Operation Choke Point 2.0 👀

In what's been called Operation Choke Point 2.0, U.S. regulators are going after crypto. And this week, Binance, the world's largest crypto trading platform, is on their hit list.

28 Mar

“Someday is not a day of the week.”

— Janet Dailey

👋 GM! Rallie here. The newsletter that's guaranteed to make you smile, or your money back. Psych! This newsletter is free.

On the menu:

  • 👀 Operation Choke Point 2.0

  • 🗞️ Headlines That Hit

  • 🤑 Refresh: Crypto Fear & Greed Index

  • 📈 Top Tweets

The Rallie Recap

👀 In what's been called Operation Choke Point 2.0, U.S. regulators are going after crypto. And this week, Binance, the world's largest crypto trading platform, is on their hit list. 

  • Prior to the collapse of crypto exchange FTX, U.S. regulators had largely taken a hands off approach to the crypto industry. But now, US regulators are cracking down in what some are calling a coordinated campaign by bank regulators to drive crypto businesses out of the financial system.

  • On Monday, the Commodity Futures Trading Commission (CFTC) hit Binance and CEO Changpeng Zhao (CZ) with a lawsuit alleging the company knowingly offered unregistered crypto derivatives products in the U.S. against federal law.

  • The entire lawsuit is built around the allegation that Binance has been illegally operating an online trading facility within the U.S., violating the Commodity Exchanges Act as well as CFTC regulations. Regulators allege that Binance did this by encouraging Americans to access their services through Virtual Private Networks (VPNs).

  • The CFTC also alleges that Binance had been active in the U.S. since 2019, but never properly registered with the government, using an "intentionally opaque" global corporate structure in a bid to escape oversight.

  • But Binance isn't buying it, saying, "This filing is unexpected and disappointing as we have been working collaboratively with the CFTC for more than two years...the best path forward is to protect our users and to collaborate with regulators to develop a clear, thoughtful regulatory regime."

  • Founded in 2017, the company is now the world's largest centralized exchange for digital assets, with more than 100M users across the globe.

Headlines That Hit

Rallie Refresh: Crypto Fear & Greed Index

🤑 Are you feeling greedy or fearful? No, we're not talking about your emotional state after one too many coffees. We're talking about the Crypto Fear and Greed Index! It's a sentiment indicator that tracks the emotions and sentiments of traders and investors in the cryptocurrency market.

So, what exactly is this index and how does it work? Let's break it down:

  • The Crypto Fear and Greed Index is a numerical score that ranges from 0 to 100. A score of 0 indicates "Extreme Fear," while a score of 100 indicates "Extreme Greed."

  • The index is calculated based on several factors, including price volatility, trading volume, social media sentiment, and market dominance of Bitcoin. It's like a virtual mood ring for the cryptocurrency market!

  • The index is a useful tool for traders and investors because it can help them gauge the overall sentiment of the market. Are people feeling bullish or bearish? The index can give you a clue.

  • A high score on the index suggests that the market is in a state of greed, which could indicate that prices are overvalued and due for a correction. In other words, people are feeling a little too confident and it might be time to take some profits.

  • Conversely, a low score on the index suggests that the market is in a state of fear, which could indicate that prices are undervalued and present a buying opportunity. If people are panicking, you might be able to snag some bargains.

The Crypto Fear and Greed Index is a useful tool for anyone who's interested in the crypto market. Whether you're feeling greedy, fearful, or somewhere in between, this index can help you make more informed decisions about your investments, regardless of how many coffees you may have had.

Trending Tweets 

Our fav funnies to get you through the day. 

Congrats, you made it to the end! 

That's all for today. Stay hungry & we'll catch you next time. ✌️ 

Let us know what you think

Login or Subscribe to participate in polls.

DISCLAIMER: This is not financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions.