United States citizens can no longer short Bitcoin or participate in leveraged digital asset transactions unless they're filthy rich!

On June 23, 2021, the Commodity Exchange Act (CEA) went into effect in the United States. The CEA set new guidelines for retail investors (people like you and me) to trade crypto with margin. For individuals or retail investors, to be eligible to trade crypto with margin, you must be certified as an Eligible Contract Participant (ECP). A retail investor must have $10 million in assets to be certified as an ECP.

You can view the requirements here.

https://content.next.westlaw.com/7-521-8340?__lrTS=20201013065041926&transitionType=Default&contextData=(sc.Default)&firstPage=true&firstPage=true)

Additionally, you can view Kraken's new blog about leveraged digital asset transactions here.

https://blog.kraken.com/post/9514/new-requirements-for-u-s-and-starter-tier-clients-to-qualify-for-margin-trading/

So what does this mean for regular US citizens like you and me? For starters, it means that US citizens can no longer short sell bitcoin. You might ask, "Can't we just short bitcoin without leverage?" well no, you can't! It is impossible to short any assets without leverage since the nature of shorting involves borrowing a security, then selling it on the open market. We are once again being suppressed by the government. The US government saw that normal people were getting rich, bringing themselves out of poverty, and they decided to stop it. I have been leverage trading bitcoin for about 5 years now and I have made a good life for myself. I was able to pay off my student loans and pay off my car leveraging bitcoin in my spare time and I have always paid Uncle Sam my fair share of taxes when I profit.

Look, I am all for government regulation in crypto. I think that in order for Bitcoin to get mainstream adoption, there needs to be more government regulation. However, with this new definition of an ECP the US government is only looking after corporate America and all of their wealthy friends, not its citizens. So now if I want to short bitcoin or trade with leverage, I have to renounce my citizenship and move to another country. And obviously, I know that I can use a VPN, but the prison system in America is one of the worst in the world, and it's not worth the risk if you ask me.

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.... I think it is kind of funny that the US government is always saying that Bitcoin is only used by criminals and for money laundering. Well now by leverage trading any digital asset you are now considered a criminal... unless you are filthy rich, then you're fine.