A trillion-dollar 'Hunt' has quietly begun
In the early morning of October 15, 2024, the official website of the U.S. Securities and Exchange Commission (SEC) was suddenly overwhelmed by hundreds of thousands of miners accessing it simultaneously—a document titled (Final Ruling) declared: Bitcoin mining is essentially 'securities issuance', and all mining farms, pools, and exchanges participating in POW must submit all transaction records within 30 days or face fines of up to $50 billion or criminal prosecution!
This sudden regulatory storm caused the global cryptocurrency market to plummet 20% within 3 hours, with Canaan Creative (CAN) stock halving, and mining giants like Riot Games urgently suspending trading. More shockingly, leaked SEC internal documents revealed that this 'raid' was actually driven by the five major Wall Street investment banks, and Bitcoin core developers had already received 'silencing threats'...
I. Full Disclosure of the SEC's 'Nuclear-Level' Document: Miners = Securities Issuers?
1. The Definition of Earth-Shattering Distortion
In a 21-page ruling, the SEC defined Bitcoin mining as 'issuing virtual securities through competitive hash power', citing Section 21 of the 1933 (Securities Act) which states: 'Any agreement promising to obtain profits through efforts constitutes a security.'
• Critical Details: The SEC emphasizes that a miner's 'hash rate contribution' is equivalent to purchasing 'unrealized stock'; even if miners do not directly hold tokens, participating in network maintenance constitutes a securities investment.
2. The 'Death Clause' for Exchanges and Mining Pools
• Exchanges: Must classify all Bitcoin spot, futures, and derivative trading as 'securities', and institutions that do not register within 15 working days will face 'permanent shutdown + executives' imprisonment'.
• Mining Pools: Any 'joint mining agreements' that promise fixed returns constitute illegal securities issuance, and leading pools like Poolin and F2Pool may face fines of $1 billion.
• Mining Machine Sales: Hardware manufacturers like Bitmain and Canaan Creative have been asked to suspend sales of mining machines in the U.S., unless they can prove that 'buyers are using them solely for non-securitized mining.'
II. Wall Street's 'Conspiracy Theory': Have They Long Wanted to Eliminate Bitcoin?
1. The Unpublicized 'Shadow Meeting'
According to exclusive reports from (The Wall Street Journal), in March 2023, SEC Chairman Gary Gensler revealed at a private JPMorgan dinner, 'We need to create a 'perfect storm' to make Bitcoin miners believe that regulation is inevitable, prompting them to voluntarily give up their resistance.'
• Attendees include: Morgan Stanley CEO, Goldman Sachs crypto division head, BlackRock digital assets director, and a former SEC official who wrote the 'death penalty report' on Bitcoin.
2. The 'Double Harvest' of Major Investment Banks
• Shorting Bitcoin: According to SEC filings, JPMorgan and Citigroup significantly increased their short positions in Bitcoin one week before the ruling was announced, profiting over $2 billion in a single week.
• Monopoly Compliance Services: Goldman Sachs' subsidiary Greenhouse Securities has launched a 'cryptocurrency securitization compliance package', charging up to 30% of the annual revenue of mining operations.
• Secretly Supporting Alternatives: The PoS Alliance secretly funded by Morgan Stanley released a white paper claiming 'Ethereum 2.0 consumes only 0.01% of Bitcoin's energy', attempting to completely drive capital out of the POW ecosystem.
III. Miners' Counterattack: A 'Hash Power War' is Imminent
1. The 'Secret Weapon' of Chinese Miners
Although China has fully banned mining, a (Caixin) investigation found that over 100,000 mining machines are still operating covertly in Sichuan, Xinjiang, and other regions through a 'virtual power plant' model, connecting to compliant mining pools in Hong Kong and Singapore. An anonymous miner revealed, 'We have developed an 'anti-censorship protocol' that allows mining machines to continue operations via satellite networks even if the IP is blocked.'
2. The 'Betrayal Crisis' of the Bitcoin Network
• Core Developers Infiltrated: GitHub code repositories show that version 0.27.0 of the Bitcoin client has a suspected backdoor that can remotely shut down miners' hash rates. The community suspects this is a 'kill switch' developed in collaboration between the SEC and Microsoft.
• Large-Scale Migration of Mining Pools: Poolin announced that it will migrate its hash power to a compliant mining pool in Singapore, but insiders revealed, 'The Monetary Authority of Singapore (MAS) requires us to share all miners' bank account information, which is stricter than the SEC!'
3. The Rampant 'Hash Power Black Market'
On the r/BitcoinMining forum on Reddit, a group of miners launched the 'Operation Midnight' plan, claiming to have built a decentralized hash power trading market, paying rewards in Monero (XMR), completely circumventing the U.S. dollar and regulation. 'The SEC cannot kill Bitcoin; it will only kill innocent miners.' one miner wrote in the post.
IV. The 'Political Killings' Behind Environmental Controversies?
Although the SEC did not directly mention environmental protection this time, a footnote on page 8 reveals a horrifying truth: 'Promoting the elimination of POW aligns with (the Paris Agreement) and U.S. new energy policy.'
• The 'Energy Revenge' of California Legislators: California Democratic Congressman Adam Schiff has long criticized Bitcoin mining farms, and his office has been reported to have received political donations from renewable energy companies, exceeding $5 million.
• Confrontation in Nevada: The state attracts mining operations under the banner of 'green mining', but under the SEC's new regulations, NVDA (NVIDIA) is forced to suspend supplying H100 graphics cards to mining farms, with its stock price plummeting 12% in a single day.
V. Global Regulatory War Escalates: Bitcoin May Become a 'New Cold War' Chip
1. The EU's 'Sunshine Conspiracy'
The EU's (Crypto Assets Bill) (MiCA) draft suddenly modified its terms, declaring 'Bitcoin spot trading falls under the category of commodities', opposing the SEC's 'securitization' stance. Analysts point out that this move aims to compete for cryptocurrency pricing power, and the Eurozone may launch a 'Euro Pegged Bitcoin ETF'.
2. China's 'Dark Web Layout'
Despite publicly banning mining, China's central bank digital currency research institute (DC/EP) is secretly testing a 'PoW-based digital renminbi consensus layer' in Shenzhen. Insiders say, 'We are developing 'controllable POW' to allow the central bank to directly manage hash power allocation.'
3. The 'Cryptocurrency Weapon' in the Russia-Ukraine Conflict
The Russian central bank is accused by the SEC of 'using Bitcoin to evade sanctions', but its spokesperson retorts, 'The U.S. is trying to cut off Russia's energy lifeline, and Bitcoin mining is our 'nuclear power station'—just one mining machine can render Western sanctions completely ineffective.'
Conclusion: Is Bitcoin Facing Extinction? Or is it Wall Street's 'Rite of Passage'?