Sweet Caroline, Gary Gang, and Yankees tickets 🎟️

GM Builders! 🚧

Welcome back for another edition of the BW3 newsletter—a fun Wednesday/hump day read packed with updates 🐫 

Here’s what stacked up for you today:

• SWEET CAROLINE BUM BUM… JAILTIME 👮

• GARY, IS THE ‘DIGITAL ASSET SECURITY’ IN THE ROOM WITH US RIGHT NOW? 🤔 

• TODAY’S TOP HEADLINES FROM MAINSTREAM 📰 

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SWEET CAROLINE BUM BUM… JAILTIME 👮 

Caroline Ellison, former right-hand woman to Sam Bankman-Fried at FTX, just got hit with 24 months of jail time for her role in the multi-billion-dollar fraud that shook the crypto world.

In case you missed it, Caroline pleaded guilty nearly two years ago and became a key witness against SBF, spilling all the tea during her nearly three-day testimony. She revealed how SBF justified FTX’s illegal activities and admitted she felt relief when it all came crashing down, because—her words—“I didn’t have to lie anymore.”

Judge Lewis A. Kaplan wasn’t letting her off the hook too easily though. Despite giving Caroline props for her "very, very substantial" cooperation, Kaplan reminded everyone that her role in this massive fraud deserved some time behind bars. As he put it, “I’ve seen a lot of cooperators in 30 years here. I’ve never seen one quite like Ms. Ellison.”

So yeah, Caroline’s cooperation might’ve saved her from a longer sentence, but there’s no get-out-of-jail-free card for playing a part in what could be the "greatest financial fraud ever" in the U.S.

Moral of the story: You can spill all the tea, but you might still need to serve the time.

Here’s a unique perspective 👇️ 

GARY, IS THE DIGITAL ASSET SECURITY IN THE ROOM WITH US RIGHT NOW? 🤔 

Representative Ritchie Torres has some serious questions for Gary Gensler—and he’s not pulling any punches. The SEC Chair’s sweeping interpretation of what counts as a security, especially when it comes to NFTs, collectibles, and art, has Torres calling foul.

Torres makes a simple comparison: Is a Yankee ticket a security? If buying a ticket to a game isn’t classified as one, then why is an NFT offering access to a web series suddenly a security?

Torres argues that there’s no real difference between a Yankees game ticket and an NFT like the ones offered by Stoner Cats. Both offer access, not investment returns. According to Torres, Gensler’s trying to lump these items into a securities framework that just doesn’t fit.

The heart of the issue is Gensler’s overreliance on the Howey Test, which determines securities based on profit expectations. But Torres believes that applying this test to things like digital art or concert tickets is a stretch—and an overreach by the SEC. These assets aren’t stocks or bonds; they’re experiences, memorabilia, and utilities.

Torres isn’t just raising questions—he’s calling for clear legislation to define what digital assets really are, rather than forcing them into a securities box. In his view, Gensler’s approach risks stifling innovation and creativity in the space by forcing creators to second-guess whether their work could trigger a regulatory crackdown.

As Torres recently put it: "Mr. Gensler is misclassifying collectibles, art, and tickets as securities." Maybe it’s time for the SEC Chair to stop seeing securities where they don’t exist.

TODAY’S TOP HEADLINES FROM MAINSTREAM 📰 

Fed Cuts Juicing Crypto Markets, Analysts See Short-Term Opportunities ✂️ 
According to Cointelegraph, crypto markets are riding high after the Fed's latest rate cut. Analysts suggest that while short-term gains are ripe for the picking, trimming profits might be wise as volatility looms. The rate cuts have been injecting liquidity into the market, fueling a rally in Bitcoin and Ethereum—but beware, what goes up might come down fast.

Read more

Court Says Crypto Mining Boxes Are Securities in SEC Case 📦️ 
In a landmark ruling, a federal court has sided with the SEC, declaring that crypto mining boxes sold by a company in question are considered securities. According to Bloomberg Law, the court applied the Howey Test and found that buyers of the mining boxes had an expectation of profit based on the efforts of others. This ruling could set a precedent for how other crypto-related assets are treated in future SEC cases.

Read more

PayPal Expands Crypto Services to Business Accounts 💸 
In a move signaling broader crypto adoption, PayPal has announced that business accounts can now buy, hold, and sell cryptocurrency directly through the platform. This marks a significant step toward integrating crypto into everyday commerce, allowing businesses to easily manage their digital assets. With this new feature, PayPal continues to push the boundaries of mainstream crypto accessibility.

Read more

MEME CITY 🏙️ 

Until next time, Builders! 🏗️ 

Keep chugging and watch out for the hedgehogs. 🔵