Imagine you hack into the account of an NPM developer.

For those who aren’t tech nerds: NPM is basically the app store for programmers. It’s where they get chunks of pre-written code (called packages) to help them build websites and apps faster.

Now, this particular dev created some code so popular it gets downloaded over 2 BILLION times every week. That code’s inside tons of apps and sites you prolly use every day. Companies rely on it constantly without even thinking about it.

So, breaking into that account means you could slip malware right into their package. And since millions of apps automatically get the latest version of that code, your nasty surprise would spread everywhere.

It’s like poisoning the city’s water supply instead of just one bottle.

This would arguably be the largest supply chain hack in history – access to millions of computers, billions in potential damage, and entire companies in your hands.

And the crazy part: someone actually pulled this off.

“Holy. Sh*t This person’s gotta be a billionaire now, right?” – you, maybe.

… Not even close.

Bro walked away with less than $50.

Yes, I’m being for real. Five cents worth of Ethereum and about $20 of some random memecoin that barely anyone trades.

Kinda like breaking into a bank and leaving with a couple of coins you found under the couch cushions.

This failure was mainly due to the attacker’s mistakes, which led to early detection.

In the end, as the Security Alliance put it, the real cost is all the cleanup: thousands of hours burned by engineers and security teams worldwide, plus millions in new security contracts that companies will sign just because of this mess.

Either way, ughh, there’s something so satisfying about watching the bad guys flop

Crypto prices slipped Thursday after an unexpectedly hot PPI inflation print, but analysts said it’s just a pullback within the rally.

The CoinDesk 20 Index of largest cryptocurrencies fell 2.1% over the past 24 hours, with bitcoin

dropping 2.3%. XRP lost 4.6% with ether (ETH) outperforming by edging down 0.7%.

“The pullback is, in my view, simply a recalibration in an otherwise bullish trend,” said David Siemer, co-founder and CEO of Wave Digital Assets. “Bitcoin remains firmly entrenched as the anchor of institutional crypto strategies.”

Bitcoin’s (BTC) rush to new all-time highs over $124,000 was fueled by rising expectations for Federal Reserve interest-rate cuts in September coupled with surging ETF inflows and institutional adoption.

The Thursday reversal to as low as $118,000 was “equally normal,” he said.

“After such a sharp rally, profit-taking tends to set in, and we saw short-term traders liquidate their positions and take gains,” Siemer said. “In addition, higher-than-expected inflation data, particularly around core consumer prices, has tempered some of the Fed optimism that drove the rally.

“It’s a healthy consolidation rather than a reversal,” he concluded.

Joel Kruger, market strategist of LMAX Group shared a similar view.

“It comes as no surprise to see a round of profit taking kick in following some impressive moves in crypto markets this week,” Kruger wrote in a morning note. “But overall, the outlook remains highly constructive and dips should be well supported.”

Looking ahead, key risks for crypto prices are potential overextension of valuations, geopolitical turbulence or economic data that could recalibrate Fed projections, Kruger added.

Still, late bulls were punished for their exuberance. The shakeout triggered a massive leverage flush, liquidating over $1 billion in leveraged trading positions across all crypto derivatives over the past 24 hours, mostly longs betting on rising prices, CoinGlass data shows.

That’s the largest long liquidation since at least the late July-early August plunge. That time, BTC dipped below $112,000 and many altcoins saw double-digit pullbacks, eventually carving out the local bottom for most of the digital asset market.

“The ‘I guess opening a 50x long after a 7-day 50% move was not the best idea’ type of shakeout here,” well-followed trader Bob Loukas said in an X post.

Read more: Bitcoin Hits $124K Record as 4 Tailwinds Align: Crypto Daybook Americas

United States congresswoman Marjorie Taylor Greene said that the GENIUS stablecoin bill creates a “backdoor” for the government to effectively create a central bank digital currency, veiled as privately issued crypto tokens.

The lawmaker said that regulated stablecoins feature “functional surveillance capabilities,” which make them indistinguishable from CBDCs. In a separate social media post, she added: 

“This bill regulates stablecoins and provides for the backdoor central bank digital currency. The Federal Reserve has been planning a CBDC for years, and this will open the door to move you to a cashless society and into digital currency that can be weaponized against you by an authoritarian government controlling your ability to buy and sell.”

Rep. Greene’s comments echo a growing tide of individuals in the Bitcoin and crypto communities sounding the alarm on regulated stablecoins and the potential for these privately-issued tokens to become captured by the state.

Related: GENIUS Act heads to Trump’s desk: Here’s what will change

The Bitcoin and crypto communities voice the same concerns

“The Genius Act forces stablecoins into CBDC compliance and control; functionally identical to a CBDC, without the scary name,” Bitcoin advocate Justin Bechler wrote in a July 19 X post.

Saifedean Ammous, author of “The Bitcoin Standard,” argued that the US dollar, in any form, is essentially a central bank digital currency that is already monitored by the state and increasingly digital.

“Governments realize that if they control stablecoins, they control financial transactions,” Jean Rausis, co-founder of the Smardex decentralized trading platform, said.

The executive added that the ability to freeze or rollback transactions and surveil centrally-managed stablecoins makes them indistinguishable from a CBDC.

The GENIUS bill was amended in March to include stricter anti-money-laundering provisions, sanctions compliance, and know-your-customer requirements, necessitating financial surveillance and the ability to censor transactions.

In October 2024, Curve Finance founder Dr. Michael Egorov told Cointelegraph that centralized stablecoins carry the risk of regulatory capture, including government seizure of the underlying fiat assets held in bank accounts or custodial institutions backing the digital tokens.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

]]> https://earlybirdsinvest.com/us-lawmaker-sounds-alarm-on-genius-bill-says-its-a-cbdc-trojan-horse/feed/ 0 48598 https://earlybirdsinvest.com/its-crypto-week-congress-can-future-proof-the-u-s-financial-system-summer-mersinger/ https://earlybirdsinvest.com/its-crypto-week-congress-can-future-proof-the-u-s-financial-system-summer-mersinger/#respond Mon, 14 Jul 2025 20:19:49 +0000 https://earlybirdsinvest.com/its-crypto-week-congress-can-future-proof-the-u-s-financial-system-summer-mersinger/

When Congress established the Securities and Exchange Commission in 1934, it was responding to myriad failures of an antiquated financial system. The regulatory architecture that emerged provided the foundation for nearly a century of American financial dominance. Today, Congress faces a comparable moment: the opportunity to modernize America’s financial infrastructure for the digital age.

Two pieces of legislation now before lawmakers, the GENIUS Act on stablecoins and comprehensive market structure reform, represent more than incremental policy adjustments. Together, they constitute America’s response to a fundamental shift in how money moves around the world.

The stakes are considerable. The $240 billion stablecoin market, projected to reach $3.7 trillion by 2030, has emerged as critical financial infrastructure largely outside formal regulatory frameworks. Nearly all major stablecoins peg voluntarily to the dollar, creating a curious phenomenon: private companies building elaborate technology to make American currency work better globally than existing payment systems.

This development comes as America’s monetary hegemony faces its most serious challenge in generations. China’s digital yuan initiatives, BRICS alternative payment systems, and growing reluctance among trading partners to transact in dollars signal a coordinated effort to circumvent American financial influence.

Stablecoins offer America’s most effective response. They expand dollar accessibility globally while preserving the transparency and rule-of-law advantages that make the American financial system attractive. The GENIUS Act would formalize this system, establishing reserve requirements, audit standards and consumer protections that make dollar-backed digital assets both safer and more attractive than alternatives.

Yet currency infrastructure alone cannot suffice. The current approach of applying 20th-century regulations to 21st-century technology has produced predictable results: innovation migrating to jurisdictions with clearer and more welcoming rules.

The November federal court ruling that vacated the SEC’s expanded dealer definition illustrates the problem. Regulators had stretched statutory language so far beyond original intent that judicial intervention became inevitable.

Digital asset platforms integrate functions that traditional finance deliberately separates, creating new efficiencies alongside new risks. Forcing these platforms into regulatory categories designed for different business models produces neither clarity nor protection. Comprehensive market structure legislation would establish bespoke registration frameworks that actually correspond to how these businesses operate, something the crypto ecosystem has been advocating for years.

The integration imperative here is crucial. U.S. financial supremacy in the 20th century derived not from any single innovation but from systematic coordination across monetary policy, market regulation and institutional oversight. Today’s challenge demands similar coherence. Digital dollar infrastructure without a proper market structure leaves innovation vulnerable to regulatory uncertainty. Market structure reform without stablecoin clarity limits the global reach of American monetary policy.

International competition intensifies this urgency. The European Union’s Markets in Crypto-Assets (MiCA) regulation, the U.K.’s stablecoin framework, and similar initiatives across Asia represent direct challenges to American leadership in financial technology. These frameworks may not be superior to what America could construct, but they exist, which is often a decisive advantage in attracting global investment and innovation.

Indeed, there is another step that American elected officials can take to ensure that the promise of crypto isn’t undermined: pass Rep. Tom Emmer’s legislation prohibiting the development in the United States of a central bank digital currency (CBDC). While several other countries have discussed such a rollout, American lawmakers should embrace our domestic privacy ideals and broad anti-surveillance sentiment by supporting this important legislation.

The Senate’s 68-30 passage of the GENIUS Act suggests growing political recognition of crypto’s policy potency and the realities of international competition. Even skeptical Democrats acknowledge the state-of-play, with Senator Mark Warner (D.-VA) recently observing, that if American lawmakers fail to shape cryptocurrency regulation, “others will—and not in ways that serve our interests or democratic values.”

President Trump’s commitment to sign legislation before the August recess creates both opportunity and deadline. The political foundation appears solid: bipartisan support, industry consensus on key principles, and competitive pressure that occasionally motivates effective governance.

Yet significant obstacles remain. Congressional capacity for technical legislation is limited in a heated partisan political climate, and the temptation to pursue symbolic rather than systematic reform runs strong. The complexity of integrating stablecoin regulation with broader market structure reform demands precisely the kind of patient, coordinated policymaking that American politics sometimes struggles to produce.

The choice facing Congress is ultimately straightforward: lead the development of global digital finance infrastructure or cede that role to competitors. For the first time in years, the economic logic, political momentum, and strategic necessity align. Whether American lawmakers can capitalize on this convergence will determine not merely the fate of cryptocurrency regulation, but America’s role in the next generation of global finance.

The 1930s regulatory framework served America well for nearly a century. Its digital successor, if properly constructed, could serve even longer.

For the past 48 consecutive years, Ford (F -0.90%) has sold America’s most popular passenger vehicle line. I’m talking about the F-Series pickup trucks. To achieve a feat like this in any industry is amazing. And it makes this business a staple of the American economy and a visible brand for consumers.

Ford has had a great year thus far. As of June 11, shares are up 9% in 2025, tripling the gain of the S&P 500 index. Maybe this automotive stock can continue the momentum as we look ahead.

Should investors buy Ford shares while they currently trade below $11? Here are the most important variables to consider.

Image source: Getty Images.

Ford’s momentum is impressive

Investors don’t typically view Ford as a fast-growing enterprise. However, the company’s growth this year has been impressive. Unit sales soared 16.3% in May. This follows double-digit year-over-year gains in March and April as well.

After President Trump announced a 25% tariff on imported vehicles in April, Ford’s leadership team made a strategic move to boost demand. The business implemented an employee pricing program for customers. This will be in effect until the Fourth of July weekend.

Ford registered strong gains with its internal combustion and hybrid cars, but electric vehicles (EVs) remained a notable weak point. Unit sales for EVs were down 25% in May, underscoring the troubles facing this niche of the auto market. Consumer demand for what many thought was the future of the industry is slowing.

High capital intensity

Investors who intend to own a stock for the next five or 10 years need to figure out if they’re looking at a high-quality business. I believe there is a best way to test this, at least from a purely quantitative perspective.

During the first quarter, Ford reported a return on invested capital (ROIC) of 8.6%. This is too low for me; I’d only look at companies that have a figure of more than 20% here, as it indicates the ability to allocate capital in a lucrative manner. Ford’s weighted average cost of capital (WACC), on the other hand, is estimated at 11.1%, so the business could very well be destroying value with its decisions.

Ideally, investors want to buy and hold businesses that report ROIC that’s well ahead of their WACC. I don’t think Ford will ever fall into this category. The nature of the auto industry requires companies to invest huge sums in product development, manufacturing capacity, labor, and marketing. And this is just table stakes. That’s why Ford’s profitability is low.

Distracted by a cheap valuation and hefty dividend

Making a successful investment decision involves two key aspects, in my view. The first step is to identify a high-quality business. The next is to make sure you buy shares at a compelling valuation, to give yourself a margin of safety.

On the valuation front, Ford deserves a closer look. As of June 11, shares are trading hands at a price-to-earnings ratio of 8.6. For comparison’s sake, the S&P 500 trades at a multiple of 23.4. This discount is hard to ignore. Consequently, it means that Ford stock offers a hefty dividend yield of 5.6%.

The stock might be cheap, but as previously mentioned, I don’t think Ford is a high-quality business. The dividend payout, for instance, is far from durable. Should an economic downturn occur, as they happen occasionally, Ford’s profits will undoubtedly come under pressure. And management could pause dividends until the economy improves.

In the past decade, shares have produced a total return of just 21%. That track record speaks for itself. Even though the stock price sits below $11, investors focused on capital appreciation should avoid Ford.

It’s rare to find high-quality growth stocks on sale. But that looks to be the case with Nu Holdings (NU -2.71%). Most investors haven’t heard of this stock, given that it operates exclusively in Latin America. But if you’re looking to add sizable long-term growth potential to your portfolio at a discount, this could be your best opportunity of 2025.

Nu Holdings is a very promising growth stock

Nu is one of the fastest-growing financial services businesses on the planet. However, it only operates in three countries: Brazil, Colombia, and Mexico.

The company’s business strategy is simple: Offer financial services directly to customers through a smartphone app. While less unique in the United States, this approach took the Latin American market by storm in 2013 when it was first introduced. At the time, incumbent banks operated mostly through physical branches that were costly to maintain. These costs were passed on to customers, resulting in high fees for relatively simple services.

“At first, the competition failed to take Nubank seriously; they didn’t understand the deep technological work involved in the backend of the deceptively simple user experience, and thought the company was nothing more than an app,” writes Doug Leone, a partner at Sequoia Capital, which invested early in the company. “But customers did notice how that work made their lives easier, and a waiting list began that continues to this day.”

NU Revenue (TTM) data by YCharts

Nu’s biggest days of growth are likely behind it. Brazil is the largest country in Latin America, Nu’s region of focus. Already, more than half of Brazilian adults are Nu customers, limiting potential growth there. Mexico and Colombia — the two countries that Nu entered next — are also on the larger and richer side when measuring per capita. That means future growth will rely on smaller, less wealthy nations. Still, analysts expect sales to grow by nearly 80% this year. And as we’ll soon see, the valuation is simply too cheap to ignore despite long-term growth headwinds.

Image source: Getty Images.

This valuation is too cheap to ignore

Most growth stocks like Nu are priced at a heavy premium. Yet Nu stock is trading at just 29.8 times earnings. That’s a profitable company growing sales by nearly 80% annually! Looking ahead, shares trade at just 22.6 times forward earnings — roughly the same valuation as the S&P 500.

Why is Nu stock so cheap despite the massive expected growth?

NU PE Ratio data by YCharts

As mentioned, Nu does face long-term growth headwinds. Competition should heat up, given its rampant success. Other fintech companies will attempt to replicate its services at a discount, digging into Nu’s sales growth and profitability.

But even with long-term competitive and growth pressures, Nu stock is simply too cheap to ignore. Shares trade in line with the market on a forward basis despite incredibly superior fundamentals. Don’t expect shares to remain under $15 for long. Even if a rebound is delayed, long-term investors should be very happy with locking in today’s discounted valuation.

The price of Bitcoin (BTC -0.55%) has surged 24% over the past month, pushing its value back over $100,000 for the first time since February. Investors are once again regaining their optimism in the world’s leading cryptocurrency, but is it a good time to buy?

Here’s why Bitcoin’s price is jumping higher again and why it might be better to wait out the current wave until the dust has settled on tariffs and their potential impact on the economy.

Image source: Getty Images.

Why investors are getting back on board with Bitcoin

Bitcoin fell in step with plummeting stock prices after President Trump announced a slew of tariffs on imported goods. That caused Bitcoin to drop to around $76,000 in early April.

But over the past few weeks, investors have reassessed their sell-off sentiment and have been buying up equities and cryptocurrencies again. The hope is that the Trump administration will work out trade deals with countries before they cause serious pain to the U.S. economy.

For example, the administration announced some details about a new trade deal with the U.K. recently, which was the main reason why Bitcoin’s value jumped back over $100,000. Some of the details include a lower 10% tariff for the first 100,000 vehicles imported to the U.S. — as opposed to 25% — and a tariff exemption on steel and aluminum.

Plus, China and the U.S. have recently agreed to ratchet down their trade war. The tariffs on Chinese imports will fall from 145% to 30% for 90 days while a trade deal gets hammered out. China, in turn, will lower its tariffs from 125% to 10%.

Bitcoin isn’t directly impacted by tariffs, but many investors have been buying and selling cryptocurrencies based on tariff news. Currently, it appears some Bitcoin investors believe the trade war with China will get settled and other tariff deals will be made before they hurt the economy.

Bitcoin’s surge of optimism may be premature

I think there are some legitimate reasons to be optimistic about Bitcoin’s future. The cryptocurrency has gained significant institutional adoption recently with the launch of Bitcoin ETFs last year. The Trump administration has also taken a lighter regulatory approach to cryptocurrency and announced a strategic Bitcoin reserve just a few months ago.

All of these things have been positive moves for the long-term viability of Bitcoin as an investment. But there’s bound to be far more volatility in the short term because of the general uncertainty from tariffs and the economy.

For one, a trade deal between the U.S. and China has not been finalized. Imports from China will still incur a significant 30% tariff and could be higher or lower by the end of the negotiations, depending on how the trade talks play out.

Even if a deal gets worked out over the next three months, the Trump administration has shown it doesn’t mind throwing a wrench into previously established economic norms. That’s bad for the price of Bitcoin because investors tend to respond strongly to any negative economic news — just as they did with the initial tariff announcements.

How much will tariffs impact the economy?

What’s more, even if significant trade deals are made with countries, higher consumer prices because of import tariffs could still impact the economy. For example, after some tariff exemptions were made for autos, Ford recently said prices will increase on three of its models by as much as $2,000 because of tariffs.

The main point here is that there’s still a huge question mark when it comes to how much tariffs will impact the economy. Bitcoin investors have chosen to be optimistic on some of the positive news, but over the coming months, we’ll learn more about how the economy is really doing.

If you’re interested in owning Bitcoin, it’s better to wait until all the trade deals are made with countries. Waiting a few months will likely give you a much better view of whether the Trump administration is kneecapping the economy with bad policy, or if the trade fiasco has been smoothed out.

With the stock market and Bitcoin’s price moving significantly based on near-daily tariff news, buying now — with Bitcoin flirting with its all-time high — looks like a bad move.