Seeds of Wisdom RV and Economic Updates Monday Evening 2-17-25

18/02/2025

Good Evening

ELON MUSK’S D.O.G.E. SET TO INVESTIGATE FORT KNOX’S $425B GOLD RESERVE

A groundbreaking D.O.G.E. investigation has catalyzed some more intense debate across multiple financial sectors after Elon Musk brought to the surface questions about the Fort Knox’s $425 billion gold stockpile verification process.

The Department of Government Efficiency (D.O.G.E.) has engineered a comprehensive review to verify whether Fort Knox actually maintains its reported 4,580 tons of gold, revolutionizing traditional Treasury oversight.

How Elon Musk’s D.O.G.E. Investigation Could Impact Fort Knox’s Gold Reserves

Political Response and Bitcoin Alternative

The D.O.G.E. investigation has leveraged significant political momentum, with several key lawmakers spearheading support initiatives.

Senator Rand Paul said:

“Nope. Let’s do it”

Senator Cynthia Lummis had this to say:

“Bitcoin fixes this. A bitcoin reserve could be audited anytime 24/7 with a basic computer. It’s time to upgrade our reserves.”

This pivotal D.O.G.E investigation comes after Senator Lummis created the groundbreaking Bitcoin Act, which aims at creating a strategic reserve formed out of 1 million Bitcoins, which would be optimizing a whopping amount of 5% of the total BTC supply.

The initiative deploys secure Bitcoin vaults operated through some sophisticated Treasury protocols. This would be leveraging the existing Federal Reserve and Treasury resources.

How States Use & Their Own Gold

Several major states have spearheaded their own cryptocurrency initiatives while Fort Knox discussions continue at the federal level.

Pennsylvania, Texas, Wyoming, Arizona, and Wisconsin have engineered innovative state-based Bitcoin reserve strategies, catalyzing significant momentum for cryptocurrency adoption across various government sectors.

The Treasury has leveraged its existing 200,000 BTC holdings, primarily acquired through strategic asset seizures coordinated by US Marshals. Under the groundbreaking BITCOIN Act, these digital assets would be integrated into Treasury operations, pioneering a new era of national cryptocurrency reserves.

The Current Position of the Treasury

A pivotal inspection of Fort Knox was conducted in 2017 during Treasury Secretary Steve Mnuchin’s visit. The facility had remained sealed since 1974, when select journalists and lawmakers gained unprecedented access following widespread concerns about missing gold.

The vault’s sophisticated security architecture requires multiple authorized personnel for access, presenting ongoing challenges for comprehensive verification.

Also talking about gold reserves, Senator Lummis said:

“A bitcoin reserve could be audited anytime 24/7 with a basic computer. It’s time to upgrade our reserves.”

@ Newshounds News™
Source: Watcher Guru

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HESTER PEIRCE ON CRYPTO INDUSTRY’S 5 BIGGEST CONCERNS

The SEC’s lead Crypto Task Force regulator talks early action.

President Trump made big crypto promises on the campaign trail. With Gary Gensler gone and the SEC now under new management, his administration stands ready to deliver on the agenda with digital asset regulatory clarity.

Hester Peirce – an outspoken advocate for digital asset liberties and regulatory restraint – joined David Hoffman to discuss the implications of changing agency leadership on crypto’s future.

Day one of the Trump Administration saw Commissioner Peirce appointed as head of the SEC’s freshly formed Crypto Task Force, and its first move was rescinding SAB 121, a controversial accounting policy that restricted financial institutions from offering crypto custody services.

Although Gary Gensler’s relentless trickle of crypto lawsuits traumatized industry participants and discouraged engagement with American regulators, Commissioner Peirce hopes to build healthy relationships with crypto projects and encourage experimentation through practical solutions that uphold regulation.

We didn’t get all the answers, but it was certainly refreshing to hear a lead crypto regulator finally engaging with the industry! Here’s how Hester responded to the crypto industry’s top 5 pressing concerns.

1 Regulatory Clarity for Tokens
One of the biggest shifts is the potential retroactive regulatory relief for token issuers. Peirce outlined a roadmap whereby projects that issued tokens in the past can gain legal clarity by providing disclosures and agreeing to certain conditions.

For years, the SEC’s aggressive stance against tokens has discouraged transparency, leaving many projects afraid that disclosures could be used against them in future enforcement actions. Commissioner Peirce hopes to flip that dynamic by encouraging voluntary disclosures.

2 No-Action Letters
Peirce discussed the no-action letter process, which allows companies to request an official statement from the SEC confirming that a specific activity will not result in an enforcement action.

The SEC continues to solicit input from the crypto industry on how these processes should work, as it did under Gensler, and interested parties can reach out directly to provide feedback via the email: crypto@sec.gov.

3 Securities Laws and Crypto
Historically, being labeled a security has been a death sentence for crypto tokens in the U.S. due to the regulatory burdens it imposes. But does it have to be that way?

Peirce acknowledged that while some crypto assets will clearly fit within securities laws, the industry needs new frameworks to accommodate decentralized networks.

She also touched on meme coins, stating that just because something is popular doesn’t necessarily make it a security, but warned individuals against assuming that the SEC (or any regulator) will act as a safety net for those making speculative bets.

4 Airdrops and Retail Access to Crypto
Crypto projects often exclude U.S. citizens from their airdrops over fears they could become embroiled in legal troubles with securities regulators.

While Commissioner Peirce didn’t provide a definitive answer on airdrops, she signaled that the SEC is working on clearer guidance and encouraged projects to submit scenarios to the Crypto Task Force so they can better understand what the industry needs.

Additionally, Peirce indicated openness towards modernizing American financial regulations and expanding private market access through novel investor accreditation standards.

5 The SEC’s Relationship with the CFTC
Under previous leadership, the SEC and CFTC had an almost territorial fight over which agency would regulate crypto. Peirce expressed optimism that this will change, emphasizing that collaboration between regulators is now a priority.

Rather than seeking jurisdictional dominance, Commissioner Peirce hopes regulators will work together to create frameworks that actually make sense for crypto markets.