Latest / The Paul Barron Crypto Show / CLARITY Leak Collapses Stablecoin Yield Companies📉Banks Win?🚨

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CLARITY Leak Collapses Stablecoin Yield Companies📉Banks Win?🚨 · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Clarity collapses underway today, a lot of news breaking out
• 0:03
  Speaker 1: of DC and it doesn't look good or does it
• 0:05
  Speaker 1: will break it all down for you. I do want
• 0:07
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• 0:09
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• 0:53
  Speaker 1: the first thing breaking right now. Iran is confirming that
• 0:56
  Speaker 1: there has been an outreach by the US and that
• 0:59
  Speaker 1: Iran is willing to listen. So we've got a little
• 1:02
  Speaker 1: bit of a proposal possibly going into the queue. Now
• 1:06
  Speaker 1: there are a lot of demands from both sides. I
• 1:08
  Speaker 1: anticipate this is more of a negotiation tactic from both sides,
• 1:12
  Speaker 1: trying to play a power position. As you can see,
• 1:14
  Speaker 1: there's some pretty big ones.
• 1:16
  Speaker 2: Some of them, of.
• 1:17
  Speaker 1: Course, are military action, war related losses, formal control over
• 1:22
  Speaker 1: horror moves, no restrictions. This is another one on ballistic
• 1:25
  Speaker 1: missile program, all those kind of things that can get
• 1:28
  Speaker 1: pretty dicey.
• 1:29
  Speaker 2: We'll see how it plays out.
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  Speaker 1: But the point is, are we still in a de
• 1:33
  Speaker 1: escalation phase? That's the question I think that a lot
• 1:36
  Speaker 1: of people are looking at. I want to go clip
• 1:38
  Speaker 1: over to a clip real quick.
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  Speaker 2: This is Mark kud Moore's talking about.
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  Speaker 1: How does this off ramp look at least getting out
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  Speaker 1: of this war and how would the markets respond.
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  Speaker 2: Take a look.
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  Speaker 3: I guess it's fair to say that in the last
• 1:52
  Speaker 3: twenty four hours things have improved marginally, very very marginally,
• 1:58
  Speaker 3: by the fact that Trump has pulled back from a
• 2:01
  Speaker 3: pretty extreme ultimatum. I say that very very marginally because
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  Speaker 3: everyone presumed you'd pull back. First of all, just destroying
• 2:09
  Speaker 3: energy infra structure is very explicitly a war crime. But
• 2:13
  Speaker 3: also it would not seem to kind of help their
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  Speaker 3: situation of getting lower energy prices. So it's marginal. But
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  Speaker 3: from a week ago, things are much worse. You know,
• 2:23
  Speaker 3: we've learned that Iran has great range in their missiles.
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  Speaker 3: The way that Trump is flip flopping shows that Iran
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  Speaker 3: has much more power. It's being acknowledged that Iran controls
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  Speaker 3: when the state opens. That's why Trump made this Ultimate
• 2:35
  Speaker 3: made him that Iran must open it. That you know,
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  Speaker 3: Trump is pulled back from the narrative that they've destroyed
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  Speaker 3: Iran's navy and they're fully in control and they've won
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  Speaker 3: the war. He's going please open it.
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  Speaker 2: We're desperate.
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  Speaker 3: So I think things are significantly worse than a week ago.
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  Speaker 3: And what's worrying though, is that investors remain extremely complacent.
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  Speaker 3: So the overall trend is getting worse, and yet convestors
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  Speaker 3: remain very complacent. So look, I've been bearished for the
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  Speaker 3: last three weeks. It's the worst month in global stocks
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  Speaker 3: in three and a half years. I still think it's
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  Speaker 3: going to get a lot worse of the next week
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  Speaker 3: or two. Because I'm not a geopolitical expert, but there's
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  Speaker 3: no off ramp that I see is viable for around
• 3:10
  Speaker 3: right now.
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  Speaker 1: All right, So I don't know that I agree with that.
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  Speaker 1: I think there will be a negotiation out of this.
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  Speaker 1: I'm hoping that is the case. Again, I'm no geopolitical expert,
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  Speaker 1: but you just have to look at the narrative, and
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  Speaker 1: the narrative really is built off of what's happening in
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  Speaker 1: the US economy and obviously within the US stock market,
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  Speaker 1: investors are pouring money right now in the energy stocks.
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  Speaker 1: This is a record pace if you can look at comparisons.
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  Speaker 1: Previous week peak was about seven billion at the beginning
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  Speaker 1: of twenty one.
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  Speaker 2: That is now.
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  Speaker 1: We're also seeing a West Texas crew now surging to
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  Speaker 1: one twenty nine a barrel. I know that's been back
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  Speaker 1: down off of that, but this all comes nearly two
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  Speaker 1: years of consistent outflows. So think about that. Energy stocks
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  Speaker 1: seeing a little bit of a historic move. Other things
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  Speaker 1: you got to look at right here.
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  Speaker 2: The US will.
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  Speaker 1: Now cancel its into offshore wind farms, so that means
• 4:02
  Speaker 1: they're redirecting everything toward energy becoming and staying in the
• 4:07
  Speaker 1: energy independent. You remember not too long ago when Putin
• 4:11
  Speaker 1: and Trump met in Alaska and they met over the
• 4:15
  Speaker 1: LNG pipeline that they were trying to build, and it
• 4:18
  Speaker 1: wasn't going to be ready. So I think there was
• 4:20
  Speaker 1: that a deal that they were trying to make with
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  Speaker 1: the Russians so they could allow LLNG to come out,
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  Speaker 1: because remember Qatar also got hit where they supply twenty
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  Speaker 1: percent of LNG. So very interesting things happening right now
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  Speaker 1: on the energy markets in specific.
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  Speaker 2: Other things that you got to look at is this
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  Speaker 2: right here.
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  Speaker 1: A revised draft of the Clarity Act has been now revealed,
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  Speaker 1: and this is the issue that we're talking about today.
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  Speaker 2: Now.
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  Speaker 1: The question is everything has been pushed on to yield
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  Speaker 1: stable coin payment, and if you're brand new to crypto,
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  Speaker 1: what it simply means is you hold a US d
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  Speaker 1: C or a a stable coin, you're getting yield against that,
• 5:02
  Speaker 1: in some cases up to four percent.
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  Speaker 2: Right now.
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  Speaker 1: Banks do not pay anywhere near that this was a
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  Speaker 1: threat to them. They of course have now appears, at
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  Speaker 1: least in the pre draft of what we're starting to
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  Speaker 1: see come out, is that this has now gone into
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  Speaker 1: where if you're not making this work your asset stable coins,
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  Speaker 1: then you would not get yield, So that's the issue.
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  Speaker 1: Rewards tied to balances no longer allowed. Lawmakers aim to
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  Speaker 1: avoid similarities with bank deposits. The move reflects a lot
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  Speaker 1: of pressure coming from the sector. Debate around the stable
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  Speaker 1: coin utility is intensifying. All of this gets into it.
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  Speaker 1: I want to ask though, the question because this may
• 5:40
  Speaker 1: get intriguing it because I think the point of you
• 5:44
  Speaker 1: going in and initializing a yield activity within a wallet,
• 5:50
  Speaker 1: would that not qualify for being able to get yields?
• 5:53
  Speaker 1: Since that would not be a passive move of me
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  Speaker 1: just parking US dollars in there.
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  Speaker 2: There's a lot of.
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  Speaker 1: Things that I think are yet to I'm out on this.
• 6:01
  Speaker 1: A couple of things from Eleanor. She's been breaking a
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  Speaker 1: lot of news on this, and she hits on. The
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  Speaker 1: proposal would also permit activity based rewards tied to user activity,
• 6:12
  Speaker 1: loyalty promotion, subscription programs. Maybe that would be the angle here.
• 6:16
  Speaker 1: Notice subscription programs, will you pay for a subscription right now?
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  Speaker 1: Coinbase one, crack and plus those kind of things. Could
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  Speaker 1: you end up actually getting yield if you're in one
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  Speaker 1: of those programs? Tied to some sort of user inacting
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  Speaker 1: that's also intriguing.
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  Speaker 2: So all of this is still yet to be done.
• 6:37
  Speaker 2: We'll see how it plays out.
• 6:38
  Speaker 1: They are and there are a little bit of activity
• 6:42
  Speaker 1: around DeFi because this is a big concern right now.
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  Speaker 2: How is this going to play out.
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  Speaker 1: We're hoping that we get some language coming from this
• 6:48
  Speaker 1: because this has been very secret coming out of DC. However,
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  Speaker 1: with all that secrecy, I think what we saw here
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  Speaker 1: was Circle responding to this, and it's amazing that there
• 7:01
  Speaker 1: was that many holders that saw this move just as
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  Speaker 1: a narrative that would be bad for Circle, when in
• 7:08
  Speaker 1: reality this might be good because they would no longer
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  Speaker 1: have to pay yield out to Coinbase. Coinbase may not
• 7:16
  Speaker 1: have to pay yield out to you depending on what
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  Speaker 1: your you know, your qualification is.
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  Speaker 2: But for it to drop Circle like it.
• 7:24
  Speaker 1: Did over fifteen percent today is pretty significant. I wonder
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  Speaker 1: what it will really look like in the short term.
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  Speaker 1: Kathy would remember sold five point nine million worth of
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  Speaker 1: Circle four days ago and it crashed sixteen percent. Interesting
• 7:40
  Speaker 1: not say anything, I'm just saying sometimes you sometimes you're lucky.
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  Speaker 1: Something though it seems like ripple growth Clarity act if
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  Speaker 1: you know, you know, this is Hugo Phylon Felon there.
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  Speaker 1: He of course kind of runs the network there at
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  Speaker 1: Flair and there are a rewards program activity available right now.
• 7:59
  Speaker 1: If you get into flare token, there's governance that allows
• 8:03
  Speaker 1: you to earn your money, earn money on XRP. So
• 8:06
  Speaker 1: that's kind of interesting that you have these kind of
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  Speaker 1: rewards programs that most likely will be protected in DeFi.
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  Speaker 1: And of course they're kind of hitting on that very
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  Speaker 1: point right there. A couple other points I want to
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  Speaker 1: hit right here. This forces capital that previously chased centralized
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  Speaker 1: yield now to maybe go into DeFi protocols instead.
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  Speaker 2: So remember a lot of people are.
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  Speaker 1: Like, hey, I'm moving in stable coins, but I want
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  Speaker 1: to try to get a yield on it, so I'm
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  Speaker 1: gonna put it all in coinbase or in Gemini or
• 8:33
  Speaker 1: in robin Hood even though Robin doesn't pay on stable coins,
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  Speaker 1: they pay on dollars. Could we see that flight of
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  Speaker 1: capital coming out of centralized exchanges moving their way onto
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  Speaker 1: DeFi if we start to see the lack of that
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  Speaker 1: availability there, So we put up a poll that said,
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  Speaker 1: did the banks win on clarity? Now I know you
• 8:52
  Speaker 1: guys would say yes, the bank's won. I don't think so.
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  Speaker 1: I think it's a no. I know that this is
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  Speaker 1: going to come back as yes, but I'm gonna click no.
• 9:02
  Speaker 1: And here's the reason why. Because now they have realized
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  Speaker 1: that we were right, and I think the fact that
• 9:09
  Speaker 1: they are seeing and will see continued pushback on this.
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  Speaker 1: And remember this isn't even through yet, it's not even done,
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  Speaker 1: so we may still see more of a fight continuing
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  Speaker 1: in DC as this plays out, and the banks are
• 9:23
  Speaker 1: now starting to see and understand that they're going to
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  Speaker 1: have to concede something. At least they conceded something here.
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  Speaker 1: I wonder how much more could be conceded if the
• 9:32
  Speaker 1: pushback is real. This, of course is interesting because totally
• 9:36
  Speaker 1: hits on this. Formally, verify your code, Please audit the
• 9:39
  Speaker 1: code and proofs. Don't trust anything or any one.
• 9:43
  Speaker 2: You know what that means Right there?
• 9:44
  Speaker 1: Well, there's Vlad kind of said, yeah, you probably should
• 9:46
  Speaker 1: pay attention. This is a big deal because DeFi wins.
• 9:50
  Speaker 1: One other thing I want to hit on right here,
• 9:51
  Speaker 1: because part of the at least on the surface of
• 9:55
  Speaker 1: what we're hearing coming on DC, is that there may
• 9:57
  Speaker 1: be something in there related to Trump's activity in crypto,
• 10:01
  Speaker 1: and here's Margaret Ryan giving her resignation, and this is
• 10:04
  Speaker 1: an SEC enforcement chief jumping out and mainly because of
• 10:08
  Speaker 1: the Trump's activity with World Liberty five. So I don't
• 10:12
  Speaker 1: know if that is even in the cards, because if
• 10:14
  Speaker 1: that is still in the bill, I can't imagine that
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  Speaker 1: Trump would sign off on this.
• 10:18
  Speaker 2: So this thing member.
• 10:19
  Speaker 1: Makes it out of the DC. Other things right here,
• 10:23
  Speaker 1: Apollo is now capping redemptions at five percent, some more
• 10:27
  Speaker 1: private credit getting hit. Not good for I think in
• 10:30
  Speaker 1: general limitations, Iris also dropping in redemptions, limiting at ten
• 10:36
  Speaker 1: point seven billion in private equity fund now starting to
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  Speaker 1: see a surgeon people trying to get those assets. The
• 10:43
  Speaker 1: other thing you got to look at, guys, are nothing
• 10:45
  Speaker 1: that's happening is going to change our debt and we
• 10:49
  Speaker 1: are still in a dollar system that is losing money
• 10:54
  Speaker 1: every day just because of what we're dealing with with
• 10:55
  Speaker 1: the debt acquisition. I think the key here is getting
• 10:59
  Speaker 1: the flip of the switch and starting to move into
• 11:02
  Speaker 1: a new revolution here around not only digital assets, but
• 11:05
  Speaker 1: I think token ice securities, token ice treasuries that may
• 11:08
  Speaker 1: open this thing up for the United States. I don't
• 11:10
  Speaker 1: think it solves the problem, but it definitely kicks the
• 11:12
  Speaker 1: can down the road.
• 11:13
  Speaker 2: So let's wrap up real quick. Just take a look.
• 11:15
  Speaker 1: At the SPX. You can kind of see it has
• 11:17
  Speaker 1: been falling for quite some time. That's the daily chart,
• 11:20
  Speaker 1: so continuing to pull down at sixty five seventy seven.
• 11:24
  Speaker 1: Gold has also been falling dramatically. Look at that's wick
• 11:28
  Speaker 1: right there, down to forty one hundred. Do we see
• 11:31
  Speaker 1: a three thousand dollars gold coming in? I'd like to
• 11:35
  Speaker 1: know other things that are happening right now. I want
• 11:37
  Speaker 1: to kind of focus in on a couple there. Of course,
• 11:40
  Speaker 1: is Coinbase also seeing a little bit of a setback
• 11:43
  Speaker 1: at one eighty two. Circle Meta was down Circle of
• 11:47
  Speaker 1: course now still on a nineteen percent candle on the
• 11:51
  Speaker 1: day right there. Again, I think this may be a
• 11:54
  Speaker 1: little bit overblown for what's happening right now for Circle,
• 11:57
  Speaker 1: so they're just getting a little bit of the of
• 12:00
  Speaker 1: the pushback here.
• 12:01
  Speaker 2: Lots happening. Hood though, did take a little bit of
• 12:03
  Speaker 2: a step.
• 12:04
  Speaker 1: Down as well, So I think the finance markets are
• 12:06
  Speaker 1: trying to understand maybe Clarity has a bigger reach than
• 12:10
  Speaker 1: everyone is expecting. Well, we're going to get more to
• 12:13
  Speaker 1: you as we get more data coming out of DC
• 12:16
  Speaker 1: and what this means for crypto in general.
• 12:18
  Speaker 2: Stay tuned.
• 12:25
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• 12:28
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• 12:31
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