A TikTok Ban Would Set a Dangerous Precedent. Live With Taylor Lorenz and Peter Van Valkenburgh

“Your platform should be banned,” Rep. Cathy McMorris Rodgers (R–Wash.) said to TikTok CEO Shou Zi Chew during her opening statement at a March 23 congressional hearing.

The attacks on TikTok were wide-ranging and bipartisan, with Rep. John Sarbanes (D–Md.) describing American children as “drowning” in TikTok’s powerful algorithm, Rep. Buddy Carter (R–Ga.) accusing TikTok of engaging in “psychological warfare” on behalf of the Chinese Communist Party, and Rep. Dan Crenshaw (R–Texas) characterizing the platform as a weapon capable of “destroying our society from within.”

In the Senate, Josh Hawley (R–Mo.) sought unanimous consent to pass a bill banning TikTok in America, an effort blocked by Sen. Rand Paul (R–Ky.), who warned Americans “to beware of those who use fear to coax Americans to relinquish our liberties, to regulate and limit our First Amendment rights” and said that Hawley’s bill would “emulate Chinese speech bans.”

Join Reason‘s Nick Gillespie and Zach Weissmueller this Thursday at 1 p.m. Eastern for a discussion of the looming TikTok ban with Washington Post journalist Taylor Lorenz, who’s spent much of her career covering the effects and cultural impact of social media apps like TikTok. Lorenz wrote in a recent column that lawmakers made a number of “claims that were inaccurate or at least debatable” during the TikTok hearing. For the second half of the conversation, Coin Center research director Peter Van Valkenburgh will join the stream to help analyze the details of the RESTRICT Act, a far-reaching Senate bill that aims to shut down TikTok in America but which a recent Coin Center report describes as creating “blanket authority, with few checks, to ban just about anything linked to a ‘foreign adversary.'”

Watch and leave questions and comments on the YouTube video above or on Reason‘s Facebook page.

Balaji's Bet: Bitcoin Hits $1 Million in 90 Days. Live With Balaji Srinivasan, Lawrence White, and Zach Weissmueller

“You buy 1 BTC. I will send $1M USD.”

Those were the stakes that venture capitalist Balaji Srinivasan proposed over Twitter to pseudonymous writer and self-described “tax enthusiast” James Medlock on March 17. The bet? Within 90 days, one bitcoin will be worth $1 million.

Medlock, who had jokingly tweeted earlier that he would “bet anyone $1 million dollars that the US does not enter hyperinflation,” quickly accepted the terms. With bitcoin hovering around $26,000, Srinivasan had made an approximately 38–1 wager that “hyperbitcoinization” would unfold over the next three months as the Federal Reserve devalued the U.S. dollar to backstop the nation’s shaky banks with new infusions of cash.

Critics have said the bet is a promotional ploy to launch a new media brand or to pump the price of bitcoin to increase the value of his holdings. His doubters include George Mason University economist Tyler Cowen, who predicts that “the US will muddle through its current problems and patch up the present at the expense of the future,” and bitcoin mega-booster Saifedean Ammous, author of The Bitcoin Standard, who writes “I feel dirty sounding bearish on bitcoin, but I do not think bitcoin will hit $1m in 90 days & and I do not think the dollar can possibly hyperinflate this quickly.”

So what is Srinivasan thinking?

Find out this Thursday at 1 p.m. Eastern as Srinivasan joins Reason‘s Zach Weissmueller and economist Lawrence White, author of Better Money: Gold, Fiat, or Bitcoin? to discuss the bet and their analyses of the state of the U.S. banking system. Watch and leave questions and comments on the YouTube video above or on Reason‘s Facebook page.

Show notes:
Balaji Srinivasan’s bet with James Medlock—https://twitter.com/balajis/status/1636822077775941633

Federal Reserve to provide additional funds for banks, backstopped with $25 billion from the Treasury—https://archive.is/qrZYB#selection-4839.93-4839.251

Bloomberg: Fed could inject up to $2 trillion—https://www.bloomberg.com/news/articles/2023-03-16/jpmorgan-says-fed-s-loans-will-provide-2-trillion-of-liquidity

Study on uninsured bank deposits in 2023—https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4387676

Bloomberg: Fed discount window lending surpasses $164 billion -https://www.bloomberg.com/news/articles/2023-03-16/banks-rush-to-backstop-liquidity-borrow-164-8-billion-from-fed#xj4y7vzkg

St. Louis Fed: Fed balance sheet since 2004—https://fred.stlouisfed.org/graph/?id=WALCL

Tyler Cowen: The banking crisis won’t wreck the economy—https://marginalrevolution.com/marginalrevolution/2023/03/this-banking-crisis-wont-wreck-the-economy.html

Ammous Safeidean: A bank crisis is deflationary—https://twitter.com/saifedean/status/1638453109033664513

FedNow Service launches in July: https://www.federalreserve.gov/newsevents/pressreleases/other20230315a.htm

Jerome Powell addresses banking crisis and rate hikes—https://www.youtube.com/watch?v=WK6EfnYkejc

Janet Yellen voices concern for a ‘few’ banks—https://www.youtube.com/live/je-6S97KKqY?feature=share&t=4049

DeSantis announced Digital Bill of Rights—https://www.youtube.com/watch?v=mLPcqRS8978

Blame the Government for the New Banking Crisis? Live With Lyn Alden, Arnold Kling and Zach Weissmueller

“We have learned over the last few days that many small and mid-sized banks in this country are Zombies,” writes Arnold Kling, a senior scholar at the Mercatus Center at George Mason University and former economist for the Federal Reserve system and Freddie Mac.

Following the run on Silicon Valley Bank, former U.S. Treasury Secretary Larry Summers urged the federal government to guarantee the money of all the bank’s depositors and warned that “now is not the time for lectures about moral hazard.” But Kling insists that “past crises,” such as the savings and loan collapse of the 1980s, “were bungled by authorities who were blind to the moral hazard problem.”

And Lyn Alden, founder of Lyn Alden Investment Strategies, says “banks are basically highly-leveraged bond funds with payment services attached, and we treat it as normal to keep our savings in them.” She argues that the Federal Reserve makes it nearly impossible for banks to hold the bulk of their customers’ deposits in cash because “regulators want banks to be reasonably safe, but not ‘too safe.’ They want all banks to be leveraged bond funds to a certain degree, and won’t allow safer ones to exist.”

Join Reason‘s Zach Weissmueller this Thursday at 1 p.m. E.T. for a discussion about the federal government’s decision to guarantee all deposits at the failed Silicon Valley Bank with Alden and Kling. Watch and leave questions and comments on the YouTube video above or on Reason‘s Facebook page.

Photo credit: Shen Hong / Xinhua News Agency/Newscom

Nostr and the Decentralized Future of Social Media Is Here: Live with NVK, Will Casarin, Nick Gillespie, and Zach Weissmueller

What is Nostr, the fledgling software project to which Twitter founder and former CEO Jack Dorsey gave 14 bitcoin (worth approximately $245,000 at the time) in December following Elon Musk’s controversial Twitter acquisition?

One consequence of Musk’s takeover has been to accelerate the growth of alternative, more decentralized networks. Many journalists and Twitter users critical of Musk flocked to Mastodon, which Reason‘s C.J. Ciaramella described as “a collection of ‘federated’ independent servers, each centered around a topic…. It’s like a mix of Reddit and Twitter, but less centralized.”

But Nostr—short for Notes and Other Stuff Transmitted by Relays—decentralizes on an even deeper level: It’s not a social media network but an open-source protocol.

“If a platform is a silo, a protocol is a river,” tweeted National Security Agency whistleblower Edward Snowden earlier this month, “no one owns it, and everyone is free to swim.”

Once a user establishes a Nostr identity using a pair of keys (one public, one private), he or she can transmit text posts (i.e., “notes”) or other information such as cryptocurrency payments (i.e., “other stuff”) across any networked computer (i.e., “relay”) willing to host that content. Because the users hold their own keys, they can use any site or app that runs the Nostr protocol to post and communicate with their friends and followers. No single third party has the power to delete users’ posts or profiles from the Nostr ecosystem.

This Thursday at 1 p.m. Eastern, join Reason‘s Nick Gillespie and Zach Weissmueller for a live discussion of Nostr and the future of decentralized digital communication with bitcoin entrepreneur and host of the Bitcoin Review podcast NVK and Will Casarin, creator of Damus, the first Nostr-based social media client to be approved by the Apple app store. Watch and leave questions and comments on the YouTube video above or on Reason‘s Facebook page.

Show notes:

Total Nostr daily users and posts—https://nostr.band/stats.html

Coin Desk: “Jack Dorsey Gives Decentralized Social Network Nostr 14 BTC in Funding” https://www.coindesk.com/tech/2022/12/15/jack-dorsey-gives-decentralized-social-network-nostr-14-btc-in-funding/

Facebook Active Daily Users Q4 2022—https://www.statista.com/statistics/346167/facebook-global-dau/

China bans Damus app—https://iris.to/post/note15dyll0ruhqme3k6kcq54gsed7cfasdpp6zgh76a27vhn5q70kfjqflvt2l

The Decentralized Web Is Coming

Renegade SEC Commissioner Wants To Save Crypto: Live With Hester Peirce, Nick Gillespie, and Zach Weissmueller

The Securities and Exchange Commission (SEC) charged Kraken—America’s third-largest cryptocurrency exchange by volume—with offering an unregistered security last Thursday. As part of a settlement, Kraken agreed to immediately cease offering interest-bearing “staking” services to U.S.-based customers and pay a $30 million fine.

But one SEC commissioner, Hester M. Peirce, published a forceful dissent, calling the SEC’s action “paternalistic and lazy” and questioning “whether SEC registration would have been possible” given the murky framework the agency offers.

Join Peirce and Reason‘s Nick Gillespie and Zach Weissmueller for a live discussion of the regulatory threats to cryptocurrency this Thursday at 1 p.m. ET. Watch and leave questions and comments on the YouTube video above or on Reason‘s Facebook page.

This week’s The Reason Livestream is produced by Adam Sullivan.

Show notes:

SEC press release on Kraken enforcement action  

SEC Commissioner Hester Peirce’s dissent 

CNBC: “SEC commissioner Peirce publicly rebukes her agency, Gensler on crypto regulation.”  

SEC Commissioner Gary Gensler on crypto staking

CNBC: “SEC’s Gary Gensler on Kraken staking settlement: Other crypto platforms should take note of this

Kraken CEO Jesse Powell responds to SEC head Gary Gensler 

FTX Meltdown and the Future of Crypto. Live With Kraken’s Jesse Powell 

“Operation Choke Point 2.0 is Underway, and Crypto is in its Crosshairs,” by Nic Carter in Pirate Wires

Coin Desk: “SEC Proposal Could Bar Investment Advisers From Keeping Assets at Crypto Firms”

The Block: Total value locked into DeFi projects

FTX Meltdown and the Future of Crypto: Live With Kraken Co-Founder Jesse Powell

When a cryptocurrency exchange holding $16 billion worth of customer deposits suddenly collapses, what does that portend for the future of the crypto industry? How did Sam Bankman-Fried, the 30-year-old founder of the company and the number two donor to the Democratic party ahead of the recent midterms, win the trust and evade the careful scrutiny of so many venture capitalists, institutional investors, celebrities, and U.S. regulators for so long? Is heavy-handed regulation coming to the world of crypto?

Join Reason‘s Nick Gillespie and Zach Weissmueller this Thursday at 1 p.m. Eastern for a live discussion of these questions and more with special guest Jesse Powell, the co-founder and CEO of Kraken, one of the world’s largest cryptocurrency exchanges. Ask questions or leave comments ahead of or during the stream on the YouTube video above or at Reason‘s Facebook page here.

Photo credit: Tom Williams/CQ Roll Call/Newscom