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Banks Crash CLARITY!!!🚨Coinbase EXITS Support🔥 · The Paul Barron Crypto Show

0:00
Speaker 1: Is clarity on the rocks? Is it cook today? We'll
0:02
Speaker 1: break that down with you. It is going to be
0:04
Speaker 1: a good one. I've got a special guest to talk
0:06
Speaker 1: about this of what's happening in DC right now. Before
0:09
Speaker 1: I get started, I want to thank our sponsor to
0:11
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0:12
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0:15
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0:17
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0:21
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0:23
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0:26
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0:27
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0:30
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0:33
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0:36
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0:40
Speaker 1: and having to manage all that Tangum kind of changes that.
0:43
Speaker 1: So use our link down below. It's going to get
0:44
Speaker 1: you started. I've got a special guest joining us today
0:48
Speaker 1: and we're going to be talking about clarity and whether
0:51
Speaker 1: or not this is getting to a point here where
0:53
Speaker 1: we are at a little bit of a risk. As
0:55
Speaker 1: you can see right here, it was around sixty eight
0:57
Speaker 1: almost seventy seventy two on the twenty five first, and
1:00
Speaker 1: then of course it has fallen dramatically down here to
1:03
Speaker 1: sixty one percent as we are recording right now. Something
1:08
Speaker 1: is brewing in DC, and of course this is what
1:11
Speaker 1: we're talking about some right now saying that coinbase not
1:15
Speaker 1: sold on the stablecoin compromise. As many of you guys
1:18
Speaker 1: know if you've been following this for a long time,
1:21
Speaker 1: there's two camps. One is no compromise. We want to
1:25
Speaker 1: stable cooin yields. Others are passive versus active sable cooin yields,
1:29
Speaker 1: meaning you've got to do something to earn that yield
1:32
Speaker 1: and maybe not even be called a yield. So this
1:35
Speaker 1: is the issue right now. We understand that both Tom
1:38
Speaker 1: Tellis and Angela also Brooks have been kind of the
1:41
Speaker 1: two senators that have been pushing on trying to get
1:44
Speaker 1: this consistency across the two parties that of course is
1:47
Speaker 1: being led into what Crypto and America reported on. I
1:51
Speaker 1: want to hit on a couple of items right here.
1:53
Speaker 1: Tuesday descended into a yelling match between representatives from crypto exchanges, fintech,
1:57
Speaker 1: and venture capitalists. That further when into Monday meetings where
2:01
Speaker 1: they held a thirty minute increments. Participants were giving copies
2:05
Speaker 1: of the text review and take notes, but not keep.
2:07
Speaker 1: So thirty minutes to review hundreds of pages, not be
2:11
Speaker 1: able to take notes or keep copies, something's very unusual there.
2:16
Speaker 1: Reactions are still coming out, but the language appears to
2:19
Speaker 1: be reflective to compromise at Tillis and also bricks in
2:22
Speaker 1: the White House set out to achieve which would be
2:24
Speaker 1: possibly released as early as Wednesday, that is today what
2:30
Speaker 1: we're seeing right now, continue to put some pressure on it.
2:33
Speaker 1: I don't understand what Patrick is doing, because I would
2:37
Speaker 1: think he would be locked in right now, locked in
2:40
Speaker 1: on what's going on. And of course, if you look
2:43
Speaker 1: at this statement, Patrick Witt again is out there giving
2:48
Speaker 1: kudos to Tom Tillison, Senator also Brooks for this, so
2:52
Speaker 1: maybe there I don't understand where the White House is
2:55
Speaker 1: on this. I can't tell if they're pro against trying
2:58
Speaker 1: to get this across the line, they're trying to do
3:00
Speaker 1: something for the industry or not. And then of course
3:03
Speaker 1: Senator Lummas, this is kind of what tells me that
3:05
Speaker 1: we have a little bit of a warning sign right here,
3:08
Speaker 1: because she has been very adamant about no, this is
3:11
Speaker 1: almost done, This is almost done. And then right here,
3:14
Speaker 1: bipartisan compromise is necessary for Clarity Act to pass. We're
3:17
Speaker 1: working around the clock to ensure stable corn rewards are protected.
3:21
Speaker 1: So this gets me concerned. And of course because of that,
3:25
Speaker 1: I wanted to bring in someone that actually lives in Breeze, DC,
3:28
Speaker 1: and that is Chris Hayes, partner at Thorn Run. How
3:30
Speaker 1: are you, Chris?
3:32
Speaker 2: I'm doing well, Paul, Thanks for having me.
3:34
Speaker 1: Okay, So a lot happening in DC right now, but
3:37
Speaker 1: yet not a lot reported in terms of what's coming
3:41
Speaker 1: out of these negotiations and some of the things that's
3:45
Speaker 1: happening with the Senators and of course the markup of
3:48
Speaker 1: this bill. First of all, where are you seeing it
3:52
Speaker 1: today as it is right now? How does this stand
3:54
Speaker 1: between the two parties?
3:57
Speaker 2: Well, I mean, I think it's there's been some texts that,
4:01
Speaker 2: as you indicated, folks have seen, haven't been widely distributed.
4:05
Speaker 2: I think that's somewhat by design, right. It kind of
4:07
Speaker 2: hurts some of those negotiations if you're distributing too widely
4:12
Speaker 2: and then people can object. Right, you really need some
4:14
Speaker 2: of the core players here, particularly Coinbase, A sixteen Z,
4:18
Speaker 2: some other core players who are really involved in the
4:21
Speaker 2: market structure, Clarity Act negotiations to reach something they could
4:26
Speaker 2: be comfortable with. Right. So, at the same time, there
4:31
Speaker 2: weren't the votes the last time we had a vote
4:33
Speaker 2: scheduled for the position of the crypto industry that yields
4:38
Speaker 2: should continue. So the banking industry, the money market fund industry,
4:42
Speaker 2: really wanted to restrict what had been a permissible under genius,
4:48
Speaker 2: and so Coinbase didn't have the votes to stop that
4:52
Speaker 2: amendment from happening, which is why the vote was taken
4:54
Speaker 2: down a couple months ago. And so now we're back
4:58
Speaker 2: at the same spot. Right, are we going to have
5:01
Speaker 2: a compromise that allows those votes to be able to
5:05
Speaker 2: come to some agreement on clarity? Right? Can this vote
5:09
Speaker 2: move forward? Do we need basis support for its advance?
5:12
Speaker 1: So is there a good bad version of this is there?
5:16
Speaker 1: Can you give us some insights on what you like
5:19
Speaker 1: and don't like of what we're hearing so far?
5:23
Speaker 2: I think the challenge really is it was really about
5:28
Speaker 2: just the White House had the pressure on these Republicans
5:31
Speaker 2: who were supporting sort of the banking position on this issue,
5:36
Speaker 2: and I think what we've seen is they've pushed as
5:39
Speaker 2: hard as they could. They've i mean, President Trump has
5:42
Speaker 2: tweeted about it, I think, pushing from sort of the
5:45
Speaker 2: crypto industry side on it. And what you're seeing in
5:49
Speaker 2: this compromise suggests that the banking industry has decided that
5:54
Speaker 2: they don't feel sufficiently pressured by that to make concessions
5:57
Speaker 2: on their end. The political environment for them is sort
6:03
Speaker 2: of like, the longer this bill gets delayed, the less
6:05
Speaker 2: likely it gets done right. By Junior July, Congress will
6:08
Speaker 2: stop doing anything this year. So we've already lost two
6:13
Speaker 2: months for a deal that looks very similar to what
6:15
Speaker 2: the deal was on the table back in February.
6:20
Speaker 1: Yeah, all right, so it took two months from the
6:22
Speaker 1: last one to where we are now. It does not
6:25
Speaker 1: appear that there's been a landslide change in what the
6:28
Speaker 1: structure is. In your opinion, does this put clarity at
6:33
Speaker 1: risk because that would take even if they could come back,
6:37
Speaker 1: another two months of negotiation. Puts this out of the
6:40
Speaker 1: realm of getting through this year, does it not?
6:43
Speaker 2: I think it's really about whether whether the markup would
6:47
Speaker 2: go forward without first of all, whether coinbase would support
6:50
Speaker 2: this deal. I think that's sort of critical and other
6:53
Speaker 2: crypto industry participants, but I would put them in a
6:56
Speaker 2: sixteen Z really in the driver's seat on any of
6:58
Speaker 2: these issues. Are they comfortable with this deal? If not,
7:02
Speaker 2: then the question is are other folks in the industry
7:05
Speaker 2: wanting to move forward with a vote without coin Basiness
7:08
Speaker 2: support and what are the implications for that, particularly around
7:12
Speaker 2: the midterm elections coming up. And coinbase overly has a
7:15
Speaker 2: pretty strong political apparatus, and so I think that's a
7:18
Speaker 2: decision point, and as the industry is really hung together,
7:24
Speaker 2: I think many folks are less concerned with the yield issue.
7:26
Speaker 2: I would note the de five folks have other concerns
7:29
Speaker 2: in the build that also have to be sort of addressed,
7:33
Speaker 2: and also the certainty around being able to buy and
7:36
Speaker 2: sell crypto layer ones, getting certainty about their crypto tokens, etc.
7:42
Speaker 2: All of that is rioting on clarity, and those folks
7:46
Speaker 2: may break from where coinbas is, but we have not
7:50
Speaker 2: seen that because I think the White House has said, hey,
7:52
Speaker 2: stick with us, We're trying to work on a compromise,
7:55
Speaker 2: let's keep the industry together. And I think we're reaching
7:58
Speaker 2: sort of a point where it is the bill going
8:01
Speaker 2: to move forward with or without their support, and all right.
8:04
Speaker 1: So this is this is pretty much a point of
8:07
Speaker 1: fragmentation at what you're what you're saying because of that? Yeah, yeah,
8:13
Speaker 1: So because of that, especially on DeFi, the side of DeFi,
8:16
Speaker 1: because that that, of course is one of the major
8:18
Speaker 1: areas that I think would be a non starter. Now
8:21
Speaker 1: you're getting into all sorts of issues with just privacy,
8:25
Speaker 1: property rights, et cetera. That gets into this anything that
8:29
Speaker 1: you're seeing coming out in terms of the language that
8:31
Speaker 1: affects DeFi, self custody, you know, privacy in general.
8:36
Speaker 2: Well, the DeFi provisions in the bill. There were a
8:39
Speaker 2: variety of amendments that were on the table that folks
8:42
Speaker 2: did not get to see before the last vote, many
8:45
Speaker 2: of those led by some of the Democratic senators who
8:49
Speaker 2: wanted to see more AMIL requirements and requirements on DeFi
8:53
Speaker 2: protocols and self custom So you had sort of the
8:56
Speaker 2: original text which protected self custody, so created a right
9:01
Speaker 2: to self custody. The blockchain Regulatory certain YAC, which protected
9:05
Speaker 2: software developers from being money transmitters. But then you had
9:08
Speaker 2: a whole new provision around how to impose AML requirements
9:13
Speaker 2: on DeFi protocols, particularly DeFi front ends where those AML
9:20
Speaker 2: requirements would lie. And I think those issues are still
9:25
Speaker 2: somewhat up in the air in terms of what we'd
9:28
Speaker 2: see going into a vote, So those issues are still
9:31
Speaker 2: need to be addressed, right. Originally this bill did not
9:34
Speaker 2: bring DeFi into the regulatory umbrella, but to get the
9:37
Speaker 2: Democratic votes necessary, they had to add them into the
9:41
Speaker 2: DeFi umbrella. Sorry, add them into the regulatory umbrella, and
9:45
Speaker 2: then the question is who has to comply with those requirements? Well,
9:50
Speaker 2: I think it's.
9:51
Speaker 1: How long do you think it will be? Do you
9:52
Speaker 1: think we're going to see something coming out of the
9:54
Speaker 1: Senate today or out of Congress today or not.
9:58
Speaker 2: There's obviously a lot of discussions about the text. I
10:02
Speaker 2: think they need to see what the deal is on
10:04
Speaker 2: yield and whether it's going to be supported by the
10:07
Speaker 2: industry or not, and then I think we would schedule
10:10
Speaker 2: a markup vote and we'd see a draft come out
10:13
Speaker 2: ahead of that markup vote, probably in a couple of weeks.
10:17
Speaker 2: We don't have that deal on yield yet, right, we're
10:20
Speaker 2: still and now we're getting articles just coming out today
10:23
Speaker 2: suggesting that coinbase is not on board with it. And
10:26
Speaker 2: I think the question is is waiting longer going to
10:29
Speaker 2: produce a better result. We've waited two months. The political
10:34
Speaker 2: environment is worse for the bill than it was two
10:36
Speaker 2: months ago, and we essentially had the same deal on
10:39
Speaker 2: the table and the same lack of votes for a
10:42
Speaker 2: better deal for crypto on yield. So my thought is
10:48
Speaker 2: this deal is not going to get better with time,
10:50
Speaker 2: and if this bill doesn't pass this year, you're ending
10:53
Speaker 2: up potentially with a much worse bill overall for everyone
10:57
Speaker 2: if there is one next year.
11:00
Speaker 1: How does this affect circle and coin based directly? Obviously
11:05
Speaker 1: we saw stock prices yesterday just on the hint that
11:08
Speaker 1: there wasn't going to be a deal on the table.
11:12
Speaker 2: Well, so the text that sort of has percolated around, right,
11:16
Speaker 2: So it hasn't been distributed yet, but I think people
11:19
Speaker 2: have seen elements of it. Really looks at basically restrictions
11:24
Speaker 2: on affiliates. Right, so Genius prevented issuers from paying yield,
11:28
Speaker 2: but allowed third party affiliates like a change is to
11:30
Speaker 2: pay yield to stable coin holders or rewards etc. However
11:36
Speaker 2: you want to structure them, and this new restriction would
11:41
Speaker 2: further constrain what's in the genius text by basically saying
11:45
Speaker 2: that any kind of reward that looks economically or functionally
11:49
Speaker 2: equivalent to an interest bearing bank account sorry, bank deposit
11:55
Speaker 2: would be prevented with basically kicking it to the regulators
12:00
Speaker 2: the Treasury Department cf TC SEC to craft a list
12:04
Speaker 2: of permissible type reward activities. So, when you think about
12:09
Speaker 2: the current model, I think this impacts a lot of
12:12
Speaker 2: stable coin issuers. I actually think Circle is maybe less
12:15
Speaker 2: harmed than others who are trying to get more traction
12:18
Speaker 2: in the marketplace, because if you think about USDG or
12:21
Speaker 2: you think about PYSD PY USD, many of these folks
12:26
Speaker 2: are paying rewards to encourage circulation of their stable point
12:31
Speaker 2: and so being unable to pay that obviously prevents wider
12:36
Speaker 2: adoption under stable coins. So it could in some ways,
12:39
Speaker 2: actually I think it could be better for Circle being
12:42
Speaker 2: one of the two predominant stable coins tether in Circle
12:45
Speaker 2: currently being used in the environment. However, when you think
12:47
Speaker 2: about the unique coin based Circle relationship, right coinbase gets
12:51
Speaker 2: paid one hundred percent of all the interests that Circle
12:57
Speaker 2: is paying to us. You know, US DC holders on Coinbase,
13:03
Speaker 2: they get one hundred percent of that interest income. If
13:06
Speaker 2: you're not paying rewards to make them hold those stable
13:09
Speaker 2: coins on Coinbase through just holding them, then maybe you're
13:12
Speaker 2: really harming a revenue source. And clear this is quite
13:15
Speaker 2: an important revenue source for Coinbase. You only have to
13:18
Speaker 2: look at the quarterly filings for Circle and Coinbase to
13:23
Speaker 2: see how it makes up a significant portion of their revenue,
13:26
Speaker 2: which is why they care so much about it.
13:29
Speaker 1: So in regards to that they're going after DeFi, this
13:34
Speaker 1: was a tweet coming in. I'm not sure all the
13:36
Speaker 1: reason flud front end regulation Congress clarity is coming from
13:39
Speaker 1: the relevant Section three or two only calls for guidance
13:42
Speaker 1: on sanctioned laws that already applied to the expanding authority
13:47
Speaker 1: of DeFi. Where where does this play out from a
13:50
Speaker 1: software development side? He talks about it here. These sections
13:53
Speaker 1: are tolerable as long as we don't as we get
13:56
Speaker 1: the BRCA, which isn't in this bill as we know it.
14:01
Speaker 1: So how how does DeFi play into this?
14:05
Speaker 2: Like I mentioned, there's two parts with DeFi with b
14:07
Speaker 2: RCA right, which is sort of protective language, and then
14:10
Speaker 2: you have new AML requirements. My understanding looking at the
14:14
Speaker 2: latest text, right, so I've seen the text, I haven't
14:18
Speaker 2: seen the DeFi provisions that may have been included since
14:20
Speaker 2: the right before the markup that was scheduled back in February.
14:24
Speaker 2: That language would impose obligations. It's convoluted language, but essentially
14:30
Speaker 2: on the front ends of DeFi protocols. It would carve
14:33
Speaker 2: out self custodia wallets, including we believe wallet front ends,
14:38
Speaker 2: but it would impose it on say the website that
14:40
Speaker 2: would allow you to access a UNISWAP or access a
14:44
Speaker 2: DeFi pool. The obligations would fall there, and it will
14:48
Speaker 2: require Treasury I think, to make rulemaking around AML requirements there,
14:55
Speaker 2: and then then you're you're sort of fighting that at
14:58
Speaker 2: the regulatory level. I know folks would like to change
15:01
Speaker 2: those provisions of course.
15:02
Speaker 1: Yeah, yeah, that would be a huge I mean, you
15:05
Speaker 1: you're losing yields now, you're getting basically KYC at the
15:10
Speaker 1: DeFi level, at least for Americans. You know, outside of America,
15:14
Speaker 1: you're just you know, running world, which is what I
15:16
Speaker 1: don't understand. We're seeing regulatory framework that's being built in Asia. Europe,
15:22
Speaker 1: the Middle East, all of which are not going in
15:25
Speaker 1: this direction. They are kind of fostering the growth potential.
15:28
Speaker 1: Does this not put the US kind of in a
15:32
Speaker 1: disadvantage with all these devices.
15:36
Speaker 2: I think it does in terms of bringing these platforms
15:41
Speaker 2: into the United States. But I think the national security
15:44
Speaker 2: wing of both parties is pretty strong on these issues.
15:49
Speaker 2: So Senator Warner, who's one of the main moderate Democrats
15:53
Speaker 2: negotiating this on the Banking Committee chair, sorry, as the
15:56
Speaker 2: ranking member on the Senate Intelligence Committee, and so any
16:00
Speaker 2: of the folks who are on the intelligence committees or
16:02
Speaker 2: on the national security oriented committees are concerned about AML
16:07
Speaker 2: and the and terrorism finance and things like that, and
16:11
Speaker 2: that has I think influenced their views on how to
16:16
Speaker 2: what requirements need to be there. And so I think
16:20
Speaker 2: they're also being influenced by traditional finance players as well.
16:24
Speaker 2: While you know, they think about, hey, you know, we
16:27
Speaker 2: have a system of regulated intermediaries and the traditional markets.
16:32
Speaker 2: And what I really see around DeFi, which I think
16:34
Speaker 2: is quite interesting, is you sort of have a clash
16:36
Speaker 2: of regulatory frameworks, right, so you have a financial services
16:40
Speaker 2: regulatory framework traditionally in the US, and I've been working
16:44
Speaker 2: with a vicial regulation for fifteen years, which is really premised
16:47
Speaker 2: on a system of regulated intermediaries. And so each of
16:51
Speaker 2: those have aml KYC obligations. Right, you have investor disclosures,
16:56
Speaker 2: all those sort of requirements, and that's how you know
17:00
Speaker 2: traditional finances operated. And that's these are the people who
17:03
Speaker 2: negotiated the bill, right, very familiar with those frameworks. And
17:06
Speaker 2: then defive folks have more of an Internet regulation approach,
17:09
Speaker 2: right when you think about how social media is regulated, right,
17:12
Speaker 2: you know, Facebook puts up the page and they collect
17:16
Speaker 2: revenue at the back end, and they're not responsible for
17:18
Speaker 2: what's on the page, and that is more of a
17:21
Speaker 2: DeFi approach to I would say Section two thirty is
17:24
Speaker 2: the often discussion and that's what the defive folks are
17:27
Speaker 2: bringing to bear in their perspective. And those are sort
17:30
Speaker 2: of clashing in sort of where are the requirements and
17:34
Speaker 2: how do we automate those requirements? I think people are
17:37
Speaker 2: certainly open to that.
17:39
Speaker 1: Okay, listen, I've got a lightning round here I want
17:42
Speaker 1: to go through with you, which is just a whole
17:44
Speaker 1: quick line of questions that might play into this Clarity
17:47
Speaker 1: Act is worth passing, as currently rumored to be written.
17:51
Speaker 1: Do you think yes or no?
17:53
Speaker 2: I think it is right. So if any okay, it's lightning, rats,
17:58
Speaker 2: I weren't good lightning.
18:00
Speaker 1: Yes, he goes for it. Senators were unbothered by circle
18:05
Speaker 1: coin base on robin Hood stocks crashing after the yield compromise.
18:09
Speaker 2: Oh, I can't say for sure, but I would say
18:13
Speaker 2: probably no.
18:15
Speaker 1: So they were unbought. No, they were not.
18:17
Speaker 2: Do you think they they were unbothered as what?
18:20
Speaker 1: Okay, I'm okay, I don't think they care. Banks are
18:25
Speaker 1: betting on being able to more easily ban yields via
18:28
Speaker 1: o sec and policy rather than passing a law. Yes, yeah,
18:32
Speaker 1: that's okay. We're on the same the same now, yeah, exactly, yeah, okay.
18:40
Speaker 1: What is Tim Scott and other pro crypto sentators willing
18:42
Speaker 1: to throw under the bus self custody protections or defied
18:48
Speaker 1: developer protections? Out of those two, what.
18:51
Speaker 2: Do you think they would I actually think that the
18:55
Speaker 2: Oh you making me pick? I would say neither, but
18:58
Speaker 2: I guess by developer protect put it in the middle.
19:02
Speaker 1: Here, Yeah, okay, I'm gonna put you in the middle.
19:04
Speaker 1: It's a hard one because I don't know where they
19:07
Speaker 1: I don't know if this would kill it or or
19:09
Speaker 1: if Scott I don't know this. This is going to
19:12
Speaker 1: get interesting in the next couple of weeks because we're
19:15
Speaker 1: really down to the wire now Clarity doesn't if if
19:18
Speaker 1: Clarity doesn't survive, if coinbase publicly tears it down again,
19:22
Speaker 1: do you think that will be the case.
19:26
Speaker 2: That's a tough one.
19:27
Speaker 1: I mean, they went after it hard the first time around. Okay,
19:31
Speaker 1: all right, so you think this might might weather through? Well,
19:36
Speaker 1: I think so, Jamie.
19:40
Speaker 2: Support I think so if the who if the rest
19:44
Speaker 2: of the industry came out and supported, Hey, we need
19:46
Speaker 2: to move forward with the spell. I think it could.
19:48
Speaker 2: I think it could move forward.
19:50
Speaker 1: Okay, House will not pass Clarity if it removes the
19:53
Speaker 1: stable coin yields.
19:56
Speaker 2: I think now the past all right, I'm.
20:02
Speaker 1: Kind of in your I think I'm there now. I
20:04
Speaker 1: think we're going to get this is going to get
20:06
Speaker 1: jammed down. Tim Scott's schedules a mark up the next
20:09
Speaker 1: ten days or this thing's over.
20:13
Speaker 2: I think you hear longer than ten days. What would
20:15
Speaker 2: it be? What would you say if it doesn't happen
20:19
Speaker 2: by the end of April. I think you have a
20:20
Speaker 2: it's a really tall order. End of April.
20:23
Speaker 1: That's still a lot of time, all right, thirty days, okay,
20:27
Speaker 1: all right, well we'll go on that one. Current Clarity
20:29
Speaker 1: bill draft is tailored more towards retail or banks and
20:34
Speaker 1: crypto companies.
20:37
Speaker 2: Banks, crypto companies.
20:38
Speaker 1: Yeah, okay, Well, at least you're being truthful there, Chris.
20:44
Speaker 1: You know, we get a lot of people that are
20:46
Speaker 1: not truthful. They're not truthful on the show, and I
20:51
Speaker 1: just don't like that. If Clarity doesn't include defiant self
20:54
Speaker 1: custody protections, then it's passing, will crash the market.
21:02
Speaker 2: What do you mean by protections like protecting them from
21:04
Speaker 2: regulation or yeah?
21:05
Speaker 1: Yeah, well, like you know, in DeFi in the sense
21:07
Speaker 1: of protecting the developers, it's b RCA.
21:12
Speaker 2: I don't I don't think so. Oh okay, so.
21:15
Speaker 1: You say no, all right, so you're feeling pretty good
21:17
Speaker 1: about this then, But the key is getting the rest
21:21
Speaker 1: or some of the rest of the industry to align
21:24
Speaker 1: and say, okay, we're good as it is right now,
21:27
Speaker 1: banks win, no, no stable coin for the peasants, be
21:31
Speaker 1: done with you and moving on down the road. Here
21:35
Speaker 1: is what it boils down to.
21:37
Speaker 2: Yes, I think that's right.
21:40
Speaker 1: Wow, Okay, Well, I don't know if you're going to
21:43
Speaker 1: be a popular guest or not on this show.
21:46
Speaker 2: But maybe I'm to be honest about how I see maybe.
21:51
Speaker 1: You will be because you're being honest and people are like, well,
21:53
Speaker 1: at least he's telling us what is happening, you know,
21:55
Speaker 1: because I think that's the biggest problem that everybody is
21:58
Speaker 1: concerned with right now is they they feel like the
22:01
Speaker 1: industry is kind of out in the dark, you know, so,
22:04
Speaker 1: and it seems like that is not the case.
22:08
Speaker 2: I mean, I think you have to realize this is
22:11
Speaker 2: the best political environment. The industry will have to pass
22:14
Speaker 2: a bill probably in the next four years, so if
22:17
Speaker 2: you want to build pass now. The question is, right,
22:21
Speaker 2: some of this stuff is being done through rulemaking. So
22:23
Speaker 2: you probably saw the token interpretation that he put out
22:27
Speaker 2: that clearly is the backup strategy for many of the
22:30
Speaker 2: crypto exchanges. Is the thought that Okay, I can go
22:33
Speaker 2: get this done through rulemaking, will define these not as
22:35
Speaker 2: securities over at the sec that they're not covered by Howie,
22:39
Speaker 2: but that's subject to litigation, that's subject to the whims
22:44
Speaker 2: of the next presidential administration that comes in. And the
22:48
Speaker 2: bet there is that the industry will be so consolidated
22:51
Speaker 2: with traditional finance by the next pretesidential administration, that that
22:56
Speaker 2: won't change or that that won't be sued to be
23:00
Speaker 2: blocked under the mystery procedures on the other things. And
23:03
Speaker 2: so if you want long term legal certainty, a bill
23:06
Speaker 2: is the best choice. And now is the environment to
23:10
Speaker 2: get that done right. The PUBLICO environment will, if friends
23:15
Speaker 2: will the midterms, if demons take the House, you are
23:17
Speaker 2: going to have a bill. If they even focus on
23:19
Speaker 2: it would be much worse for the industry, particularly on
23:22
Speaker 2: many of these DeFi amail issues that people are concerned about.
23:26
Speaker 1: Crazy stuff out there. Listen, it's been good having you on.
23:29
Speaker 1: We're going to get you back as things start to
23:31
Speaker 1: transition in toward a decision actually making making it out
23:36
Speaker 1: into the public where we can actually see what's going on.
23:39
Speaker 1: So thank you so much for stopping in. We appreciate it.
23:42
Speaker 2: Yeah, thanks, Paul, appreciate the time.
23:50
Speaker 1: If you like this video, like and subscribe, drop a
23:53
Speaker 1: comment down below, and also join our free private member group.
23:56
Speaker 2: The link is in the description