💰 The Crypto Paradox

Butch Cassidy and the Crypto Kid... Crypto is traded 24/7 around the globe, without many rules to govern it. Many countries, including the US, want guardrails. Last week, SEC Chairman Gary Gensler said the Commission would try to maximize regulatory protection of the "Wild West" of crypto. Gensler wants crypto to be regulated in the same way the SEC oversees securities (like: stocks, bonds).

• What: Crypto markets and exchanges don't have the same controls and protections as the stock market. No single regulator oversees them.
• Why: Many cryptocurrencies are classified as commodities, not securities. So, they're not under the purview of the Securities and Exchange Commission (SEC).
• But: Gensler believes many cryptos function like unregistered securities – and should be SEC-regulated.

The good, the bad, and the cryptic... The total market cap of cryptocurrencies skyrocketed this year, as coins like Bitcoin, Ether, and Dogecoin gained mainstream appeal. That's also led to more volatility, crypto scams, and money laundering. Now, more countries are considering crypto regulation — or are already enforcing it.

• The SEC wants to protect crypto investors against fraud and manipulation. That could mean crypto becomes less anonymous — and more regulated.
• The EU already proposed tightening rules on crypto transfers to make sure they're traceable. Meanwhile, India is considering a crypto ban.

TBD... Because of its limited purview, the SEC’s strategy has centered on suing token sellers case-by-case. Gensler is calling on US lawmakers to grant the SEC more power to oversee the industry. But regulation could take years.

Delta rising... As the Delta variant spreads, Covid restrictions are cropping back up. The CDC recommended re-masking indoors. Half of California is back under mandatory indoor mask mandates, and NYC is requiring proof of vax status for some indoor activities. Meanwhile, Home Depot, McDonald’s, and Target are requiring many workers to mask up again. The chances of more lockdowns are low, but investors are worried Delta will slow the recovery.

Weird sitch... The US unemployment rate is 5.9% — nearly double pre-pandemic levels. But there are still more jobs than job seekers, and employers are struggling to hire. Some reasons workers aren't returning: Covid fears, child care needs, and boosted unemployment benefits. Now, companies are doing more to sweeten the pot. Target and Walmart will pay 100% of college tuition for their workers. And CVS is boosting its minimum wage over the next year to $15.

Zooming in from the forest cabin... Airbnb has been resilient during the pandemic by embracing the work-from-anywhere life. It added a new feature that allows renters to search for flexible dates and destinations — including boats, farms, and shipping containers (?). Last quarter, Airbnb's sales even beat pre-pandemic levels, as you staycationed in a yurt. We'll see if that favorable trend continues when Airbnb drops earnings on Thursday.

Related to a Spanish king... That's cool to learn. But it could be life-saving to learn your chances of getting Alzheimer’s. 23andMe drops earnings on Friday — its first checkup as a public company. Shares of the home DNA testing company have plunged 20% since its February IPO, as fewer people bought its ancestry and health kits. But it’s building a longer-term revenue stream: partnering with pharma companies like Genentech and GlaxoSmithKline to develop drugs with its trove of genetic data.

• Diamonds: Rihanna just gained billionaire-status thanks to her 50% stake in Fenty Beauty, as the celeb-preneur biz model thrives.
• BNPL: Jack Dorsey’s Square dropped $29B on Afterpay, because "buy now, pay later" is Zillennials' favorite option.
• Shine: Reese Witherspoon sold her female-driven production company Hello Sunshine for a reported $900M, as the content wars intensify.

• Do: How to get things done when you really don't want to do anything.
• Meet: Ever wondered what's exactly halfway between two addresses?
• Explore: The gravitational pull of planets, visualized.
• Talk: How to have difficult convos — for people who hate conflict.

• Monday: Earnings expected from Tyson, AMC, Squarespace, and Planet Fitness
• Tuesday: Earnings expected from Coinbase, McAfee, FuboTV, Poshmark, and ThredUp
• Wednesday: Consumer price index. Earnings expected from Nio, eBay, Canada Goose, Bumble, Wendy’s, and Sonos
• Thursday: Weekly jobless claims. Earnings expected from Disney, Airbnb, Baidu, DoorDash, Palantir, SoFi, GoodRx, and Oscar Health
• Friday: Earnings expected from 23andMe

Authors of this Snacks own shares of: Walmart, CVS, Square, Twitter, and Disney. Authors also own Bitcoin.

ID: 1752375