Editor’s Note: As a Trade of the Day reader, you know that both Bryan and Karim are not into crypto. We see a lot of risk in this mostly unregulated market – and hundreds of Ponzi scheme land mines. But due to the recent bank runs, it has picked up some momentum, so we thought we might as well offer you a counterargument… which brings us to Andy Snyder’s comments below. Check them out.

– Ryan Fitzwater, Associate Publisher

It’s the battle cry of the political class. They preach it for a reason.

It works.

As investors and traders, we must embrace the same mentality. There’s no doubt the banking world is in a crisis. The sector’s stocks have plunged.

It’s creating tremendous opportunity. Some stocks have already surged from new lows.

But I’m not here to tell you to trade banks. There are profits to be made, but the sector is a volatile mess. It’d be a pure gamble.

Instead, we need to do what we do so well at Manward. We need to dive into the story behind the story… to find the truly monstrous gains.

There’s no doubt that this latest crisis has its roots in the crypto market. As huge Bitcoin bets failed, several large companies and several large banks absorbed major losses. The fall of New York’s Signature Bank is certainly tied to crypto.

It has the folks at the SEC itching for action.

More regulation is certainly on the way.

That has some investors worried. Some of the world’s savviest investors, though, are pumping their fists in anticipation of what’s about to come.

The latest worry in the crypto industry is over a very popular token known as Cardano (ADA). There are growing concerns that the SEC will deem it a security. If it fails the oh-so-important “Howey test” (the test regulators use to determine whether an asset is indeed an “investment contract”), the token’s trading will grind to a halt.

We saw this happen recently with Binance’s stablecoin. And, of course, Ripple has been the poster child of this fight for years. If it loses its case with the SEC, it will face a $2 billion penalty.

Indeed, the push to label cryptos as securities is creating a crisis for many players in the space. There’s a panic.

We mustn’t let it go to waste.

Instead of buying a crypto and worrying that regulators may suddenly eat it for lunch, we should invest in the tokens that have already done the inevitable and registered as securities with the SEC.

Few folks likely read it, but in his latest note to investors, BlackRock’s famed CEO, Larry Fink, hit on the subject.

The billionaire believes security tokens could be the next big thing in the realm of digital assets.

From his letter…

In particular, the tokenization of asset classes offers the prospect of driving efficiencies in capital markets, shortening value chains, and improving cost and access for investors. At BlackRock, we continue to explore the digital assets ecosystem, especially areas most relevant to our clients, such as permissioned blockchains and tokenization of stocks and bonds.

Those last five words are huge – “tokenization of stocks and bonds.” That trend represents the future of not just money, but Wall Street.

Look, the Federal Reserve just quietly announced it will launch its new “FedNow” instant payment system in July. Testing by several firms will start within the next three weeks.

This new system will allow for the instant transfer of payments across banking systems.

Currently, these transfers can take days.

It’s clearly the first step in what Fink is talking about – moving our money, our stocks and almost all of our tradable assets off of today’s outdated and unsecure platforms and onto the blockchain.

It’s the future of money. It’s what so many crypto zealots have yearned for.

But it’s not happening outside of a well-regulated space. This latest crisis proves it.

Security tokens are going to be the HUGE winner in all of this.

YOUR ACTION PLAN

I am very excited about what’s happening. In fact, I just released a full presentation on the topic, in which I give away one of my favorite ways to play the opportunity… for free.

Plus, I detail the full history of the Howey test.

This is must-know stuff… with some absolutely huge numbers attached to it.

You can get it all here.

Be well,

Andy

FUN FACT FRIDAY

Stop Yelling, Yellen! The Federal Open Market Committee (FOMC) decided to raise the benchmark interest rate by a quarter of a percentage point to a range of 4.75% to 5%. However, it also expressed concerns about the recent financial volatility, particularly in the banking sector, which resulted in even more market turbulence.

In the chart below, you can see that rates are projected to end their upward march later this year.

Meanwhile, Treasury Secretary Janet Yellen made comments on deposit guarantees that stole Fed Chairman Jerome Powell’s limelight. This news caused bank stocks to plummet and led to a sell-off in the broader market.

Investors are now closely watching the banking sector, which is at the forefront of the current market instability. But in the chaos, there is always opportunity. In Wednesday’s Trade of the Day Plus, Karim revealed a stock that is getting punished like it’s a bank stock… but it isn’t one. And the best part… insiders are pouring in. Click here for the details.