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But the legal wrangling to just get the courts to treat crypto as a set of speculative instruments regulated under securities law made the law moot

In May of 2022, a year after Gensler began trying to do something about Terra/Luna, Kwon’s scheme blew up. In a comically-too-late-to-matter gesture, an appeals court then said that the SEC had the right to compel information from Kwon’s now-bankrupt scheme. It is absolute lunacy that well-settled law, like the ability for the SEC to investigate those in the securities business, is now being re-litigated.

many crypto ‘enthusiasts’ watching Gensler discuss regulation with his predecessor “called for their incarceration or worse.”

it wasn’t just the courts who were an impediment. Gensler wasn’t the only cop on the beat. Other regulators, like those at the Commodities Futures Trading Commission, the Federal Reserve, or the Office of Comptroller of the Currency, not only refused to take action, but actively defended their regulatory turf against an attempt from the SEC to stop the scams.

Behind this was the fist of political power. Everyone saw the incentives the Senate laid down when every single Republican, plus a smattering of Democrats, defeated the nomination of crypto-skeptic Saule Omarova in becoming the powerful bank regulator at the Comptroller of the Currency

Instead of strong figures like Omarova, we had a weakling acting Comptroller Michael Hsu at the OCC, put there by the excessively cautious Treasury Secretary Janet Yellen. Hsu refused to stop bank interactions with crypto or fintech because, as he told Congress in 2021, “These trends cannot be stopped.”

It’s not just these regulators; everyone wanted a piece of the bureaucratic pie. In March of 2022, before it all unraveled, the Biden administration issued an executive order on crypto. In it, Biden said that virtually every single government agency would have a hand in the space.

That’s… insane. If everyone’s in charge, no one is.

And behind all of these fights was the money and political prestige of some most powerful people in Silicon Valley, who were funding a large political fight to write the rules for crypto, with everyone from former Treasury Secretary Larry Summers to former SEC Chair Mary Jo White on the payroll.

(Even now, even after it was all revealed as a Ponzi scheme, Congress is still trying to write rules favorable to the industry. It’s like, guys, stop it. There’s no more bribe money!)

Moreover, the institution Gensler took over was deeply weakened. Since the Reagan administration, wave after wave of political leader at the SEC has gutted the place and dumbed down the enforcers. Courts have tied up the commission in knots, and Congress has defanged it

Under Trump crypto exploded, because his SEC chair Jay Clayton had no real policy on crypto (and then immediately went into the industry after leaving.) The SEC was so dormant that when Gensler came into office, some senior lawyers actually revolted over his attempt to make them do work.

In other words, the regulators were tied up in the courts, they were against an immensely powerful set of venture capitalists who have poured money into Congress and D.C., they had feeble legal levers, and they had to deal with ‘crypto enthusiasts' who thought they should be jailed or harmed for trying to impose basic rules around market manipulation.

The bottom line is, Gensler is just one regulator, up against a lot of massed power, money, and bad institutional habits. And we as a society simply made the choice through our elected leaders to have little meaningful law enforcement in financial markets, which first became blindingly obvious in 2008 during the financial crisis, and then became comical ten years later when a sector whose only real use cases were money laundering

, Ponzi scheming or buying drugs on the internet, managed to rack up enough political power to bring Tony Blair and Bill Clinton to a conference held in a tax haven billed as ‘the future.’

It took a few years, but New Dealers finally implemented a workable set of securities rules, with the courts agreeing on basic definitions of what was a security. By the 1950s, SEC investigators could raise an eyebrow and change market behavior, and the amount of cheating in finance had dropped dramatically.

By 1935, the New Dealers had set up a new agency, the Securities and Exchange Commission, and cleaned out the FTC. Yet there was still immense concern that Roosevelt had not been able to tame Wall Street. The Supreme Court didn’t really ratify the SEC as a constitutional body until 1938, and nearly struck it down in 1935 when a conservative Supreme Court made it harder for the SEC to investigate cases.

Institutional change, in other words, takes time.

It’s a lesson to remember as we watch the crypto space melt down, with ex-billionaire Sam Bankman-Fried

It’s not like perfidy in crypto was some hidden secret. At the top of the market, back in December 2021, I wrote a piece very explicitly saying that crypto was a set of Ponzi schemes. It went viral, and I got a huge amount of hate mail from crypto types

one of the more bizarre aspects of the crypto meltdown is the deep anger not just at those who perpetrated it, but at those who were trying to stop the scam from going on. For instance, here’s crypto exchange Coinbase CEO Brian Armstrong, who just a year ago was fighting regulators vehemently, blaming the cops for allowing gambling in the casino he helps run.

FTX.com was an offshore exchange not regulated by the SEC. The problem is that the SEC failed to create regulatory clarity here in the US, so many American investors (and 95% of trading activity) went offshore. Punishing US companies for this makes no sense.

In my talks with more than 100 voters, no one mentioned the word “authoritarian.” But that was no surprise — many everyday people don’t think in those terms. Focusing solely on these labels can miss the point.

Authoritarian leaders project qualities that many voters — not just Trump voters — admire: strength, a sense of control, even an ends-justify-the-means leadership style

Our movie-hero presidents, Top Gun pilots and crusading lawyers often take matters into their own hands or break the rules in ways that we cheer.

they have something in common with Trump: They are seen as having special or singular strengths, an “I alone can fix it” power.

argued that it’s just Trump who’s strong and honest enough to say it out loud — for them, a sign that he’s honest.

also see him as an authentic strongman who is not a typical politician

during Trump’s presidency, “there weren’t any active wars going on except for Afghanistan, which he did not start. He started no new wars. Our economy was great. Our gas prices were under 2 bucks a gallon. It’s just common sense to me. If it ain’t broke, don’t fix it.”

Trump’s vulgar language, his penchant for insults (“Don’t call him a fat pig,” he said about Chris Christie) and his rhetoric about political opponents (promising to “root out the communists, Marxists, fascists and the radical left thugs that live like vermin within the confines of our country”) are seen as signs of authenticity and strength by his supporters

Jan. 6, 2021, at the Capitol. I didn’t encounter a single outright supporter of what happened, but many people explained the events away. Increasingly separate information environments and our fractured media ecology shape the way people view that day.

they think Biden is too weak and too old to be president. They talk about him with attack lines frequently used by Trump, saying that he’s senile, falling down stairs, losing his train of thought while talking and so on

What I heard from voters drawn to Trump was that he had a special strength in making the economy work better for them than Biden has, and that he was a tough, “don’t mess with me” absolutist, which they see as helping to prevent new wars.

Many Trump supporters told me that had Trump been president, the war in Ukraine wouldn’t have happened because he would have been strong enough to be feared by Vladimir Putin or smart enough to make a deal with him, if necessary

Neither would Hamas have dared attack Israel, a few added. Their proof was that during Trump’s presidency, these wars indeed did not happen.

Like many of these right-wing populists, Trump leans heavily on the message that he alone is strong enough to keep America peaceful and prosperous in a scary world

In Iowa, Trump praised Orban himself before telling a cheering crowd: “For four straight years, I kept America safe. I kept Israel safe. I kept Ukraine safe, and I kept the entire world safe.”

from Trump, these statements often resulted in the crowds leaping to their feet (actually, some rallygoers never sat down) and interrupting him with applause and cheering.

That’s charisma. Charisma is an underrated aspect of political success — and it’s not necessarily a function of political viewpoint. Bill Clinton and Barack Obama oozed it, for example, and so does Trump.

Charismatic leaders, Weber wrote, “have a certain quality of an individual personality, by virtue of which he is set apart from ordinary men,” and is sought as a leader, especially when people feel the times are troubled.

Polls also show that voters believe that Trump would do a better job than Biden on the economy, foreign policy and immigration. It was Trump’s perceived strength, in contrast with Biden’s perceived weakness, that was the common theme that tied it all together for his supporters.

“I’m not concerned with Jan. 6,” Finch said. “I don’t trust our government. I don’t trust anything they’re saying. They’ve been doing this to Black people for so long, railroading them, so they have zero credibility. So I don’t even care about it, and I don’t want to hear about Jan. 6.”

For her, biased mainstream media is misrepresenting him. “He was making the point that he’d use executive orders on Day 1, like the others do — executive orders bypass Congress, but that’s how it’s done these days,” she said. “He was being sarcastic, not saying he’d be a real dictator.”

What’s a bit of due process overstepped here, a trampled emoluments clause there, when all politicians are believed to be corrupt and fractured information sources pump very different messages about reality?

Politicians projecting strength at the expense of the rules of liberal democracy isn’t a new phenomenon in the United States, or the world. Thomas Jefferson worried about it. So did Plato. Perhaps acknowledging that Trump’s appeal isn’t that mysterious can help people grapple with its power.

For him, the books were occasions; he picked up the bits that interested him and ran with them. (“It’s a book review, not a bouillon cube,” as Nicholson Baker put it, replying to Ken Auletta, who had complained about one of Baker’s similarly rangy reviews in the Book Review.)

Spying Henry Kissinger in the Sistine Chapel gawping at the Hell section of “The Last Judgment,” Vidal commented: “Look, he’s apartment hunting.”

Hitchens was sui generis. He made most other book reviewers, to borrow Dorothy Parker’s words about the drama critic George Jean Nathan, “look as if they spelled out their reviews with alphabet blocks.”

In their place, Trump’s stump speech has become dominated by grievances about the wrongs he believes have been done to him and his promises to get even for them. It doesn’t quite create the festive atmosphere of eight years ago, when many attendees were clearly having a great time. Where the new, more prosaic feeling lacks the uplift of the past, though, it has still managed to generate enough enthusiasm

The lack of catchy slogans might not matter if they were just slogans. But in 2016, they were a symbol of Trump’s willingness to talk about things that other candidates, including other Republicans, shied away from.

Regarding the war in Gaza, he has criticized Israeli Prime Minister Benjamin Netanyahu and called for the conflict to end quickly—but on Israel’s terms.

He had several such policy positions, including breaking with the bipartisan consensus on free trade, pledging to protect Social Security and Medicare, and claiming to have opposed the Iraq War from the start.

The focus on the wall also showed that he was willing to deploy (putatively) “commonsense” ideas that other politicians weren’t. This helped Trump to appeal not just to Republicans but to disaffected voters of all stripes

Where Trump once trumpeted his appointment of justices who overturned Roe v. Wade, he is now fumblingly trying to formulate a position on abortion that doesn’t alienate either his base or swing voters, mostly relying on ambiguity

Trump is emphasizing fewer big transformational ideas compared with 2016. His promises are a scattershot collection of ideas targeted at particular segments of the electorate: ending taxes on salary earned from tips, defending TikTok (a platform he once tried to ban), declassifying files on John F. Kennedy’s assassination, rolling back fossil-fuel regulations. Although he promises to clamp down on the border and deport undocumented immigrants, you won’t catch a “Round ’em up” chant at his rallies. And Project 2025, his allies’ proposal to overhaul the federal government by massively expanding political patronage, doesn’t lend itself to a bumper sticker.

Trump allots a great deal of his stump speech to mocking Biden as incoherent and senile (sometimes awkwardly) while also warning that Biden’s administration has made the United States a failed nation, and that his reelection could be fatal to the country. The disconnect between the images of Biden as doddering fool and as evil schemer is one that Republicans have struggled to reconcile but that Trump has concluded doesn’t need resolving.

Grievance is not a new note at Trump rallies, but four and eight years ago, he used to talk about other people’s grievances and promise to redress them. Now the grievances are largely his own

One big problem for Clinton was the criticism that she had no compelling goal for her candidacy other than that she wanted to be president. Trump’s campaign now is about nothing so much as his desire to be president.

Even Project 2025 is about the accumulation of executive power itself, rather than any particular policy goal