Financial Policy Advocate, Public Citizen. Views expressed do not necessarily reflect those of Public Citizen. Chief investigator, US Senate. Teamsters

📍 USA 🇺🇸
Joined March 2011
Azzi and Katie
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Crypto and the iPhone introduced at roughly the same time. Crypto still has no proven use. --Stark/Reiners sec.gov/comments/S7-2026-27/…
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Bartlett Naylor retweeted
The @SECGov 's proposed Regulation Crypto Assets is a hot mess. In our comment letter, @JohnReedStark and I ask the SEC to withdraw the proposal in its entirety. For a decade, the SEC persuaded federal judges appointed by six Presidents that unregistered token sales are securities offerings, compiling more than 200 enforcement victories. The proposal would exempt the very transactions those courts found easiest to classify. On September 15, the Senate declined even to begin debate on the CLARITY Act. The Senate's text would have directed the SEC to adopt a "Regulation Crypto," with a $200 million lifetime cap, a bar on companies organized abroad, and mandatory holding periods for insiders. The SEC's proposal allows $75 million every 12 months with no overall cap, opens its startup exemption to companies organized anywhere, and imposes no holding period on insiders. The agency is writing by rule a looser version of a bill the Senate would not take up. The treatment of insiders is more generous still. @Coinbase urged the SEC to limit token sales by development teams until a network is "sufficiently decentralized." The SEC's proposing release concedes that a one-year holding period for insiders "could benefit potential investors by strengthening investor protection," then rejects one, observing that "an exit of a large insider could potentially result in a broader base of investors." That broader base is the retail public, buying what the insider is selling. The proposal also treats work to "secure" a functioning network as categorically outside the managerial efforts that make a token an investment contract. Yet migration to post-quantum cryptography may decide whether many tokens retain any value, and neither the proposing release nor the SEC's March 2026 interpretation mentions quantum computing. The Senate Banking Committee's CLARITY text includes a finding that quantum advances threaten "the security of digital assets." The exemptive authorities the SEC invokes, Section 28 of the Securities Act and Section 36 of the Exchange Act, are backstop provisions enacted in 1996. With Chevron deference gone after Loper Bright, a court will decide for itself whether they authorize a parallel offering regime for an entire asset class, and we believe any final rule resembling this proposal will be vacated. The SEC cannot enact by rule what Congress has declined to enact by law. The full letter, all 235 footnotes of it is here: sec.gov/comments/S7-2026-27/… #crypto #SEC
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Normally, innovation proposes a low cost solution to replace something more expensive. AI proposes a high cost solution to replace low cost labor. Jim Covello/Goldman Sachs
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A dollar in crypto is a dollar not in real economy sciencedirect.com/science/ar…
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Is the expectied IPO raise for Open AI and Anthropic bigger than combined IPOs since WWII?
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Bartlett Naylor retweeted
Dear Secretary Bessent @SecScottBessent, My name is Everett Stern. In 2010 I was a compliance officer at @HSBC. From a back office in New Castle, Delaware, I watched billions of dollars move to drug cartels, sanctioned regimes, and terrorist organizations. The enemies of the United States. I documented it, I escalated it, and when the bank would not act, I took it to the @FBI, the @CIA, and eventually the @SECGov. The result was a $1.92 billion settlement. At the time, it was one of the largest in American history. It was also about five weeks of the bank’s profit. Not one banker was charged. Not one went to prison. I paid a different price. I lost my career, my savings, and my place in the industry I had trained for. I was blacklisted. Every door in American finance closed at once. I slept on a camping cot in a 300 square foot apartment because I could not afford a bed, and I waited tables at @PFChangs to eat. I tell you this not for sympathy, but so you understand that I know exactly what it costs to do the right thing in American finance, and exactly how little the system does in return. I made that sacrifice because I believed it would change something. Yesterday, your department fined @BankofAmerica $1.2 billion for failing to report more than $5 billion in suspicious transactions, some of it tied by your own findings to Chinese laundering networks, narcotics, and the southwest border, alongside 475 apparent sanctions violations touching Russia, Iran, and global terrorism. The bank admitted it willfully violated the Bank Secrecy Act. Fourteen years after HSBC. A bank with “America” in its name. And once again, not one individual charged. Secretary Bessent, I want to say plainly what I believe you already know. The fines are not working. A fine is paid by shareholders, absorbed by the balance sheet, and forgotten by the next earnings call. Bank of America reported earnings this morning. Nobody who set the alert thresholds, nobody who decided the 2024 cease and desist could wait, nobody who chose the backlog over the law will lose a single thing they value. Their lives are untouched. That is the entire reason the behavior repeats. This is money laundering. This is blood money. Money that reaches a cartel buys fentanyl that kills Americans. Money that reaches a terrorist organization buys the next attack. This country has fought a war on drugs and a war on terror for decades, at enormous cost in lives and treasure, and all the while we have allowed the financing to flow through institutions we charter and regulate. Cut off the money and we win. We have never seriously tried. There is also a question of equal justice that I cannot let go. Before I walked into the FBI building to report HSBC, I stopped in front of the Great Seal on the wall and read the words engraved beneath it: “Justice is the defense of our liberty.” I believed that. I still want to. But every day in this country, people go to prison for crimes that are nothing next to moving money for the people who want Americans dead. A suit, a title, and a corporate badge should not be a shield from the consequences that apply to everyone else. If a street dealer goes to prison for what he sells, the banker who moved the cartel’s money should be standing next to him. I also want to raise something that is rarely said in these conversations. Why has no one inside Bank of America come forward the way I did? The answer is that everyone in American banking knows what happened to me, and to the whistleblowers who came after. The last person who spoke up is the only policy anyone believes. That is a culture problem, and it starts with leadership, in the banks and in the agencies that regulate them. This is not a political issue. It has spanned administrations of both parties. It is a national security issue, and I am asking you to treat it as one. Three things would change the math overnight. Refer individuals for criminal prosecution. Not the analyst in the queue. The executives who set the thresholds and chose the risk. One banker in handcuffs would do more than every fine in Treasury’s history combined. End “too big to jail.” An institution cannot be too big to fail and too big to jail at the same time. If it is the first, it must be held to a higher standard, not a lower one. And if Bank of America will not act as America’s bank, review its charter. A national charter is a privilege granted on behalf of the American people. It should be conditioned on not moving money for the people trying to kill them. Secretary Bessent, you said yesterday that these actions send a clear message that even the biggest institutions are not above the law. With respect, the institution was never the problem. The people inside it are above the law, and they know it. Until that changes, I will keep writing letters like this one, and the next bank will keep paying the next fine. I gave up everything I had to stop this. I am asking you to use the power you have to finish it. Respectfully, Everett A. Stern HSBC Whistleblower Founder and Intelligence Director, Tactical Rabbit
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I assume the China bar exam was in Chinese. And covered Chinese law. Super impressive.
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Bartlett Naylor retweeted
One of the greatest moments in Capitol history. When Laura Loomer attempted to disrupt a hearing, Missouri Rep. Bill Long, who is a real auctioneer, began calling a fake auction to drown her out until she was escorted her out. He then yields to laughter.
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Bartlett Naylor retweeted
President Sleaze: Trump steps up his offers of financial rewards to voters with just weeks until the midterms. On Tuesday at a rally in Alaska, he announced pardons — if he gets paid for them. VOTE nytimes.com/2026/10/13/us/el…
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Constitution bars foreign actors gifting the President. Trump opens the front door to them with his crypto grift, offering a steak dinner.
Scoop: More than half of the top holders listed as competing for seats at President Trump's next meme coin dinner have used crypto exchanges that prohibit U.S. customers, indicating many of the buyers are based overseas, according to a CBS News analysis. cbsnews.com/news/trump-meme-…
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Bartlett Naylor retweeted
CFTC analysts flagged unusually well-timed trading ahead of a March 23 Truth Social post in which President Donald Trump postponed planned US strikes on Iranian energy facilities. Charles Gorrivan reports bloom.bg/4jRyAfd
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Bartlett Naylor retweeted
Billions of dollars’ worth of contracts predicting oil would fall and the S&P 500 would rise were placed about 15 minutes before Trump announced a U-turn on Iran in a post on Truth Social. CFTC staff began to investigate-- then were told to lay off. bloomberg.com/news/features/…
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Bartlett Naylor retweeted
Happy 49th anniversary to the Community Reinvestment Act... signed into law by President Carter OTD in 1977. (Comments are due on the latest proposed revisions from the FDIC/OCC) federalreserve.gov/consumers…
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Bartlett Naylor retweeted
Every time Musk pretends to be a self-made billionaire, remember. He‘d be worth $0 without $38 billion in corporate welfare. In 19 out of 20 years, Tesla paid $0 in federal income taxes by shifting $18 billion in profits offshore. Elon loves socialism for himself, not for you.
This is simply due to my ownership stakes in SpaceX and Tesla. As those companies build more and more, their value increases and all shareholders benefit. The takers of the world who have never built anything, like Bernie, do as they always do and take from the makers.
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Snowflakes in the c-suite
The SEC’s attack on shareholders: the CEOs who love to rhapsodize about the purity of the free market to justify their pay get weak in the knees when they face a real market test. ft.com/content/20557850-9cd1… SEC warns asset managers against collaborating on activist campaigns
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Bartlett Naylor retweeted
Talk to lawmakers about the financial risks of the AI buildout and you won’t need to ask how they think about the b-word. They’ll tell you: no bailouts. No bailouts. No bailouts. w/ @Dareasmunhoz
Lawmakers see risk building up in the financial system tied to the AI buildout. But members and senators aren’t about to open up the federal checkbook if things start to go bad. The details from @BrendanPedersen and @Dareasmunhoz: punchbowl.news/article/tech/…
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