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SEC wiped Gensler's phone... by accident?

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Plus: Bitcoin's next move could be violent

Welcome

GM. Call me Jamba Juice, 'cause I'm blending charts, memes, and news all in one cup.

Here's today's serving:

✉️ One year of Gary Gensler's messages: gone.

🍍 The bearish and bullish case for Bitcoin + US jobs data.

🍋 Quantum computer threats, Coinbase's Brian Armstrong wants more AI + more

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Fear and Greed Index
Find out more about the Fear & Greed Index here.

 Crypto Market Cap: $3.91T 2.07% (24H)
  Name   Price 24H 7D
Bitcoin Bitcoin BTC $110,834.23 0.79% 2.31%
Ethereum Ethereum ETH $4,282.40 -1.54% -0.05%
XRP XRP XRP $2.81 -0.88% -0.45%
BNB BNB BNB $849.00 0.24% -1.13%
Solana Solana SOL $202.65 -1.55% -2.79%
Prices as of 10:00 AM EST. Click here to see live data.

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✉️ Gary Gensler's texts

For years, if you asked anyone in crypto to name their biggest villain, 90% would've said the same name: Gary Gensler.

Someone who's new to crypto reading this:

Meme about not getting it

Before we had today's SEC (open to innovation, trying to work with crypto companies, yada yada), we had Gary Gensler running the show.

And boy, did he run it differently.

During Gensler's 4-year tenure, the SEC launched a staggering 125 crypto-related enforcement actions.

Now, this could've been good if the SEC was going after actual fraud, like rug pulls and Ponzi schemes.

But no - most of these lawsuits were against legit businesses (exchanges, token creators, and lending platforms), accused of selling unregistered securities under the Howey test.

FYI: that test was created in the 1940s to deal with orange groves 🙃

It's like using your grandpa's flip phone manual to fix your iPhone.

So, basically, instead of creating clear rules for crypto companies to follow, Gensler's SEC used "regulation by enforcement" - they'd sue companies and then use those court cases to set the rules.

This means businesses had no way to know if their token was a security until they got sued.

And the targets weren't some funky startups, either - we're talkin' big dawgs like Binance, Coinbase, and Ripple.

The result? A climate of fear, projects moving overseas, slower trading activity, and institutional investors staying away.

Snoop Dogg concerned

"Uhh... ok? 🤨 Things changed? 🤨 Why are we talking about this? 🤨" - you, maybe.

Well, there are updates to this drama - and they're spicy 👀

In January 2024, the SEC's tech team discovered something... interesting: nearly a year's worth of Gary Gensler's text messages had been deleted.

We're talkin' messages from October 2022 to September 2023 - right when his enforcement campaign was at its most intense.

And we can't help but speculate whether those missing texts could've answered some big questions, like:

Was the SEC's enforcement fair? Were decisions being made based on politics rather than law? What was really happening behind closed doors?

... I guess we'll never know.

Now, the spicy part: the reason for this massive data loss is... just wtf.

Apparently, in July 2023, the SEC's tech office somehow flagged Gensler's phone as "inactive." The phone stopped talking to their device management system, but nobody noticed.

Then, in August 2023, they implemented a new policy: any device flagged as inactive gets wiped after 45 days.

In September 2023, this policy kicked in and automatically erased Gensler's phone.

The cherry on top? The device hadn't been backed up since October 18, 2022.

This means nearly a year of communications → gone.

Disappearing

Now, the aftermath:

The SEC's inspector general, Kevin Muhlendorf, released a report on the situaysh and said the mess was "avoidable."

He pointed to missed alerts, sloppy emergency procedures, lack of proper backups, and poor coordination with vendors.

Basically, a whole lotta incompetence.

The SEC has since made some changes: they've disabled texting on most government phones, told the National Archives about the lost records, and agreed to five reforms recommended by the inspector general.

These include better oversight of device wipes, improved record-keeping, verified backups for senior officials, and requiring management approval before any factory resets.

So there you have it. The texts are gone, the questions remain, and the crypto industry moves forward with a new sheriff in town - hopefully one with better IT support.

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💰 Your wallet just texted - it wants more money

BloFin x BitDegree campaign

BloFin x BitDegree dropped a campaign with bonuses for doing what you already do: deposit and trade.

The math is stupid simple: the more you put in, the more you get back. The more you trade, the fatter the rewards.

Deadline's September 7, 8 PM UTC. After that? Back to regular boring trading without the bonus fun.

(Check the campaign page for the rest of the details.)

Ready to claim your bonuses? 💸

Start Trading Now

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🥝 Memecoin harvest

Market cap? Roadmap? Nah, these coins have main character energy 💅

Data as of 04:00 AM EST.

Check out these memecoins and plenty more here.

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🍍 Market flavor today

This week, I could've just copy-pasted Monday's intro every single day - prices are still flat, there's still nothing exciting happening.

That being said... 👀

CryptoQuant's Arab Chain says that despite Bitcoin moving sideways, leverage usage on Binance is somewhere in the middle - not crazy high like it was in July, but not super low either.

In plain English, traders haven't gone all-in, but they also haven't given up on risk, which can be dangerous because it means the market could explode in either direction once something triggers it.

Bitcoin price chart from BitDegree, 09-05

Source: BitDegree

Arab Chain points to two possible outcomes if that trigger arrives:

👉 Bullish case: if Bitcoin climbs above $115K - $117.5K and leverage actually cools off, it means the buying is coming from spot traders → more stable demand that can support a longer rally.

👉 Bearish case: if leverage stays high and Bitcoin can't get back over $115K or falls below $108K - $109K, many positions could get liquidated → steeper and faster decline.

Hmm... but... what could that trigger be? 🤔

If you've been reading the Daily Squeeze lately, you know ('cuz I literally don't shut up about it) - the Fed's September meeting will likely shake things up.

The Fed's expected to cut interest rates, since the labor market keeps weakening.

And the August jobs report only added further confirmation:

Kobeissi Letter tweet about August jobs report

Source: @KobeissiLetter

Which is bad news for the economy, but good news for crypto: rate cuts make money cheaper, and that cheap money tends to flow into riskier assets like Bitcoin.

So for now, we... wait ⏳

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🍋 News drops you can't miss

🚨 The SEC got a proposal warning that future quantum computers could break the encryption protecting crypto. It also suggested ways blockchains could upgrade their defenses before that happens.

🤖 Coinbase + AI = <3 CEO Brian Armstrong says that by next month, he wants half of the company's code written by AI tools.

💰 Venus Protocol recovered $13.5M in crypto for a user who was hacked in a phishing attack. The hack was linked to North Korea's Lazarus Group.

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🍌 Juicy memes

Meme about waiting for altseason

Source: @CryptoTea_

Meme about red candles being the true evil

Source: @alifarhat79

Meme about the benefits of being a trader

Source: @Trader_Theory

Gode S. Web3 Market Analyst
Gode is a Web3 Market Analyst who researches the most important industry events and interprets how they affect the wider Web3 space. Her formal education in media culture & digital rhetoric allows her to employ a methodical approach to evaluating critical Web3 news data, including large-scale events and the wider social sentiment within the ecosystem.
Gode is a mutilingual professional, having studied in multiple universities all across Europe. This allows her to have a one-of-a-kind opportunity to analyze Web3 social sentiments spanning different cultures and languages and, in turn, develop a much deeper understanding of how the Web3 space is growing within different communities. With the rest of her team, Gode works to identify crucial crypto news patterns and provide unbiased and data-driven information.
Gode’s passions include working and communicating with people, and when she’s not researching Web3 news, she spends her time traveling and watching true crime documentaries.

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