
Besides, name a better combination than Wednesday afternoon and a fresh-baked poll — I’ll wait.
Have … have you never tried a fluffernutter?
OK, spoilsport, but riddle me this: What’s a better combo than Wednesday afternoons, a new poll and a fresh-made fluffernutter? Checkmate.
Anyway… While I fetch some more fluff for the nutters for my Animaniacs marathon later, let’s munch on one topic that all y’all Great Ones love to write in about. (Some more than others … looking at you, James S.)
It’s time to talk crypto! Or, at least, whatever comes out of the Treasury Department’s attempts at a digital currency. I’ll believe this “coordinated and comprehensive approach” toward crypto when I see it.
But what’s good for the digital dollar could be good for the crypto gander … right?
Regardless of whether or not you’d use it … do you think a digital dollar would be good for cryptos? Click below and let me know!