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CFTC Crypto Meeting Turns Into A Brawl!🔥DeFi vs TradFi · The Paul Barron Crypto Show

• 0:00
  Speaker 1: TRADFI and DeFi are brawling it out in a CFTC
• 0:03
  Speaker 1: hearing today. We're going to break it down for you.
• 0:04
  Speaker 1: This is an exclusive that you guys do not want
• 0:06
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• 0:39
  Speaker 1: All right, So let's start off with the first clip.
• 0:41
  Speaker 1: And there's a handful of clips here, guys, so be
• 0:44
  Speaker 1: patient with that.
• 0:45
  Speaker 2: These are unbelievable.
• 0:46
  Speaker 1: This is a recap of the CFTC Crypto event.
• 0:50
  Speaker 2: Take a look.
• 0:51
  Speaker 3: Welcome to the inaugural meeting of the CFTC's Innovation Advisory Committee.
• 0:55
  Speaker 3: The caliber of people joining us in the room reflects
• 0:58
  Speaker 3: Chairman Clags commitment to ing the very best minds of
• 1:01
  Speaker 3: the table.
• 1:02
  Speaker 4: All right, thank you.
• 1:03
  Speaker 5: So I'm Hayden. I'm the founder of uniswap. You know,
• 1:06
  Speaker 5: me and my company and multiple of my employees were debanked.
• 1:09
  Speaker 5: The company received a wellth notice from the SEC after
• 1:12
  Speaker 5: a four year investigation. We had a CFTC investigation, we
• 1:15
  Speaker 5: had state regulators pile on to federal investigations, also led
• 1:19
  Speaker 5: to you know, class action lawsuits.
• 1:21
  Speaker 4: Ripple spent one hundred and fifty million dollars an outside
• 1:23
  Speaker 4: legal counsel during our four year battle with the SEC.
• 1:26
  Speaker 4: Other companies were bullied into submission.
• 1:29
  Speaker 5: Most startups cannot survive that. So we survived that, and
• 1:32
  Speaker 5: it was because of just like the massive adoption and
• 1:35
  Speaker 5: usage of unicewap. But for us, it like really held
• 1:37
  Speaker 5: us back.
• 1:38
  Speaker 6: From our point of view, We've always been like, hey,
• 1:40
  Speaker 6: we'll do anything to go and figure this out.
• 1:42
  Speaker 4: Right, eighty percent of ripples hiring for those four years
• 1:45
  Speaker 4: was non.
• 1:45
  Speaker 5: US, So, you know, I stayed in the US throughout it,
• 1:49
  Speaker 5: despite you know, very frequently being recommended to leave the
• 1:52
  Speaker 5: US because I believe in kind of the promise of
• 1:56
  Speaker 5: this country.
• 1:57
  Speaker 7: So for every Hayden or Shane who have the strength
• 2:00
  Speaker 7: and the will to stay in the US. There's thousands
• 2:03
  Speaker 7: for each one of them that left closed it down.
• 2:06
  Speaker 7: And I know that personally because I'm their infrastructure provider.
• 2:10
  Speaker 7: So that's a very serious cost.
• 2:12
  Speaker 5: Really, Just you know, we need clarity, and if we
• 2:13
  Speaker 5: don't get clarity, we need proactive regulations.
• 2:16
  Speaker 8: If clarity continues to stall because of obstruction, the CFTC
• 2:20
  Speaker 8: will utilize its existing authorities to begin establishing a regime
• 2:23
  Speaker 8: for crypto asset markets codify a future proof digital asset
• 2:27
  Speaker 8: market structure that cannot be undone by the crypto haters.
• 2:32
  Speaker 1: All right, So there you had at Chersilig very serious
• 2:35
  Speaker 1: about this.
• 2:36
  Speaker 2: Appears to be on the track.
• 2:38
  Speaker 1: I think why we're one of the reasons we're continuing
• 2:40
  Speaker 1: to see some movement in the market.
• 2:41
  Speaker 2: All right, So I want to go to clip too.
• 2:43
  Speaker 1: Here Sellig of course kind of saying hey, listen, we're
• 2:45
  Speaker 1: going to get clarity one way or the other. And
• 2:47
  Speaker 1: he's referencing crypto haters, and one of the guys I
• 2:50
  Speaker 1: think he might be referencing here as a crypto hater
• 2:53
  Speaker 1: from Tradfi of course, has been mister Duffy Terry Duffy
• 2:57
  Speaker 1: coming in from the CME, and we've played him before
• 3:01
  Speaker 1: on the network quite a bit.
• 3:03
  Speaker 2: Listen to what he said at this meeting.
• 3:06
  Speaker 9: Support the products. I'm a little concerned about this, and
• 3:10
  Speaker 9: I'm a lot concerned about it. Products that are in
• 3:13
  Speaker 9: violation of core principal threes, which is susceptible to manipulation.
• 3:17
  Speaker 9: There's no cut doubt about it. And if you don't
• 3:19
  Speaker 9: think that's true, then you don't watch the news. That
• 3:22
  Speaker 9: is not good for our industry. Chair Sea League has
• 3:25
  Speaker 9: said they want to make America the crypto capital of
• 3:28
  Speaker 9: the world. Well, we don't want to chase our own
• 3:31
  Speaker 9: participants out of our own markets either. That's horrible for
• 3:35
  Speaker 9: our industry. We're in not a bunch of carnival barkers
• 3:37
  Speaker 9: at a circus.
• 3:38
  Speaker 8: So I would hope that commission there those products are
• 3:41
  Speaker 8: not listed in the United States.
• 3:43
  Speaker 10: They never were.
• 3:43
  Speaker 8: This occurred offshore, and that speak news.
• 3:47
  Speaker 11: Fake news.
• 3:47
  Speaker 9: Okay, that's a cue coming to it.
• 3:49
  Speaker 8: The Maduro contract and the teleprompter related contract were not
• 3:53
  Speaker 8: listed in the United States.
• 3:54
  Speaker 9: I understand the Regardless of the circumstances that we can
• 3:58
  Speaker 9: get into a back and forth, I'm happy to do
• 4:00
  Speaker 9: that too.
• 4:03
  Speaker 1: Perhaps, all right, so you can see Duffy is really
• 4:08
  Speaker 1: getting into a position where he understands there is carnage
• 4:12
  Speaker 1: about to happen in the industry. Here is Cal, She's CEO,
• 4:16
  Speaker 1: actually going after Duffy and setting him straight.
• 4:19
  Speaker 2: Take a look.
• 4:21
  Speaker 11: I just wanted to respond since we were cal she
• 4:23
  Speaker 11: was called by name here, I would actually have to
• 4:27
  Speaker 11: ask Terry, has Sam never had any issues with you know,
• 4:32
  Speaker 11: any any market manipulation, any issues ever in its history.
• 4:37
  Speaker 9: If you'd like to have a debate, I'm happy to
• 4:39
  Speaker 9: have a debate with you. There's always I'm an issue
• 4:45
  Speaker 9: regulatory department than you do in your entire company. Okay,
• 4:48
  Speaker 9: thank you.
• 4:49
  Speaker 11: Maybe maybe you should learn a bit about efficiency.
• 4:52
  Speaker 9: Then, well maybe you should learn about credible mark Okay.
• 4:57
  Speaker 11: I just want to Okay, yeah, I mean one of
• 5:00
  Speaker 11: so the reasons prediction markets have grown this much is
• 5:03
  Speaker 11: because he has looked into events and things that a
• 5:07
  Speaker 11: lot of the traditional industry has ignored. Things are too small,
• 5:10
  Speaker 11: or things it's irrelevant. Is actually very important.
• 5:13
  Speaker 6: First of all, it's not anonymous, it's all public, it's
• 5:15
  Speaker 6: all on chain. It's the least anonymous financial market of
• 5:18
  Speaker 6: all time. You can look at every single market and
• 5:20
  Speaker 6: see every single trade, and look at the trading history
• 5:24
  Speaker 6: in full.
• 5:25
  Speaker 4: Of every single participant.
• 5:26
  Speaker 6: Like it's, you know, a level of transparency that's unprecedented.
• 5:30
  Speaker 1: And by the way, thanks Terry and Lawana for spicing
• 5:33
  Speaker 1: it up after three hours.
• 5:34
  Speaker 12: That was helpful.
• 5:35
  Speaker 1: I'm wide awake.
• 5:37
  Speaker 2: And then the last thing I'll say is that somebody
• 5:38
  Speaker 2: mentioned all right, so I think the guys get the
• 5:41
  Speaker 2: gist of the market.
• 5:42
  Speaker 1: This is trad Fi absolutely terrified of what's happening or
• 5:46
  Speaker 1: about to happen in the US markets. Duffy is now
• 5:50
  Speaker 1: even more concerned with hyper liquid and also trade at
• 5:54
  Speaker 1: dot xyz.
• 5:55
  Speaker 2: Look at this clip, perps.
• 6:00
  Speaker 9: Why because these are having an impact on our markets.
• 6:04
  Speaker 9: I often decentralized finance platforms on X trade x y
• 6:09
  Speaker 9: z on hyperliquids platform. Now these are illegal to US participants.
• 6:15
  Speaker 9: I would have to ask the Commission what they are
• 6:17
  Speaker 9: doing to police everybody's VPN where they are not accessing
• 6:22
  Speaker 9: these markets.
• 6:25
  Speaker 2: Yeah, you can see.
• 6:26
  Speaker 1: I mean, he clearly is concerned about this, to the
• 6:28
  Speaker 1: point of where now he's calling out every major American
• 6:31
  Speaker 1: that's ever done anything like this. I think this is
• 6:34
  Speaker 1: where it goes when trad five starts to feel the
• 6:37
  Speaker 1: defense mechanism going up. Krack and CEO came in and said,
• 6:42
  Speaker 1: all right, let's go after the DTC and CANTON.
• 6:45
  Speaker 2: Take a look.
• 6:46
  Speaker 13: You know, we've been working closely with the DTCC and
• 6:49
  Speaker 13: their progression towards uh launching in October on top of
• 6:55
  Speaker 13: BEZU and CANTON. But we don't need a new regulatory environment,
• 7:00
  Speaker 13: and quite frankly, I'm not seeing anything that needs to
• 7:05
  Speaker 13: be evolved right now. Just because it is a perpetual
• 7:08
  Speaker 13: futures contract does not mean it needs to have one
• 7:10
  Speaker 13: hundred times leverage, does not mean it needs to have
• 7:13
  Speaker 13: autod leveraging. Those are all features that were put in
• 7:16
  Speaker 13: place on offshore platforms. I don't think that we should
• 7:20
  Speaker 13: adopt those. I've been quite clear about that.
• 7:23
  Speaker 14: But what are we really talking about here. We're talking
• 7:25
  Speaker 14: about here is that the average individual. Sorry, don I
• 7:28
  Speaker 14: know you're right next to me, but everything that made
• 7:30
  Speaker 14: Dawn successful over the last you know, thirty forty years,
• 7:35
  Speaker 14: we can put them in the hands of every individual
• 7:37
  Speaker 14: where they can have an army of people or agents
• 7:39
  Speaker 14: or entities working on their behalf. That should be scary
• 7:43
  Speaker 14: for larger, older institutions. Because that means you're inherently making
• 7:48
  Speaker 14: the technology that they've built over the last centuries inherently
• 7:52
  Speaker 14: deflationary for all of us.
• 7:55
  Speaker 1: Basically, D Day is here, guys, And I think this
• 7:58
  Speaker 1: is what tradfi is starting to recognize even more, the
• 8:01
  Speaker 1: fact that it's this far along at the CFTC and
• 8:04
  Speaker 1: even chair Ceiling kind of cracking back on a Duffy
• 8:08
  Speaker 1: that even his facts were wrong. So I think it's interesting.
• 8:11
  Speaker 1: And here's the CBOE because this is where they're actually
• 8:14
  Speaker 1: admitting that they're gangsters.
• 8:17
  Speaker 2: Take a look, you know.
• 8:18
  Speaker 10: I think earlier, maybe late last year, I had the
• 8:21
  Speaker 10: chance to meet Shane. He greeted me by saying, what up,
• 8:25
  Speaker 10: and then he said, oh, you're the OG And when
• 8:28
  Speaker 10: he left I had to ask my younger colleagues what
• 8:30
  Speaker 10: was meant by that? And I was educated about what
• 8:34
  Speaker 10: it means to be an original gangster, I guess, but
• 8:37
  Speaker 10: which makes me feel really old.
• 8:40
  Speaker 1: All right, So having fun with this, you also had
• 8:43
  Speaker 1: Frank Losala. This is the guy at the DTCC. This
• 8:47
  Speaker 1: guy has been on our show before, not as a guest,
• 8:50
  Speaker 1: but in clips, and he's pretty spicy against the CFTC
• 8:54
  Speaker 1: trying to defend his position.
• 8:55
  Speaker 2: Take a look.
• 8:56
  Speaker 4: But let me turn to Frank from DTCC, who's been
• 8:59
  Speaker 4: doing a lot of work on tokenization.
• 9:13
  Speaker 15: Thank you, Thanks Frank Osala, CEO of the Depository Trust
• 9:16
  Speaker 15: and Clearing Corporation. You know, mister Chairman, what I wanted
• 9:19
  Speaker 15: to say is that I'm going to come at this
• 9:20
  Speaker 15: from a slightly different perspective. This ability to convene, I
• 9:25
  Speaker 15: would not underestimate. I look around this room. You clearly
• 9:28
  Speaker 15: have that power to convene. So as we as we
• 9:32
  Speaker 15: walk through this path, what might come, what bits might
• 9:36
  Speaker 15: fall off? I think I would encourage you to continue
• 9:40
  Speaker 15: to convene, maybe not in large groups like this. So
• 9:44
  Speaker 15: if I can leave you with any piece of advice,
• 9:47
  Speaker 15: that would be it.
• 9:49
  Speaker 1: Yeah, let's don't convene in something that actually is productive
• 9:53
  Speaker 1: in large group. Let's do some stuff behind the scenes here.
• 9:56
  Speaker 1: I think that's the direction. Now, Vlad came in and
• 9:59
  Speaker 1: explain what is currently not available to customers in the US,
• 10:04
  Speaker 1: and it kind of hits home.
• 10:06
  Speaker 16: Not all of our products are available to all of
• 10:09
  Speaker 16: our customers. Take staking, for example, if you're in my
• 10:14
  Speaker 16: home state, the great state of California, which gets a
• 10:16
  Speaker 16: lot of things right, you can't stake your crypto assets,
• 10:20
  Speaker 16: for US states actually don't allow customers to stake their
• 10:24
  Speaker 16: crypto assets. Stable coins USDG, the stable coin we partner with,
• 10:29
  Speaker 16: aren't live in New York. USDC are available everywhere, but Texas.
• 10:35
  Speaker 16: Having our customers worry about rules changing every forty eight
• 10:38
  Speaker 16: years or whether an asset they're going to hold is
• 10:41
  Speaker 16: going to have to be delisted one way or another
• 10:43
  Speaker 16: preventing their access to it, which I think just puts
• 10:46
  Speaker 16: a cloud of uncertainty over everything.
• 10:50
  Speaker 1: So you can kind of see this hearing really showcased
• 10:54
  Speaker 1: how inefficient the markets are and that there are alternatives
• 10:57
  Speaker 1: that are essentially happening all around us. And it also
• 11:01
  Speaker 1: included perps because this is where multicone this clip right
• 11:05
  Speaker 1: here is where multipone is hinting that perps actually might
• 11:08
  Speaker 1: get approved.
• 11:08
  Speaker 2: For IBOs next year. This would change things up a lot.
• 11:12
  Speaker 17: However, that wealth creation has been almost entirely in private markets.
• 11:19
  Speaker 17: Regular American citizens want to participate in this wealth creation
• 11:24
  Speaker 17: and they're unable to do so. And I think one
• 11:27
  Speaker 17: thing the Commission can consider to help these citizens is
• 11:33
  Speaker 17: something like pre ipo perps that would give those users
• 11:39
  Speaker 17: a regulated and safe way to get price exposure to
• 11:44
  Speaker 17: these private companies without those companies necessarily having to go
• 11:49
  Speaker 17: public in order for them to do so.
• 11:52
  Speaker 1: This is one of the key things that I think
• 11:55
  Speaker 1: scares Wall Street the most, and that is IPO purpse.
• 11:57
  Speaker 1: This would change the dynamic of an investing and really
• 12:01
  Speaker 1: allowing investors to come on essentially onto the market that
• 12:05
  Speaker 1: have never been there before.
• 12:07
  Speaker 2: This is the kind of thing that flips market's completely
• 12:09
  Speaker 2: upside down.
• 12:10
  Speaker 1: It's also why we're seeing so much, you know, I
• 12:14
  Speaker 1: think fear and almost unpreparedness from what we're seeing in
• 12:18
  Speaker 1: the trad file market.
• 12:19
  Speaker 2: Now.
• 12:19
  Speaker 1: Mike Seeeigue went on to say, because I think it
• 12:22
  Speaker 1: boils down to two things, and Sealig kind of addresses this,
• 12:24
  Speaker 1: and that is, yes, we're going to end up doing
• 12:27
  Speaker 1: some rules here, but it really still depends on what
• 12:29
  Speaker 1: happens September fifteenth.
• 12:30
  Speaker 8: Here's a clip, But the bill's really the priority. The
• 12:33
  Speaker 8: bill has to get pass.
• 12:35
  Speaker 18: Is there a timeline that you're looking at where you
• 12:37
  Speaker 18: would act. Are you already preparing any of this action
• 12:40
  Speaker 18: or does it have to happen once we see ultimately
• 12:44
  Speaker 18: the fate of that bill.
• 12:45
  Speaker 8: I've asked the staff to explore and evaluate potential rule
• 12:49
  Speaker 8: makings usializing our existing authority. But we're folks on the
• 12:52
  Speaker 8: bill today. Until we get that across the line, until
• 12:55
  Speaker 8: we have an answer on where the bill's going, we're
• 12:57
  Speaker 8: not going to propose any new rule.
• 13:00
  Speaker 15: Okay, fair enough, all.
• 13:02
  Speaker 2: Right, Well we'll see how this plays out.
• 13:04
  Speaker 1: Celia kind of has his marching orders, I think also
• 13:06
  Speaker 1: from Trump and the indicators are really going to be clear.
• 13:09
  Speaker 1: There is a fallback plan that most likely will be
• 13:12
  Speaker 1: in place by the SEC and the CFTC come September.
• 13:16
  Speaker 1: With what is going on with the Clarity Act. Now,
• 13:19
  Speaker 1: everyone did agree on a couple of things, and one
• 13:22
  Speaker 1: of them is privacy on ethereum and security as well.
• 13:26
  Speaker 1: All of this including for z cash. All of this
• 13:29
  Speaker 1: was outlined here as well as in this clip.
• 13:31
  Speaker 16: Every week you kind of hear about another protocol getting
• 13:36
  Speaker 16: breached or money being drained.
• 13:38
  Speaker 12: A project called z cash has shown has modeled how
• 13:42
  Speaker 12: to use AI effectively define vulnerabilities. Z cash is also
• 13:48
  Speaker 12: pioneering formal verification, but.
• 13:51
  Speaker 16: I do think there's a better solution formal verification of software.
• 13:57
  Speaker 19: In the etherrem ecosystem. What we're moving into now is
• 14:01
  Speaker 19: the ability to formally verify so mathematically verify the correctness
• 14:06
  Speaker 19: of the code, and we do a lot of that
• 14:08
  Speaker 19: work already. We're going to be able to formally verify
• 14:11
  Speaker 19: the correctness of DeFi protocols. I think we're going to
• 14:14
  Speaker 19: move into a golden era for software, all.
• 14:19
  Speaker 2: Right, So golden era coming.
• 14:21
  Speaker 1: You've got z cash absolutely exploding in terms of overall price,
• 14:25
  Speaker 1: and I think this is just another indicator of what
• 14:28
  Speaker 1: we saw in a very short period of time, mainly
• 14:31
  Speaker 1: because of what is happening right here. And just remember
• 14:34
  Speaker 1: three and four Americans right now are worried about personal
• 14:37
  Speaker 1: data and the government in reference to what the government
• 14:40
  Speaker 1: has about them. So this is going to get to
• 14:42
  Speaker 1: be a big issue down the road, and I think
• 14:45
  Speaker 1: that will be a factor playing into where blockchain comes from,
• 14:48
  Speaker 1: and that is the security layer that is going to
• 14:51
  Speaker 1: be needed. I want to go to one more clip
• 14:52
  Speaker 1: here because this gets into the San Diego Privacy hearing
• 14:56
  Speaker 1: that proves that this is not going away anytime soon.
• 15:00
  Speaker 20: This morning, the local American Civil Liberties Union is calling
• 15:02
  Speaker 20: on the city of San Diego to cancel contracts for
• 15:05
  Speaker 20: automated license plate readers. Flock is the company behind the systems.
• 15:09
  Speaker 20: Law enforcement calls them vital tools, but there are growing
• 15:12
  Speaker 20: concerns over privacy and misuse. During yesterday's Public Safety Committee
• 15:16
  Speaker 20: hearing one person dressed up as Darth Vader from Star Wars.
• 15:24
  Speaker 21: This council has done well. The Emperor is a fan
• 15:29
  Speaker 21: of Flock and we must continue utilizing Flock technologies so
• 15:33
  Speaker 21: that we can follow and surveil the rebel scum as
• 15:37
  Speaker 21: they move from playground to playground, from playground to pool,
• 15:41
  Speaker 21: from pool to gymnasium.
• 15:43
  Speaker 2: We need SDPD to have.
• 15:45
  Speaker 21: More money, more money for the Emperor to rule over
• 15:48
  Speaker 21: the entire universe, and anyone that disagrees is part of
• 15:53
  Speaker 21: the rebel alliance and a scum. And if our stormtroopers
• 15:56
  Speaker 21: don't receive all the funding that they deserve, there will
• 15:59
  Speaker 21: be hell to pay with the Emperor, and he is
• 16:02
  Speaker 21: not as forgiving as eye.
• 16:05
  Speaker 8: This concludes testimony here in chambers.
• 16:09
  Speaker 1: Culture is a very unusual thing out there and it
• 16:12
  Speaker 1: is showing up I think now in the US, which
• 16:16
  Speaker 1: there's a shift.
• 16:17
  Speaker 2: Guys, I don't know if you're recognizing this.
• 16:19
  Speaker 1: There is a shift underway, whether it is the next
• 16:21
  Speaker 1: generation investor the next generation voter, but there is a
• 16:25
  Speaker 1: shift that is happening. We have twenty four days right now,
• 16:30
  Speaker 1: twenty hours before we get a clarity Senate vote, or
• 16:32
  Speaker 1: at least according to what we have been talking about
• 16:35
  Speaker 1: here for quite some time, and we'll see if Senat
• 16:38
  Speaker 1: or Thune actually.
• 16:39
  Speaker 2: Delivers on that. And that's where we are at right now.
• 16:42
  Speaker 1: You've got Clarity Act up again after yesterday's movement in
• 16:46
  Speaker 1: the market, also after Chair Seligs meeting, which I think
• 16:49
  Speaker 1: was the real and we kind of promised that to
• 16:52
  Speaker 1: you yesterday, And what we were talking about is that
• 16:54
  Speaker 1: the CFTC hearing would most likely be the ones that
• 16:56
  Speaker 1: actually resolve in something real that did happen. So big
• 17:01
  Speaker 1: things happening right now.
• 17:02
  Speaker 2: The market is on the move. The question is is
• 17:05
  Speaker 2: how long will this last? Is this the beginning of
• 17:08
  Speaker 2: a bullmarket? Stay tuned.
• 17:16
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• 17:18
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• 17:22
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