Bitcoin’s 11-Month Correction Could FINALLY Be Ending

**Scott Melker** (0:01)
According to VanEck, Bitcoin's 11-month correction could finally be ending. Eight of their 12 capitulation signals are currently firing, and all 12 of them have fired at some point in the last few months. Of course, many people looking at the four-year cycle and thinking that this could be the summer doldrums of capitulation before we inevitably get a rise into the fall. We will talk about that, but we've got much more important and interesting things to talk about today, and we have a very, very, very, very special guest. We have Errol Goose, CEO of OKX Europe. We're going to talk about all that and more right now.
Let's go.
Good morning, everybody. Happy Wednesday. And welcome to the show. So before I bring Errol on today, there are one or two things that I wanted to cover on my own. The first one, and I would love to get his take on how this compares to what's happening in Europe when I'm done, of course, is the big news today. Yesterday breaking, US SEC proposes first major crypto rule in surprise announcements. So this is very interesting because there was supposed to be a meeting about this Friday for them to vote. They canceled the meeting, they did not reschedule it. People thought it was dead in the water. And then, surprise, Paul Atkins and Hester Perce and the SEC Commission dropped regulation crypto, which the industry has long been waiting for. This is their regulatory rulemaking, not to be confused with actual law. And Atkins himself said that if we don't get the Clarity Act or don't get some law around this, that another SEC in the future, obviously, could reverse this rulemaking. So important to know that that doesn't make this law perpetually. But we have finally some rules being proposed now on how a company in the United States can launch a token, how it can become sufficiently decentralized to not be a security in a four-year period of safe harbor, which Hester Perce has been floating now for years, and some other things. So first of all, we have a giant step forward with SEC's launch of Reg Crypto. For years, crypto builders were told to come in and register. The problem was that there was no door designed for how crypto networks actually develop. Very interesting take here. We all remember the Gensler years when he said, come in, register. And if you came in and registered, you got sued, with no explanation, right? This happened to multiple people. Most famously, Jeremy Kaufman over at Library tried to come in and register. And then when you make a proposal to the SEC, you actually get sued. But here's actually what's in this proposal. SEC issues crypto asset regulatory proposal. Proposal letting crypto projects sell tokens to retail investors. SEC plan could revive ICO style fundraising US. Crypto startups, this is where this one gets me. Crypto startups could raise up to 5 million without full SEC registration or investor cap. So I wrote a whole newsletter on this this morning. This is actually wild when you think about it, because we have very strict accredited investor laws in the United States that define who can invest in what and how they can do it, and this completely skirts them. So we have crowdfunding, which there's some precedent, but this is much looser than crowdfunding. Basically, I can go to four of my friends, accredited or otherwise, raise up to $5 million then I have four years to do something. And this is all based on me just simply submitting a white paper and not having to actually submit any financials or anything throughout that four year period. So this is much looser fundraising. Like I can actually invest in a token launch now easier than I can invest in my friend's coffee shop, right? So this is a pretty aggressive proposal. The SEC plan would allow public token sales without rule-based resale restrictions. There you go. Larger crypto projects could raise up to $75 million a year. There will be disclosures and filings required with that.
And of course, maybe most importantly, the SEC proposes a legal path for tokens to leave investment contract regime. And that is what I was talking about. You basically have a four-year safe harbor, where if you reach certain benchmarks, you no longer are a security, you're sufficiently decentralized, it's not an investment contract, and you can move on. So this is the first major regulatory rule-making being proposed. It's not official. I think there's a 60-day period here, where people will be able to launch tokens in the United States. And now I want to bring on Errol, not specifically to discuss what's happening with Reg Crypto, but to talk about how far ahead Europe is.