Latest / The Paul Barron Crypto Show / Banks Attack Stablecoin Yield Report!🔥Scott Bessent Backs CLARITY🚨

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Banks Attack Stablecoin Yield Report!🔥Scott Bessent Backs CLARITY🚨 · The Paul Barron Crypto Show

• 0:00
  Speaker 1: The banks are blasting the White House today and going
• 0:03
  Speaker 1: after a whole new layer of fud. We're gonna break
• 0:06
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• 0:41
  Speaker 1: get going over there. Listen, this is starting all again.
• 0:45
  Speaker 1: One of the things that Eleanor Tarrett hit on was
• 0:47
  Speaker 1: the White House report. We reported on this early in
• 0:50
  Speaker 1: the week. But people are saying now from the bank side, hey,
• 0:53
  Speaker 1: they missed the mark here. Bankers say this has never
• 0:56
  Speaker 1: been about simply needing more deposits, to len. It's about outflow,
• 1:00
  Speaker 1: particularly from smaller institutions. That was all addressed in the report.
• 1:04
  Speaker 1: They're just trying to sidestep the real source here. And
• 1:07
  Speaker 1: of course the other source noted that deposits don't move
• 1:10
  Speaker 1: one to one. I think that is also debunked in
• 1:14
  Speaker 1: the report, and this is what concerns me the most.
• 1:17
  Speaker 1: More to come on that front. I think they are
• 1:20
  Speaker 1: going to mount an alternate fud campaign to counteract what
• 1:24
  Speaker 1: the White House put out. And just remember this report
• 1:28
  Speaker 1: was not a slouch report. They went into all sorts
• 1:32
  Speaker 1: of trying to understand this is the math inside the report, guys.
• 1:36
  Speaker 1: This is just to show you the amount of depth
• 1:38
  Speaker 1: that this went into. This was economist from all over
• 1:42
  Speaker 1: the ecosystem out there, not just White House economists, but
• 1:46
  Speaker 1: this guy, Pierre Urrard, who is the acting chair of
• 1:49
  Speaker 1: Council of Economic Advisors, along with a whole slew of
• 1:53
  Speaker 1: chief economists that were driven out of UCLA many other universities.
• 1:58
  Speaker 1: And this is the point I'm getting at. This was
• 2:01
  Speaker 1: well researched, well developed. It's just that the banks don't
• 2:05
  Speaker 1: like it because it does not prove their point, which
• 2:08
  Speaker 1: is that there's going to be deposit flight. Now I
• 2:10
  Speaker 1: have something at the end of the show today that
• 2:13
  Speaker 1: is going to reveal that if there is deposit flight,
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  Speaker 1: it's going to be because of this. Watch here in
• 2:18
  Speaker 1: a minute, we'll kind of break it down. Here's another
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  Speaker 1: one right here. This was Jonathan Curbot. This is a Cabrot.
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  Speaker 1: This is the guys over at Robinhood. They also supported this,
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  Speaker 1: So that tells me something is starting to get very
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  Speaker 1: definitive about this. One last thing that was said by
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  Speaker 1: Scott Bessett was this statement right here, I'll zoom in
• 2:39
  Speaker 1: on this. Economic security is a national security, and it's
• 2:44
  Speaker 1: the cornerstone of clarity. That's one of the biggest things
• 2:47
  Speaker 1: that he started to put. This is in reference to
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  Speaker 1: an op ed he did over on the Wall Street Journal.
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  Speaker 1: The other thing he hit on was this right here,
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  Speaker 1: to secure and domestically developed. This is in reference to
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  Speaker 1: American corporations and entrepreneurs slash developers to build on this.
• 3:02
  Speaker 1: Think about it. If you want all the best AI engineers,
• 3:05
  Speaker 1: you're going to build the best AI regulation. If you
• 3:08
  Speaker 1: want all the best blockchain engineers, you want to build
• 3:11
  Speaker 1: the regulation framework for all of that. Same thing worked
• 3:14
  Speaker 1: in Silicon Valley in the early age of tech. That's
• 3:16
  Speaker 1: the exact same situation that he's trying to fight against
• 3:19
  Speaker 1: right now. So if we do get a bill, and
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  Speaker 1: remember this is probably going to boil down to some
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  Speaker 1: sort of stipulation around getting yields. And this was all
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  Speaker 1: built around the passive and the active passive and you're
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  Speaker 1: not doing anything, which is what you're doing right now,
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  Speaker 1: and you're earning yield versus active, which we don't know
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  Speaker 1: what that might mean just yet. But because of that,
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  Speaker 1: this is Evan Chang talking about maybe there are some
• 3:41
  Speaker 1: clever ways to get around this. Take a look.
• 3:44
  Speaker 2: So we have to get creative, smart people, very creative people,
• 3:48
  Speaker 2: hopefully like ourself, will find way of making use of
• 3:51
  Speaker 2: it to build a better product for countryman. And that
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  Speaker 2: really is always a burden on the challengers, not the incumbent. Ultimately,
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  Speaker 2: money velocity is on top of mind. We're thinking about
• 4:03
  Speaker 2: how you turn passive asset into active without going into details,
• 4:09
  Speaker 2: that's the way you think about it. I think this
• 4:11
  Speaker 2: is where the magic of crypto coming and there's a
• 4:14
  Speaker 2: hundreds of other ways to make that experience better and
• 4:18
  Speaker 2: be beneficial to consume it. This is top of mind.
• 4:21
  Speaker 2: This is something we're actively working on. This is how
• 4:24
  Speaker 2: we think about every product we launch.
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  Speaker 1: All right, So he's talking about money velocity. If you
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  Speaker 1: look at the velocity of M two right now, you
• 4:32
  Speaker 1: could go back in here all the way back into
• 4:34
  Speaker 1: the nineties and really to the top of the level
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  Speaker 1: there in nineteen ninety seven free what we saw starting
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  Speaker 1: to break. But here's been the money velocity slowing and
• 4:44
  Speaker 1: then all of a sudden starting to clip up. Many
• 4:46
  Speaker 1: meg may say that might be because of stable coins,
• 4:49
  Speaker 1: but the key is it is starting to track up
• 4:52
  Speaker 1: again similar and that's what Evan is getting at right there,
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  Speaker 1: is velocity is probably going to be the secret I think,
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  Speaker 1: the secret method and how yield is going to be earned.
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  Speaker 1: Suie also has been building some things around these kind
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  Speaker 1: of this velocity model, and gasless has been the big one.
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  Speaker 1: You'll notice right here, more USD SUIY usage, more yield.
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  Speaker 1: It's a loop most l one Stoba coins don't have.
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  Speaker 1: So that is something and you're already seeing this at
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  Speaker 1: levels of Franklin Templeton, Gray Scale, et cetera. We're going
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  Speaker 1: to see more of this, I think in terms of
• 5:23
  Speaker 1: gasless and what it means is getting down to zero
• 5:26
  Speaker 1: in terms of costs. So there's an example right there
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  Speaker 1: of Suey their gas was zero. So one of the
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  Speaker 1: things that Evan was hitting on the clip that we
• 5:34
  Speaker 1: just played is that when we get to this point
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  Speaker 1: of where speed is going to become everything, low fees
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  Speaker 1: and instant availability is going to be key. And that's
• 5:44
  Speaker 1: what Eth and Sue are both working on. No withdrawal
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  Speaker 1: Q just an example there. Here's an example of swaps
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  Speaker 1: supporting both and at zero fees. Further into that, you
• 5:55
  Speaker 1: can kind of see it right here, all in one flow,
• 5:57
  Speaker 1: zero fees on everything, and I think that's the only
• 6:00
  Speaker 1: way that you're going to see the kind of acceleration
• 6:03
  Speaker 1: money velocity that they're talking about, which does get into
• 6:07
  Speaker 1: those creative models of how to earn yield. So as
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  Speaker 1: you can imagine AI agents all being able to get
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  Speaker 1: to this point which is really low cost, very fast availability,
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  Speaker 1: and this is the point that we're dealing with right now.
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  Speaker 1: Programmable capital flow just an example there of even Suite
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  Speaker 1: and USC an example right there of how that is
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  Speaker 1: going to be done. The opportunity, I think though, really
• 6:29
  Speaker 1: starts to spread out as we start to see the
• 6:31
  Speaker 1: money flow coming in from all sorts of new places.
• 6:35
  Speaker 1: I want to play a clip here from each CC
• 6:38
  Speaker 1: that announces the death of DAPs. Listen it one.
• 6:42
  Speaker 3: We have seven seven oh two and the Petra upgrade
• 6:44
  Speaker 3: that allow us to upgrade EOA accounts to smart accounts,
• 6:48
  Speaker 3: and that has been brought together with eight zero zero
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  Speaker 3: four and eight zero eighty three to create things like
• 6:54
  Speaker 3: registries of AI agents fantastic and that are are way
• 6:57
  Speaker 3: better than what we had even three months ago. DAPs
• 7:00
  Speaker 3: do not work well on mobile. It's not a problem
• 7:03
  Speaker 3: of let's make the mobile wallet slightly better. We need
• 7:06
  Speaker 3: completely new agentic interfaces for doing this as a product
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  Speaker 3: you see here on the right, like let's swap some
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  Speaker 3: USDC for ETH. When you do that, it is not
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  Speaker 3: just a raw chat experience. It is one that that
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  Speaker 3: gives you familiar interfaces like a swap. Anything that you
• 7:24
  Speaker 3: can do with a DAP you can do through a
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  Speaker 3: single chat interface. It completely replaces the DAP front end.
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  Speaker 3: An example here you can by the way, we have
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  Speaker 3: a open claw or an agent skill that you can
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  Speaker 3: use with open claw or claud, the agent is making
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  Speaker 3: a proactive suggestion that the USDC ave position is approaching liquidation.
• 7:46
  Speaker 3: Do you want to add liquidity? A user could say
• 7:49
  Speaker 3: something like sell all my meme coins to buy more eth,
• 7:52
  Speaker 3: and the agent then tries to figure out what are
• 7:56
  Speaker 3: the meme coins in this user's wallet. So it comes
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  Speaker 3: back and it says, your I think your meme coins
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  Speaker 3: are shib pepe, Brett, and pengu You want me to
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  Speaker 3: sell these four The user approves that. In a non
• 8:06
  Speaker 3: chain action happens, and it also means that you can
• 8:10
  Speaker 3: bring your own front ends. From the developer side, we
• 8:12
  Speaker 3: have the Azier zero flywheel. You should register your agents
• 8:15
  Speaker 3: in Eightier zero four. We're not going to be the best.
• 8:17
  Speaker 3: We're a general purpose agent at every action you want
• 8:20
  Speaker 3: to do so, and then our agent aggregates those or
• 8:24
  Speaker 3: your agent can also call our agent and use it
• 8:26
  Speaker 3: for its own skills. So we are available today. We
• 8:31
  Speaker 3: launched this publicly two days ago, all.
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  Speaker 1: Right, so think about that. Because this is the creative function,
• 8:37
  Speaker 1: and we know AI is coming down the pipe. It
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  Speaker 1: looks like the banks are going to try to win
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  Speaker 1: this out, but I think that crypto is going to
• 8:45
  Speaker 1: outsmart them on yields and it's all going to become
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  Speaker 1: a scenario where AI agents are looking for the best deals,
• 8:51
  Speaker 1: fastest deals. All of this lays in to write where
• 8:54
  Speaker 1: ethereum is going? And if you look at that, so
• 8:58
  Speaker 1: where does this all play well? It boils down to
• 9:00
  Speaker 1: that the banks are full of it. I've got a
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  Speaker 1: clip from Pierre Jaad, who is the guy who wrote
• 9:05
  Speaker 1: the report by the White House and coordinated all those
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  Speaker 1: economists to get this done. Here's what he had to say.
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  Speaker 4: Well, and if what Ragu says is true in terms
• 9:14
  Speaker 4: of stable coins being an important rail of an agentic world,
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  Speaker 4: my next question for you comes to the market structure bill.
• 9:22
  Speaker 4: What is going on with a yield issue and what's
• 9:25
  Speaker 4: it going.
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  Speaker 5: To take to unlock this great There's a lot of
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  Speaker 5: confusion on this yield issue, and some of that confusion
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  Speaker 5: stems from thinking about stable coin yield and its impact
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  Speaker 5: on deposits using microe frameworks versus macroeconomic frameworks. And what's
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  Speaker 5: true in a macroeconomic framework is that deposits cannot possibly
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  Speaker 5: leave a system. Any deposit that gets taken out comes
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  Speaker 5: back in. It all flows back in, and so once
• 9:51
  Speaker 5: you recognize that insight, then you realize that this fear
• 9:56
  Speaker 5: of deposit flight is completely unfounded. From what we've gathered
• 10:01
  Speaker 5: is that those effects on loans are minimal. So in fact,
• 10:05
  Speaker 5: what it looks like is that the effects on the
• 10:06
  Speaker 5: banking system are small. The effects on stable coin adoption
• 10:10
  Speaker 5: could be potentially large, depending on where this yield question falls.
• 10:15
  Speaker 5: The last thing I'll say is that when it comes
• 10:18
  Speaker 5: to community banks, community banks are probably the least likely
• 10:21
  Speaker 5: to experience any kind of deposit flight because those banks
• 10:24
  Speaker 5: are built on long run relationships with local businesses that
• 10:30
  Speaker 5: are both depositing and borrowing it. So if there was
• 10:32
  Speaker 5: a reshuffling of deposits across the system, we would anticipate
• 10:35
  Speaker 5: that the community banks would be the most immune to
• 10:38
  Speaker 5: that type of reshuffling.
• 10:39
  Speaker 4: The good thing the White House as a professor in
• 10:41
  Speaker 4: that seat, hopefully you can get on the road and
• 10:43
  Speaker 4: help the small community banks learn.
• 10:46
  Speaker 1: All right, So it is clear we have Egon on
• 10:50
  Speaker 1: the case, and he's gonna flash some bank food down.
• 10:54
  Speaker 1: I think, doesn't that guy look like Egon?
• 10:56
  Speaker 5: Yeah?
• 10:56
  Speaker 1: He does, all right. So the point being here, guys
• 11:00
  Speaker 1: is that and I wonder, you know, when you look
• 11:02
  Speaker 1: at the immediate impact of where the banks are going
• 11:04
  Speaker 1: to be hit here and whether or not we're going
• 11:07
  Speaker 1: to see a transition of wealth. I think that's the
• 11:10
  Speaker 1: big factor you have to kind of compare to in
• 11:12
  Speaker 1: the near future or over the next few years. Look
• 11:15
  Speaker 1: at the projected adjusted stable coin transaction volume. This is
• 11:19
  Speaker 1: twenty twenty three to twenty five, and I want to
• 11:21
  Speaker 1: zoom in on a few of these. There is where
• 11:24
  Speaker 1: we are now about twenty eight trillion adjusted tablecoin volume
• 11:28
  Speaker 1: gen Z millennial majority Now wealth transfer begins is somewhere
• 11:32
  Speaker 1: around twenty twenty eight. You'll notice the separation.
• 11:36
  Speaker 2: All you have to.
• 11:36
  Speaker 1: Think about is when you look at twenty thirty two
• 11:39
  Speaker 1: crypto merchant services reach visa scale. That is when visa
• 11:44
  Speaker 1: goes by bye. And I think when you look at
• 11:47
  Speaker 1: that and compare it to this right here, which is
• 11:50
  Speaker 1: the adjusted stable coin transaction volume, take a look at
• 11:53
  Speaker 1: this right here. This is gen Z millennial gen Z
• 11:56
  Speaker 1: and blue gen Z excuse me, Jennackson boomer in orange.
• 12:00
  Speaker 1: This is the intersection of where that money starts to
• 12:02
  Speaker 1: change hands and where that occurs is in twenty twenty eight.
• 12:08
  Speaker 1: Crypt native population becomes the majority in twenty twenty eight.
• 12:12
  Speaker 1: In two years, that's when it would occur. Now, granted
• 12:15
  Speaker 1: it will be very much even all the way up
• 12:17
  Speaker 1: to around twenty thirty two. I don't think it's much
• 12:19
  Speaker 1: of an impact, but at that point the spread starts happening,
• 12:23
  Speaker 1: and by twenty forty eight it is absolutely shifted to
• 12:27
  Speaker 1: a digital and blockchain world. Guys, we are there, We
• 12:30
  Speaker 1: are finally there, and the banks cannot stop this. As
• 12:34
  Speaker 1: Lynn Alden would say, there's no stopping this train. If
• 12:44
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• 12:47
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• 12:50
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