Latest / The Paul Barron Crypto Show / SEC v. Ripple Crypto Impact🔥XRP Stockpile Next?⚖️Legal INTERVIEW

Transcript

SEC v. Ripple Crypto Impact🔥XRP Stockpile Next?⚖️Legal INTERVIEW · The Paul Barron Crypto Show

• 0:05
  Speaker 1: All right, today we're going to be diving into a
• 0:07
  Speaker 1: little bit of the XRP news that came from the
• 0:11
  Speaker 1: case starting to settle, and of course a lot more
• 0:14
  Speaker 1: and how the impact is going to hit the market
• 0:16
  Speaker 1: today is going to be a good one. My name
• 0:17
  Speaker 1: is Paul Barreon. Welcome back into tech path. Let's get
• 0:20
  Speaker 1: into it. I do want to thank our sponsor and
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• 0:50
  Speaker 1: go over into announcing a little bit of our We
• 0:54
  Speaker 1: thought this topic would be good, but we wanted to
• 0:56
  Speaker 1: get some legal minds on this, so with me today.
• 0:59
  Speaker 1: I've got Odall who is the GC over at Magic Eden,
• 1:02
  Speaker 1: and also Gerald Gallagher who is the general counselor at
• 1:06
  Speaker 1: SA Say Labs.
• 1:07
  Speaker 2: How are you guys?
• 1:09
  Speaker 1: I like it. It's on stereo. Man, you guys are
• 1:11
  Speaker 1: coming in right. So Joe, let's kind of start with
• 1:14
  Speaker 1: you a little bit, because there's you know, when you
• 1:16
  Speaker 1: look at just the impact of what we've seen, was
• 1:19
  Speaker 1: this a big win for crypto in general? What are
• 1:22
  Speaker 1: your thoughts? Oh?
• 1:23
  Speaker 3: Certainly, I mean this provides the must need reglatory clarity.
• 1:27
  Speaker 3: One thing that just towards said and Ripple is that
• 1:29
  Speaker 3: totals themselves are not securities, and that's that's good law
• 1:32
  Speaker 3: now right. It's a big win for one of the
• 1:34
  Speaker 3: largest tokens in the space, which Ripple. I think it's
• 1:36
  Speaker 3: like the third or fourth highest market caps. So yeah,
• 1:38
  Speaker 3: this is a rise and tide situation for the whole industry.
• 1:40
  Speaker 2: Yeah.
• 1:41
  Speaker 1: Yeah, I think when you look at just the impact
• 1:44
  Speaker 1: of the market itself and also the pent up demand,
• 1:48
  Speaker 1: not necessarily from you know, trading, but just in general,
• 1:52
  Speaker 1: I think of a lot of people looking at crypto
• 1:54
  Speaker 1: as a safe place to actually go out and invest.
• 1:56
  Speaker 1: To see this coming in from the sec is a
• 1:59
  Speaker 1: pretty big deal. I want to play a clip for
• 2:02
  Speaker 1: you guys. This is Brad garling House and this is
• 2:04
  Speaker 1: in reference to an appeal that is taking place right
• 2:07
  Speaker 1: now from Ripple. Take a look at this.
• 2:10
  Speaker 4: We still have a cross appeal pending, and so we
• 2:13
  Speaker 4: go from being defendant, really too plaintiff?
• 2:15
  Speaker 5: Are you dropping it? We're going to see why not
• 2:18
  Speaker 5: drop the case at this point? Why not clear the
• 2:20
  Speaker 5: pay or why not clear the water?
• 2:22
  Speaker 1: Well, that certainly is an option.
• 2:24
  Speaker 4: Some XRP sales that we sold to accredited investors to
• 2:27
  Speaker 4: institutions that those had constituted a security, and so there
• 2:31
  Speaker 4: was a one hundred and twenty five million dollar fine
• 2:33
  Speaker 4: that's sitting in escrow. We wouldn't mind having that back.
• 2:37
  Speaker 5: Is that one hundred and twenty five million paid? Is
• 2:39
  Speaker 5: what you're saying? That's still a participute. Yeah, well it's
• 2:42
  Speaker 5: not a dispute. I mean that's sitting in an escrow,
• 2:45
  Speaker 5: and you.
• 2:47
  Speaker 4: Know, depending upon whether we decide to continue with our appeal,
• 2:50
  Speaker 4: we could walk away and the whole thing be done,
• 2:52
  Speaker 4: done done, no investors lost any money.
• 2:54
  Speaker 1: You're kind of like, wait, like why are.
• 2:56
  Speaker 5: We here fighting it till the very end to make
• 2:58
  Speaker 5: sure even that part of our certainty around being sold
• 3:01
  Speaker 5: to certain investors classifies as a security. Is that what
• 3:04
  Speaker 5: you are fighting for ultimately.
• 3:06
  Speaker 2: At this point?
• 3:07
  Speaker 4: Well, I mean, at this point, all we're fighting for
• 3:10
  Speaker 4: is do we want to fight to get one hundred
• 3:12
  Speaker 4: and twenty five million dollars back?
• 3:14
  Speaker 1: Do you think they should just walk away from this?
• 3:16
  Speaker 3: You know, if I was in a you know, Brad's
• 3:19
  Speaker 3: position and through Aderoy is their chief goal officer and
• 3:22
  Speaker 3: fantastic attorney, if I was in their position, I would
• 3:24
  Speaker 3: keep pushing.
• 3:25
  Speaker 2: Personally, one hund a million.
• 3:27
  Speaker 3: Dollars is a lot of money in your position now
• 3:30
  Speaker 3: where the SEC is frankly sort of you know set
• 3:32
  Speaker 3: inside of industry, that that to me looks like an opportunity.
• 3:35
  Speaker 1: Yeah, because the last time it was like one hundred
• 3:37
  Speaker 1: and fifty million. So but that in itself is You're right.
• 3:41
  Speaker 1: I would agree with you Gerald. Do you agree? Are
• 3:43
  Speaker 1: you kind of in that same camp? Let's fight it out?
• 3:45
  Speaker 6: Yeah?
• 3:46
  Speaker 7: I think it was a good point to make that,
• 3:47
  Speaker 7: you know, job not necessarily done here from a Ripple's perspective, right,
• 3:51
  Speaker 7: Obviously they want that clarity around the credited investors sales
• 3:55
  Speaker 7: that they mentioned and so.
• 3:57
  Speaker 2: You know, while we have kind of the alignment with.
• 3:59
  Speaker 7: You stration the regulatory agencies, I totally agree that you
• 4:03
  Speaker 7: know that is a sufficient sort of amount of funds
• 4:05
  Speaker 7: to keep pursuing.
• 4:07
  Speaker 1: I mean, would you consider this legal clarity right now
• 4:10
  Speaker 1: as an attorney in the market.
• 4:11
  Speaker 3: It's certainly helpful. I mean one of the key questions
• 4:14
  Speaker 3: is whether, I mean this has kind of been falling
• 4:16
  Speaker 3: away in large part Trudy decisions like judge towards Is
• 4:18
  Speaker 3: in Ripple was that you know, are tokens themselves securities?
• 4:21
  Speaker 3: So how he is the famous staff I'm familiar with
• 4:23
  Speaker 3: right that was investment contracts for orange groves, and no
• 4:27
  Speaker 3: one disputed that the orange trees were securities.
• 4:30
  Speaker 2: They're trees, right.
• 4:32
  Speaker 3: There is real dispute in this country around when they're
• 4:34
  Speaker 3: not tokens are securities and Ripple kind of put that
• 4:37
  Speaker 3: to bed and that part's going to stay, which has
• 4:39
  Speaker 3: been great.
• 4:40
  Speaker 1: Gerald. What do you think about when you look at
• 4:42
  Speaker 1: legal clarity right now? Do you think we still need
• 4:44
  Speaker 1: a law because in many people would say, well, now
• 4:47
  Speaker 1: the judge is ruled on this, there's been in a
• 4:49
  Speaker 1: peak drop. It seems to be that there are some precedents.
• 4:53
  Speaker 7: Yeah, I think that the president is a strong move forward.
• 4:56
  Speaker 7: But to your point, there's nothing that we can really
• 4:58
  Speaker 7: substitute for the books, right, we can. We can have
• 5:03
  Speaker 7: conflicting precedent in this country. I mean, I think that's
• 5:05
  Speaker 7: one of the great things about our legal system here
• 5:07
  Speaker 7: is that you know, we're able to fight it out,
• 5:09
  Speaker 7: litigate it. But yeah, nothing will substitute just clear language
• 5:13
  Speaker 7: from Congress around market structure that you know gives the
• 5:16
  Speaker 7: industry a.
• 5:17
  Speaker 1: Path forward, the potential for the type of tokens now
• 5:21
  Speaker 1: that could be traded. Do you think this is going
• 5:22
  Speaker 1: to open things up?
• 5:24
  Speaker 7: I think this specific appeal gave a lot of clarity.
• 5:28
  Speaker 2: For the exchanges.
• 5:29
  Speaker 7: I don't know that issuers necessarily got what they maybe
• 5:35
  Speaker 7: want to see for direct sales, and I think that's
• 5:38
  Speaker 7: that's one of the issues that we're still waiting to see.
• 5:39
  Speaker 7: It's you know, it's not not a free for all
• 5:42
  Speaker 7: for I C O s. You know, we saw the
• 5:43
  Speaker 7: SEC guidance on mean coins and so we obviously have
• 5:45
  Speaker 7: a bit more clarity there. But I do think that
• 5:50
  Speaker 7: you know, Commission of Person said this before, she wants
• 5:53
  Speaker 7: to give the industry room to experiment. She wants this
• 5:55
  Speaker 7: technology to flourish, and so a step in the right
• 5:57
  Speaker 7: direction for sure.
• 5:58
  Speaker 1: So if you were you know, counseling and exchange someone
• 6:02
  Speaker 1: like a coinbase or a crack and or others, do
• 6:05
  Speaker 1: you think this is going to kind of give them
• 6:07
  Speaker 1: the go on being able to list a lot more
• 6:09
  Speaker 1: tokens into the market.
• 6:11
  Speaker 2: Yeah, I think so.
• 6:11
  Speaker 3: I mean one of the key takeaways here is that
• 6:13
  Speaker 3: programmatic sales to exchanges from you know, early teams are
• 6:18
  Speaker 3: exempt at the second sort of stances of present and ripple.
• 6:21
  Speaker 3: So if I was on the coin based team legal team,
• 6:23
  Speaker 3: I'm saying, hey, we need to have programmatic sales program
• 6:26
  Speaker 3: spun up. We need to make sure that any sort
• 6:28
  Speaker 3: of issuers or issuer adjacent entities that want to list
• 6:31
  Speaker 3: the token on our platform have these programs in place.
• 6:34
  Speaker 3: But once they are, we know that this program released
• 6:37
  Speaker 3: as long as according to Judge Tours is compliant and
• 6:40
  Speaker 3: that provides a lot of safety and it reduces anxieties
• 6:43
  Speaker 3: and industry. So I would definitely pushing for that, and
• 6:45
  Speaker 3: ultimately that should create a lot more accessibility for tokens
• 6:48
  Speaker 3: for for everyday users.
• 6:49
  Speaker 1: I'm kind of curious if they actually perceive it as
• 6:53
  Speaker 1: a go because we haven't seen any kind of immediate reaction. No,
• 6:57
  Speaker 1: Normally these guys are after that trading volume pretty quickly,
• 7:00
  Speaker 1: and with this result from yesterday's news, I thought we'd
• 7:03
  Speaker 1: probably see some headlines stay, but we didn't. Jerald, Okay,
• 7:06
  Speaker 1: you mentioned icos for a second, So would you consider
• 7:09
  Speaker 1: them legal now or not legal? Or is it just
• 7:12
  Speaker 1: depending case by case?
• 7:13
  Speaker 7: Yeah, you know, I think it's it's still facts and circumstances.
• 7:16
  Speaker 7: I think, you know, unfortunately, that's something that we didn't
• 7:19
  Speaker 7: necessarily get resolved, and that's actually I think the point
• 7:21
  Speaker 7: that Brad was making about pursuing this this decision around
• 7:25
  Speaker 7: this fine, you know, it's not necessarily clear how we're
• 7:30
  Speaker 7: going to treat these direct sales.
• 7:32
  Speaker 2: Still need some work to be done there.
• 7:34
  Speaker 1: Yeah, I'm going to go to a clip now. I
• 7:35
  Speaker 1: was going to bring this in for you guys. This
• 7:36
  Speaker 1: is Bohind's I want to flip over to stockpile because
• 7:39
  Speaker 1: this could affect a lot of things in terms of
• 7:42
  Speaker 1: consumer's response on how to invest in crypto or even
• 7:44
  Speaker 1: if they're going to, but also especially how this administration
• 7:48
  Speaker 1: is treating the crypto industry overall. Take a look there
• 7:52
  Speaker 1: was some disappointment that XRP Solana were not mentioned in
• 7:57
  Speaker 1: this Strategic Reserve Executive Order. Are they still in play?
• 8:00
  Speaker 6: Well, they'll certainly be a part of the Digital Assets
• 8:02
  Speaker 6: National stockpile, right, I mean, you know, we're going to
• 8:05
  Speaker 6: ammulate as many assets from other ecosystems that we can.
• 8:08
  Speaker 1: All Right, so there you go, he's talking about let's
• 8:10
  Speaker 1: go get some assets out there. Do you think that
• 8:12
  Speaker 1: this stockpile is going to open up to some more tokens?
• 8:16
  Speaker 1: XRP has been listed. We'll start with you, Joe.
• 8:18
  Speaker 3: Yeah, I mean first, first things first, we've had a
• 8:20
  Speaker 3: chance to work with Bo and he's doing a fantastic job.
• 8:23
  Speaker 3: So you know, kudos to him and hats off.
• 8:24
  Speaker 2: He's been great.
• 8:25
  Speaker 3: It's been a great sort of like quarterback on the
• 8:27
  Speaker 3: ground coordating things for the administration. You know, it remains
• 8:31
  Speaker 3: me seen the initial executive order mostly looks at forfeitures
• 8:35
  Speaker 3: and fortuers can be Bitcoin, but they can also be
• 8:38
  Speaker 3: a whole pluthor of different assets. If this is it's
• 8:40
  Speaker 3: very easy to go from A to B when it
• 8:43
  Speaker 3: comes to using porfeitures as a means to create a
• 8:46
  Speaker 3: reserve to go from bitcoin to other assets.
• 8:49
  Speaker 1: Right, right well, and to your point, the regulatory framework
• 8:53
  Speaker 1: that we're going to be dealing with. I think some
• 8:55
  Speaker 1: of the things that we've got to look at now
• 8:57
  Speaker 1: as deadlines because as we near well could be a
• 9:01
  Speaker 1: resurgence on the bullmarket, timing is going to be everything.
• 9:05
  Speaker 1: Here is Bohindz about some key deadlines.
• 9:08
  Speaker 6: Take a look, and I'll refer back to the day
• 9:11
  Speaker 6: three executive order in which the President created the working group.
• 9:15
  Speaker 6: We have these landmarks, so we're past the thirty day
• 9:18
  Speaker 6: landmark in which interagencies we're supposed to do an internal
• 9:20
  Speaker 6: review and or audit. We've gone through those reports, we've
• 9:23
  Speaker 6: compiled them, and now we're approaching the sixty day landmark
• 9:26
  Speaker 6: in March twenty fourth, where we're going to come together
• 9:28
  Speaker 6: and they're basically asked to produce recommendations for us. That
• 9:32
  Speaker 6: leads us to one hundred and twenty day landmark in
• 9:34
  Speaker 6: the year, in which we're supposed to provide a full
• 9:36
  Speaker 6: report of everything that interagency actors are doing and what
• 9:39
  Speaker 6: they can do to ensure that innovation in the space
• 9:43
  Speaker 6: is protected and that we remove all the barriers from
• 9:45
  Speaker 6: institutional adoptions. That relates to digital assets, and I think
• 9:49
  Speaker 6: that we're well on our way of doing that.
• 9:50
  Speaker 8: He put a deadline on us, which I'm going to
• 9:53
  Speaker 8: tell you we're going to try to honor. Actually that's
• 9:56
  Speaker 8: not who I am. We are going to honor it.
• 9:58
  Speaker 8: President says he wants stable coin legislation and market structure
• 10:03
  Speaker 8: legislation done by the August break and that's going to
• 10:07
  Speaker 8: be what we're going to do.
• 10:09
  Speaker 1: We've had Tom on our show before. He usually kind
• 10:11
  Speaker 1: of holds the line pretty well. I'm kind of curious,
• 10:14
  Speaker 1: do you guys think they'll pull it off?
• 10:16
  Speaker 2: You know, I'll hop in here.
• 10:17
  Speaker 7: I think I just want to echo Joe's point about bo.
• 10:20
  Speaker 7: I think he's doing a fantastic job and really diving
• 10:22
  Speaker 7: into the industry. Actually had the opportunity to speak with
• 10:25
  Speaker 7: Toss Majority with Emmer yesterday and he kind of echoed
• 10:28
  Speaker 7: all those points. And look, I think one of the
• 10:30
  Speaker 7: things this administration has made clear is that they're going
• 10:34
  Speaker 7: to do everything that they can within the executive branch's
• 10:36
  Speaker 7: authority to move the digital assets space forward. Now, the
• 10:41
  Speaker 7: reality of governance in the United States is that we
• 10:43
  Speaker 7: do need Congress Act, right and so, you know, establishing.
• 10:47
  Speaker 2: A deadline like that, if we can even get close
• 10:49
  Speaker 2: to it.
• 10:50
  Speaker 7: You know, I think is really really ambitious, particularly compared
• 10:53
  Speaker 7: to the total lack you know, we obviously had fit
• 10:56
  Speaker 7: twenty one past the House in a bipartisan way previous administration,
• 11:01
  Speaker 7: but you know, really just excited to see the president
• 11:04
  Speaker 7: kind of holding these regulatory agencies and hold Congress accountable
• 11:07
  Speaker 7: to move things forward. So, you know, I hope we
• 11:10
  Speaker 7: can meet that deadline, and it's ambitious, but hopefully we'll
• 11:13
  Speaker 7: get there.
• 11:14
  Speaker 1: Yeah, listen, it's a different world out there right now.
• 11:16
  Speaker 1: I'm looking at the SEC's website and sometimes I have
• 11:21
  Speaker 1: to pinch myself and say, is this real? We're really
• 11:24
  Speaker 1: seeing this. And they're talking about this spring sprint toward
• 11:28
  Speaker 1: crypto clarity, And they've got a couple of dates on here.
• 11:30
  Speaker 1: March twenty first is they're going to do an inaugural
• 11:32
  Speaker 1: round table. This is going to be streamed. We'll probably
• 11:35
  Speaker 1: cover that, but a lot of remarks here. You can
• 11:38
  Speaker 1: kind of see quite a few people in terms of
• 11:41
  Speaker 1: this is a good lineup. I think, oh my god,
• 11:43
  Speaker 1: what is this? John ree Stark? Why would he be
• 11:48
  Speaker 1: allowed in the room? What is that? Is that a joke?
• 11:52
  Speaker 1: Is that April Fool's joke? What's going on over the
• 11:54
  Speaker 1: SEC Guys, John, you want to comment on that.
• 11:57
  Speaker 3: Yeah, I mean the beautiful thing about the we'll make
• 12:00
  Speaker 3: and process. You need different voices in the room, right,
• 12:03
  Speaker 3: You got to sort of investment.
• 12:04
  Speaker 1: That's going to be a different voice.
• 12:06
  Speaker 2: Well, it certainly will be.
• 12:08
  Speaker 1: I think this was him talking about Crypto that it's
• 12:12
  Speaker 1: a scourge. It's a scourge. Crypto is a scourge. John
• 12:15
  Speaker 1: Reeke stark right there. This will be a good one.
• 12:18
  Speaker 1: He could be the new evil villain as we start
• 12:21
  Speaker 1: to see things shaping up in DC going forward, Let's
• 12:25
  Speaker 1: talk about do you think regulation is going to die
• 12:28
  Speaker 1: quickly or is this going to take out through the
• 12:31
  Speaker 1: next couple of years, because remember we've got a midterm
• 12:33
  Speaker 1: coming up. If they don't get this stuff done, guys,
• 12:36
  Speaker 1: I mean, it's very possible we could see a different
• 12:38
  Speaker 1: framework starting to align. Gerald, I'll hit with you.
• 12:41
  Speaker 7: Yeah, you know, I think that's that's one of the
• 12:44
  Speaker 7: key features of the ambitious sense of the timelines you
• 12:47
  Speaker 7: know that they were seeing this administration put out, is
• 12:50
  Speaker 7: there is a reality that you know, midterms tend to
• 12:53
  Speaker 7: swing not necessarily in the favor of the party in power,
• 12:57
  Speaker 7: you know, going all the way back to you know,
• 12:58
  Speaker 7: twenty ten, you know, twenty twenty two, twenty eighteen, you
• 13:03
  Speaker 7: see that shift, and so there really is a sense
• 13:05
  Speaker 7: of urgency. Hopefully, you know, this won't be a partison issue,
• 13:10
  Speaker 7: right like I think Congressman Emmers is very fond of
• 13:13
  Speaker 7: saying it's non parson. I think the industry agrees with that.
• 13:16
  Speaker 7: There's obviously kind of a libertary industry that you know,
• 13:18
  Speaker 7: is more attractive to members of one party than the other.
• 13:21
  Speaker 7: But like, the technology is here to stay. And so
• 13:24
  Speaker 7: whether we get regulation immediately or whether it takes a
• 13:28
  Speaker 7: little longer, you know, I think people on the hill
• 13:30
  Speaker 7: actually recognize that, you know, we're here, and it's not
• 13:33
  Speaker 7: you know, a bunch of scammers, you know, trying to
• 13:35
  Speaker 7: drain wallets.
• 13:35
  Speaker 1: We're heah, exactly, Joe, you were on record here. This
• 13:39
  Speaker 1: came up from WU Blockchain has said, you said, two
• 13:42
  Speaker 1: years pushed to crypto policies before the twenty twenty six
• 13:45
  Speaker 1: mid terms. Back to the point of bipartisan in those
• 13:50
  Speaker 1: two years that we have right now, because if you look,
• 13:52
  Speaker 1: there's a handful I would say that are very friendly
• 13:55
  Speaker 1: on the Democratic side. You look at you know, Richie
• 13:58
  Speaker 1: Torres Auchin Claws. I mean, there's several Jake's been on
• 14:01
  Speaker 1: our show a couple of times. We've had what seems
• 14:04
  Speaker 1: to be a good lineup there. Are you at all
• 14:07
  Speaker 1: worried about that if midterms do get more to the Democratic.
• 14:11
  Speaker 2: Side, Yes, and no.
• 14:13
  Speaker 3: I think we have so much initiative and sort of
• 14:17
  Speaker 3: kinetic energy right now spurred by this administration that I
• 14:20
  Speaker 3: think we're going to get stable coins by the augustur recess.
• 14:23
  Speaker 3: I don't think we'll get market structure by then. Frankly
• 14:26
  Speaker 3: maybe Q four, maybe not. But if we get stable coins,
• 14:29
  Speaker 3: that opens the door and this becomes very much a
• 14:31
  Speaker 3: nonpartisan or bipartisan issue, you know. I had that pleasure
• 14:34
  Speaker 3: speaking with Congressman Torres a couple of days ago. He's great,
• 14:39
  Speaker 3: there's a whole bunch of folks and Democratics side. There
• 14:41
  Speaker 3: are big supporters of the industry. So I think that
• 14:45
  Speaker 3: if you have this initiative continue and you get a
• 14:48
  Speaker 3: stable coin pass, market structures are kind of an easy follow.
• 14:51
  Speaker 2: So actually my concerns have been abreviated, which is good.
• 14:54
  Speaker 1: Well, and I think you look at that that's good framework.
• 14:57
  Speaker 1: Then you've got the situation brewing here at the SA.
• 15:00
  Speaker 1: See that of course, is Paul Atkins not being confirmed yet,
• 15:04
  Speaker 1: a little bit of delay here. Do you think this
• 15:06
  Speaker 1: hurts things at all? Does it slow things down?
• 15:09
  Speaker 2: Gerald?
• 15:10
  Speaker 1: What are your thoughts?
• 15:11
  Speaker 7: I don't see any issue at all with the hands
• 15:14
  Speaker 7: that we're in right now. You know, Commissioner Uda and
• 15:17
  Speaker 7: that Commissioner Purse have been taking action quickly and proactively.
• 15:22
  Speaker 7: Obviously we want to see Commission Atkins, you know, confirmed
• 15:25
  Speaker 7: and get into that seat. But in the meantime, you know,
• 15:27
  Speaker 7: I think we're in good hands here.
• 15:29
  Speaker 1: When you look at what the SEC has been talking
• 15:32
  Speaker 1: about and the issue that a lot of people have
• 15:36
  Speaker 1: have you know, approached here recently, and that is this
• 15:39
  Speaker 1: whole idea around accredited investors. And you know, there's been
• 15:43
  Speaker 1: many people who said, if we could get away from
• 15:45
  Speaker 1: that to allow the average Joe to go in and
• 15:48
  Speaker 1: invest early, it changes the dynamic of how investing is done.
• 15:52
  Speaker 1: What is you guys? First of all, do you think
• 15:54
  Speaker 1: this will get done? Will we finally get to a
• 15:58
  Speaker 1: state in which a credit in testing is legal, you know,
• 16:02
  Speaker 1: or not needed? I should say, to be able to
• 16:04
  Speaker 1: enter Joe you want to take that?
• 16:06
  Speaker 3: Yeah, definitely, And thanks for team this went up, Palcas,
• 16:09
  Speaker 3: I feel a little strongly about it.
• 16:11
  Speaker 2: Our securities regime.
• 16:12
  Speaker 3: You know, these are nineteen thirty three, nineteen thirty four laws, right,
• 16:17
  Speaker 3: and they're very sort of patriarchical, right, they're kind of
• 16:20
  Speaker 3: assumed that folks don't have the resources to make their
• 16:22
  Speaker 3: own decisions. Maybe back then, when there wasn't the Internet
• 16:25
  Speaker 3: and there wasn't free flow of information, that was the case.
• 16:27
  Speaker 3: Times have changed, right, people have more access to resources
• 16:32
  Speaker 3: and information than they ever have have had previously. Information symmetries,
• 16:36
  Speaker 3: which is sort of the core policy issue that these
• 16:38
  Speaker 3: laws were in actially meant to address, has really like
• 16:42
  Speaker 3: largely been reduced. So I think that you can in
• 16:45
  Speaker 3: many ways really cut back the credit investor rules, and
• 16:48
  Speaker 3: you should pair that with disclosures. I'm not saying you
• 16:50
  Speaker 3: should totally roll them back entirely because you want to
• 16:53
  Speaker 3: make sure people are informed. But this needs to change,
• 16:56
  Speaker 3: you know, this is not we don't need the government
• 16:58
  Speaker 3: looking out for us and making sure that we're making
• 17:00
  Speaker 3: and for adults here and we're all hopefully informed.
• 17:02
  Speaker 1: Yeah, I'm in agreement with you. I think this would
• 17:04
  Speaker 1: change the landscape, you know, kind of going forward with
• 17:08
  Speaker 1: that being said, you obviously have to look at some
• 17:12
  Speaker 1: things that are being done in the markets right now.
• 17:14
  Speaker 1: This is a post by Matt Siegel. He's hitting on
• 17:16
  Speaker 1: this whole issue around what the Trump's group World Liberty
• 17:21
  Speaker 1: Finance has been doing here. They're looking at a potential
• 17:24
  Speaker 1: newspac This is going to be a plans to focus
• 17:26
  Speaker 1: on businesses here in the US around cryptocurrency. Obviously, you
• 17:30
  Speaker 1: know made in America crypto. But at the same time,
• 17:33
  Speaker 1: when you look at the activities, I'm just wondering at
• 17:37
  Speaker 1: some point, Gerald, and I'll ask you this, do you
• 17:40
  Speaker 1: think this could be used against crypto down the road,
• 17:44
  Speaker 1: Like the Democrats could take a look at this and say, hey,
• 17:46
  Speaker 1: this is why we don't want this happening. Is these
• 17:50
  Speaker 1: kinds of transactions and issues going forward? Do you think
• 17:54
  Speaker 1: that could possibly be used against us in the future,
• 17:57
  Speaker 1: what World Liberty is doing.
• 17:58
  Speaker 2: Yeah, it's an interesting question.
• 18:00
  Speaker 7: And I'll start off by saying it is publicly available
• 18:03
  Speaker 7: sort of knowledge on chain that World of Refinancial has
• 18:06
  Speaker 7: been acquiring. Say, I think with any industry, and crypto
• 18:10
  Speaker 7: is no different, you obviously have to be very conscientious
• 18:12
  Speaker 7: of conflicts of interest or you know, any perceived impropriety.
• 18:16
  Speaker 7: I think they're doing things you know, the right way
• 18:18
  Speaker 7: and have been buttoned up so far, but you know,
• 18:20
  Speaker 7: clearly a risk out there. You know that we need
• 18:23
  Speaker 7: to make sure that you know, the industry is especially
• 18:26
  Speaker 7: as we get a lot more institutional adoption, a lot
• 18:28
  Speaker 7: more institutional finance coming into the space, that you know
• 18:32
  Speaker 7: we we act with integrity.
• 18:34
  Speaker 1: So let's talk about n f T s. Joe. This
• 18:36
  Speaker 1: is a little closer to you in terms of do
• 18:39
  Speaker 1: you think we'll get any regulation on n f T
• 18:42
  Speaker 1: s and that's part one? And do you feel like
• 18:45
  Speaker 1: creator royalties? First of all, isn't this why crypto exists
• 18:50
  Speaker 1: in the first place? So what are your thoughts on
• 18:53
  Speaker 1: how this is going to play out for n f TS.
• 18:55
  Speaker 2: I'm smiling, so I feel pretty good about it for
• 18:56
  Speaker 2: f tas.
• 18:57
  Speaker 3: I mean, just had a conversation with the Commissioner a
• 19:00
  Speaker 3: couple of weeks ago and ask a specific question, what
• 19:03
  Speaker 3: are your thoughts in FPS? And she goes, hey, I
• 19:05
  Speaker 3: wish we had very early on given guidance the NFT's
• 19:08
  Speaker 3: fall outside the regime here right fast and circumstances of
• 19:11
  Speaker 3: course apply, but generally speaking, these are these are mean
• 19:14
  Speaker 3: coin equivalents. Right. These are social cultural good constructs, right,
• 19:18
  Speaker 3: They're fun things to play around with. These are not
• 19:20
  Speaker 3: within the remit of the thirty three or thirty four
• 19:22
  Speaker 3: Act or the SEC and I think that we'll hopefully
• 19:26
  Speaker 3: get some guide into that effect. So I'm feeling quite
• 19:29
  Speaker 3: quite good around empties as far as royalties go. You know,
• 19:32
  Speaker 3: we keep trying to figure out a solution to this, right,
• 19:35
  Speaker 3: I think it's pretty critical. And you know, I'm a
• 19:38
  Speaker 3: very big believer in sort of free market structures where
• 19:41
  Speaker 3: there's an incentive alignment you can figure out a way
• 19:43
  Speaker 3: you will inevitably and right now, if you figure this
• 19:46
  Speaker 3: problem out, it's going to be worth billions of dollars.
• 19:48
  Speaker 3: So there's a lot of folks smart working on this.
• 19:50
  Speaker 3: I think we'll get there.
• 19:51
  Speaker 1: Well, I'm in agreement. We're big proponents of any kind
• 19:54
  Speaker 1: of creator side of things obviously, and it's been so
• 19:58
  Speaker 1: sad to see so many great projects that were thwarted
• 20:02
  Speaker 1: during Gary Gensler's reign of hell, you know, on the
• 20:06
  Speaker 1: crypto market, So hopefully that will change. Of course, you know,
• 20:09
  Speaker 1: with Ueda and parison there it should be a good one.
• 20:12
  Speaker 1: I want to flip over to TikTok for a second,
• 20:15
  Speaker 1: because there's a lot happening right now that could be
• 20:18
  Speaker 1: and have some impact on the crypto market. I want
• 20:22
  Speaker 1: to go to a clip here from JD Vance.
• 20:23
  Speaker 9: Take a look Henry Gomez, who just spoke with the
• 20:27
  Speaker 9: Vice president on board Air Force two. You got a
• 20:30
  Speaker 9: number of headlines, a lot of interest in this, Henry.
• 20:33
  Speaker 1: What do we have to say about TikTok?
• 20:35
  Speaker 10: So the President has a task ged Evans with helping
• 20:38
  Speaker 10: to broker a TikTok deal by April. Vince told me
• 20:42
  Speaker 10: that he is very confident that the framework of a
• 20:44
  Speaker 10: deal will be in place by April fifth. Now there's
• 20:46
  Speaker 10: been talk about possibly being another extension to get this done.
• 20:50
  Speaker 10: Vince feels that the framework of a deal will be
• 20:53
  Speaker 10: in place, something that will transfer TikTok to a US
• 20:55
  Speaker 10: based company that will keep US interests in secure, national
• 20:58
  Speaker 10: security in mind. He does know it will merit an
• 21:01
  Speaker 10: extension to finalize all that, but he's very confident that
• 21:04
  Speaker 10: colm April fifth, we are going to have the parameters
• 21:07
  Speaker 10: of a deal in place that the administration will be
• 21:09
  Speaker 10: happy with.
• 21:10
  Speaker 9: Well, it's right around the corner, so that's pretty significant.
• 21:13
  Speaker 1: Frank, It's good to have you back. So are you
• 21:15
  Speaker 1: one of those groups. Have you been in contact with
• 21:17
  Speaker 1: the White House about your bid? Yeah, yes, we have.
• 21:19
  Speaker 11: We're an active, you know, active dialogue. I know, we've
• 21:22
  Speaker 11: just been answering the questions that the you know, the
• 21:25
  Speaker 11: Vice President's office has put forward and parameters and the
• 21:28
  Speaker 11: reasons why we believe it's the bid, that it meets
• 21:30
  Speaker 11: the national security issues and the concerns laid out in
• 21:33
  Speaker 11: the legislation. And we're all kind of waiting to see
• 21:35
  Speaker 11: what China decides to do as well. And I wish
• 21:39
  Speaker 11: I could provide more insight on that, but I can't
• 21:41
  Speaker 11: at this moment. Where we've obviously been in touch with them,
• 21:44
  Speaker 11: but we're not quite sure what their final decision will
• 21:48
  Speaker 11: be either.
• 21:48
  Speaker 1: McCord has talked about releasing more and more information, more
• 21:53
  Speaker 1: you know news obviously who saw Alexis o'hanni and join
• 21:55
  Speaker 1: the group. So, I mean it seems like a venger
• 21:58
  Speaker 1: class right now of the best you know in social
• 22:02
  Speaker 1: media that are part of this. I want to get
• 22:04
  Speaker 1: your opinion on this, Joe, and that is when you
• 22:06
  Speaker 1: look at where Project Liberty is and this is in
• 22:09
  Speaker 1: reference to the Decent Visualization Research Center they're going to
• 22:12
  Speaker 1: be doing an event on April second. Interesting timing here
• 22:16
  Speaker 1: in d C because you're going to have Project Liberty here.
• 22:18
  Speaker 1: Look at the line list of who's going to be there.
• 22:21
  Speaker 1: I mean, this would be a potential for maybe some
• 22:26
  Speaker 1: big potential players in the blockchain space to maybe join
• 22:30
  Speaker 1: Project Liberty. Could we see some really big names that
• 22:35
  Speaker 1: could push this over the line and get Frank and
• 22:38
  Speaker 1: Kevin O'Leary and all those guys in for a US
• 22:41
  Speaker 1: version of TikTok? What do you guys think is going
• 22:43
  Speaker 1: to happen. I'll hit your opinion first, Joe, and then
• 22:46
  Speaker 1: we'll jump to a jerial.
• 22:47
  Speaker 3: Yeah, Paul, I hope. So I'd love to see Crypto
• 22:49
  Speaker 3: represented there. It seems like, you know, a big opportunity
• 22:52
  Speaker 3: for the United States.
• 22:53
  Speaker 7: And I you know, that call is way above my
• 22:56
  Speaker 7: pay grade. Shout out to Connor and the DRC. I'll
• 22:59
  Speaker 7: be there, and you know, I hope we get some fireworks.
• 23:02
  Speaker 7: But yeah, it's obviously important. There's a lot of stakeholders
• 23:06
  Speaker 7: around the table here.
• 23:07
  Speaker 1: So well, I think it's good timing here with what
• 23:10
  Speaker 1: Jeddie Vance is talking about, trying to get a deal
• 23:12
  Speaker 1: structured at least in principle, you know, by April fifth,
• 23:15
  Speaker 1: that would be a pretty big alignment. I think it
• 23:18
  Speaker 1: would be also in aligned with what Trump's deadline has
• 23:21
  Speaker 1: been on the Chinese in reference to what we'll see
• 23:25
  Speaker 1: coming out of by Dance in terms of a deal.
• 23:28
  Speaker 1: And again back to if you guys are watching us
• 23:30
  Speaker 1: and maybe don't know exactly what's happening, view back to
• 23:33
  Speaker 1: some of our TikTok videos. We've broken this down where
• 23:35
  Speaker 1: Project Liberty is why it's important because of what they're
• 23:39
  Speaker 1: going to do essentially with a technology that rides in
• 23:41
  Speaker 1: the polka dot chain that's called frequency, that could have
• 23:45
  Speaker 1: a big impact of how crypto could be implemented into TikTok.
• 23:48
  Speaker 1: So go back and check some of those out for sure.
• 23:51
  Speaker 1: Hey Joe Gerald, it has been great having you guys on.
• 23:53
  Speaker 1: We've got to get you back on more often when
• 23:56
  Speaker 1: we have some of these legal topics to cover. But
• 23:59
  Speaker 1: I appreciate both of you guys stopping in.
• 24:00
  Speaker 2: Thanks Paul, thank you. I really enjoying it.
• 24:03
  Speaker 1: You bet all right, Thanks a lot.
• 24:04
  Speaker 2: Guys.
• 24:05
  Speaker 1: Are you guys if you're not in the diamond circle,
• 24:06
  Speaker 1: get in on that. That's our own private group we
• 24:08
  Speaker 1: are breaking records out there. The channel is absolutely exploding.
• 24:13
  Speaker 1: It's all because of you, guys, and that is because
• 24:16
  Speaker 1: you care about what's happening in crypto. And all you
• 24:19
  Speaker 1: have to do if you want to do that is
• 24:20
  Speaker 1: join the Diamond Circle down down below. Get in on
• 24:23
  Speaker 1: our Telegram group as well. That's where I actually communicate
• 24:26
  Speaker 1: with you guys. Every day, I'm chatting with you. Follow
• 24:28
  Speaker 1: me on x at Paul Baron. We'll catch you next
• 24:30
  Speaker 1: time right here on Techpath