Preview Mode Links will not work in preview mode

The Contrarian Investor Podcast

May 20, 2021

This episode is brought to you by Merk Research. Visit this link to take advantage of the offer presented on the podcast. To listen without ads or announcements, become a premium subscriber, which gets you access to a host of other benefits, including (but not limited to) the new Daily Contrarian podcast, released every market day morning by 7:00 a.m. eastern time.

Jacob Ma-Weaver of Cable Car Capital Management joins the podcast to discuss the regulatory risk facing cryptocurrencies.

This podcast was recorded on May 19, a day bitcoin dropped some 15% after the People's Bank of China published a report warning over the use of digital currencies. But even before the PBOC, cryptos were dropping in value. Bitcoin has declined more than 30% from its high set earlier this month.

Ma-Weaver's interest in cryptocurrencies originates with his work as an activist short-seller. He has held conversations with regulators on cryptocurrency exchanges in particular. That was much of the focus of the conversation.

Not intended as investment advice. Nothing on this episode should be taken as an endorsement for or criticism of cryptocurrencies in any form.

Content Highlights
(Spotify users can click on the timestamp to link to the start of the section directly)
  • What informs Ma-Weaver's perspective on cryptocurrencies and crypto regulation, and his thoughts on the PBOC move (5:37);
  • Crypto exchanges: How are they currently regulated in the U.S., and why is this one of the biggest areas of potential enforcement? (11:24);
  • A lot of the issue boils down to 'what is a security?' The definition is quite broad, contrary to what proponents of digital currencies might claim (14:50);
  • Why haven't any government agencies stepped in to try to regulate cryptos? (21:54);
  • More background on the guest (34:39);
  • Specifics on what might be coming from regulators in the U.S. (38:45);
  • Publicly-traded companies that serve as proxies for crypto. Are they at risk? (49:02);
  • Does increased regulation remove the utility of cryptos? (51:21);
  • Ten years from now, will cryptos still be a thing? The short answer: no (53:26).
More Information on the Guest: