Binance, Ethereum, SEC, & Battle for TikTok
We’re coming to you from Texas, but not for long—we’re heading to Florida soon. If you’re around Fort Lauderdale or Miami, let me know! Now, let’s get into today’s news and discussions.
Inflation and the Changing Middle Class
Inflation continues to impact American households, and it’s not just lower-income families feeling the pressure. Professionals like doctors and lawyers, who once enjoyed financial security, are now realizing that their earnings don’t go as far as they once did. Many middle-class Americans feel like they’ve worked their whole lives to reach a comfortable position, only to find that rising costs have eroded their purchasing power.
Retirement savings are another concern. A million dollars in a 401(k) might sound like a lot, but it doesn’t provide the security it once did. The landscape has shifted, and many retirees are realizing that their savings may not last as long as they’d planned. The result? A growing feeling among Americans that they’ve been financially “rugged.”
The Role of Immigration in the Workforce
A common debate is whether undocumented immigrants take jobs away from Americans. The data suggests that undocumented workers make up about 4.6% of the U.S. workforce—around 8 million people—primarily in sectors like agriculture, construction, hospitality, and food services. If these workers were removed from the labor force, who would fill the gap?
One idea is that if tech layoffs and economic downturns push white-collar workers out of jobs, they might be forced into manufacturing and service jobs. However, there’s a cultural and economic barrier—many workers aren’t willing to make that shift. Without willing labor, job vacancies remain unfilled, leading to inefficiencies in industries dependent on manual labor. The only real solutions seem to be forcing Americans into these jobs through economic hardship or adopting a more liberal immigration policy to ensure these positions are filled.
Bringing manufacturing jobs back to America is a priority for many policymakers, but doing so successfully requires more than just opening factories. Even when companies build plants, they struggle to find workers. There’s a severe shortage of skilled labor, particularly in industries like ironworking, where safety concerns prevent hiring non-English speakers.
The U.S. is investing heavily in infrastructure, AI, and semiconductor manufacturing, with billions of dollars pledged to these sectors. But if companies can’t find workers, how do they ensure these projects succeed? There’s no simple answer, but the labor shortage remains one of the biggest hurdles in making “Made in America” a reality again.
Crypto Regulation and Institutional Adoption
Brad Garlinghouse of Ripple is attending a White House crypto summit, leading to speculation about XRP’s potential integration with the U.S. Treasury. Meanwhile, Bank of America is reportedly using XRP Ledger internally, which, if true, could indicate growing institutional adoption.
However, not all blockchains are viewed equally. Solana’s history of network outages raises concerns about whether it could be used on a national scale. The bigger trend to watch is the rise of privatized stablecoins, which may eventually replace central bank digital currencies (CBDCs) as the preferred government-backed digital assets.
Binance P2P Shutdown and the Future of Cash-Based Crypto Transactions
Binance is shutting down its P2P cash exchange service by the end of March, marking a shift toward digital payment solutions. Initially launched in 2023, this service allowed users to buy and sell crypto for cash, but concerns over anti-money laundering (AML) and know-your-customer (KYC) regulations led to its closure. This move signals the increasing difficulty of remaining anonymous in crypto transactions as governments crack down on unregulated financial activities.
Ethereum’s Pectra Upgrade Nears Completion
Ethereum's Pectra upgrade is moving closer to being deployed on the mainnet after successfully launching on the Sepolia test network. This follows last week's failed attempt on the Holesky testnet, which encountered issues due to a validator misconfiguration that caused a chain split. Developers are working to fix Holesky and have set up an alternative testing network in the meantime.
Pectra is Ethereum’s biggest upgrade since 2024 and includes 11 Ethereum Improvement Proposals (EIPs) designed to improve staking, wallet functionality, and overall network efficiency.
One major change is EIP-7251, which modifies ETH staking rules by allowing validators to stake more ETH without having to split their stakes across multiple nodes. Other improvements include new smart contract features for wallets, allowing users to pay gas fees with stablecoins, automate transactions, and simplify wallet recovery.
SEC Dropping Crypto Lawsuits
The U.S. Securities and Exchange Commission (SEC) has decided to drop its enforcement case against Cumberland DRW, a crypto trading firm based in Chicago. The case, filed last October, accused Cumberland of operating as an unregistered securities dealer and selling over $2 billion in unregistered securities, including tokens like Polygon, Solana, Cosmos, Algorand, and Filecoin. The decision still needs final approval from the SEC’s commissioners.
This move is part of a broader policy shift under Acting SEC Chair Mark Uyeda, who replaced Gensler. Under Uyeda’s leadership, the SEC has dropped several high-profile lawsuits against crypto firms, including Coinbase, ConsenSys, and Kraken, and has also closed investigations into Gemini, OpenSea, Robinhood Crypto, and Yuga Labs.
Cumberland DRW welcomed the decision and stated that it remains committed to working with regulators to support technological advancements and regulatory clarity.
The Bid for TikTok’s U.S. Operations
Reddit co-founder Alexis Ohanian has joined a group of investors bidding to acquire TikTok’s U.S. operations. He announced his involvement on X, saying he supports a vision where users own their data and creators have control over their audiences. Given what happened when Reddit went public, this raises questions about the real goal of the bid.
The investment group, called the “People’s Bid for TikTok,” is led by Project Liberty, a nonprofit founded by businessman Frank McCourt, the former owner of the Los Angeles Dodgers. The group also includes Shark Tank investor Kevin O’Leary. Project Liberty has developed a blockchain-based decentralized social networking protocol (DSNP) designed to prevent data scraping and surveillance, giving users control over their personal information.
In 2024, President Joe Biden signed a bill banning TikTok due to concerns over China’s control of user data and content moderation. After returning to office, Donald Trump granted the app a 90-day extension to facilitate a sale, saying, “We have to save it.”
Bitcoin Buying Frenzy: El Salvador and Japan’s BetiPlanet Keep Accumulating
El Salvador remains committed to Bitcoin accumulation, recently purchasing more Bitcoin and pushing its reserves to over 6,100 BTC, now valued at $535 million. Meanwhile, Japan’s BetiPlanet has expanded its holdings by nearly 500 BTC, adding to its growing stash. These moves signal continued confidence in Bitcoin’s long-term value, particularly among institutional investors.
Crypto Prices (as of 9:50 AM CST, March 5, 2025)
Bitcoin (BTC): $88,260 (+6.6%)
Ethereum (ETH): $2,185 (+5.3%)
XRP: $0.244 (+1.8%)
BNB: $591 (+3.8%)
Solana (SOL): $141 (+2.3%)
Cardano (ADA): $0.94 (+12.8%)
Dogecoin (DOGE): $0.199 (+3.6%)
Tron (TRX): $0.242 (+2.8%)
Market Caps:
Bitcoin: $1.75 trillion
Ethereum: $264.1 billion
Happy HODLing, everyone!