Introducing the Crypto Mom

Summary

Marketplace Morning Report: Episode Summary – "Introducing the Crypto Mom"

Release Date: January 23, 2025

In this episode of the Marketplace Morning Report, hosted by Saree Benishore, listeners are brought up to speed on critical developments in the cryptocurrency regulatory landscape, the severe impact of a historic snowstorm in the southern United States, and an in-depth interview shedding light on the economic struggles of frontline workers during the COVID-19 pandemic. The episode seamlessly weaves these diverse topics, providing listeners with a comprehensive overview of pressing economic and social issues.

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1. Cryptocurrency Regulation and the Emergence of "Crypto Mom"

The episode opens with an exploration of significant shifts in cryptocurrency regulation under the new Trump administration. Saree Benishore introduces Nova Sappho, who delves into the role of Hester Peirce, affectionately dubbed "Crypto Mom" by the crypto industry.

Hester Peirce's Influence: Hester Peirce, appointed to the Securities and Exchange Commission (SEC) during Trump's first term, has become a pivotal figure in shaping crypto regulations. Peirce is known for her dissenting opinions on various crypto-related enforcement actions led by the SEC under the Biden administration. She advocates for a regulatory approach that emphasizes setting clear rules over reliance on enforcement measures.

Key Insights: Nova Sappho explains that Peirce's philosophy promotes a "light touch" on cryptocurrency regulation, allowing market forces to determine the viability of crypto investments rather than heavy-handed oversight. This approach aims to balance facilitating compliant actors while effectively deterring malpractices without the burdensome costs associated with traditional enforcement.

Notable Quote: During a speech at the Federalist Society three years prior, Hester Peirce articulated her vision:

“The SEC could think through issues with people in the crypto community with an eye toward achieving our regulatory objectives in a pragmatic but effective way. By doing so, we could both facilitate good actors' compliance and importantly, inhibit bad actors much more effectively than we do through the resource intensive, often delayed enforcement approach that we've taken so far.”
— Hester Peirce [01:31]

SEC Crypto 2.0: Under Peirce's leadership, the SEC is embarking on what it terms "SEC Crypto 2.0." This initiative involves forming a task force tasked with developing a comprehensive regulatory framework for cryptocurrencies. The scope of this framework includes addressing registration requirements for crypto assets, determining necessary disclosures, and resolving other pertinent regulatory questions. Although no specific timeline has been set, the administration signals a move towards reduced regulatory pressures, indicating a more favorable environment for the crypto industry.

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2. Historic Snowstorm Disrupts the Southern United States

Transitioning from financial regulations, the report highlights a severe weather event affecting the southern U.S. Saree Benishore details the aftermath of the worst snowstorm in 130 years, impacting states such as Florida, Louisiana, Georgia, and South Carolina.

Storm Impact:

• Snowfall and Freezing Rain: Up to 10 inches of snow blanket parts of Florida and Louisiana, while southern Georgia and South Carolina experience freezing rain.
• Power Outages: The storm results in power outages for approximately 90,000 residents, creating widespread disruptions.
• Travel and Commerce: Dangerous road conditions lead to significant travel hazards, and the storm halts unloading operations at several major ports, affecting supply chains and local economies.

The report underscores the unprecedented nature of the storm, highlighting the challenges faced by communities unaccustomed to such extreme weather conditions. The response efforts and the resilience of the affected populations are implicitly acknowledged as critical factors in mitigating the storm's impact.

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3. Economic Hardship Among Frontline Workers During COVID-19

A significant portion of the episode is dedicated to an insightful interview with Anne Larson, a writer and fellow with the Economic Hardship Reporting Project. Larson shares her firsthand experience working as a cashier in a major grocery store during the height of the COVID-19 pandemic, providing a poignant look into the struggles faced by frontline workers.

Personal Experience: Larson recounts her transition into the workforce amid the pandemic, emphasizing the precarity of low-wage employment:

“Right now cashiers are making an average of about $29,000 a year for a full-time job. So the supermarket's part of this low wage economy where about 30 million workers are working in jobs that pay about that or less.”
— Anne Larson [04:51]

Economic Challenges: Despite being essential employees, Larson highlights the financial instability pervasive among grocery store workers. Citing a study on Kroger employees, she reveals that:

• Financial Insecurity: Approximately 75% of Kroger employees do not earn enough to cover basic expenses.
• Food Insecurity: About 40% experience food insecurity, underscoring a national crisis where those employed to provide essential goods struggle to meet their own needs.

Technological Advancements and Job Security: Larson discusses the implementation of electronic price tags in stores like Kroger and Walmart, which allow dynamic pricing changes remotely. She expresses concerns over the lack of transparency and regulation surrounding this technology:

“Some members of Congress, a coalition led in the House by Rashida Tlaib, have written letters to Kroger asking for information about this and raising concerns. And so far, the companies have ignored members of Congress. They simply operate with impunity.”
— Anne Larson [06:17]

Larson argues for the necessity of regulatory measures to ensure that dynamic pricing does not exploit consumers, especially during crises. The ability to adjust prices instantaneously without consumer awareness poses ethical and economic dilemmas that require urgent attention.

Closing Remarks: Through her narrative, Larson not only sheds light on the systemic issues plaguing low-wage workers but also calls for greater oversight and protection to prevent further economic disparity and exploitation within the essential workforce.

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Conclusion

In "Introducing the Crypto Mom," the Marketplace Morning Report delivers a multifaceted analysis of contemporary economic issues. From the nuanced shifts in cryptocurrency regulation spearheaded by Hester Peirce to the tangible hardships faced by frontline workers during a global pandemic, the episode paints a comprehensive picture of the challenges and transformations shaping today's economy. Additionally, the report’s coverage of extreme weather events underscores the intersection of environmental and economic stability. Through engaging discussions and impactful quotes, Marketplace provides listeners with valuable insights into the forces influencing both financial markets and everyday lives.

Transcript

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[Saree Benishore]

The crypto industry is getting a little help from Mom From Marketplace, I'm Saree Benishore in for David Brancaccio. Among the many shifts underway in the first week of the new Trump administration, a change in how cryptocurrency assets are regulated by the securities and Exchange Commission. In charge now of that transition is is someone the crypto industry has dubbed crypto Mom. Marketplace's Nova Sappho is here with more.

[Nova Sappho]

Good morning.

[Saree Benishore]

Who is Cryptomom?

[Nova Sappho]

So that's Hester Peirce. Trump appointed her to the SEC during his first term. Peirce filed dissenting opinions over a number of crypto related enforcement actions. And the crux of her dissent is that the SEC under Biden relied too much on enforcement and not enough on setting actual rules of the road for crypto assets. And Peirce wants to see a light touch on regulation with markets deciding what's a good crypto investment and what's not. Here's a bit of a speech she gave three years ago at the conservative and libertarian group the Federalist Society.

[Hester Peirce]

The SEC could think through issues with people in the crypto community with an eye toward achieving our regulatory objectives in a pragmatic but effective way. By doing so, we could both facilitate good actors compliance and importantly, inhibit bad actors much more effectively than we do through the resource intensive, often delayed enforcement approach that we've taken so far.

[Saree Benishore]

And she has to Purse is in charge of what the SEC is calling SEC crypto 2.0. What does that mean?

[Nova Sappho]

Subtle, isn't it? Well, Purse is going to be heading a task force to develop that crypto regulatory framework she's been calling for for all this time, the last four years. So the task force is charged with tackling registration requirements for crypto based assets, what kind of disclosures might be necessary, and other outstanding questions. There's no timetable for the work, but Trump has promised less regulatory pressure on crypto industry and so it's clear the direction the SEC is trying to head in here.

[Saree Benishore]

All right, Marketplace Nova Sappho. Thank you so much.

[Nova Sappho]

You're welcome.

[Saree Benishore]

Parts of the southern US are digging out from the worst snowstorm in 130 years. Up to 10 inches of snow fell in areas of Florida and Louisiana. Southern Georgia and South Carolina saw freezing rain. The storm knocked out power to 90,000 people and created dangerous road conditions. It also shut down unloading at some ports.

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[Saree Benishore]

Every so often, we take the pulse of the US economy by talking to the people living in it, people with a range of unique perspectives. Today, the story of frontline workers during COVID 19. Anne Larson is a writer who focuses on economic justice and a fellow with the Economic Hardship Reporting Project. She spent a year working as a cashier at a big name grocery store. At the height of the pandemic, she spoke with my colleague David Brancaccio about her experience.

[David Brancaccio]

Just something on you to start. You found yourself at the sharp end of the economy, I guess we could call it, five years ago, as the pandemic hits hard, you worked a job that you could not do remotely, an essential worker at a grocery store. Right. And that was not a reporting project to see how the other half lived or something. This was for real?

[Anne Larson]

Anne this was for real, yeah. About five years ago, I found myself unemployed, out of work, and it happened to occur just at the moment that the pandemic hit. So very bad timing. And so in my city where I live, Salt Lake City, Utah, supermarkets were some of the only businesses hiring.

[David Brancaccio]

So many people across society were struggling at so many levels. But you and your coworkers, I mean, probably a special level of precariousness.

[Anne Larson]

You know, when I worked at the supermarket, the average wage was about 1350 an hour. Some people made more and some people made a little less. And that tracked with the national average for supermarket workers. The rate has ticked up a little bit since then, but. But right now cashiers are making an average of about $29,000 a year for a full time job. So the supermarket's part of this low wage economy where about 30 million workers are working in jobs that pay about that or less. I'll just share with you one study that came out a couple of years ago that showed that Kroger employees, Kroger is the second largest grocery company in the country. The study showed that about 3/4 of Kroger employees do not make enough to pay the bills, and about 40% said they were food insecure. So we have an industry that employs millions of people to sell the rest of us food, and they can't feed themselves. So this is a national crisis that I want to draw attention to and.

[David Brancaccio]

Probably not just Kroger. Now, when we take the economic pulse here, professional economists tell us the numbers look solid these days. They see resilience, meaning the overall macroeconomy. Yet many voters last fall and you here in January 2025 see that many feel that their financial is at the edge, is precarious. I guess we live in a world of technological advancement. Technology can help, but it can also make us more insecure.

[Anne Larson]

Right now, companies like Kroger and Walmart are in the process of implementing electronic price tags. So what that means is that when you walk down the aisles, what you're seeing is a digital tag that can be raised. The price can go up from a distance. So an executive sitting in an office 3,000 miles away can raise the price of the can of soup or the box of cereal in your store during a crisis, during a pandemic, the price of toilet paper might go up. And that's what the stores are implementing right now. Some members of Congress, a coalition led in the House by Rashida Tlaib, have written letters to Kroger asking for information about this and raising concerns. And so far, the companies have ignored members of Congress. They simply operate with impunity. And no one really knows what this dynamic pricing will look like, where it will be implemented, when prices will rise. And there needs to be some regulation. The public needs to know that this is happening.

[David Brancaccio]

Writer Ann Larson was working in a grocery store during Pandemic, an essential worker during those years. You can read more of her [e-mail] Anne, thank you so much.

[Anne Larson]

Thank you.

[Saree Benishore]

Ann Larson was speaking with Marketplace's David Brancaccio in New York. I'm Sabri Benishore with the Marketplace morning.

[Nova Sappho]

Report.

[Saree Benishore]

From APM American Public Media.

[Rob]

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