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Crypto vs Old Exchanges🔥SEC Roundtable Fight!🚨 · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Let's get into the crypto industry versus the old guard.
• 0:03
  Speaker 1: You guys don't want to miss this one. Welcome back
• 0:04
  Speaker 1: into the show. Let's get started or do you want
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  Speaker 1: our link down below. You'll get a little bit of
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  Speaker 1: a discount to get started. All right, So there was
• 0:39
  Speaker 1: a lot happening. The SEC came in. They had this
• 0:43
  Speaker 1: nice little round table going on, a little you know,
• 0:46
  Speaker 1: Kumbaya effort and harmonization between the two because this is
• 0:50
  Speaker 1: the first time that this has happened. All right, So
• 0:53
  Speaker 1: as you look at what's going on within the SEC,
• 0:55
  Speaker 1: obviously Paul Atkins very pro crypto has now taken the
• 0:59
  Speaker 1: helm over our beloved Gary Gensler, and then of course
• 1:03
  Speaker 1: Crypto Mom herself very into Crypto. I think one of
• 1:07
  Speaker 1: the champions that really kind of fought tooth and nail
• 1:10
  Speaker 1: with Gary Gensler quite a bit. Karen Crinshaw, who has
• 1:12
  Speaker 1: always been anti Crypto, has not changed her position. I
• 1:16
  Speaker 1: think she's a little bit sore about this. And even
• 1:20
  Speaker 1: Mark you Ada, I will call him star wars Mark
• 1:23
  Speaker 1: in terms of just his adoption of where crypto is going.
• 1:26
  Speaker 1: I want to play a clip for you. This is
• 1:28
  Speaker 1: Caroline Crenshaw showing her stripes. Take a look. For too long,
• 1:33
  Speaker 1: the SEC and the CFTC have operated in parallel lanes,
• 1:37
  Speaker 1: too often in afflict with each other.
• 1:40
  Speaker 2: That era is behind us.
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  Speaker 3: The first SEC CFTC joint roundtable since Dodd Frank almost
• 1:47
  Speaker 3: fifteen years ago. It's a new day and the turf
• 1:51
  Speaker 3: war is over. Good afternoon, and welcome to today's roundtable. Harmonization
• 2:00
  Speaker 3: sounds like a laudable objective. This is perhaps unsurprising, since
• 2:05
  Speaker 3: harmony is by definition pleasing to the human ear. Great.
• 2:11
  Speaker 1: I think she wasn't necessarily happy about being there. You
• 2:13
  Speaker 1: could kind of tell it the purpose of this meeting
• 2:17
  Speaker 1: in This roundtable was to try to bring in the
• 2:20
  Speaker 1: old guard of finance in Wall Street and the new
• 2:24
  Speaker 1: guard of the evolution of finance FinTechs from all around
• 2:27
  Speaker 1: the world to come together. One of the guys that
• 2:30
  Speaker 1: was there was this fellow right here. He is the
• 2:32
  Speaker 1: head of the CME. This is Terrence Duffy. You'll see
• 2:35
  Speaker 1: why we're showing you this shortly. If you guys will remember,
• 2:39
  Speaker 1: the CME group CEO opposed the special exemptions by Polymarket
• 2:44
  Speaker 1: and cal She also the Chicago Board of Options Exchange
• 2:48
  Speaker 1: that's the CBOE share a similar stance. So basically it's
• 2:52
  Speaker 1: a bunch of Chicago guys that did not like this
• 2:54
  Speaker 1: because they have pretty much run the show for a
• 2:57
  Speaker 1: very very long time. This starts to change things up
• 2:59
  Speaker 1: a little bit. There's a new sheriff in town, and
• 3:02
  Speaker 1: these guys showed up in a big way. One of
• 3:06
  Speaker 1: the things, of course, if you guys might remember here
• 3:08
  Speaker 1: Shane Copeland. This is the CEO of Polymarket, and this
• 3:12
  Speaker 1: was interesting because he's taken a lot of heat with
• 3:16
  Speaker 1: what's gone on within Polymarket. You'll see right there, this
• 3:19
  Speaker 1: of course was a tweet back after the election last fall,
• 3:23
  Speaker 1: and he even had the FBI breaking down his door.
• 3:26
  Speaker 1: I mean, this guy has gone through hell and back
• 3:29
  Speaker 1: since all of this, and very traumatic. But the point
• 3:31
  Speaker 1: being is I think crypto in general has gone through that.
• 3:34
  Speaker 3: Well.
• 3:35
  Speaker 1: This is where it all started. I think a lot
• 3:37
  Speaker 1: of this got aired out in the open in some
• 3:40
  Speaker 1: of these clips. Take a look at this one.
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  Speaker 4: So I'm CEO of poly Market. I was worried when
• 3:44
  Speaker 4: I showed up here they were going to wisk me
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  Speaker 4: away to another room. It is very difficult to go
• 3:50
  Speaker 4: and map building an N chain product, a DeFi product
• 3:53
  Speaker 4: into the existing reiltory matrix.
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  Speaker 5: Now, yeah, let me just jump in for a second.
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  Speaker 5: I know Jeff and Adina can handle themselves, but I
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  Speaker 5: really liked to understand why that when innovation becomes an exemption,
• 4:06
  Speaker 5: which is essentially the same products that core institutions have
• 4:09
  Speaker 5: been trading for years, they just look alikes with a
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  Speaker 5: different name to them. They are a lot of them
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  Speaker 5: are just the exact same products that are being traded
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  Speaker 5: today under a different name. Maybe you can't make it
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  Speaker 5: fit on the blockchain, but that's not the problem of
• 4:23
  Speaker 5: the core institutions that have been doing business forever.
• 4:26
  Speaker 4: I can either go and wait and lobby and do
• 4:28
  Speaker 4: realmakings for five years while everything happens offshore, and we're
• 4:32
  Speaker 4: left with consumers having to you know, work with guys
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  Speaker 4: like you who are a lot older. May may not,
• 4:38
  Speaker 4: may not, with all due respects, but yeah, they may
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  Speaker 4: not understand the demand of modern day investors.
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  Speaker 6: The regulatory barriers have been monopolistic. I mean, what we
• 4:51
  Speaker 6: had to go through to get to where we are
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  Speaker 6: now was also just as painful.
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  Speaker 7: Yeah, I just want to stay for the record, that
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  Speaker 7: shame winds up in a room. It may not be
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  Speaker 7: the government, maybe some folks from Chicago.
• 5:02
  Speaker 4: If you guys can't find me after this, someone call
• 5:04
  Speaker 4: my lawyer.
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  Speaker 1: Well, Shange may not be able to call this lawyer.
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  Speaker 1: This is what I would be worried about. But here,
• 5:10
  Speaker 1: of course, he was jesting a little bit, hanging in
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  Speaker 1: the louver right there, of course, with mister Duffy giving
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  Speaker 1: him the you know, the universal sign of friendship, which
• 5:20
  Speaker 1: is the way to go about these things. You know, adults,
• 5:23
  Speaker 1: we all do that universal sign of friendship. Well, the
• 5:26
  Speaker 1: other thing you have to look at is whether or
• 5:28
  Speaker 1: not a polymarket will come true, and that is will
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  Speaker 1: Duffy actually apologize for this incident involving Copeland, so polymarket
• 5:37
  Speaker 1: at their antics. The greatest thing I think around crypto
• 5:40
  Speaker 1: in general, it's the changing of where tech is going,
• 5:43
  Speaker 1: where investing is going. You guys are starting to see
• 5:45
  Speaker 1: this in real time. I want to go to another clip.
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  Speaker 1: This is Terrence versus Jump Trading, Robin Hood and also
• 5:51
  Speaker 1: Crypto dot Com all around twenty four to seven trading.
• 5:54
  Speaker 1: Take a look.
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  Speaker 5: There would be a lot of people in the country
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  Speaker 5: that produced product that would not want markets on the
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  Speaker 5: set afternoon. You have to look at the cost to
• 6:02
  Speaker 5: the firms that have to staff up in order to
• 6:05
  Speaker 5: do twenty four to seven. Just to say all asset
• 6:07
  Speaker 5: classes go twenty four to seven, I think it would
• 6:09
  Speaker 5: be a detriment to a lot of producers and other
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  Speaker 5: people on the commercial side of the marketplace.
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  Speaker 8: I think Terry mentioned that if he knew a farmer
• 6:16
  Speaker 8: or something like that that would be angry. I've got
• 6:18
  Speaker 8: news for Terry and the farmer, Like the risk is
• 6:21
  Speaker 8: happening on the weekend. Just because we can't see the
• 6:23
  Speaker 8: prices does not mean the risk isn't there. The markets
• 6:27
  Speaker 8: are filling that vacuum, whether it's hyper liquid or other.
• 6:31
  Speaker 8: DeFi this is happening very quickly.
• 6:34
  Speaker 9: The crypto markets function perfectly in this way.
• 6:36
  Speaker 2: It actually allows you to do a better job of
• 6:38
  Speaker 2: managing your risk. When the news comes out, you can
• 6:41
  Speaker 2: actually go and take advantage of it by hedging your
• 6:44
  Speaker 2: portfolio or putting a risk on position.
• 6:48
  Speaker 8: You know.
• 6:48
  Speaker 1: I just wonder how and why the traditional institutions have
• 6:54
  Speaker 1: not understood what is going on. It has to be
• 6:58
  Speaker 1: only one thing, and that is denial of how this
• 7:00
  Speaker 1: market is evolving. And also I think it is the
• 7:05
  Speaker 1: I think the pomp of the issue where they believe
• 7:08
  Speaker 1: they control the market just because it's the United States.
• 7:12
  Speaker 1: And now I think what, of course is happening is
• 7:14
  Speaker 1: we're seeing a global event occur when it comes to
• 7:16
  Speaker 1: crypto and that's starting to play out right now. Wall
• 7:19
  Speaker 1: Street is finally coming to the table. Here's another clip.
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  Speaker 1: It saw four of Robin Hood versus Bank of America.
• 7:25
  Speaker 1: Take a look at this one.
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  Speaker 2: People can handle the overnight stuff. We staffed twenty four
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  Speaker 2: hours a day, seven days a week, three hundred and
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  Speaker 2: sixty five days a year.
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  Speaker 10: Is it some of it being pushed to prediction markets?
• 7:34
  Speaker 2: Oh, definitely, I think that's where it's going. I mean,
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  Speaker 2: I've been saying this for the last twelve months. It's
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  Speaker 2: the beginning of their journey or they're actually i'll call revolution.
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  Speaker 10: So Alie, Nick and jb are talking about going immediately
• 7:44
  Speaker 10: to twenty four seven. Does that give you? Does that
• 7:46
  Speaker 10: get the hair in your next stand up? In terms
• 7:48
  Speaker 10: of now concerned it again?
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  Speaker 6: It just goes back to my point.
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  Speaker 3: I think we're supportive of all innovation.
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  Speaker 1: They kind of got pushed into a position, I think
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  Speaker 1: that being Bank of America kind of into a position
• 8:00
  Speaker 1: where they're really going to have to respond to what's
• 8:01
  Speaker 1: happening in the open markets. And one of the things
• 8:05
  Speaker 1: they did right after this event was they launched this here.
• 8:07
  Speaker 1: Bank of America unveils their AI driven Capital Markets insight
• 8:11
  Speaker 1: on the cash pro app. Now, let's take a look back,
• 8:15
  Speaker 1: because what happens with these markets when people get complacent
• 8:19
  Speaker 1: is they build crappy products. And you can kind of
• 8:22
  Speaker 1: see it with what has been explained right here. This
• 8:26
  Speaker 1: is the cash pro chat app. Basically, what they did
• 8:28
  Speaker 1: is they integrated an AI chatbot. What an innovation that
• 8:32
  Speaker 1: they have done, and the innovation was so high that
• 8:36
  Speaker 1: this is one of the worst ranking apps out there
• 8:39
  Speaker 1: when it comes and This is the point that I'm
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  Speaker 1: getting at. The only people that suffer in this situation
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  Speaker 1: right now are consumers, people like you and I. Just
• 8:47
  Speaker 1: look at our own This is one of our own
• 8:49
  Speaker 1: sponsors right here, a tangent also throw them under the bus.
• 8:52
  Speaker 1: Look at this one hundred thousand downloads. Oh goodness, a
• 8:55
  Speaker 1: four point eight. That's terrible. The fact is they don't
• 8:59
  Speaker 1: have the kinds of problems. That's the whole issue. When
• 9:03
  Speaker 1: you're innovating to please a customer base that matters, you've
• 9:07
  Speaker 1: got to build a good product. This is a good
• 9:08
  Speaker 1: example of how they've been able to do it with
• 9:10
  Speaker 1: just self customy wallets. Let me go over to another
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  Speaker 1: piece right here. This is prediction markets. Vlad was hitting
• 9:15
  Speaker 1: on this. Prediction markets just crossed four billion event contracts
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  Speaker 1: trading all time, over two billion in Q three alone,
• 9:23
  Speaker 1: and we're just getting started. I mean, you guys have
• 9:25
  Speaker 1: to remember this has only been on Robinhood for a
• 9:28
  Speaker 1: very short period of time. Their partnership with Calshi, the
• 9:31
  Speaker 1: likelihood of we're going to see more integrations with poly
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  Speaker 1: market across a lot of different potentials. In terms of
• 9:37
  Speaker 1: prediction markets, this is going to go parabolic in terms
• 9:40
  Speaker 1: of growth. This is how the next generation and I
• 9:43
  Speaker 1: think also institutions are going to be moving in a
• 9:46
  Speaker 1: very short order.
• 9:47
  Speaker 2: It's just a.
• 9:47
  Speaker 1: Matter of time, guys. Before remember this is all just
• 9:51
  Speaker 1: started one year ago when we got a new president
• 9:53
  Speaker 1: in the office, a shift in dynamics within the SEC,
• 9:57
  Speaker 1: a shift in the dynamics within the cf TC, and
• 10:01
  Speaker 1: a restructure of how most institutional capital is looking at crypto.
• 10:06
  Speaker 1: Here is Kraken versus Nasdaq and the CBOE. Take a
• 10:09
  Speaker 1: look at this clip.
• 10:10
  Speaker 6: I mean we operate twenty four to seven across roughly
• 10:14
  Speaker 6: about one hundred and thirty jurisdictions, so spot margin futures.
• 10:18
  Speaker 6: I mean, we've proven that it can be done pretty successfully.
• 10:20
  Speaker 3: There are seven billion people around the world who follow
• 10:23
  Speaker 3: the tape and understand the trading of US equities. I here,
• 10:26
  Speaker 3: you and I do want innovation. I'd love to have
• 10:28
  Speaker 3: it so that we can innovate beyond price time.
• 10:30
  Speaker 6: Those seven billion people that you talked about haven't had
• 10:33
  Speaker 6: access to any of these markets.
• 10:35
  Speaker 3: Well, actually, I mean they trade. First of all. We
• 10:38
  Speaker 3: are going to try to bring it twenty four to
• 10:39
  Speaker 3: five so they have a lot more access.
• 10:40
  Speaker 6: Name one that is more innovative than us, and we've
• 10:44
  Speaker 6: never we've never really we've never really lost. We're losing
• 10:48
  Speaker 6: right now. But we're not anti We're not anti innovation.
• 10:51
  Speaker 6: I would love to list a company on chain and
• 10:54
  Speaker 6: on our exchange, will most likely do that outside of
• 10:56
  Speaker 6: the United States first, based on the speed at which
• 10:58
  Speaker 6: we're going. You guys want to be on a level
• 10:59
  Speaker 6: flour playing field. You guys should be pushing in the
• 11:01
  Speaker 6: same direction the same way we were four years ago
• 11:05
  Speaker 6: or eight years ago or ten years ago. And the
• 11:06
  Speaker 6: whole point of you know, even the Bitcoin white paper
• 11:09
  Speaker 6: and this whole movement was how do we get access
• 11:12
  Speaker 6: to capital? How do we get access as the same
• 11:14
  Speaker 6: products that you know, rich people get on a daily basis.
• 11:18
  Speaker 1: I love that statement, the rich people get on a
• 11:20
  Speaker 1: daily basis. But now what we're seeing is a revolution
• 11:24
  Speaker 1: that's occurring for as they said, seven billion investors worldwide.
• 11:28
  Speaker 5: It is a.
• 11:29
  Speaker 1: Shift in dynamics and it's one that I think has
• 11:32
  Speaker 1: been a stonewalled for a decade and only now are
• 11:36
  Speaker 1: we're starting to see those walls fall down, and I
• 11:38
  Speaker 1: think this is going to change things in a very
• 11:41
  Speaker 1: big way. Here is Shane Copeland. He goes after Terrence again,
• 11:46
  Speaker 1: they just had to do it.
• 11:47
  Speaker 4: So take a look at this clip, ter are you
• 11:49
  Speaker 4: saying that you would, you know, how you would have
• 11:50
  Speaker 4: to staff up for twenty four to seven not else?
• 11:53
  Speaker 4: I mean, yeah, yeah, the clear firms. When you look
• 11:55
  Speaker 4: at a blockchain, everything trades globally twenty four to seven
• 11:58
  Speaker 4: inherently in a way. And I understand the pushback to it,
• 12:01
  Speaker 4: but it's kind of a tale as old as time.
• 12:03
  Speaker 4: I understand that's difficult for legacy incumbents, but you know,
• 12:07
  Speaker 4: you guys will be able to compete in it, and
• 12:09
  Speaker 4: I wish you well.
• 12:10
  Speaker 8: I think, you know, calling some of the greatest innovators
• 12:12
  Speaker 8: in American finance old guard or legacy juggernauts is just silly.
• 12:17
  Speaker 2: So I think we should move past that.
• 12:20
  Speaker 1: You can kind of see what's going on over on
• 12:21
  Speaker 1: Reddit right here. You guys remember Citadel, they've been involved
• 12:25
  Speaker 1: in this, taking fine after fine. That was back in
• 12:28
  Speaker 1: twenty twenty. More fines for just bad acting and doing
• 12:32
  Speaker 1: things that and this is all out there on the
• 12:34
  Speaker 1: open Internet. I'm not telling you anything new, but everybody
• 12:37
  Speaker 1: understands this is what's been status quo, and I think
• 12:41
  Speaker 1: now we're in for a whole new era. Here's my
• 12:44
  Speaker 1: last clip. This is Crypto dot com talking about AI
• 12:48
  Speaker 1: and its evolution within this space. Take a look when.
• 12:52
  Speaker 9: We're all using AI agents in two or three years
• 12:54
  Speaker 9: from today, it'll become ubiquitous, and I think it's very important. Lastly,
• 12:58
  Speaker 9: was can I just pick up on that one point?
• 13:00
  Speaker 10: How long before I can just go onto my mobile
• 13:02
  Speaker 10: device and say, make a market on say polymarket for example,
• 13:07
  Speaker 10: in whether this this paddle is going to end at
• 13:10
  Speaker 10: five forty or not, and let the market will be
• 13:12
  Speaker 10: created and everybody in the room could bet on it.
• 13:14
  Speaker 9: Let's use crypto dot COM's prediction market. Okay, sorry, so
• 13:20
  Speaker 9: on crypto dot COM's I think it'll come sooner than later.
• 13:22
  Speaker 9: Perhaps a contract of this is going to end in
• 13:24
  Speaker 9: five minutes. Everybody wants that to happen, but we'll see
• 13:27
  Speaker 9: if that's able. I think that you'll be able to
• 13:29
  Speaker 9: do that coming next year.
• 13:31
  Speaker 7: And I would just add, Chris, Unfortunately for you, Terry
• 13:33
  Speaker 7: Duffy got you long five forty close by way of
• 13:36
  Speaker 7: a calche So.
• 13:39
  Speaker 1: All right, so at least they started to loosen up
• 13:41
  Speaker 1: a little bit in the sense. But the point is
• 13:43
  Speaker 1: is speed to market is going to matter here, and
• 13:46
  Speaker 1: I think the incumbents are unfortunately maybe caught a little
• 13:51
  Speaker 1: bit off guard in the sense of not really understanding
• 13:54
  Speaker 1: how fast this administration was going to move on where
• 13:57
  Speaker 1: we're going to see digital assets go, but more importantly,
• 14:00
  Speaker 1: how this administration was going to push into the zone
• 14:03
  Speaker 1: we're in right now, which is really just to kind
• 14:04
  Speaker 1: of pull off regulatory requirements and shackles that have been
• 14:08
  Speaker 1: holding this industry back for so long. We are in
• 14:12
  Speaker 1: for a big next five years, guys. This is going
• 14:15
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