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Ethereum + Uniswap vs Congress!🔥U.S. Hearing on Crypto · The Paul Barron Crypto Show

0:05
Speaker 1: Today I'm gonna break down a hearing and the Clarity Act.
0:08
Speaker 1: This is all about Uniswapping Ethereum. You don't want to
0:11
Speaker 1: miss it. My name is Paul Barrel. Welcome back in
0:12
Speaker 1: the tech path. Let's get into it today. I do
0:14
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Speaker 1: See what you guys can do there. All right, I
0:43
Speaker 1: want to get into a lot of what's going on
0:45
Speaker 1: right now around this hearing and the market Structure Bill
0:49
Speaker 1: is going to have the most effect around what's going
0:51
Speaker 1: on with DeFi and Ethereum. One of the guys to
0:55
Speaker 1: keep an eye on is this guy right here, Timothy Maussati.
0:58
Speaker 1: Is the research fellow and director of Digital Assets. He
1:01
Speaker 1: might bet Gesler two point out, I want to get
1:03
Speaker 1: into a few clips here because this will get into
1:04
Speaker 1: a little bit more of a detail. Now, this is
1:07
Speaker 1: the Ethereum and uniswap intro that gives you a little
1:10
Speaker 1: bit of insight. Take a look.
1:12
Speaker 3: One forty billion dollars of stable coins, ten billion dollars
1:15
Speaker 3: of real useful tokenized assets, and institutional grade financial applications
1:20
Speaker 3: live on Ethereum. Blackrock, Franklin, Templeton, Fidelity, Deutsche Bank, UBS
1:25
Speaker 3: and many more are already building on Ethereum because it
1:28
Speaker 3: is the most secure and most decentralized settlement layer in
1:31
Speaker 3: the world. For Ethereum, it means over a million validators
1:34
Speaker 3: all around the world independently verifying transactions and ensuring trust
1:39
Speaker 3: without a single point of failure. All of this happened
1:42
Speaker 3: despite regulatory uncertainty.
1:44
Speaker 2: Uniswap Labs has always been an American company, and we
1:48
Speaker 2: want to stay in America for the long term. We
1:51
Speaker 2: as a company spent millions of dollars a year four
1:53
Speaker 2: years on an SEC investigation when the SEC never told
1:58
Speaker 2: us the basis of the instigation, and ultimately three years
2:02
Speaker 2: later it didn't sue us. This was all before we
2:04
Speaker 2: were a profitable company that could have killed a lot
2:07
Speaker 2: of businesses, and that approach, we know did kill a
2:10
Speaker 2: lot of businesses. So I believe that time is of
2:12
Speaker 2: the essence for market structure legislation.
2:15
Speaker 3: All of this. Well ten X are one hundred X
2:18
Speaker 3: with clear rules of the road, and.
2:19
Speaker 1: I totally agree with this in the sense that if
2:21
Speaker 1: we don't get market structure underway, this could have some
2:24
Speaker 1: major effect on not only innovation, but I think also
2:27
Speaker 1: a lot of companies here in the United States abroad
2:29
Speaker 1: as well. And it's so critical. You would think that
2:33
Speaker 1: the Democrats would take the time to read a little
2:37
Speaker 1: bit of what's happening. Watch this clip. Well, here's the bill.
2:41
Speaker 4: I doubt that any of my colleagues read all of it.
2:45
Speaker 1: Mister Massad.
2:46
Speaker 5: I haven't a chance to read all two hundred and
2:48
Speaker 5: thirty six pages of the bill.
2:50
Speaker 6: It's a very complicated bill. As I'm trying to go
2:54
Speaker 6: through this, it wasn't that I didn't miss it.
2:56
Speaker 1: It was that it wasn't in there, or it wasn't it's.
2:59
Speaker 6: A complicated bill. I'm still understanding it. But I think
3:02
Speaker 6: you're right I would how many of my folks on
3:06
Speaker 6: the other side have actually raid.
3:08
Speaker 1: This and analyzed this, wading through two hundred and sixty
3:10
Speaker 1: three pages of dense text, which is about.
3:12
Speaker 4: Number ninety on my top ten list of things to do.
3:16
Speaker 7: I'm just saying, I don't know how many folks have
3:18
Speaker 7: had the chance.
3:19
Speaker 5: To be able to do that.
3:20
Speaker 4: Members that can't read the three hundred page of bill,
3:23
Speaker 4: they can at least read your ten pages of testimony
3:25
Speaker 4: and that two page statement.
3:30
Speaker 3: Let's see here, this bill doesn't provide clergy.
3:35
Speaker 2: It creates confusion.
3:38
Speaker 7: This bill should actually be called the Complexity Act.
3:42
Speaker 5: I should point out, Okay, is there any provision in
3:46
Speaker 5: the bill in the SAD that says US tax dollars
3:50
Speaker 5: cannot be spent to buy crypto and put it into
3:52
Speaker 5: Trump coin or Skipity toilet coin. So I look forward
3:59
Speaker 5: to working with my colleagues to improve the bill.
4:03
Speaker 1: Can you repeat the question I said?
4:04
Speaker 7: Do you believe that this bill is ready.
4:07
Speaker 2: For us to mark up literreaty, go through it and
4:10
Speaker 2: send it to the floor.
4:11
Speaker 1: There are imperfection sure.
4:12
Speaker 4: I just need a yes for no because my time's
4:14
Speaker 4: running not it.
4:14
Speaker 7: I do think it's ready for a markup. At a committee.
4:17
Speaker 2: Miss mink ready for markup?
4:19
Speaker 6: Okay, mister must absolutely not.
4:22
Speaker 3: I think it's ready, is it, Reisman?
4:24
Speaker 1: This is congressman. I do think it's ready for markup?
4:26
Speaker 3: All right, thank you?
4:27
Speaker 4: I yo Beck.
4:28
Speaker 1: Of course, this is what their job is. Just as
4:30
Speaker 1: a reminder, our lawmakers are there to understand legislation and
4:35
Speaker 1: that is done through bills, and bills of course are complex.
4:40
Speaker 1: This is why they were voted in. I'm surprised that
4:42
Speaker 1: they're at this level. I want to go in and
4:44
Speaker 1: maybe we'll just outline it a little bit for them.
4:46
Speaker 1: What's in the bill. Take a look.
4:48
Speaker 8: You said legislate based on facts. That is clearly not
4:51
Speaker 8: what is happening here. The bill establishes a robust suite
4:54
Speaker 8: of requirements, including issuer disclosure requirements, lock up periods for
5:00
Speaker 8: insiders when they're not allowed to sell and then limited
5:04
Speaker 8: in their ability to sell to protect those retail investors,
5:07
Speaker 8: clear standards for custody and segregation of customer funds, and
5:11
Speaker 8: listing standards for digital commodity platforms.
5:14
Speaker 1: The guy that was at this hearing, he gets into
5:17
Speaker 1: some detail here around stable coins, and remember staplecoint is
5:19
Speaker 1: going to be the first thing that really takes place here,
5:22
Speaker 1: and he is hopefully at washing and say hopefully he
5:25
Speaker 1: is advocating for banks to actually control stable coins. Take
5:30
Speaker 1: a look.
5:31
Speaker 6: We need to impose obligations on stable coin issuers to
5:34
Speaker 6: monitor wallets. We need to give the treasury authority over
5:39
Speaker 6: stable coin transactions. That we need to give the treasury
5:42
Speaker 6: more authority because stable coins and other crypto assets can
5:47
Speaker 6: be transferred without going through an intermediary like a bank.
5:53
Speaker 6: That's where you create the risk.
5:56
Speaker 3: What I think is going to happen. My prediction here
5:59
Speaker 3: is we're going to have the mother of all financial
6:01
Speaker 3: crises in this country. Tell me I'm wrong. The key
6:04
Speaker 3: point is centralization is what's caused collapses. Centralizations caused crises.
6:11
Speaker 3: Decentralization means security and reliability and oft time and decentralization
6:15
Speaker 3: is an ideal that all projects should strive towards to
6:18
Speaker 3: improve the security of the crypto ecosystem.
6:21
Speaker 1: All right, So the mother of all financial crisis, I
6:24
Speaker 1: think that we might already be in what it's called
6:26
Speaker 1: the national debt. Decentralization is the route. It is freeing
6:31
Speaker 1: the money. It is the future of how digital assets
6:34
Speaker 1: and what we'll know as money is going to happen.
6:36
Speaker 1: I think the question is how is this going to
6:39
Speaker 1: make its way through DC with these kind of people
6:43
Speaker 1: out there trying to make this all happen. Now, one
6:45
Speaker 1: of the things is in how this could actually work
6:49
Speaker 1: is show functional ways and understanding that blockchain, decentralized blockchain
6:55
Speaker 1: as well as defiant general can be utilized in very
6:59
Speaker 1: huge applications. One of them is in reference to even payroll.
7:04
Speaker 1: This is where Ethereum could actually help in this place.
7:07
Speaker 3: Take a look right now, payroll is inefficient. Employees are
7:11
Speaker 3: paid bi weekly or monthly. Companies have to wire funds
7:14
Speaker 3: to a payroll provider, and there are multiple intermediaries. Settlement
7:18
Speaker 3: can take multiple days. Ethereum enables real time automated payments
7:22
Speaker 3: that traditional systems cannot match. Freelancers and gig workers can
7:26
Speaker 3: now get paid by the second as they work, no delays,
7:29
Speaker 3: no middlemen. Multiply this effect across millions of US businesses
7:34
Speaker 3: and the impact is enormous.
7:35
Speaker 1: Crypto's the answer to payroll.
7:37
Speaker 5: I'm an old CPA. You need payroll services because you
7:40
Speaker 5: have to calculate the deductions. Nobody on the Internet's going
7:43
Speaker 5: to do that for free.
7:45
Speaker 1: The current payment system is just fine, all right. I
7:48
Speaker 1: don't know that I would agree with that the current
7:49
Speaker 1: payment system is slow and accurate, tedious expensive. The problems
7:54
Speaker 1: that many companies face globally is they have to engage many,
7:59
Speaker 1: many people companies, et cetera. Just to be able to
8:02
Speaker 1: engage on a payroll that's done every week or every
8:05
Speaker 1: two weeks, that is a challenge. I think that decentralization will,
8:09
Speaker 1: of course address And this is just showing you an
8:11
Speaker 1: example of them being able to power payroll through ethereum
8:17
Speaker 1: three hundred and sixty five thousand recipients. This is money
8:19
Speaker 1: streaming out to what's going on in the market. These
8:23
Speaker 1: are the kind of things that I think this is
8:25
Speaker 1: where our lawmakers are falling down. They don't really understand
8:29
Speaker 1: the technology. They don't understand the leap forward we're about
8:32
Speaker 1: to take in the monetary system, and it's much like
8:36
Speaker 1: what happened in the early days of the Internet. They
8:37
Speaker 1: didn't understand that either. Now here's a clip on Sean
8:40
Speaker 1: Casten who claims that UNIEWAP isn't decentralized. Take a look.
8:45
Speaker 4: Doesn't the fact that the UNISWAP Foundation can unilaterally make decisions.
8:50
Speaker 4: Doesn't that weaken any claim of it being decentralized.
8:52
Speaker 2: The UNISWAP Foundation cannot make any unilateral government governance change
8:57
Speaker 2: the level.
8:57
Speaker 4: Well, the criticisms out there, I mean they that exists
9:00
Speaker 4: the UNI.
9:00
Speaker 6: Swap protocol, right, Sure, that's autonomous software, but there's the
9:07
Speaker 6: UNISWAP interface.
9:09
Speaker 1: All right. So you look at UNI swap in general,
9:12
Speaker 1: I think they one, they don't really understand where this
9:14
Speaker 1: is going. But when you look at the app versus
9:17
Speaker 1: the protocol, protocol is where anybody can utilize it completely decentralized.
9:21
Speaker 1: Just an example here that I'm showing to the app itself. Yes,
9:25
Speaker 1: that's a business, but the protocol is enabling pretty much
9:28
Speaker 1: anybody in DeFi to be able to use this. So
9:31
Speaker 1: this is a good example of where this goes. Right now,
9:33
Speaker 1: there's on V four, there's V one, a breakdown on
9:37
Speaker 1: V two v three. You can see the potential of
9:42
Speaker 1: being able to use a variety of cases around UNISWAP
9:45
Speaker 1: decentralized finance. And that's why it's important remember that Sushi
9:50
Speaker 1: swap that last paragraph right there. Since its inception, as
9:53
Speaker 1: for sushi swap has evolved as a differentiated itself from UNISWAP,
9:58
Speaker 1: but its origins as a unie swap for our textbook example.
10:02
Speaker 1: So this is a good example of how it can
10:05
Speaker 1: be used. We will see so many variations of this
10:09
Speaker 1: as we move forward. And I think that's the thing
10:11
Speaker 1: that is causing a little bit of struggle around the
10:15
Speaker 1: market structure. Bill and one is just understanding how DeFi
10:19
Speaker 1: is going to work. And I think that's the problem
10:21
Speaker 1: that DC of course is facing. Let's get into another
10:23
Speaker 1: point right here, and this is getting into where unicewap
10:27
Speaker 1: and casting kind of go at it, and you'll see
10:30
Speaker 1: what I mean. Take a look.
10:31
Speaker 4: Would unicewap be required to screen and verify customer identities? No,
10:36
Speaker 4: they don't have any obligation to disclose anything. And you
10:39
Speaker 4: can launder all your money through there. My god, Why
10:42
Speaker 4: isn't the industry saying I don't want to be a
10:43
Speaker 4: part of that. Come on, folks, gentlemen, time has expired.
10:52
Speaker 5: There's no limit to how extreme nonsense can gain credibility.
10:59
Speaker 2: And wash sheer nonsense to craft laws. Because we assume
11:04
Speaker 2: that every citizen is a crook, money laundering is still illegal,
11:08
Speaker 2: fraud is still illegal.
11:09
Speaker 8: Why is it important for the Clarity Act to enshrine
11:12
Speaker 8: the right to self custody and digital assets.
11:16
Speaker 2: Then my family was personally debanked in twenty twenty one
11:19
Speaker 2: for no legitimate reason, even worse than that the bank
11:23
Speaker 2: held onto our money and wouldn't tell us for a
11:26
Speaker 2: period of two months if or when we would ever.
11:28
Speaker 3: Get it back.
11:29
Speaker 2: That is something that happens to everyday Americans all the time.
11:33
Speaker 2: They're shut out of our traditional finance system. But now
11:36
Speaker 2: we have technology so that any American can safely, securely
11:40
Speaker 2: and digitally hold their own assets in their own control
11:45
Speaker 2: and their own custody. Having this option, it should be
11:48
Speaker 2: available to all Americans.
11:50
Speaker 1: All right. That is probably what scares the living but
11:53
Speaker 1: Jesus out of these people, and that is that this
11:56
Speaker 1: is a major transition in the financial system, andactly right,
12:01
Speaker 1: this changes everything, and it does put a lot of
12:04
Speaker 1: pressure on the status quo. So you have to consider
12:08
Speaker 1: a lot of this now. If you think about centralization,
12:11
Speaker 1: we already know the debacle that has been happening there
12:14
Speaker 1: and one of them, of course, has been happening even
12:17
Speaker 1: with our own coinbase. Centralization is the problem, and I
12:20
Speaker 1: think even hester Pierre, she mentioned this last week at
12:22
Speaker 1: the Bitcoin conference, is that we've gone too far with
12:25
Speaker 1: aml a KYC, meaning in many cases you just don't
12:28
Speaker 1: need it. And in this kind of scenario where if
12:31
Speaker 1: people want to do that, they're able to go out
12:34
Speaker 1: and do their own holding of their own assets. And
12:37
Speaker 1: I think that's the challenge that everybody is facing now.
12:40
Speaker 1: They of course, are playing a lot of this into
12:42
Speaker 1: the political ploy around Trump's meme coin, and they're using
12:47
Speaker 1: this as part of it to try to continue to
12:49
Speaker 1: defend against that. Take a look at this clip.
12:52
Speaker 7: First of all, let me just say that I think
12:55
Speaker 7: the Jewish dictional issue could be settled. It's been talked
13:01
Speaker 7: about for a long time, but I don't know how
13:04
Speaker 7: we get past the corruption. Trump doesn't want Americans to
13:08
Speaker 7: use his two Trump doesn't just want Americans to use
13:14
Speaker 7: this crypto. He wants to put our money in his
13:17
Speaker 7: digital wallet to attend his shady mema coin dinner. Where
13:22
Speaker 7: did they get Walmart, Staate, Costco, freezer, ale, halibut, recycled
13:28
Speaker 7: talking points, and just twenty minutes of Trump time. I
13:32
Speaker 7: guess you get what you pay for.
13:34
Speaker 4: Don't be distracted by the politics on the other side,
13:38
Speaker 4: ill advised and cheap shot that we are engaging in politics.
13:42
Speaker 1: Bitcoin is it an all time high.
13:44
Speaker 8: They don't like it, and that's why they opposed this built.
13:47
Speaker 2: Thank you, Wow cool.
13:49
Speaker 8: The gentleman yields back the gentleman from California, mister Vargas,
13:53
Speaker 8: who is minutes Barney.
13:55
Speaker 1: Oooh, handing them a little bit of their own slice
13:57
Speaker 1: of pie. I see, and if you kind of can
14:00
Speaker 1: pair of what's been happening out there before, well we've
14:02
Speaker 1: seen this. Actually before, there's been another version of that,
14:06
Speaker 1: and that was Hunter Biden's our collection and five million
14:09
Speaker 1: bucks to help with the tax build. You guys may
14:12
Speaker 1: not recognize this painting, but this was a Hunter Biden painting.
14:16
Speaker 1: I didn't even know he was an artist, but he
14:17
Speaker 1: was actually getting millions of dollars for these paintings, and
14:19
Speaker 1: the Biden was aware of the identities that most of
14:22
Speaker 1: his art Bighters, despite what the White House was saying,
14:25
Speaker 1: so value of these paintings went down to zero, so
14:28
Speaker 1: all of that completely disappeared. No one's buying Hunter Biden's
14:33
Speaker 1: paintings anymore. And it's really no different the point we're
14:37
Speaker 1: getting at all a political ploy. We're dealing with non
14:40
Speaker 1: bipartisan situations which all center around this Market Structure Act
14:45
Speaker 1: and this is a very important one because it will
14:47
Speaker 1: change how we move forward around not only crypto, but
14:51
Speaker 1: I think a lot of innovations in technology for the future.
14:55
Speaker 1: So one other thing I want to add here is
14:57
Speaker 1: when you look at a world with out this bill
15:00
Speaker 1: in place, there is a lot of the problems that
15:04
Speaker 1: we've already seen everything FTX to the voyagers, We've seen
15:07
Speaker 1: it all take place. We need this kind of legislation
15:10
Speaker 1: to change this. And this is strike Jack Maller's everyone
15:13
Speaker 1: else is looking to utilize strikes bitcoin loan offering. Well,
15:16
Speaker 1: the problem is is hypothication. Rehapithification means that you think
15:20
Speaker 1: you've given it to them, but in reality, in the
15:22
Speaker 1: terms of the loan agreement, they talk about rehypothication, which
15:27
Speaker 1: means that people are doing something with your digital asset
15:31
Speaker 1: behind your back. This is Jack Mahler's trying to defend
15:35
Speaker 1: against this.
15:35
Speaker 9: Take a look, yo, what is going on bitcoin? A
15:40
Speaker 9: quick update from us at Strike. We just updated our
15:44
Speaker 9: loan agreement to clear the air and remove any confusion
15:48
Speaker 9: that the bitcoin collateral that you have at Strike is
15:52
Speaker 9: safely held by us and our partners in segregated wallets.
15:56
Speaker 9: There's no funny business there's no trading, there is no
15:59
Speaker 9: online and most importantly, there is no rehighpothication. Okay, why
16:06
Speaker 9: did we make this update? We hear you guys loud
16:09
Speaker 9: and clear the feedback we were getting, the rightful feedback
16:12
Speaker 9: we were getting. So with that in mind, I figured
16:14
Speaker 9: I'd come on here record a video. So sometimes we
16:18
Speaker 9: have wallets set up where we pledge some collateral to
16:23
Speaker 9: the partner.
16:24
Speaker 1: All right, So there These kind of things are antics
16:27
Speaker 1: that you know, are just really sketchy. And I think
16:29
Speaker 1: that's the issue is once a bill like this goes through,
16:32
Speaker 1: which will require companies like Strike not to even be
16:36
Speaker 1: able to do that along with banks and other asset holders.
16:40
Speaker 1: This is a huge step in the right direction because
16:43
Speaker 1: this is still a situation. If they've done it once,
16:46
Speaker 1: can they do it again? Can they update the terms
16:47
Speaker 1: of service? Yes, you guys have seen this so many times.
16:50
Speaker 1: These terms of services are constantly being updated right in
16:54
Speaker 1: the middle of agreements, and you thought what was going
16:57
Speaker 1: on isn't actually so this is the issue that we
16:59
Speaker 1: are are facing right now in the digital asset market.
17:03
Speaker 1: The stable cooin bill is going to happen. First, we
17:05
Speaker 1: all know that. And here's one of the reasons. Obviously, Circle,
17:08
Speaker 1: one of the major companies out there on stable coins,
17:11
Speaker 1: went public today under the code or under their signed
17:15
Speaker 1: Circle CrCL. This will be first stable coins and then
17:19
Speaker 1: we'll see the market structure start to play into it.
17:21
Speaker 1: It's coming, guys, whether they like it or not, whether
17:24
Speaker 1: they played bipartisanship or not. A lot of this is grandstanding.
17:28
Speaker 1: It is coming, and there's nothing I think that the
17:30
Speaker 1: industry is going to be able to do about it.
17:32
Speaker 1: We've already seen major moves from JP Morgan to Blackrock
17:36
Speaker 1: to a large amount of institutional capital. This is not
17:40
Speaker 1: going to slow down. If you guys are not in
17:41
Speaker 1: the Diamond Circle, make sure and get in right now.
17:43
Speaker 1: It's a great additional place where you guys can get
17:45
Speaker 1: content from us that sometimes doesn't make here to the show.
17:48
Speaker 1: Also follow me out there on x at Paul Baron.
17:51
Speaker 1: We'll catch you next time right here on tech Path