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Banks Attack, Crypto SNOOZES? 🚨 Crypto Market Update · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Crypto is surrendering to banks today. We're going to break
• 0:02
  Speaker 1: it down for you because this is a big, big
• 0:04
  Speaker 1: issue that we need to cover. Let's just get started.
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• 0:44
  Speaker 1: almost in the third fourth quarter of this year, tax
• 0:47
  Speaker 1: planning will begin, So get ready, guys, let's lead off
• 0:50
  Speaker 1: with this right here. And that of course is bull
• 0:52
  Speaker 1: theory hitting on a few things. And this is all
• 0:55
  Speaker 1: about the drama last week. This is the SEC, the CFTC,
• 0:59
  Speaker 1: the White House, all are holding major meetings now on
• 1:01
  Speaker 1: crypto on Wednesday, we're going to hear from the White
• 1:04
  Speaker 1: House in reference to meeting with crypto leaders along with
• 1:06
  Speaker 1: the chairs of the SEC and the CFTC, So Sealing
• 1:09
  Speaker 1: and Paul will both be there. One last remember the
• 1:13
  Speaker 1: last one was in February. This was more focused on
• 1:16
  Speaker 1: stable corn rewards and we had no agreement at the
• 1:19
  Speaker 1: end of that. So understand this may be a big
• 1:22
  Speaker 1: nothing burger. I think there is a little bit more
• 1:26
  Speaker 1: brewing here that meets the eye, and we'll get into
• 1:29
  Speaker 1: some of that. But there's some significant issues that are
• 1:32
  Speaker 1: happening right now with crypto, and I think the problem
• 1:36
  Speaker 1: is that we have not been seeing the PR machines.
• 1:40
  Speaker 2: Where are the PR machines?
• 1:42
  Speaker 1: What we do know is that Trump and the White
• 1:45
  Speaker 1: House is going to be meeting with a handful of
• 1:48
  Speaker 1: crypto leaders.
• 1:49
  Speaker 2: This is going to come in looks like.
• 1:50
  Speaker 1: Coinbase, Ripple, chain Link, Calshie, and a handful of others
• 1:54
  Speaker 1: including Andresen Horowitz. Here's my question, guys, why are we
• 1:58
  Speaker 1: not seeing Ripple and coin Base out there pushing hard
• 2:03
  Speaker 1: to at least position the industry. So where is the
• 2:07
  Speaker 1: PR teams? Where are the people? You guys, of course
• 2:09
  Speaker 1: are welcome on the show because I'd love to find
• 2:11
  Speaker 1: out where you guys think we're heading in, what in
• 2:15
  Speaker 1: fact do we need to prepare for as we start
• 2:18
  Speaker 1: to move into this meeting with Trump and the White House.
• 2:20
  Speaker 1: Let me go to a clip real quick because this
• 2:22
  Speaker 1: will get into a little bit more detail on what
• 2:25
  Speaker 1: Matt Hogan thinks is going to happen around winners and losers.
• 2:28
  Speaker 3: Take a look when I look at who's attending, it's
• 2:30
  Speaker 3: a lot from the crypto exchange side. It's a lot
• 2:33
  Speaker 3: from the traditional exchange side, folks like the CME, ice,
• 2:37
  Speaker 3: the DTCC. I think topic number one is actually going
• 2:41
  Speaker 3: to be tokenization. As you know, there's this huge change
• 2:44
  Speaker 3: in how we trade everything. We're going from nine thirty
• 2:47
  Speaker 3: to four to twenty four to seven, We're going from
• 2:49
  Speaker 3: calendar futures to perpetual futures. I think we're going to
• 2:52
  Speaker 3: talk about this mega trend of tokenization and the bigger
• 2:55
  Speaker 3: winners from this sort of the key winners I think
• 2:58
  Speaker 3: are actually the DeFi apps like uniswap Ave, maybe hyper Liquid,
• 3:03
  Speaker 3: even oracles like chain Link. The reason for that is
• 3:06
  Speaker 3: those apps are priced today like they're serving the crypto market,
• 3:09
  Speaker 3: which is a two trillion dollar market. This kind of
• 3:12
  Speaker 3: meeting says those apps are actually going to serve the
• 3:15
  Speaker 3: equity market that's one hundred and fifty trillion dollar market,
• 3:18
  Speaker 3: or the bond market that's a two hundred trillion dollar market.
• 3:22
  Speaker 1: So one thing that Matt is getting at here is
• 3:25
  Speaker 1: how is this coming together? Notice the heads of the companies.
• 3:29
  Speaker 2: That are visiting there.
• 3:30
  Speaker 1: You've got both crypto and you also have traditional finance,
• 3:33
  Speaker 1: And I think that's the key right here is I
• 3:35
  Speaker 1: think this is finally a point where the White House
• 3:38
  Speaker 1: is going to position Crypto to simply say it's time
• 3:41
  Speaker 1: to bend the knee.
• 3:42
  Speaker 2: TRADFI is taking over.
• 3:44
  Speaker 1: You've got the issue now around DeFi that is probably
• 3:47
  Speaker 1: going to end up with mostly institutional capital flowing into DeFi.
• 3:51
  Speaker 1: Question there will be how does this play out? This
• 3:54
  Speaker 1: is not going to end well, I do not think
• 3:58
  Speaker 1: all right.
• 3:58
  Speaker 2: So where is Cynthia Lama? That's my question.
• 4:01
  Speaker 1: This is the person that has been behind the face
• 4:05
  Speaker 1: of crypto for quite some time. Has she finally been
• 4:09
  Speaker 1: a position where she's simply saying bound out gracefully?
• 4:12
  Speaker 2: Because at this.
• 4:13
  Speaker 1: Point it looks as though the banks are going to win.
• 4:16
  Speaker 1: Let's take a look at this also, and that is
• 4:18
  Speaker 1: the direction of the Treasury. You've got Best sitting here
• 4:22
  Speaker 1: right now simply saying, hey, we're going to propose that
• 4:24
  Speaker 1: these rules take effect. You've got a sixty day public
• 4:29
  Speaker 1: comment period.
• 4:30
  Speaker 2: Now.
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  Speaker 1: I think what's going to go on here is that
• 4:32
  Speaker 1: the banks are going to use this sixty days to
• 4:34
  Speaker 1: continually attack against banning stable coin yields.
• 4:39
  Speaker 2: And this, of.
• 4:39
  Speaker 1: Course is very very bad for crypto because we don't
• 4:43
  Speaker 1: have any voices out there pushing against this right now.
• 4:46
  Speaker 1: It seems as though the industry has gone quiet, and
• 4:49
  Speaker 1: this all points to a problem that could be brewing
• 4:52
  Speaker 1: right now, and that is going to put up the
• 4:54
  Speaker 1: gates around a lot of this infrastructure that is going
• 4:57
  Speaker 1: to be dealing with essentially what the stable Coin and
• 5:01
  Speaker 1: Genius Act have put in play.
• 5:02
  Speaker 2: Now.
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  Speaker 1: The bankers still have some interesting things to say here
• 5:08
  Speaker 1: and how they approach it, well, take a look at
• 5:10
  Speaker 1: this clip and you'll see what I mean.
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  Speaker 4: I was in a lot of the rooms where we
• 5:14
  Speaker 4: were having these conversations. You know, agreement in principle on
• 5:18
  Speaker 4: how interest like payments will be prohibited on payment stable coins,
• 5:23
  Speaker 4: but there will be an allowance for rewards to be
• 5:26
  Speaker 4: made for bona fide activities, certain transaction based rewards. But
• 5:30
  Speaker 4: where things stand now is kind of the same place
• 5:32
  Speaker 4: they've stood since early May, since the markup. The actual
• 5:37
  Speaker 4: legislative text that's intended to implement that that principle doesn't
• 5:42
  Speaker 4: quite do the job, and so you know, we've continued
• 5:45
  Speaker 4: to advocate for a pretty narrow set of changes.
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  Speaker 2: All right.
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  Speaker 1: I think first of all, she needs to make up
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  Speaker 1: her mind because we agreed in principle, but in reality,
• 5:55
  Speaker 1: the way it's written, it's not really in principle.
• 5:58
  Speaker 2: What they want.
• 5:59
  Speaker 1: The reality is they're going after stable coins. They're going
• 6:02
  Speaker 1: to make us jump through so many hoops it's going
• 6:06
  Speaker 1: to be useless to try to go out there and
• 6:08
  Speaker 1: do anything on stable coins with some of these yield
• 6:10
  Speaker 1: opportunities that exist today right now, So get ready, guys,
• 6:14
  Speaker 1: I think it's going away. Here is Matt Hogan talking
• 6:17
  Speaker 1: about whether or not Clarity actually ever goes through.
• 6:21
  Speaker 2: Take a look.
• 6:22
  Speaker 3: My expectation is that this thing will never die and
• 6:26
  Speaker 3: maybe will never pass. It will just sort of live
• 6:29
  Speaker 3: in this perpetual almost state. I do think the other
• 6:33
  Speaker 3: part that I said, which also is coming true, is
• 6:36
  Speaker 3: that crypto will move on be out without it. But
• 6:40
  Speaker 3: the broad idea that we're moving ussets on chain, I
• 6:43
  Speaker 3: just think there's no way even the anti crypto army
• 6:46
  Speaker 3: will be able to peel that back.
• 6:47
  Speaker 1: This eventually will having no regulatory framework is eventually going
• 6:52
  Speaker 1: to hurt an industry the size of what crypto eventually
• 6:55
  Speaker 1: will be. I do agree in one part, and that
• 6:58
  Speaker 1: is that crypto's going to move along. The only problem
• 7:01
  Speaker 1: is that may move along without the United States as
• 7:04
  Speaker 1: being the lynch pin of where the financial infrastructure is
• 7:07
  Speaker 1: going to be built. Now, granted, yes, you're going to
• 7:09
  Speaker 1: have a lot of infrastructure being built around tokenized assets.
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  Speaker 1: I get that, but this is a huge thwart to
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  Speaker 1: innovation if we don't see some sort of implementation for
• 7:22
  Speaker 1: regulatory framework. So not a good look I think in general.
• 7:26
  Speaker 1: And this only kind of confirms a little bit more
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  Speaker 1: of what I'm believing here, and that is what Sailor
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  Speaker 1: is doing, and that is fact that they're not buying bitcoin.
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  Speaker 1: You've got essentially eight consecutive weeks now another pause on it.
• 7:37
  Speaker 1: Company also sold three point four six million shares of
• 7:41
  Speaker 1: Master last week, so they raised an a three hundred
• 7:43
  Speaker 1: and thirty three million all of that and none of
• 7:45
  Speaker 1: it went into bitcoin. So that looks as though Sailor
• 7:49
  Speaker 1: has finally yielded to what's happening here with the industry
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  Speaker 1: and maybe what's going on within the framework of regulation.
• 7:56
  Speaker 1: And here's them just kind I feel like this is
• 7:59
  Speaker 1: kind of just cope with the issue, and that is
• 8:01
  Speaker 1: their statement here strategy statement, and that is digital assets
• 8:05
  Speaker 1: are assets. Index providers should measure markets, not decide which
• 8:09
  Speaker 1: asset companies are allowed to own. That only tells me
• 8:11
  Speaker 1: because you're not going to be in the group. So
• 8:13
  Speaker 1: the msci's proposal puts it out of step with regulators,
• 8:18
  Speaker 1: and Master doesn't necessarily need this. So I think this
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  Speaker 1: is a cope mechanism for what's actually going on right
• 8:26
  Speaker 1: now with the crypto markets, and it is moving to tradify. Unfortunately,
• 8:31
  Speaker 1: the real question is is what kind of implementation changes
• 8:35
  Speaker 1: will be underway in the next few months. And it's
• 8:38
  Speaker 1: very possible we could see some of this coming out
• 8:39
  Speaker 1: of this meeting this week in the White House. Here's
• 8:42
  Speaker 1: Matt Hogan again, because he talks about where the narratives
• 8:46
  Speaker 1: are going to come from.
• 8:47
  Speaker 2: Take a look.
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  Speaker 3: I think some of the biggest catalysts are in places
• 8:50
  Speaker 3: that crypto Twitter is not looking right. If you talk
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  Speaker 3: about Morgan, Stanley, Wells, Fargo, Ubs and Marylands, the four
• 8:57
  Speaker 3: sort of largest wealth management platforms. Again, twenty trillion dollars
• 9:01
  Speaker 3: of assets there. If you're starting to get model allocations
• 9:04
  Speaker 3: of one or two percent, that's a huge amount of inflows.
• 9:07
  Speaker 3: So I think a lot of crypto thinks about the FED,
• 9:09
  Speaker 3: they think about the Clarity Act, they think about RAG Crypto.
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  Speaker 3: All of those are really important, but many of the
• 9:15
  Speaker 3: biggest catalysts are actually internal to these wealth management platforms
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  Speaker 3: that are going to be the marginal buyer of the
• 9:21
  Speaker 3: large cap assets I think over the next few years,
• 9:24
  Speaker 3: and I would watch for those sort of small news
• 9:27
  Speaker 3: stories that actually trigger tens of billions dollars of flows
• 9:32
  Speaker 3: on a persistent basis for years in the future.
• 9:35
  Speaker 1: Okay, so Matt is right, crypto Twitter doesn't actially hit on.
• 9:39
  Speaker 1: That We've touched on this multiple times is that at
• 9:43
  Speaker 1: some point there will be a landslide shift in how
• 9:48
  Speaker 1: tradfi starts to deal with this. The one pushback that
• 9:51
  Speaker 1: I have with what Matt's thesis is is really how
• 9:55
  Speaker 1: the narrative is going to be pushed out into the
• 9:58
  Speaker 1: public and what I mean by that is the ability
• 10:01
  Speaker 1: to get true adoption scale.
• 10:03
  Speaker 2: And because remember again it maybe.
• 10:05
  Speaker 1: The industry has been kind of on that defensive offensive
• 10:08
  Speaker 1: play and a lot of people have been a little
• 10:10
  Speaker 1: unsure of investing. I think we're still kind of in
• 10:13
  Speaker 1: that position. So it is going to be a matter
• 10:16
  Speaker 1: of adoption curves and cycles. Now, if it takes a
• 10:19
  Speaker 1: with and we start to see growth, yeah, I think
• 10:22
  Speaker 1: that could be the case, and Matt might be right
• 10:24
  Speaker 1: with that. But this is something we've been talking about
• 10:26
  Speaker 1: for quite a while. The only problem is it had
• 10:29
  Speaker 1: not been happening just yet. Could this be the signal
• 10:33
  Speaker 1: where it is going to happen? We'll see, all right.
• 10:36
  Speaker 1: One of the things that mask getting at is here's
• 10:38
  Speaker 1: the example right here of UBS.
• 10:40
  Speaker 2: This is they've more than.
• 10:41
  Speaker 1: Quadrupled their black bitcoin ETF position to nearly ninety million. Granted, guys,
• 10:46
  Speaker 1: that's very small in general terms, but it does give
• 10:50
  Speaker 1: you a signal that maybe there is more coming. I'll
• 10:53
  Speaker 1: look for this as we start to see real numbers
• 10:56
  Speaker 1: start to pile into crypto, maybe this fall, as we
• 10:59
  Speaker 1: look at the mark maybe starting to correct a bit.
• 11:02
  Speaker 1: You can, of course, always count on Tom Lee and
• 11:05
  Speaker 1: Tom Lee's Bitmin continued to add more eth last week,
• 11:08
  Speaker 1: not like strategy, and he is of course bringing his
• 11:11
  Speaker 1: total holdings to five point eight million eth. Five point
• 11:16
  Speaker 1: eight million eth tokens, guys, just so you understand, this
• 11:19
  Speaker 1: is unreal, and they are nearing that five percent mark,
• 11:23
  Speaker 1: which has really been the look of what they've been
• 11:24
  Speaker 1: after a.
• 11:25
  Speaker 2: Third of all eth is also staked.
• 11:28
  Speaker 1: Thirty four point four percent right now of Ethereum's supply
• 11:31
  Speaker 1: is now staked, which is a huge share of the
• 11:33
  Speaker 1: supply all locked up, and this is something we talked
• 11:36
  Speaker 1: about at Nauseum, I feel like, and that is the
• 11:39
  Speaker 1: opportunity for investors to finally figure out that Ethereum actually
• 11:44
  Speaker 1: is one of the key assets to be able to
• 11:46
  Speaker 1: invest in, especially in some of these areas like what
• 11:49
  Speaker 1: bitmin is doing. So listen, this week is going to
• 11:51
  Speaker 1: be huge. You've got these meetings that I think will
• 11:54
  Speaker 1: give the narrative. Watch for a few things. First of all,
• 11:58
  Speaker 1: watch for some gas lighting because going to see it.
• 12:01
  Speaker 1: Also watch for some very specific players, some of those
• 12:05
  Speaker 1: from SIFMA that we'll be playing into this, who are
• 12:08
  Speaker 1: all looking at how the SEC and the CFTC are
• 12:11
  Speaker 1: going to construct this rulemaking and what kind of message
• 12:15
  Speaker 1: because remember it's the White House that actually stopped the
• 12:19
  Speaker 1: SEC from doing their release of how they were going
• 12:22
  Speaker 1: to go forward. And I think this all gets into
• 12:25
  Speaker 1: the negotiation around clarity, and that doesn't mean it's going
• 12:27
  Speaker 1: to happen.
• 12:27
  Speaker 2: Who knows.
• 12:28
  Speaker 1: We'll see, but there are a lot of players now
• 12:31
  Speaker 1: at the table, so stay tuned. If you like this video,
• 12:41
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• 12:44
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• 12:46
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