Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

What's going on, guys? It is Wednesday, February 7th, and today we have a short but dense episode for you.

Before we get into that, however, if you are enjoying the breakdown, please go subscribe to it,

give it a rating, give it a review, or if you want to dive deeper into the conversation,

come join us on the Breakers Discord. You can find a link in the show notes or go to bit.ly.

All right, friends, so as I said, it is a little bit dense today. on the Breakers Discord. You can find a link in the show notes or go to bit.ly slash breakdown pod.

All right, friends. So as I said, it is a little bit dense today. And in fact, we are getting a

little bit wonky, but I think it is important. So the main topic we are talking about today is

that the SEC has adopted a new rule which would force large crypto market makers to come in and

register. The rule seeks to

clarify the definition of a securities dealer by extending what it means to provide liquidity

to markets as part of a regular business. In its originally proposed format, the 194-page rule

only had one mention of crypto, tucked away in a footnote. In its final form, the 247-page rule

deals with a wide range of irregular market makers who will now be required to register

largely in traditional securities markets. The point is to capture any market participant of

sufficient size, including many algorithmic trading firms and hedge funds. The finalized rule

clearly covers

liquidity providers in crypto markets, but fails to fully explain how it would apply to large

defy participants. There is an exception for firms and individuals with less than 50 million

deployed in capital markets. So it is important to keep in mind that we are talking about the

large section of crypto firms that would have new reporting requirements.

...