Latest / The Paul Barron Crypto Show / FIT21 Crypto Bill Debate | U.S. House Vote Incoming!

Transcript

FIT21 Crypto Bill Debate | U.S. House Vote Incoming! · The Paul Barron Crypto Show

• 0:07
  Today we're going to be breaking down the debate of the FIT twenty one bill.
• 0:11
  This is important because this all happens prior to the vote. We'll break
• 0:14
  it all down for you. We got some clips. You don't want to
• 0:16
  miss it. My name is Paul Barreer. Welcome back in the tech path.
• 0:19
  Let's get into it today. I do want to thank our sponsor and
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• 0:58
  Let's get into a few points today, and I want to go over to
• 1:00
  this first one, I'm going to highlight something here. This was in a
• 1:03
  tweet that was a letter that came in from Gary Gensler coming. Let me
• 1:08
  zoom in on something that was drawn to our attention right here in this last
• 1:12
  paragraph from that's I think it's a second page on this one if you guys
• 1:15
  are catching this but out there, but it says right here, right here,
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  non accredited investors would be allowed to purchase crypto assets worth up to ten
• 1:23
  percent of the net worth or annual income before the issuer would be required to
• 1:27
  provide any disclosure. That's a lot of risk for ordinary investors without any disclosure.
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  Basically, what this boils down to is mister Gensler again trying to keep
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  the little guy down, not letting them in, and letting basically big money
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  front run the typical traders. This is the problem that has always been out
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  there in these kind of markets, and I think the difference here is that
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  the risk markets are I believe that our audience and most of you people that
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  are probably watching our show right now already do your research, understand these kind
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  of risks, and you're willing to take a look at these because of the
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  upside for all of these. Now, this letter did come in potensial.
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  A little bit notewhere through here is that Genzer did not specify whether this was
• 2:10
  a statement that was his personal or official capacity, or whether it represents the
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  actual view of the SEC. So very intriguing that this got out there.
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  Of course, maybe he's on a bit of an island, I will see.
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  I think I would agree that things are looking a little bit different.
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  I've talked about this over the past week or so. Is that he's kind
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  of playing a little bit of chess right now. I want to get into
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  some of the clips. These are the debates that are happening on the House
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  floor right now, and it is spicy. Let's start with maxine. But
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  this is perhaps the worst most harmful deregulatory proposal I have seen in a long
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  time. Given this industry a free pass to avoid most or all regulations about
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  crypto fraud, human traffickers and traffickers fentanol, and young women and girls being
• 3:02
  trafficked. I urge you to remember that the preferred currency of these criminals is
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  crypto. Yeah, actually the preferred currency throughout numerous reports is Fiat. Has
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  been for quite some time. Vaccine but she continues to place her position,
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  and I think there's some, you know, a little bit of action going
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  on right here. I want to go into mister french Hill's response in his
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  intro listening, we incorporated a significant amount of feedback from the agencies, including
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  the Securities and Exchange Commission, as well as members of Congress and market participants,
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  all during the past fourteen months. I'll give you one example, every
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  one of which I'm aware, acknowledges that bitcoin is not a security and it
• 3:49
  is not subject to SEC regulation. Clearly, the Commodities Exchange Act of nineteen
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  twenty two and the Securities Exchange Act of nineteen thirty four did not spell out
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  exactly when is a digital asset of security and when is it not, and
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  so that has created a gray area. And unfortunately, in that gray area,
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  the SEC has RUSS rushed in with quite aggressive and quite expansive regulatory actions.
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  We are the only G ten country that has not addressed these issues,
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  and now is the time for us to act. So one thing he did
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  hit on only G ten country not supporting this. Of course, we've already
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  seen the actions of Mika, and I think this is now in a very
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  intriguing place. Now. Recent data coming in in front right now as things
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  are being discussed is we're getting news from the House floor that there is overwhelming
• 4:40
  bipartisan support of this. So so far things are looking pretty good. I
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  want to get into a couple more clips here. This next clip goes into
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  the best and oldest argument out there. I think listening, how how are
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  we positioning ourselves to not not be facing that same type of crisis in FTC.
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  For instance, we know that the foundational problem with FTX was the cole
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  mingling of customer funds with their own. That kind of nonsense would not be
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  allowed under Fit twenty one. The FTX debacle happened under this current regulatory environment.
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  Thank you very much to your question. Let's see, let miss a
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  major Christ both know and have intentionally chosen not to register. Not to register,
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  they've broken the law already with the SEC. One of the things they
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  want this bill to do, in addition to everything else is doing, is
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  to make sure that they're not held accountable for the laws they have already broken.
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  This is the SEC at work and the efforts we must you must take
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  mus support. The FEC really needs even more staff to deal with the criminal
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  fraud of these crypto companies. And I'm grateful that they caught the people and
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  that they've been punished, but it seems like there could have been some anticipatory
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  action. But I'd be interested in mister Hill's response. FDx did have a
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  US derivative subsidiary here in America, and guess what it was regulated by the
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  CFTC and guess what it was the only part of FDx that did not fail.
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  So he is exactly right. Of course, Maxine again not necessarily losing
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  her place, but yeah, losing her place and not really understanding the I
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  think the overall position where the market is what happened during the FTX debacle and
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  why regulation or the lack thereof was really the culprit here. And all of
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  this happened under the guys of the current sec under the guys of the current
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  Congress. All of that has been happening under that and that's simply because there's
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  been no regulatory framework. And that is what Fit twenty one starts to fix.
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  I want to go into another clip here that was crazy about Maxine Waters,
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  and this is about Maxine talking about consumer protection. This is where it
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  gets interesting. Take a look. Doesn't the investment contract asset language only apply
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  to digital assets. No, would allow any assets that meet this definition to
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  exist in a regulatory void. That's not correct. Let me read it to
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  you ranking members. So if it's a security, it's not covered. There
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  is no gap. You're either security or you're a digital representation of value.
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  It rips them off. I would beg to differ on that. I would
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  beg to differ that. I think that this actually adds to the protection of
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  consumers all right, So as you can see, this adds to the protection
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  of consumers right now that consumers really have no protection because the SEC is out
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  there kind of just gunshooting and going after really no regulatory alignment. Just in
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  fact, let's go beat up with companies and push them out of the business,
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  push them off seas or off shore. And of course this is what
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  we've seen in terms of MICA all taking place. So Maxine again losing in
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  terms of the consumer protection argument this Remember, this is the debate that's happening
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  today. All of this is going on. We'll get the vote probably after
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  hours tonight. We will do a full video for you guys on the FIT
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  twenty one vote. This is an important one. This is pretty much a
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  landmark day in the future of crypto. I want to go to clip our
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  next clip, which is going into the whole idea of the come in and
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  register theory. That is truly you know, I believe a live sale because
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  there's no real way to get that done. But listen, in we have
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  these crypto companies who have refused to register. They're operating against the law.
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  Is there currently any way for a digital asset commodity company to currently register with
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  either the SEC or the CFTC. No, No, do we or do
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  we not create an opportunity and in fact a requirement for those registries to take
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  place? Yes we do. This builds directly responsive to President Biden's call in
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  his executive order for regulatory gap being closed. This is a security, this
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  is a commodity. This is a commodity. This is you know, it
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  wouldn't be such a problem, but this is a comprehensive piece of legislation that
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  undermined the authority of the SEC that has been developed, working and protecting us
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  as a comp on the block for ninety years. And so I disagree that
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  this is a simple bill that just says this is a commodity and this is
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  a security. Well, Coinbase that company went to the SEC and followed an
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  S one, which is a registration statement to go public, and yet they've
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  been under constant scrutiny by the SEC despite their best efforts time and time again
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  to go in And so I believe part of this bill is to bring clarity
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  to that registration. The XRP case ripple, which was litigated in federal court,
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  came back and created more confusion actually in our markets spot protecting institutional investors
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  and not protecting right. So I you know these clips, guys, Sometimes
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  our guys just go a little bit over overboard, but hey, they're right,
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  and I think you know, Frenchhill is pretty much in a position where
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  he's trying to say, listen, this has been the way it is for
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  a long time. There's no way to register this. This clearly outlines all
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  of Listen, guys, this is just about how politics works, and this
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  is the problem that we have right now. So you can see it happening
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  in front of your very eyes right here. I'm surprised they let this debate
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  be filmed because there was a lot of interesting takes on this. Let's get
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  into the meme coin frenzy, because this is another debate topic that was very
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  heated, and they actually talked about doge coin. So don't get freaked out
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  about it, but listen into this one, and I'm gonna pick doge coin.
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  It's a mean coin. Is this really something that should be registered or
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  regulated when it started out as a joke? I mean, our system of
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  market regulation, sir, doesn't have government determine the merit of a product.
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  I don't necessarily disagree with what you're doing, other than I think it may
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  lend more credibility to mean coin. They're called penny stocks. Does that mean
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  the whole stock market is not worthy of regulation, oversight, and participation.
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  The answer is no. I don't recommend someone considered doge coin. It reached
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  a value of eighty five billion, and I understand that there's speculation in this
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  market sized mining company. I understand, all right, so there is speculation,
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  of course. I think the clarity is there, and there is framework
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  already out there within the open securities market in penny stocks that kind of really
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  frame up the same exact style. And this is the thing that they're of
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  course combating against. I think this will potentially say if twenty one gets passed,
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  which I believe it will, we could see a lot of different angles
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  on meme coins coming in, so a lot of frenzy potential moving in.
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  I want to go to another clip here because this is kind of interesting.
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  They're talking about CBDC and stable coins and potential technology that applies to it.
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  Listening and finally I would say something we haven't talked about today. They also,
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  in that Biden executive order called for a legislated solution on payment stable coin,
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  and I think we could have gotten one. I think we should have
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  pursued that. I think we could have gotten to it. But instead here
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  we come up with market structure which is so different. We needed to get
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  started with crypto stable coin would have been the way to do it. Let
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  me pivot to talk about mister Emmersville. HR fifty four three. This bill
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  prohibits is of any central bank digital currency or CBDC by the Federal Reserve that
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  the work that is being done by the Feds will lead us into cdbc's that
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  will be designed in a way that offer cash like privacy, such as using
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  zero knowledge proofs, encryption and other design features where a payment validator processes and
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  approves transactions but does not learn the identities involved in the payments without the permission
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  of the parties. All Right, so it's nice that Maxine is actually supporting
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  crypto there, because if you look at the history of zero knowledge proofs right
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  here, I'm going to just point out zero knowledge proofs k zk ems and
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  zero knowledge proofs in general were conceived in nineteen eighty five by none other than
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  Sylvia mccaullay. Now, Sylvia McCauley, as you guys probably know, is
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  one of the guys who started algorand Algoran being one of the fifty crypto assets
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  out there. So the fact that they're going in this direction again this is
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  just about research, I understand that. But the point is is they're debating
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  this now, we're starting to see overwhelming support and this has pretty much come
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  out of nowhere. So definitely going to be a very big deal to watch
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  for sure. All Right, So this is going on right now. Of
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  course, all the debate is happening, they'll go to actually vote on this.
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  Looks like we're leaning in on bipartisan overwhelming bipartisan support, and if that
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  does happen. Even if it doesn't, I think if we just win,
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  the position that we're going to be in right now is whether or not the
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  administration will support this bill. Now, if you look at this statement in
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  from the White House right here, the Administration Elizabeth Warren opposes the passage of
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  forty seven to sixty three, which would affect the regulatory structure for the digital
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  assets in the United States. They do talk about the fact that there needs
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  to be a framework of digital assets. Everybody totally agrees with that. Fit
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  twenty one is as close as we've seen. This is one I think that
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  is going to go through. And what they're saying here is they are opposing
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  it, but they're not saying that they won't veto it so or will veto
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  it. So this is the thing. I think they're in a position where
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  they're just trying to put out a statement right now. I don't think they're
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  going to veto this. If this goes through, even with just one vote
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  as a win, we'll see how it goes Tonight we'll get you guys a
• 15:26
  full coverage of the actual resolution and how this plays out, because this is
• 15:31
  going to have a huge effect on the market, make sure and jump in
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  on the Diamond circle if you're not in there right now. It's another great
• 15:37
  place to get some additional content from us, and of course follow me on
• 15:41
  x at Paul Baron. We'll catch you next time right here on tech Path