Latest / The Paul Barron Crypto Show / CLARITY Act in Danger by Banks?🚨Coinbase INTERVIEW

Transcript

CLARITY Act in Danger by Banks?🚨Coinbase INTERVIEW · The Paul Barron Crypto Show

• 0:00
  Speaker 1: The yield war is heating up, and today I'm going
• 0:02
  Speaker 1: to be getting into it with Coinbase. It's going to
• 0:04
  Speaker 1: be a good one. We'll get started right away. I
• 0:06
  Speaker 1: want to showcase a little bit here about how long
• 0:09
  Speaker 1: this has been going on. If you guys will remember
• 0:11
  Speaker 1: Brian Armstrong went on and said, nope, we don't like
• 0:15
  Speaker 1: this deal. The yield war has begun. That was sixty
• 0:18
  Speaker 1: two days ago. We started a little counter here, So
• 0:22
  Speaker 1: kind of interesting that we're sixty two days in on
• 0:24
  Speaker 1: this no term yet at least what we're hearing coming
• 0:29
  Speaker 1: out of DC is we haven't seen anything solid. We
• 0:32
  Speaker 1: are seeing though, a little bit of activity after this
• 0:36
  Speaker 1: video that we put out last week. This was the
• 0:40
  Speaker 1: banks what we call the Anti yield Summit, which was
• 0:43
  Speaker 1: really banks and the ABA getting together and going all
• 0:48
  Speaker 1: in on how to defend against yields. And I want
• 0:51
  Speaker 1: to play a clip for you guys to kind of
• 0:52
  Speaker 1: wrap it up of what they said at that event,
• 0:55
  Speaker 1: and then I'm going to bring Paul Graywall coming in
• 0:58
  Speaker 1: from Coinbase. Right after that. Let's go to the clip.
• 1:01
  Speaker 2: Customers are being incentivized to hold payment staable coins in
• 1:06
  Speaker 2: a digital asset wallet. We can't let that happen, that
• 1:13
  Speaker 2: would cause deposit flight that we would be able to protect.
• 1:17
  Speaker 1: Yes, our.
• 1:19
  Speaker 2: Yeah, can we make that we flip go viral what
• 1:22
  Speaker 2: you just said. There are a couple other issues that
• 1:25
  Speaker 2: are really important here and one is known as DeFi
• 1:29
  Speaker 2: really bad.
• 1:30
  Speaker 1: Please oppose them.
• 1:31
  Speaker 2: If there's ever a vote on the floor.
• 1:32
  Speaker 1: Please take a moment to visit ABA dot com slash
• 1:35
  Speaker 1: take action.
• 1:36
  Speaker 2: We have a petition that we're over four thousand signatures
• 1:39
  Speaker 2: on that, so.
• 1:41
  Speaker 1: We thought we would counter that last week when we
• 1:45
  Speaker 1: did that video and there you go, defend the American
• 1:48
  Speaker 1: right to earn a fair reternal savings. We put this
• 1:52
  Speaker 1: petition up. Nine thousand of you have signed it so far,
• 1:56
  Speaker 1: and I was looking at it this morning. A lot
• 1:59
  Speaker 1: of people commenting on this and absolutely overrun with even
• 2:05
  Speaker 1: people putting up a whole slew of videos. I mean,
• 2:07
  Speaker 1: people are just really interested in this topic. We're gonna
• 2:11
  Speaker 1: get to ten thousand, I think, you know, we may
• 2:14
  Speaker 1: get to fifty thousand before Clarity goes through. So listen,
• 2:18
  Speaker 1: I'm gonna bring Paul Graywall in because he is the
• 2:20
  Speaker 1: expert on what is happening out there as the chief
• 2:22
  Speaker 1: legal officer of Coin miss. How are you, Paul?
• 2:26
  Speaker 2: I'm great, Paul. It's great to be on with you again.
• 2:28
  Speaker 1: Yeah, did you see the video round up? There? Just
• 2:32
  Speaker 1: absolutely hideous, all these things? Why do they hate us
• 2:35
  Speaker 1: so much? Why can they not just play play nice?
• 2:39
  Speaker 2: You know? You know it's interesting, Paul. It is, I
• 2:42
  Speaker 2: think a fair question to ask why do they hate us?
• 2:45
  Speaker 2: But I think it's a more important question to ask
• 2:47
  Speaker 2: why do they hate the American people having access to alternatives?
• 2:51
  Speaker 2: That's the real question. I think it needs to be
• 2:53
  Speaker 2: answered here.
• 2:54
  Speaker 1: What is the status on this yield compromise. I'm hearing
• 2:58
  Speaker 1: vibes out of DC that maybe we're getting close on
• 3:02
  Speaker 1: a deal, but the deal may be a little bit
• 3:05
  Speaker 1: of a compromise. And I know there's been a lot
• 3:06
  Speaker 1: of things rolling around, so I want to hear it
• 3:08
  Speaker 1: from you.
• 3:09
  Speaker 2: Well. I think the vibe is correct. That compromises in
• 3:15
  Speaker 2: the air. That's the encouraging thing. And what it compromises
• 3:18
  Speaker 2: the nature of how legislation gets done in Washington. Very
• 3:22
  Speaker 2: rarely do you get everything that you want, but it's
• 3:24
  Speaker 2: always important to hold true to your principles. I think
• 3:28
  Speaker 2: what we're seeing right now in DC, Paul, is the
• 3:31
  Speaker 2: White House leading the charge. The President has made it
• 3:34
  Speaker 2: very clear this is a priority for him. It's a
• 3:37
  Speaker 2: priority for his administration to pass landmark christ built legislation.
• 3:41
  Speaker 2: The goal is very simple, Let's make America the crypto
• 3:43
  Speaker 2: capital the world, and the way to get there is
• 3:45
  Speaker 2: through sensible market structure rules that let everyone know what
• 3:50
  Speaker 2: the standards are, how we comply with them, and then
• 3:52
  Speaker 2: ultimately to hold people accountable. I give the White House
• 3:55
  Speaker 2: and yet broader administration a lot of credit. They've set
• 3:59
  Speaker 2: up a very construction dialogue. They're pushing all sides to
• 4:03
  Speaker 2: move towards the middle, towards a resolution so the White
• 4:06
  Speaker 2: House can achieve its goal. And ultimately, this is about
• 4:09
  Speaker 2: American leadership and national security goes far beyond just domestic
• 4:14
  Speaker 2: issues here in the country.
• 4:16
  Speaker 1: Listen, we saw the president's tweet was very clear what
• 4:20
  Speaker 1: he was trying to do, and he laid it right
• 4:23
  Speaker 1: out there on the line for everybody. Nobody could misunderstand it.
• 4:26
  Speaker 1: But since then, we haven't seen a lot of movement. However,
• 4:29
  Speaker 1: we're hearing that there's a lot of things that are
• 4:32
  Speaker 1: going on at the White House. What's happening since that tweet,
• 4:36
  Speaker 1: what's working and actually helping move this forward.
• 4:40
  Speaker 2: Well, I think the President's statement was critical in affirming
• 4:45
  Speaker 2: his view and the broader administration's view that rewards are
• 4:51
  Speaker 2: an important, even critical element of stable cooin adoption in
• 4:56
  Speaker 2: this country. That it was a cornerstone of the Genius Act,
• 4:59
  Speaker 2: which only passed just a few short months ago. It's
• 5:03
  Speaker 2: hard to remember that sometimes, and also that anyone who
• 5:08
  Speaker 2: believes that undermining rewards for Americans at a time when
• 5:12
  Speaker 2: affordability is top of mind for us all is sadly
• 5:17
  Speaker 2: underestimating the White House's commitment to hold people accountable and
• 5:21
  Speaker 2: hold them to the commitment of the administration that we're
• 5:24
  Speaker 2: going to try to give people more choice, more options
• 5:27
  Speaker 2: in this economy, not fewer. I think that the dialogue
• 5:31
  Speaker 2: between the various parties reflects that understanding. You're now seeing,
• 5:37
  Speaker 2: I think an acknowledgment that rewards are not going to
• 5:42
  Speaker 2: be banned in any legislation that passes this Congress or
• 5:45
  Speaker 2: certainly any legislation that's signed by this President. We need
• 5:48
  Speaker 2: to preserve them for the American people. It's important that
• 5:52
  Speaker 2: to the extent we make any adjustments whatsoever to the
• 5:55
  Speaker 2: balance that was struck in Genius, that it recognized that
• 5:59
  Speaker 2: the millions of Americans who now participate in the crypto
• 6:02
  Speaker 2: economy need to have access to fare and reasonable alternatives
• 6:07
  Speaker 2: to the current financial system. And one of the key
• 6:09
  Speaker 2: elements of choice to that financial system we're alternative to
• 6:13
  Speaker 2: that financial system is rewards on stable coins. It's really
• 6:17
  Speaker 2: that simple.
• 6:18
  Speaker 1: Yeah, do you think there's going to be a Senate
• 6:20
  Speaker 1: hearing talking about rewards?
• 6:24
  Speaker 2: I do think there's going to be a markup, and
• 6:26
  Speaker 2: I do think that markup will come in short order
• 6:30
  Speaker 2: in the Banking Committee. The fact of the matter is that,
• 6:33
  Speaker 2: you know, the debate right now over the Market Structure
• 6:35
  Speaker 2: bill goes beyond just rewards. There are still important issues
• 6:39
  Speaker 2: to resolve regarding DeFi, regarding AML, issues regarding token taxonomy.
• 6:45
  Speaker 2: So it's not as if this is only about rewards.
• 6:49
  Speaker 2: But I think that a markup can address all of
• 6:51
  Speaker 2: these topics, and I think we're going to see that
• 6:52
  Speaker 2: in the next month.
• 6:54
  Speaker 1: How long? Okay, So there's a window here. There has
• 6:56
  Speaker 1: to be, because I mean, we're getting down to the
• 6:58
  Speaker 1: wire here. How soon does the compenise need to be
• 7:03
  Speaker 1: done for us to meet that window before it closes?
• 7:08
  Speaker 2: I think it's a matter of days and perhaps weeks,
• 7:11
  Speaker 2: so we're not that far off. And I think that
• 7:14
  Speaker 2: you know, you've seen now a dramatic pickup in the
• 7:19
  Speaker 2: active engagement of the White House of key voices in
• 7:22
  Speaker 2: the Senate on this topic, and all that reflects I
• 7:25
  Speaker 2: think a common understanding that if we're going to get
• 7:28
  Speaker 2: this done, it needs to happen now. I think one
• 7:31
  Speaker 2: thing that is encouraging to me is that, in some ways, Paul,
• 7:35
  Speaker 2: there's nothing like a good deadline to bring focus to
• 7:38
  Speaker 2: a complicated effort like this one, and the deadlines imposed
• 7:43
  Speaker 2: by the realities of the Senate calendar and the Senate
• 7:47
  Speaker 2: political process, I think are working in everyone's favor.
• 7:51
  Speaker 1: This was I was kind of surprised at the poly market. Still.
• 7:55
  Speaker 1: I'm going to try to get to it, because when
• 7:59
  Speaker 1: we were looking at this over the last week ten days,
• 8:02
  Speaker 1: one of the biggest issues was that it had pretty
• 8:04
  Speaker 1: much stalled out. And I think one of the scenarios
• 8:07
  Speaker 1: that are playing out right now is nobody really understands
• 8:12
  Speaker 1: what negotiations are being done. And you look at it
• 8:15
  Speaker 1: right here, I'm going to zoom in on that scene
• 8:16
  Speaker 1: kind of see, but there it is. That's the one
• 8:19
  Speaker 1: week pretty much flatlined I mean, it is up from
• 8:22
  Speaker 1: that fifty six, and we showed this the other day,
• 8:24
  Speaker 1: but it's still holding it around sixty percent. I feel
• 8:27
  Speaker 1: like this should be much higher. If we are that
• 8:31
  Speaker 1: much closer, you get the White House coming in a
• 8:33
  Speaker 1: lot of Congress people. I'm seeing names that I have
• 8:36
  Speaker 1: not seen before that are coming out and talking about
• 8:39
  Speaker 1: this so clearly at least the crypto community is I think,
• 8:44
  Speaker 1: making it known that they want this. With all that
• 8:48
  Speaker 1: being said, do you think that they are extending the
• 8:51
  Speaker 1: idea that crypto is being used for good now? Especially
• 8:56
  Speaker 1: with what's happening in Iran. I just saw this the
• 8:58
  Speaker 1: other day. Iranians are now rushing to get bitcoin of
• 9:01
  Speaker 1: self custody out as what's happening right there in the
• 9:03
  Speaker 1: Middle East. This is another reason that we've got good
• 9:07
  Speaker 1: news for crypto. Why do you think people are not
• 9:10
  Speaker 1: mentioning this right now?
• 9:11
  Speaker 2: Well, I think that, you know, in negotiating legislation, unfortunately
• 9:17
  Speaker 2: a lot of the conversation does have to take place
• 9:20
  Speaker 2: behind closed doors. But that doesn't mean that the American
• 9:24
  Speaker 2: people can't and aren't being heard. You know, Look, Paul,
• 9:28
  Speaker 2: you've had something like six hundred thousand roughly Americans contact
• 9:33
  Speaker 2: their elected officials making it clear that they want to
• 9:36
  Speaker 2: see market structured legislation passed. I think it's clear, as
• 9:40
  Speaker 2: a result of this public debate around rewards that Americans
• 9:44
  Speaker 2: have expressed real frustration with traditional financial institutions attempting to
• 9:50
  Speaker 2: take from them something that's currently protected under US law.
• 9:54
  Speaker 2: I always like to remind those interested that genius is
• 9:58
  Speaker 2: the law of the land, and as things currently sit,
• 10:01
  Speaker 2: rewards by distributors is protected by that law. And so
• 10:05
  Speaker 2: I think that as as those factors come to be
• 10:09
  Speaker 2: better appreciated, as we're seeing more broadly in terms of geopolitics,
• 10:15
  Speaker 2: crypto once again being shown to be a force for good,
• 10:19
  Speaker 2: being shown to be a force for advancing American interests,
• 10:23
  Speaker 2: our American elected officials are coming to the realization that
• 10:26
  Speaker 2: this is something not just that we want to have
• 10:28
  Speaker 2: here in the United States, it's something that we must
• 10:30
  Speaker 2: have if America is to retain its pre eminent role
• 10:33
  Speaker 2: in the global financial system.
• 10:35
  Speaker 1: So, Paul, let me ask you this, because Mika just
• 10:38
  Speaker 1: rolled out that they have a whole line list of
• 10:41
  Speaker 1: banks that are already jumping on board. Let's assume in
• 10:45
  Speaker 1: a perfect world we get clarity through Okay, finally there's
• 10:49
  Speaker 1: an agreement coming down. They get it through the Center Floor,
• 10:51
  Speaker 1: comes back into the House, we get a final bill,
• 10:54
  Speaker 1: President signs it. How long do you think it's going
• 10:57
  Speaker 1: to be before we see the market and I'm talking
• 11:00
  Speaker 1: about price go up. I'm talking about companies moving in
• 11:04
  Speaker 1: saying hey, I'm going to do this, banks saying yes,
• 11:07
  Speaker 1: we're jumping in and we're going to do this. How
• 11:09
  Speaker 1: long do you think it's going to take a while?
• 11:10
  Speaker 1: Because Mika got past what a year ago and we're
• 11:14
  Speaker 1: just now seeing this now because they had all those
• 11:16
  Speaker 1: deadlines that they had to meet. Are we going to
• 11:18
  Speaker 1: be in that kind of same timeline.
• 11:20
  Speaker 2: Well, I actually think Paul that in the United States
• 11:23
  Speaker 2: there is a much more forward looking perspective on these issues.
• 11:29
  Speaker 2: Even before we've had a final market structure bill passed
• 11:32
  Speaker 2: by the Senate and signed by the President, you're seeing
• 11:35
  Speaker 2: a tremendous adoption already underway. You're seeing the respect to
• 11:39
  Speaker 2: stable coins, in particular, traditional financial institutions racing to develop
• 11:45
  Speaker 2: new products, new services, and new partnerships that will allow
• 11:48
  Speaker 2: them to participate in the spell. And that's why we
• 11:50
  Speaker 2: think this ultimately will be a win win crypto will
• 11:53
  Speaker 2: get the certainty and clarity that we've long been clamoring for.
• 11:58
  Speaker 2: Banks and other traditional financialists just well have a formal
• 12:02
  Speaker 2: role recognized under US law to participate in this. And
• 12:06
  Speaker 2: of course the American people will finally have more choice
• 12:09
  Speaker 2: and greater alternatives to a system that has long underserved them.
• 12:13
  Speaker 2: So I do think that the markets are ultimately going
• 12:17
  Speaker 2: to appreciate and benefit from the passage of this legislation.
• 12:22
  Speaker 2: But I don't think they're waiting for that. There's just
• 12:24
  Speaker 2: there's no time to waste.
• 12:26
  Speaker 1: Well, and you know, we're seeing the CFTC and the
• 12:29
  Speaker 1: SEC is starting to move on this. MasterCard came out
• 12:33
  Speaker 1: big announcements that, of course, I think has pushed a
• 12:35
  Speaker 1: lot of people in the direction that all right, if
• 12:37
  Speaker 1: Mastercard's going here, that mean banks are most likely going
• 12:40
  Speaker 1: to follow, and you're going to see major fortune five
• 12:43
  Speaker 1: hundred start to say, okay, we need to start working
• 12:46
  Speaker 1: out ways to get involved in So I agree with you,
• 12:49
  Speaker 1: this is going to happen regardless. I guess the worst
• 12:53
  Speaker 1: case scenario would be if it doesn't get through, we
• 12:56
  Speaker 1: get a midterm and you know, the Senate gets pulled away,
• 13:00
  Speaker 1: the Republicans what happens then, Are you guys looking for
• 13:04
  Speaker 1: a doomsday scenario here?
• 13:07
  Speaker 2: Well, we're certainly focused on passing legislation which we think
• 13:11
  Speaker 2: would provide a tremendous boost to the confidence and certainty
• 13:16
  Speaker 2: for this market and for this technology that's long been overdue.
• 13:20
  Speaker 2: But we, of course are always preparing for the worst
• 13:23
  Speaker 2: even as we hope for the best. In a worst
• 13:26
  Speaker 2: case scenario, genius remains the law of the land. In
• 13:29
  Speaker 2: a worst case scenario, we continue to have a Chairman
• 13:32
  Speaker 2: Paul Atkins and Chairman Mike Sealik at the SEC and
• 13:34
  Speaker 2: the CFTC, And so you're going to see this asset
• 13:38
  Speaker 2: class and this technology move forward within the regulatory perimeter,
• 13:42
  Speaker 2: whether this legislation is passed or not. That said, legislation
• 13:46
  Speaker 2: is always preferable to regulatory reform in terms of permanence
• 13:51
  Speaker 2: and making sure that these reforms are not lost under
• 13:56
  Speaker 2: future administrations or under future a political pressure. So we're
• 14:01
  Speaker 2: pushing ahead even as we're prepared for the very remote
• 14:04
  Speaker 2: chance that this may not succeed.
• 14:07
  Speaker 1: All Right, I have a lightning around here. They're hard questions,
• 14:11
  Speaker 1: and our audience always ask questions. We try to get
• 14:15
  Speaker 1: as many as we can banks completely ignored Trump's tweet
• 14:20
  Speaker 1: and they doubled down and faced no consequences? Do you
• 14:23
  Speaker 1: think that is true? Or do you think no, they're
• 14:25
  Speaker 1: facing consequences now.
• 14:27
  Speaker 2: I think it is true. It's a little perplexing because,
• 14:29
  Speaker 2: of course, the consequences go beyond just stable coins and rewards.
• 14:33
  Speaker 2: The banks have a number of different regulatory reforms that
• 14:36
  Speaker 2: they want and altoately need from this administration. I for one,
• 14:39
  Speaker 2: can't understand why they would take such a hostile position
• 14:42
  Speaker 2: to that same administration when those reforms are critically important
• 14:45
  Speaker 2: to their own future.
• 14:47
  Speaker 1: Yeah, exactly, Coinbase should just apply for a banking license.
• 14:53
  Speaker 2: Well, banking licenses are certainly the topic of the day.
• 14:56
  Speaker 2: I do think, though, that it's important to understand that
• 14:59
  Speaker 2: our business, this is not a business like the banks.
• 15:02
  Speaker 2: In one critical respect, we don't do fractional lending. We
• 15:05
  Speaker 2: don't take a dollar in from a retail customer and
• 15:08
  Speaker 2: lend out ten the way that the banks do. That's
• 15:11
  Speaker 2: why a different regulatory framework and different regulatory scheme makes
• 15:15
  Speaker 2: sense for.
• 15:16
  Speaker 1: Crypto all right, I like it. Standing in the lane,
• 15:19
  Speaker 1: Fed Governor Christopher Waller says, the skinny master account is
• 15:24
  Speaker 1: the kiddie table of access and it's still being attacked
• 15:27
  Speaker 1: by the bank lobby. What do you think do you
• 15:30
  Speaker 1: think that's happening.
• 15:32
  Speaker 2: Well, it may be a small step towards a broader
• 15:37
  Speaker 2: set of reforms, but it's critically important. I think that
• 15:39
  Speaker 2: we now have for the first time fed master access
• 15:42
  Speaker 2: in some form or fashion available to the crypto industry.
• 15:46
  Speaker 2: Let's see where it goes from here. But I agree
• 15:48
  Speaker 2: this is just step one in a long journey.
• 15:50
  Speaker 1: All right, So you're going to be on No, I
• 15:52
  Speaker 1: think I think they are still I don't think they've
• 15:55
  Speaker 1: taken as serious yet. Coinbase subscriptions could decline here for
• 16:00
  Speaker 1: awards are removed. Do you think that would happen?
• 16:02
  Speaker 2: Oh? I think subscriptions for all sorts of platforms, including ours,
• 16:07
  Speaker 2: go far beyond just rewards. Rewards are an important element
• 16:11
  Speaker 2: of the value for customers. But you know, the fact
• 16:13
  Speaker 2: of the matter is that the unlimited trading that's available,
• 16:18
  Speaker 2: the broader sets of products and services that come with subscriptions,
• 16:21
  Speaker 2: all of these things are continuing to tremendous growth, and
• 16:23
  Speaker 2: we're extremely confident about that going forward.
• 16:25
  Speaker 1: Yeah, I think people, though Paul kind of boil it
• 16:29
  Speaker 1: down to a couple of key things. Granted, there's a
• 16:32
  Speaker 1: lot of value to the coinbase one program, but I
• 16:34
  Speaker 1: think those rewards that's a big deal for especially for
• 16:38
  Speaker 1: Americans that are in a little bit of pain, and
• 16:40
  Speaker 1: especially those who are polarized right now and they can't
• 16:43
  Speaker 1: figure out if they want to trade. They don't want
• 16:44
  Speaker 1: to trade, but they're holding stable coins, you know, and
• 16:48
  Speaker 1: they're doing it on the coin based platform.
• 16:50
  Speaker 2: That's especially called for Americans that don't have any real
• 16:54
  Speaker 2: ability to get any kind of rate of return from
• 16:56
  Speaker 2: their savings, are eating its dismal.
• 17:01
  Speaker 1: I think I think we could see some decline in
• 17:03
  Speaker 1: that if we if we lose stable coins. That's that's
• 17:06
  Speaker 1: just my thinking. Coinbase should defy the law. You guys
• 17:10
  Speaker 1: would become the heroes of heroes if you did this.
• 17:13
  Speaker 1: Is are there stable coin police out there? What's going
• 17:18
  Speaker 1: on there? What I haven't say I'm going to do
• 17:21
  Speaker 1: this anyway.
• 17:22
  Speaker 2: I'm also not interested in finding out, Paul. We're always
• 17:25
  Speaker 2: going to follow We're going to change the law, all right.
• 17:29
  Speaker 1: You're going to say no, I'm gonna say yes, pay them,
• 17:33
  Speaker 1: just go ahead. Uh. The idea of banning stable coin
• 17:36
  Speaker 1: use in DeFi is a constitutional violation of the fourth
• 17:40
  Speaker 1: or the fifth and the fourteenth Amendment. What do you
• 17:42
  Speaker 1: think happened.
• 17:44
  Speaker 2: Right that particular claim tested by the courts. But one
• 17:47
  Speaker 2: thing I can say, you heard it in the in
• 17:49
  Speaker 2: the clips that you played at the beginning of this section.
• 17:52
  Speaker 2: The traditional financial industry and attraitional banks are going to
• 17:58
  Speaker 2: do whatever they can to stop DeFi this is just
• 18:01
  Speaker 2: this is just the latest effort.
• 18:02
  Speaker 1: To do that. Yeah, I think it is. Get ready.
• 18:05
  Speaker 1: I understand your legal counsel, so you got to see
• 18:07
  Speaker 1: it in a court, but I think you are going
• 18:09
  Speaker 1: to see this come to a head and we're probably
• 18:11
  Speaker 1: going to see some lawsuits on this. For sure. Payment
• 18:14
  Speaker 1: stable coin is a made up scam term by the
• 18:17
  Speaker 1: bank lobby.
• 18:20
  Speaker 2: Well, it's a term of art in the legislation, to
• 18:23
  Speaker 2: be sure. But I think the fact of the matter
• 18:25
  Speaker 2: is that stable coins of all types have proven their
• 18:30
  Speaker 2: worth and their value in the real world. Sitting here
• 18:33
  Speaker 2: in twenty twenty six, there's no turning back, Paul, There's
• 18:36
  Speaker 2: no going back to a world where this technology gets
• 18:38
  Speaker 2: put back in a drawer and locked up. This is
• 18:41
  Speaker 2: going to be part of our financial future one way
• 18:43
  Speaker 2: or the other. So let's get let's get to the
• 18:45
  Speaker 2: business of putting sensible rules in place.
• 18:47
  Speaker 1: Let's do it. Well, this is what we're recommending, stable coin.
• 18:51
  Speaker 1: You should rename the stable coin. Do a counter legal
• 18:54
  Speaker 1: lot argument here that you would create this as speculative
• 18:58
  Speaker 1: stable coins to allow you what do you think that
• 19:03
  Speaker 1: would get them upside down? You know, if you're if
• 19:05
  Speaker 1: you have speculative stable coins over here and payment stable
• 19:08
  Speaker 1: coins over here, I don't.
• 19:10
  Speaker 2: Think well, I do think that, you know, the stable
• 19:13
  Speaker 2: coins that were most interested in seeing adopted ten tend
• 19:16
  Speaker 2: to be much more mundane than that you put a
• 19:19
  Speaker 2: dollar and you get a.
• 19:20
  Speaker 1: Dollar out there exactly on chain.
• 19:23
  Speaker 2: And in DeFi in particular that we think are fundamentally transformative.
• 19:26
  Speaker 1: Yeah, yeah, uh, okay, I'm getting answers. You're just not
• 19:31
  Speaker 1: saying the words. But that's okay. I think I know
• 19:33
  Speaker 1: where you're going. Uh. To avoid crashing the market, everyone
• 19:37
  Speaker 1: should pretend that Clarity still has a chance of passing.
• 19:41
  Speaker 1: This is if you are in the camp and there's
• 19:43
  Speaker 1: a lot of haters that are out there watching this
• 19:45
  Speaker 1: show right now that think Clarity is not going to
• 19:48
  Speaker 1: make it through, just not going to happen, or that
• 19:50
  Speaker 1: we don't even need it. You know, the genius is
• 19:52
  Speaker 1: already in place, and you know this is just a
• 19:54
  Speaker 1: bunch of hu haah coming out of Congress. What do
• 19:58
  Speaker 1: you think?
• 19:59
  Speaker 2: I understand the suspicion around all of this, but let
• 20:03
  Speaker 2: me ask those haters this question. Why do you think
• 20:07
  Speaker 2: the banks and others are fighting so hard to stop clarity?
• 20:10
  Speaker 1: Yeah?
• 20:11
  Speaker 2: What are they protecting?
• 20:12
  Speaker 1: Totally agreed, Yeah, exactly, Well, they're predicting, They're protecting the future.
• 20:18
  Speaker 1: I mean, this is the future of finance in general.
• 20:20
  Speaker 1: It's surprising to me, though, because we are seeing some
• 20:24
  Speaker 1: innovation at the banking level, is that they don't see
• 20:28
  Speaker 1: that either it's a catch up or a slow down term,
• 20:31
  Speaker 1: you know, of hey, let's slow them down for a
• 20:32
  Speaker 1: little bit. We know what's coming, and then we'll be ready.
• 20:35
  Speaker 1: Are you know, we're going to be pushed into being ready,
• 20:38
  Speaker 1: but not really being ready because we're gonna have to
• 20:40
  Speaker 1: throw out some products that aren't great, you know, just
• 20:43
  Speaker 1: to catch up right now.
• 20:44
  Speaker 2: So you know. But it's it's the case, though, Paul,
• 20:48
  Speaker 2: that it's never too late to embrace change, and it's
• 20:52
  Speaker 2: always struck me as unfortunate that banks have not looked
• 20:56
  Speaker 2: at this as an opportunity to implement real change in
• 20:59
  Speaker 2: their own system and their own relationship with customers and
• 21:01
  Speaker 2: partner with crypto to make that happen, protecting their margins
• 21:07
  Speaker 2: at all costs.
• 21:08
  Speaker 1: Yeah, it's crazy. I just think there's a great opportunity here.
• 21:12
  Speaker 1: Coinby should put well, speaking of opportunities, right here, you
• 21:15
  Speaker 1: should terminate the partnership with JP Morgan to launch deposit
• 21:18
  Speaker 1: tokens on base.
• 21:22
  Speaker 2: Well, uh, I will take that back to coinbase HQ
• 21:26
  Speaker 2: and we'll give that.
• 21:27
  Speaker 1: They're not going to do it. They're not gonna do
• 21:31
  Speaker 1: That's not gonna happen. That's not going to happen.
• 21:33
  Speaker 2: Uh.
• 21:33
  Speaker 1: We've got one. If yield Ben passes, Coinbay should temporarily
• 21:36
  Speaker 1: rename the base app to yield Base. What do you think.
• 21:40
  Speaker 2: I kind of like the name base myself, and I
• 21:42
  Speaker 2: don't think that's going to change anytime soon.
• 21:44
  Speaker 1: Nope and nope. All right, so I'm with you. I'll
• 21:47
  Speaker 1: stay on that side of the camp. We've got a
• 21:50
  Speaker 1: couple more here. Uh. If Clarity doesn't pass, these are
• 21:54
  Speaker 1: terms coming out of the market, Just so you guys know,
• 21:56
  Speaker 1: we didn't create these. Uh. Scott Bessett will blame and
• 21:59
  Speaker 1: he's said this before he was he was. We believe
• 22:04
  Speaker 1: he was referencing coinbase when he said the term nihilist
• 22:07
  Speaker 1: or the monopolistic banks. Who do you think he's gonna blame?
• 22:12
  Speaker 2: Oh, I don't think I don't. I don't think we're
• 22:14
  Speaker 2: too worried about any blame coming our way. When we've
• 22:17
  Speaker 2: been to the White House now three times to talk
• 22:19
  Speaker 2: about the awards issue in particular, we've been in active
• 22:22
  Speaker 2: discussions on DeFi, on AML reforms, other elements of the legislation.
• 22:27
  Speaker 2: So it's not exactly, I think, consistent with the nihilists
• 22:31
  Speaker 2: label for us to be so engaged in trying to
• 22:33
  Speaker 2: get to reasonable comments exactly.
• 22:36
  Speaker 1: I don't know why he said, it's I'm getting mixed
• 22:38
  Speaker 1: signals out of the White House. You know that early on,
• 22:41
  Speaker 1: I didn't know what they were doing, because you weren't
• 22:43
  Speaker 1: getting Trump had not come out, and you had Sacks,
• 22:47
  Speaker 1: and you also have Patrick the given kind of signals
• 22:51
  Speaker 1: that they were with the banks almost and then it
• 22:54
  Speaker 1: was just like boom. So I don't know if that
• 22:57
  Speaker 1: was dj T going and say, hey, now we're doing
• 23:00
  Speaker 1: this and we're gonna get stable coins through and yields
• 23:02
  Speaker 1: are gonna happen as.
• 23:03
  Speaker 2: We say here today. I don't know how much more
• 23:06
  Speaker 2: clear the White House could. It was very clear down
• 23:09
  Speaker 2: that they want to see this thing pass.
• 23:11
  Speaker 1: Yeah. Yeah, let's go over to coinbas should have replaced
• 23:15
  Speaker 1: the Super Bowl Oscar ads with the tack ads on banks.
• 23:22
  Speaker 2: Well, you know, I kind of like the ads myself,
• 23:25
  Speaker 2: and I give our marketing team a ton of credit.
• 23:27
  Speaker 2: We seem to outdo ourselves every year. I'm sticking with
• 23:30
  Speaker 2: the ads as they currently.
• 23:31
  Speaker 1: You like them. I like the ads, but I hate
• 23:34
  Speaker 1: the banks, so I'm always for attacking the banks. Coinbase,
• 23:40
  Speaker 1: this is a good one. Coinbase, I think you should
• 23:43
  Speaker 1: do this. You should be patty and add the Apple
• 23:49
  Speaker 1: Scary warning to any withdrawals to banks where it was
• 23:53
  Speaker 1: say beware, banks can gamble with your funds and survey
• 23:57
  Speaker 1: every transaction here, be cautious of your exit strategy.
• 24:02
  Speaker 2: Well. You know what's funny, Paul, is I think in
• 24:04
  Speaker 2: twenty twenty six most folks understand that.
• 24:07
  Speaker 1: And oh, people understand.
• 24:09
  Speaker 2: The risks and where they sit in the financial system.
• 24:11
  Speaker 2: It's why they're so interested in alternatives.
• 24:13
  Speaker 1: Yep, I think you should do it. I know you won't,
• 24:16
  Speaker 1: but I think you should just tell people, be honest
• 24:21
  Speaker 1: with them, Just say, hey, guys, this is a risk.
• 24:23
  Speaker 1: That's a risk. He's they've been doing that to us.
• 24:26
  Speaker 1: They've been doing that too when you move product or
• 24:29
  Speaker 1: money onto coinbase or any other exchange.
• 24:32
  Speaker 2: If you think that the system as it's been constructed
• 24:34
  Speaker 2: now for decades is risk free, you might want to
• 24:37
  Speaker 2: read a little history exactly.
• 24:40
  Speaker 1: Yeah, okay, Armstrong is too painfully polite and corporate on TV.
• 24:46
  Speaker 1: He should be a little bit more like a bulldog.
• 24:48
  Speaker 1: What do you think like Eric Trumps? Eric Trump's a
• 24:51
  Speaker 1: bulldog man, he's fighting hard.
• 24:53
  Speaker 2: Well, I will say that anyone who has spent any
• 24:56
  Speaker 2: time with Brian as I have, knows that while he
• 24:58
  Speaker 2: is an failingly polite and thoughtful person, he is anything
• 25:03
  Speaker 2: but reserved when it comes to fighting for what he believes.
• 25:05
  Speaker 1: Oh really, okay, maybe we're reading the Armstrong a little different. Interesting.
• 25:11
  Speaker 1: All right, Well I'm gonna say no, Paul, thank you
• 25:14
  Speaker 1: for doing that. We always love to have fun on these.
• 25:18
  Speaker 1: The audience loves these because a lot of times we
• 25:20
  Speaker 1: ask questions that we know nobody's ever going to answer,
• 25:23
  Speaker 1: but the audience wants to know. Do they actually think
• 25:27
  Speaker 1: that we could get something done here, because there's enough
• 25:30
  Speaker 1: of that happening out there, as you know, in the
• 25:31
  Speaker 1: market for sure.
• 25:32
  Speaker 2: I'm a huge believer in the wisdom of the crowds. Paul.
• 25:34
  Speaker 2: It's always great to be on with you.
• 25:42
  Speaker 1: If you like this video, like and subscribe, drop a
• 25:45
  Speaker 1: comment down below, and also join our free private member group.
• 25:48
  Speaker 1: The link is in the description