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

📍 USA 🇺🇸
Joined March 2011
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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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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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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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
Catherine Rampell
@crampellOct 14
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
Andrew Ackerman@amackerOct 12
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.
Elon Musk
@elonmuskOct 6
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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Bartlett Naylor retweeted
Brendan Pedersen@BrendanPedersenOct 8
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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Bartlett Naylor retweeted
Brendan Pedersen@BrendanPedersenOct 2
Community banking trade group sues the Office of the Comptroller of the Currency, arguing the agency’s fintech- and crypto-friendly trust charter “exceeds the authority Congress granted the agency”
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Bartlett Naylor retweeted
Breaking: SEC’s Top Cop to Fraudsters: “I Am Not Preoccupied With Numbers” For years at the SEC, I helped write enforcement speeches. We wrote them to tell the market what we were doing. David Woodcock writes his to explain what he isn’t doing. For SEC Enforcement Directors, the formula is simple. Find the fraud. Aim the resources. Bring the cases. Then take the podium, announce the results and remind markets that the SEC is on the beat. And the podium is always there. Every financial conference wants the Enforcement Director as its keynote. Woodcock has held the job for 143 days and given exactly two speeches. Two. What you remember from both is what the SEC is not doing. Pathetic is too kind a word. Mr. Director, you cannot hide, we still see you. Speech #1 (May): “back to basics,” plus a “quick aside” on “the decline in the number of cases brought.” His answer: “this SEC has deliberately shifted toward an emphasis on quality over quantity, and I fully support that direction.” sec.gov/newsroom/speeches-st… Speech #2 (September): “Now, let me briefly touch upon enforcement statistics.” Then a fifth of the speech on why no one should judge the program by them, including a section titled “A Healthy, Visible Enforcement Program Matters More Than Statistics.” sec.gov/newsroom/speeches-st… With twelve days still left in the FY2026, he declared that, “FY2026 was a transitionary period.” How did he know? The Enforcement Director’s front office counts the numbers internally, with a tracker that shows the trends as they happen — and it also tracks “likely cases” for the months ahead. These preemptive apology speeches are a huge tell. “Sentence first—verdict afterwards.” It's Alice in Wonderland at the SEC. linkedin.com/feed/update/urn… This is what panic looks like. While Woodcock lowers expectations from the podium, his Division has spent September cranking out dozens of fill-in-the-blank orders against companies that simply stopped filing their reports, padding the very numbers he says “tell us little.” Woodcock's greatest hits: “To be clear, we are not looking for opportunities to pile on.” “I am not preoccupied with numbers.” “This review is not a sign of weakness.” What the cop on the beat left out: • Meme coins and meme stocks: zero mentions. • Crypto treasury companies: zero. • Prediction markets: zero. • Cybersecurity: zero. • Whistleblowers: zero. • Private credit, whose “stresses” he flagged in May: zero in September. • FCPA: zero. Woodcock even quoted former SEC Chairman Harvey Pitt: visibility is “an essential predicate for any effective enforcement program.” Agreed. Physician, heal thyself. Picture a CISO taking the stage at Black Hat to announce that their team is watching fewer doors. Every ransomware gang on the planet would be inside their network by Monday. Pump-and-dump crews, Ponzi promoters and boiler rooms listen to SEC speeches just as closely. The SEC's top cop is managing expectations instead of fraud. Disgraceful to say the least. It's time to stop the hustle.
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Bartlett Naylor retweeted
I had a front row seat watching the CLARITY Act fail in real-time and @leereiners is spot-on in this compelling article. Now the true test will be the midterms. Big Crypto wants to take out every Democrat who opposed the CLARITY Act, and they've been very successful in the past. So the ultimate question is whether the CLARITY Act's failure was a harbinger — or an aberration. We'll know in 40 days. theconversation.com/how-trum…
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Bartlett Naylor retweeted
I've been following the Clarity debate since I started at Bloomberg earlier this year and it became very clear very quickly, talking with Senate offices on both sides, that the one issue that would stop the bill from passing was Trump's crypto haul. New from me, @olgakharif & @antoniabmassa
The crypto industry watched with a grim foreboding as its landmark bill detonated on the Senate floor. Blame first fell on Democrats, none of whom voted to advance it. But some of the industry’s own supporters pointed elsewhere: at Trump bloomberg.com/news/articles/…
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Bartlett Naylor retweeted
Crypto tried to buy Congress. It failed. dlvr.it/TVW8sn
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We must regulate digital assets, protect consumers, and give innovation room to grow. But innovation cannot come at the expense of ethics and accountability.
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Trump Outperforms Entire Congress in Stock Trading, Yet Seeks Ban That Excludes Himself The Trading Volume Bloomberg's analysis of financial disclosures reveals that President Donald Trump or his portfolio managers executed nearly 28,700 securities trades in the 17 months between his second inauguration and the end of June 2026. During the same period, all members of Congress combined reported approximately 22,200 trades—19,400 by House members and 2,900 by senators . This means Trump alone traded more than the entire legislative branch, by a margin of over 6,000 transactions. The Composition of the Trading The volume is not a marginal increase over previous presidential behavior. Trump is the only U.S. president this century to disclose active trading of individual stocks, averaging approximately 80 trades every market day . His first term disclosures contained mostly illiquid real estate and private ventures; his current portfolio contains thousands of holdings in stocks, bonds, and cryptocurrencies . In 2025 alone, he made more than 21,000 trades valued between $600 million and $1.86 billion, with just 10 days accounting for about a quarter of all trades executed that year .
Peak corruption: Donald Trump has traded more securities (stocks and other financial assets) than every member of Congress COMBINED since he returned to office. Trump says he supports a ban on Congress members trading stocks... but he will exempt himself. Bloomberg reports: "Trump or his money managers made nearly 28,700 trades in the 17 months between his second inauguration and the end of June... During that same period, Capitol Hill lawmakers collectively reported about 22,200 similar transactions". Source: bloomberg.com/graphics/2026-…
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Bartlett Naylor retweeted
I voted NO to advance the Clarity Act because it fails to rein in the President's rampant corruption, letting him and his family continue amassing billions from unethical crypto ventures. I've long called for real guardrails on cryptocurrency to restore Americans' trust in our political institutions and ensure no federal official can profit from their position of power. I cannot support legislation that falls short of that goal.
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Bartlett Naylor retweeted
Breaking News: Stick A Fork In The CLARITY Act -- It's Done. Expect a similar fate for the bogus SEC crypto rule that SEC Chairman Paul Atkins has proposed. Under a false flag of "fostering innovation," Atkins is attempting to usurp Congressional authority to market a Ponzi scheme, deploying the deep state to decree what Congress has specifically declined to do. N.B. I already wrote the brief that will take down this absurd Atkins crypto-deregulatory morass. It's Free. Cut. Paste. File. Win. johnreedstark.com/wp-content… And stay tuned for the next salvo when a surprise co-author and I file our blockbuster comment letter, which will make it clear that the Atkins Crypto-Deregulatory charade will fail five times over because it: 1️⃣ Exceeds the SEC’s exemptive authority under Securities Act Section 28 and Exchange Act Section 36, statutes now read de novo because Chevron is dead; 2️⃣ Rests on findings the record cannot support and the SEC’s own decade of litigated positions squarely contradicts; 3️⃣ Disregards the reliance interests that record created; 4️⃣ Cannot be sustained by any honest economic analysis; and 5️⃣ Arrogates to the SEC a decision of vast economic and political significance that belongs to Congress, which considered the CLARITY Act for over a year and declined to enact, precisely the regime the Atkins Proposal would decree. The fifth argument is my favorite and perhaps the most obvious and compelling. Here’s why: The CLARITY Act’s tortured journey is not, as Atkins will undoubtedly claim, irrelevant legislative noise. It is the single most probative fact in the case: living, docketed, roll-call-voted proof that the crypto market-structure question belongs to Congress. The rule is an attempt to disappear and moot the U.S. Senate. And now the part that should make the Trump White House squirm: the deepest irony of this spectacle is that the SEC’s crypto end run is precisely the species of bureaucratic lawmaking this administration was elected condemning and has spent its tenure formally denouncing. This is the administration that celebrated Loper Bright as the emancipation of the citizenry from unelected bureaucrats. This is the administration whose entire administrative-law philosophy is that policy of national consequence must be made by elected representatives, not conjured by agencies from elastic readings of old statutes. Every word of that philosophy is a brief against Atkins’s upcoming spectacle. You cannot spend four years preaching that unelected bureaucrats have no business legislating and then legislate Big Crypto’s wish list via three unelected Republican SEC Commissioners and a comment file. The Stark Reality: Defeating the CLARITY Act was a mammoth defeat for the cryptoverse and the first big legislative loss for the Trump Administration. Perhaps Big Crypto, which is spending, and has spent, hundreds of millions of dollars to buy Congress and the White House, ain't so Big after all. wsj.com/politics/policy/land…
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