Latest / The Paul Barron Crypto Show / Could Bernie Join Stablecoin Yield Fight?🔥Cody Carbone INTERVIEW🚨The Digital Chamber

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Could Bernie Join Stablecoin Yield Fight?🔥Cody Carbone INTERVIEW🚨The Digital Chamber · The Paul Barron Crypto Show

0:00
Speaker 1: The Clarity Bill, of course, is getting ready to get
0:02
Speaker 1: voted on.
0:02
Speaker 2: This week.
0:03
Speaker 1: We'll break it down. I've got a special guest that's
0:04
Speaker 1: going to give us the insight to what's going on
0:06
Speaker 1: in DC. Let's get started. I want to thank our
0:09
Speaker 1: sponsor that is Uphold, where you guys can get a
0:12
Speaker 1: ton of rewards, including money back on their debit card.
0:17
Speaker 1: And one of the other things you can do there,
0:19
Speaker 1: of course, is taking rewards. That's something that is available
0:22
Speaker 1: on over twenty well now twenty assets over on Uphold.
0:25
Speaker 1: So check it out using our link down below. All right,
0:27
Speaker 1: let's get into it today. I want to lead off
0:29
Speaker 1: the show with a clip that is kind of a
0:34
Speaker 1: culmination of where we stand right now on the Clarity
0:37
Speaker 1: Act and the stance that DC is facing. Take a look.
0:41
Speaker 3: I think we do have a compromise that is going
0:44
Speaker 3: to make the banks happy. We've given enough concessions, We've
0:48
Speaker 3: arrived at enough compromises where the highest six Democrats voting
0:51
Speaker 3: for it.
0:52
Speaker 2: So an ex post I should say from Patrick Wood
0:55
Speaker 2: saying in it's highlighted here, no bill is better than
0:57
Speaker 2: a bad bill.
0:58
Speaker 1: Of course, he's quoting CEO. This bill had less than
1:02
Speaker 1: twenty four hours to breathe. We had six amendments that
1:05
Speaker 1: would have made the bill materially worse.
1:08
Speaker 4: It had the potential to shut down exemptive authority.
1:11
Speaker 5: I'm not sure you know where coinbase was getting that.
1:13
Speaker 5: It's just false, and I would urge some of the
1:17
Speaker 5: crypto folks to be a little bit to see the
1:19
Speaker 5: bigger picture.
1:20
Speaker 6: I mean, I bet you over time the banks like
1:22
Speaker 6: the idea of paying yield because they're gonna be in
1:24
Speaker 6: the stable coin business.
1:25
Speaker 1: Do you believe that? All right? So that was Matthew
1:31
Speaker 1: Siegel Van. What we were getting at is the issue
1:35
Speaker 1: of yields? Should we be forfeiting those? If you are
1:40
Speaker 1: been watching it all, you guys understand this is one
1:42
Speaker 1: of the big sticking points of the Clarity Acts. So
1:45
Speaker 1: I wanted to bring, of course, Cody coming in from
1:47
Speaker 1: the Digital chamber. How are you, Cody?
1:50
Speaker 5: Doing well? Paul? Thanks for having me.
1:52
Speaker 1: Nice see you again. Hey, listen, I'm gonna give you
1:54
Speaker 1: the benefit of the doubt on that on that last
1:57
Speaker 1: statement from there. So I didn't understand where you guys
2:01
Speaker 1: are on this. But obviously there's a lot of issues
2:06
Speaker 1: that are happening right now in DC. Where does this
2:09
Speaker 1: bill stand do you feel like this still has legs
2:11
Speaker 1: to go.
2:12
Speaker 5: To Be honest, we're in a tough spot right now
2:14
Speaker 5: and we're kind of in no man's own We don't
2:18
Speaker 5: know what the future is. You just hit the nail
2:20
Speaker 5: on the head with that roundup. The prevailing issue right
2:24
Speaker 5: now and what is blocking this bill for moving forward
2:26
Speaker 5: is the stable coin reward piece. There are other issues,
2:30
Speaker 5: there are ethics issues, there are some issues around DeFi regulation,
2:34
Speaker 5: there's some issues around quorum at the CFTC, But the
2:37
Speaker 5: main issue in what is holding us up and why
2:39
Speaker 5: the markup was delayed was stable coin reward piece. Without
2:43
Speaker 5: a compromise between the banks and the crypto industry, we're
2:47
Speaker 5: not going to move forward. So we'll have Senate ag
2:50
Speaker 5: move forward this week, which is great. It's half of
2:52
Speaker 5: the bill. It is a less controversial half of the bill.
2:56
Speaker 5: It is more on the CFTC regulation giving the spot
2:58
Speaker 5: market spot market jurisdiction to the CFTC. It is a
3:02
Speaker 5: needed step in the process. But until we figure out
3:05
Speaker 5: the stable coin reward piece, we're not going to go anywhere.
3:08
Speaker 5: And it's tough to swallow, but that's why we need
3:11
Speaker 5: to be at the negotiating table.
3:13
Speaker 1: Well, yeah, I understand the negotiation side. However, it does
3:17
Speaker 1: put us, and I say us meaning the crypto industry
3:19
Speaker 1: in a very precarious situation. We've watched Patrick Witt obviously,
3:23
Speaker 1: I would say instigating a fight publicly with Coinbase, which
3:27
Speaker 1: is you know, I would say one of the key authors,
3:30
Speaker 1: not authors, but definitely supporters of this bill. When you
3:34
Speaker 1: look at what he's doing, why is he blaming the banks?
3:38
Speaker 1: I mean this should be They're the ones that came
3:40
Speaker 1: in with the amendments. The banks are the ones that
3:42
Speaker 1: are now wanting to change essentially what has been done
3:46
Speaker 1: or pre ordained out of the Genius Act. Why are
3:50
Speaker 1: we not getting support from wit in that area?
3:52
Speaker 5: The banks are the reason why this is being held up.
3:55
Speaker 5: The banks were nowhere when it comes to Clarity Act.
3:58
Speaker 5: I had my team go back to see when the
4:01
Speaker 5: bill passed the House. I had my team to go
4:03
Speaker 5: back and say, did the banks make any noise? Did
4:05
Speaker 5: they oppose the Clarity Act when it passed the House?
4:08
Speaker 5: I mean, why did they want to? It went Clarity Act? Okay,
4:11
Speaker 5: when it went through the House, there were the banks
4:12
Speaker 5: were nowhere, and the banks sat on the sidelines, and
4:15
Speaker 5: then the Genius Act passed, and they were on the
4:18
Speaker 5: sidelines again when the Genius Act passed and said, oh shoot,
4:22
Speaker 5: we didn't know about these things called rewards that were
4:24
Speaker 5: not new Paul as you know that have been around
4:27
Speaker 5: since you know, twenty nineteen when Coinbase started issuing stable
4:30
Speaker 5: coin rewards and they were just late to the game.
4:33
Speaker 5: And now by entertaining the bank's negotiation tactics or amendments
4:39
Speaker 5: to this market Structure bill, which should not even we
4:41
Speaker 5: shouldn't be talking about stable coins anymore because we dispensed
4:44
Speaker 5: with that in the Genius Act, we have now set
4:46
Speaker 5: ourselves up for where we were forced to negotiate. And
4:50
Speaker 5: that is not Coinbase's fault. That is not the crypto
4:53
Speaker 5: industry fault. That is the fact that there are a
4:56
Speaker 5: lot of Republican senators and Democratic senators who are sitting
4:59
Speaker 5: at hall. I'm saying, I must listen to the banks.
5:01
Speaker 5: The bank lobby is very powerful. The bank lobby has
5:05
Speaker 5: the ability to influence votes in my state. What these
5:08
Speaker 5: Republican senators and again it's not just Democrats, it's Republican
5:11
Speaker 5: senators who are sitting in the Senate Banking Committee are
5:14
Speaker 5: saying I'm hearing from community banks that stable coin rewards
5:17
Speaker 5: will put them out of business. We don't agree with that.
5:19
Speaker 5: It's it seems asinine to me, but it's the truth.
5:23
Speaker 5: And So while Coinbase had a big hand in why
5:25
Speaker 5: the markup was delayed, and I agree with a lot
5:27
Speaker 5: of the things Coinbase said, in terms of Brian Armstrong's
5:31
Speaker 5: tweet of why they opposed the bill substantively, I agree.
5:34
Speaker 5: I think where I'm coming from, and likely where Patrick's
5:37
Speaker 5: coming from, it's just like, hey, we have to sit
5:39
Speaker 5: at the table. Let's not walk away now. But to
5:41
Speaker 5: your point, I couldn't agree more. The banks. The banks
5:43
Speaker 5: deserve all of the grief here and why this bill
5:46
Speaker 5: is being delayed. The silver lining here is that if
5:50
Speaker 5: we do nothing, Coinbase wins, the crypto industry wins in
5:53
Speaker 5: terms of stable coins, and the banks lose. And so
5:56
Speaker 5: the banks need, the banks need to negotiate because the
5:59
Speaker 5: status quote for the banks and say hey we're going
6:01
Speaker 5: to tank this bill, We're going to do nothing, is
6:04
Speaker 5: that rewards we can help you. It's a loss for them.
6:06
Speaker 5: So I think what Patrick is trying to do, and
6:09
Speaker 5: I think what we're trying to do is let's get
6:10
Speaker 5: everyone back to the table. We now understand, despite as
6:14
Speaker 5: much as much as we have advocated for to Republican
6:17
Speaker 5: senators that they want to listen to the banks, that
6:19
Speaker 5: they think rewards are a problem. We don't agree. We'll
6:22
Speaker 5: continue to educate them on that. But that's where we
6:24
Speaker 5: are today. So if we want a market structure bill,
6:26
Speaker 5: we're going to have to address this. But we're not
6:28
Speaker 5: going to accept a bad provision and a prohibition on rewards.
6:33
Speaker 5: Can't accept it. We understand that. So that's where we
6:35
Speaker 5: are today, and that's why this bill is being hung up.
6:37
Speaker 1: All right, So this seems like a negotiation situation that
6:41
Speaker 1: is brewing. I want to play this clip from Patrick
6:46
Speaker 1: with because and then we'll comment afterwards. Just take a
6:49
Speaker 1: look at this.
6:50
Speaker 3: We have some work to do to convene play a
6:52
Speaker 3: bit of a mediator role between the folks on either
6:56
Speaker 3: side of the stable point, rewards and yield debate.
6:59
Speaker 5: Does the White House have a position on interestparing stable coins?
7:02
Speaker 3: We don't necessarily come out one way or the other.
7:04
Speaker 3: We've heard from a number of Senate Republicans concerns about
7:09
Speaker 3: what this could mean for community banks in particular. We're
7:12
Speaker 3: not deaf to those concerns. So it's going to require
7:15
Speaker 3: some folks to make difficult decisions that might hurt one
7:19
Speaker 3: part of their business. It's not just exchanges, it's broker dealers,
7:23
Speaker 3: it's folks writing DeFi code. But that's the nature of
7:26
Speaker 3: compromise and negotiation and step back, zoom out.
7:30
Speaker 1: I mean that startled me when he said people writing
7:34
Speaker 1: code are now in the crosshairs. I mean that essentially
7:38
Speaker 1: is attack, an attack on freedom speech. At the same time,
7:42
Speaker 1: you've got the affordability issue here in the United States,
7:46
Speaker 1: and Trump has another opportunity where he could get something
7:50
Speaker 1: through that would get every American an opportunity to earn
7:53
Speaker 1: rewards on their US dollars that are converted to a
7:57
Speaker 1: stable coin. It just seems like this is the worst
8:00
Speaker 1: negotiator ever. I feel like this industry has the upper hand.
8:05
Speaker 1: You know, we should be you know, trying to come
8:07
Speaker 1: of course, come to the table, but at least understand
8:10
Speaker 1: where you are.
8:12
Speaker 5: I couldn't agree more. We have to come to the table.
8:16
Speaker 5: We want a bill because what my fear is that
8:18
Speaker 5: if we don't get a bill over the next few months,
8:21
Speaker 5: we could go into a divided Congress. Democrats could win
8:24
Speaker 5: the House and put Maxine Waters in charge of financial services,
8:27
Speaker 5: or even worse, they could win the Senate and Elizabeth
8:30
Speaker 5: Warren is in charge of Senate Banking, and then that
8:32
Speaker 5: could set us up in twenty twenty eight. Who knows
8:34
Speaker 5: what happens. So we need a bill to ensure that
8:37
Speaker 5: Gary Gensler never comes back and we never face that
8:39
Speaker 5: regime again. However, and I think this is where coinbase
8:43
Speaker 5: is coming out. And when you hear things about like
8:44
Speaker 5: developer protections, there are some really really bad proposals that
8:49
Speaker 5: Democrats have put on the table. They want to make
8:52
Speaker 5: every developer a broker dealer to register with the SEC.
8:56
Speaker 5: They want to make every developer a financial institution and
8:59
Speaker 5: regulate and read with Finsen or the US TAR Department.
9:02
Speaker 5: It's asinine policies. It's all about control, to be honest,
9:06
Speaker 5: and so we also have to as a crypto industry
9:08
Speaker 5: say yes, we want to bill. We need a bill
9:11
Speaker 5: to protect this industry long term as it is being
9:14
Speaker 5: woven into the fabric of the economy. But we can't
9:16
Speaker 5: sacrifice these fundamental rights of what makes this industry great,
9:21
Speaker 5: and fundamental rights that is released to the Constitution. As
9:23
Speaker 5: you said, freedom of speech developers must be protected. Let's
9:26
Speaker 5: protect stable coin rewards. There should be competition here. The
9:29
Speaker 5: reason that we're talking about a market structure bill and
9:32
Speaker 5: that it has been a priority number one for Congress
9:34
Speaker 5: and this administration is because people want crypto. People want
9:38
Speaker 5: competition to the traditional banking system. They want access to
9:41
Speaker 5: financial services and not have to go and pay exorbitant
9:45
Speaker 5: fees to their credit card companies. We need to look
9:48
Speaker 5: at the bigger picture we want to build, but we're
9:50
Speaker 5: also not going to sacrifice everything that makes crypto great
9:52
Speaker 5: just to appease Democrats to get to sixty votes in
9:54
Speaker 5: the Senate.
9:55
Speaker 1: Why do you think we aren't seeing the White House
9:58
Speaker 1: come out on pro stable coin yield position and at
10:03
Speaker 1: least Trump, I mean, he's been very active about talking
10:05
Speaker 1: about bitcoin and crypto and all that. You would think
10:08
Speaker 1: he would give that to the people saying hey, yo,
10:10
Speaker 1: I like yields. Yields are good.
10:12
Speaker 5: To be honest, I think it is a negotiating tactic
10:14
Speaker 5: right now to get the banks to the table to compromise.
10:18
Speaker 5: I can tell you from every conversation I have had
10:21
Speaker 5: with the White House, with the occ with the Treasury Department.
10:25
Speaker 5: They have been very supportive of the Genius Act as written,
10:28
Speaker 5: and they know that rewards existed pre Genius Act and
10:32
Speaker 5: can exist post Genius Act. And from everything they have
10:35
Speaker 5: told me, they have assured me that they are supportive
10:38
Speaker 5: of rewards, that they like the innovation in the stable
10:41
Speaker 5: cooin space. They want to see the stable coin market grow.
10:43
Speaker 5: We've had the Treasury Secretary say just in November he
10:46
Speaker 5: expects this industry to be a three trillion dollar industry
10:50
Speaker 5: by twenty twenty eight. There is a massive upside for
10:53
Speaker 5: this administration to see the stable coin market grow because
10:55
Speaker 5: it means the growth of the dollar. And so from
10:58
Speaker 5: every conversation I have had, I believe that they are
11:00
Speaker 5: fully supportive of rewards and allowing rewards, and that is
11:05
Speaker 5: why they didn't just cave to the banks in this negotiation,
11:08
Speaker 5: or why Senate Republicans didn't just cave to the banks
11:10
Speaker 5: in this negotiation, and why they said, hey, let's step back,
11:13
Speaker 5: let's try to get everyone on the table. We want
11:15
Speaker 5: to see this bill move forward. But we have a
11:16
Speaker 5: lot of allies in the administration and on the Republican
11:19
Speaker 5: side who are pro rewards.
11:21
Speaker 1: I'm surprised we haven't seen Bessett jump into this because
11:24
Speaker 1: he is very pro stable coins in general, and stable
11:28
Speaker 1: coins essentially are going to be in a position where
11:31
Speaker 1: they're propping up the US dollar via treasuries.
11:35
Speaker 5: I couldn't agree more. I mean, a little known thing
11:37
Speaker 5: that happened at the start of this administration in early January,
11:41
Speaker 5: the White House sat down with some crypto industry leaders
11:44
Speaker 5: and said, we're going to prioritize stable coin legislation and
11:47
Speaker 5: then move to market structure legislation. The sole reason for
11:50
Speaker 5: that was because of the strength of the dollar and
11:53
Speaker 5: what the expansion of the dollar can mean for the
11:56
Speaker 5: US economy. They want everyone, whether you're in Venezuela or Argentina,
12:02
Speaker 5: or if you're in Hong Kong or Singapore, they want
12:04
Speaker 5: everyone accessing the dollar through US back stable coins. They
12:08
Speaker 5: want the US back stable coin to be the new
12:10
Speaker 5: reserve currency of the digital world. And that's why we
12:13
Speaker 5: started with stable cooin legislation. It wasn't just a market
12:17
Speaker 5: structure is more complicated, we'll do that. Second. It was no, no, no,
12:20
Speaker 5: We're going to prioritize the Genius Act. We're going to
12:22
Speaker 5: get that done and then we'll move to market structure.
12:24
Speaker 5: And that was a call from Secretary Best and the administration.
12:28
Speaker 1: I don't know about this negotiation tact and maybe the
12:30
Speaker 1: Trump administration has some kind of strategy here. I'm not sure.
12:34
Speaker 1: It does not appear looks like it's still leaning toward
12:37
Speaker 1: the banks to try to appease that lobby going forward.
12:41
Speaker 1: But of course, this I think will have massive effect,
12:45
Speaker 1: ripple effect into how developers are going to grow, because
12:49
Speaker 1: to me, this is like putting almost the regulation that
12:55
Speaker 1: never happened on the Internet on an emerging technology like
12:59
Speaker 1: blockchain in a country that should be leading the way,
13:03
Speaker 1: I think ends up losing its global position as the
13:05
Speaker 1: number one you know mecha of crypto, as Trump keeps claiming.
13:11
Speaker 1: So this is a big deal I think going forward,
13:13
Speaker 1: if we don't see the growth opportunity.
13:16
Speaker 5: And to call it out for what it is, it
13:18
Speaker 5: is a total farce that the banks are saying that
13:21
Speaker 5: they are concerned that stable coin rewards will let lead
13:24
Speaker 5: to this massive deposit flight and that it would crush
13:27
Speaker 5: community banks. It's just not true. There is enough data
13:30
Speaker 5: out there to back that up. This is all about
13:33
Speaker 5: competition and protecting a moat over bank deposits. They are
13:37
Speaker 5: terrified that people will start to put their savings in
13:40
Speaker 5: stable coin rewards. There is nothing earned stable coins. There
13:43
Speaker 5: is nothing right now that prohibits the banks from offering
13:47
Speaker 5: stable coin rewards. Every one of these banks is building
13:50
Speaker 5: their own stable coin right now. They can offer rewards
13:53
Speaker 5: of three point five four percent, five percent, but they
13:56
Speaker 5: don't want to do that because that is money that
13:58
Speaker 5: can go into their own pockets. So this is all
14:00
Speaker 5: about competition, and it's nothing more than that.
14:03
Speaker 1: If we were to come to an agreement, you know,
14:05
Speaker 1: in the negotiation table, and then the Dems don't vote for.
14:09
Speaker 5: It, it's totally plausible. I mean, if you look at
14:15
Speaker 5: the Senate Banking Bill, the last draft that was released
14:18
Speaker 5: right before the markup was supposed to be scheduled the
14:21
Speaker 5: week of I think January fifteenth or around there. That
14:24
Speaker 5: bill was a Democratic bill. There was a ton of
14:27
Speaker 5: concessions that were given to the Democratic side, whether it
14:30
Speaker 5: was on DeFi or it was on this new network
14:34
Speaker 5: token concept where the SEC remains the front door and
14:37
Speaker 5: I am. I have not been it has not been
14:40
Speaker 5: communicated to me that Republicans received assurances that because they
14:44
Speaker 5: were giving so much to Dems in this bill that
14:46
Speaker 5: Dems actually said, oh we'll vote yes on this, I
14:49
Speaker 5: don't think the Dems ever got there, and that is
14:52
Speaker 5: pretty scary. So at some point what I would like
14:56
Speaker 5: to see Republicans do is force a vote, Hey, this
14:59
Speaker 5: is a good market structure bill. If we can get
15:01
Speaker 5: through some of these compromises, we leave crypto industry, you
15:05
Speaker 5: stand at least you know at least you know where
15:07
Speaker 5: you stand, and force Democrats going into an election year
15:10
Speaker 5: where crypto will have a huge influence once again, to say, hey,
15:14
Speaker 5: are you for this or you against this? Do you
15:16
Speaker 5: believe this industry should exist and we want to regulate it?
15:19
Speaker 2: Or no?
15:20
Speaker 5: And if they vote no, then that's they're going to
15:23
Speaker 5: have to justify that when they talk to their voters
15:25
Speaker 5: back home when there's a massive swarm of crypto voters.
15:28
Speaker 1: All right, who's heading the negotiation right now? Would it
15:31
Speaker 1: be Patrick Witt or would it be the lobby groups?
15:35
Speaker 1: Who's who's doing that?
15:36
Speaker 5: It's kind of a mix right now. So I would
15:38
Speaker 5: say it's a combination of the trade groups. So whether
15:43
Speaker 5: it's the American Bankers Association and the Bank Policy Institute
15:46
Speaker 5: on that side, it is the Senate Banking Republicans and
15:49
Speaker 5: their staff. On our side, it's you know, US and
15:53
Speaker 5: coinbases of the world and some of the other trade groups,
15:56
Speaker 5: and then the Patrick Patrick Witt and David Sachs and
15:58
Speaker 5: the White House, and so we have this almost foreheaded
16:01
Speaker 5: monster that our meeting in the middle trying to figure
16:05
Speaker 5: out what's next. We're at a standstill right now. We're
16:08
Speaker 5: all waiting now to see what happens in the Senate
16:10
Speaker 5: ag markup this week. Are they able to get a
16:12
Speaker 5: bipartisan vote and move, you know, start to move some
16:15
Speaker 5: things and shake them things and build some momentum. It
16:17
Speaker 5: seems like it's going to be a partisan vote right
16:19
Speaker 5: now on Thursday. But we're all waiting to come to
16:22
Speaker 5: the table. I think we all have our demands and
16:24
Speaker 5: then it's just now, finally we need to sit at
16:26
Speaker 5: the table. We've all stepped away for a little bit
16:28
Speaker 5: to get a breather, and now we need to come
16:30
Speaker 5: back to the table.
16:31
Speaker 1: I feel like this is one of the things though
16:34
Speaker 1: that's already a loss, and that was Roger Marshall not
16:37
Speaker 1: offering the credit card swipe v amendment, which has been
16:40
Speaker 1: dropped from the bill. Now for those of you who
16:42
Speaker 1: don't understand what it really boiled down to. Visa MasterCard
16:46
Speaker 1: probably loves this because it was designed to give an
16:49
Speaker 1: additional option, you know, for being able to when you
16:52
Speaker 1: go to a retailer, have an additional option that you
16:55
Speaker 1: can use both for settlement but also use case that
16:59
Speaker 1: would have opened up the point of sale to crypto,
17:02
Speaker 1: or at least the opportunity it could have been crypto
17:04
Speaker 1: and many other things out there, especially as we get
17:07
Speaker 1: into more and more digital currencies. So the fact that
17:10
Speaker 1: this is being stripped out away from it, I think
17:12
Speaker 1: maybe a bullet Visa MasterCard got to win here.
17:16
Speaker 5: And I can tell you, Paul, this is a perfect example,
17:19
Speaker 5: or maybe an ugly example of politics driving policy and
17:24
Speaker 5: not the other way around. This was strictly, hey, we
17:27
Speaker 5: think this bill can be toxic. There are a lot
17:30
Speaker 5: of Republicans who are uncomfortable with this bill. There are
17:32
Speaker 5: a lot of Democrats who are uncomfortable with this bill.
17:35
Speaker 5: And if you attach it to already what is becoming
17:37
Speaker 5: a toxic market structure or partisan market structure effort, it's
17:41
Speaker 5: just going to tank the vote and you're not going
17:43
Speaker 5: to get enough Republican support to vote it out a committee.
17:46
Speaker 5: And so this was strictly politics behind the scenes of saying, hey,
17:50
Speaker 5: there's a lot of people who support Marshall's bill. I
17:52
Speaker 5: think the President supports Marshall's bill, but just saying, hey,
17:55
Speaker 5: if we want market structure to go, this is not
17:57
Speaker 5: the right venue to attach this on because it changes
17:59
Speaker 5: the narrative and it's going to tank you.
18:01
Speaker 1: Yeah, I want to play a clip for you. This
18:04
Speaker 1: is an old clip that was during the Genius Act negotiation,
18:09
Speaker 1: and it is a Bernie Sanders and I'll explain what
18:12
Speaker 1: we're going here after the clip. Take a look.
18:15
Speaker 2: They want to take your money and give you a
18:17
Speaker 2: worthless token in exchange for it.
18:19
Speaker 7: Well, do I get any inter I mean, if I
18:22
Speaker 7: get a CD gives me four percent, what do I
18:24
Speaker 7: get on a stable coin?
18:25
Speaker 2: You get no interest? So explain that.
18:28
Speaker 7: What do they do with my one thousand dollars.
18:30
Speaker 2: Best case scenario, you get one thousand dollars that remains
18:34
Speaker 2: worth one thousand dollars?
18:36
Speaker 7: All right, So if interest rates are going if inflation
18:39
Speaker 7: is going up by four percent the year, and I
18:41
Speaker 7: sell you know it's worth nine hundred and sixty dollars
18:44
Speaker 7: or something like that, Is that correct.
18:46
Speaker 2: So you can't ever make money on stable coins, but
18:50
Speaker 2: as you pointed out, they can fall, so.
18:51
Speaker 7: I've actually lost money. Is that a fair summary?
18:54
Speaker 2: Yeah? Absolutely?
18:56
Speaker 7: Okay, people are using crypto to kill other people, that's right, all.
19:05
Speaker 1: Right, So I have to show you that because this
19:09
Speaker 1: is out there. Okay, this is Bernie Sanders. He was
19:12
Speaker 1: brainwashed basically by action groups that have kind of gone
19:16
Speaker 1: in stre We all know this is all false. Now,
19:19
Speaker 1: why not activate Bernie Sanders because he is a very
19:22
Speaker 1: pro consumer politician. I think once he learns, wait a minute,
19:27
Speaker 1: the American people can get four percent by just parking
19:32
Speaker 1: a dollar and they support a US treasury. Why wouldn't
19:36
Speaker 1: I back that? And of course Sanders is very powerful.
19:39
Speaker 1: Why not get him involved and try to activate the
19:42
Speaker 1: Democrats through Sanders camp.
19:45
Speaker 5: Well, one, I appreciate the entertainment for the day because
19:48
Speaker 5: that was laughable. I think something to point out to
19:51
Speaker 5: for your viewers. The guy that was talking there to
19:53
Speaker 5: Bernie Sanders, Corey Freyer, was Gary Gensler's top deputy at
19:57
Speaker 5: the SEC for four years and that just shows you
20:00
Speaker 5: where we were as an SEC and what we were
20:03
Speaker 5: facing on the cryptoside. We are trying to ask lies, lies, lies, lies,
20:07
Speaker 5: It's they crazy. We are trying to add activate Bernie Sanders.
20:13
Speaker 5: We have reached out to all one hundred senators, whether
20:16
Speaker 5: it's Bernie Sanders or Elizabeth Warren, and we have given
20:19
Speaker 5: them cheat sheets that we can share with you, Paul,
20:21
Speaker 5: that you can share with all of your viewers on
20:24
Speaker 5: what is the benefits of stable coins. How it provides access,
20:27
Speaker 5: how it provides faster settlement times, how it allows you know,
20:31
Speaker 5: for more liquidity and trading. There are such benefits here,
20:34
Speaker 5: and I think people don't understand the benefits that rewards
20:37
Speaker 5: can play. That what stable coins can play businesses. When
20:40
Speaker 5: we talk to small businesses, you'd be amazed and they go, wait,
20:44
Speaker 5: I can start onboarding through stable coins and save how
20:47
Speaker 5: much money I don't have to pay these interchange fees
20:49
Speaker 5: to these credits I can save how much It is
20:51
Speaker 5: all about access stable coins. If you really boil it
20:55
Speaker 5: down and you talk about the benefits of stable coins,
20:57
Speaker 5: they are all talking points that resonate so perfectly well
21:00
Speaker 5: with the Democratic platform. And that's why it drives me
21:03
Speaker 5: nuts that this is a partisan issue. I was glad
21:05
Speaker 5: to see when the Genius Act passed that we had
21:08
Speaker 5: eighteen Senate Democrats support it, that we had over one
21:10
Speaker 5: hundred Democrats in the House support it. I was hoping
21:12
Speaker 5: that that was the beginning of a change in tide,
21:16
Speaker 5: that we were saying, Okay, finally this is becoming a
21:19
Speaker 5: bipartisan issue. People understand the benefit of technology. Then I
21:22
Speaker 5: see videos like that and I see people can be brainwashed.
21:25
Speaker 5: So we are trying to undo that brainwashing. It takes
21:28
Speaker 5: a lot more when you have to undo brainwashing than
21:31
Speaker 5: just to educate someone from the start. But we are
21:33
Speaker 5: going in and we're talking to Senator Sanders, We're talking
21:36
Speaker 5: to Senator Warner, We're talking to all of the opponents
21:39
Speaker 5: who voted no on Genius Act and who have been
21:41
Speaker 5: very vocal opponents on Clarity or any crypto bils and saying, hey,
21:44
Speaker 5: there's still time to change your mind. No one will
21:47
Speaker 5: judge you if you change your mind here and say,
21:49
Speaker 5: you know what, this is a value add to my constituents.
21:52
Speaker 1: Yeah. Do you think Cody that when you look at that, well,
21:56
Speaker 1: first of all, you mentioned this earlier. Is there a
21:58
Speaker 1: way that they could split out this stable coin yields
22:02
Speaker 1: issue and vote on that separately so they could find
22:05
Speaker 1: out who is for and against.
22:07
Speaker 5: We would love that that would make the most sense.
22:10
Speaker 5: There is no reason that we need to needed to
22:12
Speaker 5: add stable coins to market structure. That could be a
22:15
Speaker 5: completely standalone issue and we can continue with the merits
22:19
Speaker 5: of market structure and trying to give the SEC regulatory roadmap,
22:23
Speaker 5: give the CFTC or regulatory roadmap token issuers, token exchanges.
22:28
Speaker 5: Right now, Democrats are saying that's a no deal for them.
22:30
Speaker 5: They believe that the only vehicle to address this in
22:33
Speaker 5: is going to be market structure because it's the only
22:35
Speaker 5: one that's moving.
22:36
Speaker 1: Yeah. Well, with that being the case, I'm going to
22:39
Speaker 1: show you a couple of things here. This was news
22:41
Speaker 1: from AVE introducing cracking their DeFi power DeFi earned. Basically,
22:47
Speaker 1: you can deposit cash now and stable coins into these
22:49
Speaker 1: dedicated vaults. You look at these vaults going crack and
22:53
Speaker 1: pro right there just example of up eight percent right
22:56
Speaker 1: now to possibly earn and the potential here where you
23:00
Speaker 1: can even allocate. So this get I know, I know
23:03
Speaker 1: it's a more sophisticated trade. For most people, it's not
23:06
Speaker 1: going to be something they would do. But for the
23:09
Speaker 1: sophisticated investors, this is an escape patch for if yields
23:14
Speaker 1: do not occur. Do you think banks understand what's happening
23:18
Speaker 1: in vaults right now?
23:19
Speaker 3: No?
23:20
Speaker 5: Banks. Banks didn't understand that rewards existed for seven years
23:24
Speaker 5: before this, and that's why they stayed quiet in the genius.
23:27
Speaker 5: So they I know this, I honestly think. And when
23:32
Speaker 5: I sit in these negotiations, in these page turns over
23:35
Speaker 5: market structure, there have been senators who have asked, where
23:38
Speaker 5: were you several months ago? We weren't paying attention, We
23:42
Speaker 5: didn't know, and that I mean, that's it's crazy to
23:46
Speaker 5: you know, to conceptualize it, but that's where we are.
23:48
Speaker 5: And so I mean, right now, if you prohibited rewards,
23:52
Speaker 5: you can still go using your us usd T tether
23:57
Speaker 5: and you can still stake it on meta masks and
23:59
Speaker 5: get rewards. So I don't think the banks have any
24:01
Speaker 5: idea where there's other options out there, But we don't
24:03
Speaker 5: want to give them any inch because then they will
24:06
Speaker 5: still try to take a mile and once they wake
24:08
Speaker 5: up to this, they're going to be pissed. But that's
24:10
Speaker 5: the beauty of the digital asset industry. It's to be
24:14
Speaker 5: like we will always find ways to innovate because this
24:16
Speaker 5: is about empowering the people. That is the whole point
24:19
Speaker 5: of blockchain technology. It's more about the ownership economy and
24:22
Speaker 5: giving more power to the people that they can earn money.
24:25
Speaker 5: The banks will lose their minds of this, but I
24:27
Speaker 5: think we're two three years away before they have any
24:29
Speaker 5: understanding of what a DeFi all is.
24:31
Speaker 1: I mean, you've got Wall Street moving in this direction.
24:33
Speaker 1: This is bit wise all right right there. Today they
24:36
Speaker 1: announced this bit Wise program. They're launching a non custodial
24:40
Speaker 1: vault strategy as a curator on Morpho. So again, more ways,
24:45
Speaker 1: this is bit Wise one of the biggest funds out
24:47
Speaker 1: there in terms of really next generation tech, especially in fintech.
24:52
Speaker 1: So you know that this is just the beginning of
24:55
Speaker 1: what will be an onslaught into Wall Street around DeFi.
24:58
Speaker 1: It's coming concern again gets back to the whole point
25:02
Speaker 1: of if they push so hard that we lose all
25:05
Speaker 1: of the momentum of America being the crypto center of
25:10
Speaker 1: the world, and we end up losing that to Dubai
25:13
Speaker 1: or Singapore or Luxembourg or one of these other countries
25:17
Speaker 1: that basically all these devs and all these companies start
25:21
Speaker 1: to migrate to because that could happen so quickly. These
25:24
Speaker 1: companies are already very, very fluid in terms of where
25:28
Speaker 1: they're operating.
25:30
Speaker 5: At one hundred percent. We compare this quite often to
25:34
Speaker 5: the dot com boom, and we have a choice right
25:37
Speaker 5: now where we're either going to be the United States
25:39
Speaker 5: and continue to the United States and lead the dot
25:42
Speaker 5: com boom, or we're going to be Europe, who has
25:44
Speaker 5: spent the last twenty five years trying to play ketchup.
25:47
Speaker 5: Companies are fluid to your point, They are nomadic. People
25:50
Speaker 5: will move up and move out like this, and so
25:53
Speaker 5: I think the White House is hyper hyper aware of that.
25:56
Speaker 5: They want everyone to remain on shore. They're all about reshoring,
26:00
Speaker 5: whether it's manufacturing or it's crypto, it's keeping people in
26:03
Speaker 5: America and displaying American excellence on the world stage. This
26:07
Speaker 5: is our biggest talking point when we're on Capitol Hill,
26:10
Speaker 5: is that if we don't get this right and we
26:12
Speaker 5: limit or curb innovation right now, we will be losing
26:17
Speaker 5: to the rest of the world, because we already are.
26:18
Speaker 5: And we saw what the last four years was of
26:20
Speaker 5: losing to the rest of the world. These jurisdictions. We
26:22
Speaker 5: gave them a four year head start. We have a
26:25
Speaker 5: very unique ability right now to catch up. The only
26:27
Speaker 5: way we're going to get this wrong is if we
26:29
Speaker 5: bend the need to legacy institutions, who, by the way,
26:33
Speaker 5: are doing everything they can to integrate crypto, blockchain technology,
26:37
Speaker 5: digital assets in our own platform. It's just competition. So
26:41
Speaker 5: we have to get this right. And that talking point
26:44
Speaker 5: of a mass US exodus and what it will mean
26:46
Speaker 5: for developers, what it will mean for revenue towards the economy,
26:51
Speaker 5: what it will mean for what it will mean for
26:53
Speaker 5: politicians for votes as those people flee their jurisdictions. It resonates,
26:58
Speaker 5: It really does. See what it would be loud about it.
27:00
Speaker 1: Let's go to this clip because this to me resonates
27:03
Speaker 1: very big with Trump because he is so hyper sensitive
27:07
Speaker 1: to the market. Okay, listen to this clip. Right here,
27:11
Speaker 1: the House is.
27:12
Speaker 4: Clarity X stable coin legislation remains held up in the
27:14
Speaker 4: Senate right now. Now Crack and reportedly moving closer to
27:18
Speaker 4: the public markets, confidentially filing for an IPO when they
27:21
Speaker 4: reached a twenty billion dollar valuation. A potential government shutdown
27:25
Speaker 4: that could really backlog the IPO market again.
27:28
Speaker 6: Yeah, well, really, that's a real problem for U This
27:30
Speaker 6: should be a record for all IPOs across the board,
27:32
Speaker 6: and you think about it, you know Stripe, SpaceX and
27:36
Speaker 6: the crypto companies as well. This should be a record
27:37
Speaker 6: year for IPOs. But if we see a prolonged government shutdown,
27:40
Speaker 6: especially a battle, there's still a path for going public,
27:42
Speaker 6: but it is a very very narrow path. It is
27:45
Speaker 6: just that it'll come up. The works in terms of
27:47
Speaker 6: the market recovery, in terms of the market growth this year,
27:49
Speaker 6: excuse me, and I think ultimately we got to make
27:51
Speaker 6: sure they don't politicize this thing too much.
27:53
Speaker 1: Here is the I think the footprints to failure right
27:57
Speaker 1: now that we're dealing with. Here was the Avalanche spot
28:01
Speaker 1: ETF debuts on Nasdaq. Zero net inflows. All right, that's
28:05
Speaker 1: because and we all know, clarity is the hold up here.
28:08
Speaker 1: It's what's holding back projects like Avalanche, which should not
28:11
Speaker 1: have had a zero net inflow. Absolutely terrible. And then
28:15
Speaker 1: you look at Bicco. Let's not forget Bicco just went public.
28:19
Speaker 1: Comes up immediately retraces another concern because of blockchain orientation.
28:25
Speaker 1: He mentioned SpaceX potentially could deploy blockchain technology, Stripe could
28:31
Speaker 1: potentially deploy blockchain technology. All of which would now impact
28:36
Speaker 1: their IPOs, which impacts the SMP. I mean, the trickle
28:40
Speaker 1: down effect here could be massive for Wall Street just
28:45
Speaker 1: because of stable coin yields. That's what this is boiling
28:49
Speaker 1: down to.
28:50
Speaker 5: It It's insane, but that's where we are. I mean,
28:52
Speaker 5: the perception in the United States, for whether it's institutional
28:56
Speaker 5: investors or retail investors, still is that any nexus to
29:00
Speaker 5: blockchain technology is inherently risky and when they look to sell,
29:05
Speaker 5: they'll sell those assets first. That's, unfortunately where we are.
29:08
Speaker 5: The way to mitigate that is passing market structure legislation.
29:13
Speaker 5: The fact that it could be held up by stable
29:15
Speaker 5: coin rewards is asinin. It just shouldn't be the case.
29:18
Speaker 5: We passed a stable coin regulatory framework. We're still implementing
29:22
Speaker 5: a stable coin regulatory framework. There's an eighteen month implementation
29:26
Speaker 5: phase after Genius Act. And the fact that because the
29:28
Speaker 5: banks were asleep at the wheel in July of last year,
29:33
Speaker 5: we're now having this fight and it can have a massive,
29:36
Speaker 5: massive impact on the economy. As we're already seeing blockchain
29:39
Speaker 5: technology eventually over the next few years will be something
29:43
Speaker 5: I think will be a risk off asset. Any nexus
29:45
Speaker 5: to blockchain will be a risk off asset, it'll be
29:47
Speaker 5: a safe haven, and hopefully that's where the market is going.
29:50
Speaker 5: But right now it's just not the case, and so
29:51
Speaker 5: we're seeing these massive downturns. When anyone starts to sell off,
29:55
Speaker 5: it affects the entire industry, and that's just not good
29:58
Speaker 5: for the economy, and it's why we stress every single
30:01
Speaker 5: day this has to be nonpartisan. Republicans have gotten on board.
30:06
Speaker 5: We have an administration that is a Republican administration that's
30:08
Speaker 5: gone on board. That's great, but it's easy then to
30:11
Speaker 5: overlook that. When we passed the Genius Act, almost over
30:15
Speaker 5: one hundred member Democratic members in the House supported it.
30:18
Speaker 5: When we passed Clarity of the House, almost one hundred
30:20
Speaker 5: Democratic members supported it. There is real, real interest and
30:24
Speaker 5: intrigue from the Democratic side of the aisle, and I
30:27
Speaker 5: think too often the crypto industry ignores them. We actually
30:30
Speaker 5: ran at polls in November of last year and we
30:33
Speaker 5: looked at the political leanings of crypto holders. They lean left,
30:37
Speaker 5: they lean Democratic, but they vote Republican because they vote
30:41
Speaker 5: with their wallets. They are single issue voters, and so
30:44
Speaker 5: we need to lean in and educate more and more
30:47
Speaker 5: Democrats right now. The people who the Democrats are listening to,
30:50
Speaker 5: as we just watched in that Bernie Sanders video who
30:52
Speaker 5: showed a few minutes ago, are these historical democratic consumer
30:57
Speaker 5: think tanks and protection associations. We need them to open
31:01
Speaker 5: up their doors and open up their ears and start
31:03
Speaker 5: to listen to more of these innovative crypto associations like
31:07
Speaker 5: the Digital Chamber, like some of the other associations, and
31:09
Speaker 5: show them the truth of why blockchain technology makes sense
31:13
Speaker 5: for the democratic platform, makes sense for their constituents. Because
31:16
Speaker 5: to your point, we are right now in a very
31:19
Speaker 5: precarious spot that if we get a democratic controlled Congress
31:23
Speaker 5: or a Democratic controlled White House in twenty twenty eight,
31:25
Speaker 5: we will be sitting here in twenty twenty eight being like, damn,
31:29
Speaker 5: I wish we passed the Clarity Act in twenty twenty
31:31
Speaker 5: six because now we're at the hands of this administration
31:35
Speaker 5: that wants to kill us and we're all moving to
31:37
Speaker 5: Abu Dhabi and that's just not the way we can go.
31:41
Speaker 1: Well, that is the issue right now, And of course
31:43
Speaker 1: this does put a lot of pressure on Trump because
31:45
Speaker 1: and especially if you just look at World Liberty FI,
31:48
Speaker 1: a lot of Trump's activities this of courses. I think
31:50
Speaker 1: what has raised it into a partisan issue is now
31:54
Speaker 1: it looks as though this is benefiting Trump and his
31:57
Speaker 1: family and all of that. But I do agree this is,
32:02
Speaker 1: you know, the negotiation level. The more I think about it,
32:05
Speaker 1: you almost wonder if the banks have the upper hand
32:07
Speaker 1: here because of that alone. There's a lot happening.
32:10
Speaker 2: Man.
32:10
Speaker 1: I'm glad I don't have your job, because first of all,
32:12
Speaker 1: I would never my temper would go nuts in DC,
32:16
Speaker 1: So I'm glad I get to do that from here. Cody,
32:19
Speaker 1: thank you so much for coming in today. We appreciate
32:20
Speaker 1: it as always.
32:22
Speaker 5: Paul, thank you, sir, Crazy in you.
32:31
Speaker 1: If you like this video, like and subscribe, drop a
32:33
Speaker 1: comment down below, and also join our free private member group.
32:37
Speaker 1: The link is in the description.