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SEC Officially Revamps Crypto Stance!✅ Market Update · The Paul Barron Crypto Show

• 0:07
  Speaker 1: Let's get into a reorg, get the sec going on
• 0:10
  Speaker 1: right now, and of course we're going to recap a
• 0:12
  Speaker 1: little by what David Sach said yesterday in the press conference.
• 0:14
  Speaker 1: My name is Paul Barren. Welcome back in the tech path.
• 0:17
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• 0:19
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• 0:48
  Speaker 1: Let's go over to a couple of things here. I
• 0:49
  Speaker 1: want to start with, of course, actually breaking news right here.
• 0:52
  Speaker 1: The FDIC is planning to revise their crypto guidelines and
• 0:56
  Speaker 1: allowing banks to engage in cryptoactive. So this is pretty
• 1:01
  Speaker 1: big news for especially coming out of the FDIC, because
• 1:03
  Speaker 1: could we see something that plays into FDIC insurance around crypto.
• 1:09
  Speaker 1: This will get very intriguing as banks now are starting
• 1:12
  Speaker 1: to step into the space. Now, I know a lot
• 1:14
  Speaker 1: of people will say, Paul, we don't want banks in
• 1:16
  Speaker 1: the space. That's why we got in crypto for the
• 1:17
  Speaker 1: first time. Point is is there a lot of people
• 1:19
  Speaker 1: out there that are not ready to take the deep
• 1:22
  Speaker 1: in dive that we all do on a daily basis.
• 1:25
  Speaker 1: So this could still be good for the markets. Let's
• 1:28
  Speaker 1: get into a couple of things. There was a lot
• 1:29
  Speaker 1: of criticism on the press conference yesterday. I would say
• 1:34
  Speaker 1: I was a little bit critical as well, But after
• 1:38
  Speaker 1: I watched it like three times last night and I
• 1:40
  Speaker 1: was trying to pick out the things that Sachs was
• 1:43
  Speaker 1: trying to say. He was the key component here within this,
• 1:47
  Speaker 1: and of course, you know here's Brad garling House hitting
• 1:50
  Speaker 1: on all of it. But the point that they were
• 1:52
  Speaker 1: trying to do was having the Chair of the Senate Banking,
• 1:54
  Speaker 1: the Chair of the House Financial Services, the Chair of
• 1:57
  Speaker 1: the Senate AG and the Chair of the House AG
• 1:59
  Speaker 1: all join David Zachs. That shows the bipartisan approach that
• 2:04
  Speaker 1: this administration is trying to do. That in itself is
• 2:07
  Speaker 1: a pretty big deal of making that conference. I think
• 2:10
  Speaker 1: one that everybody was really kind of on the edge
• 2:13
  Speaker 1: of their seat for of course, the market kind of
• 2:16
  Speaker 1: crapped out a little bit afterwards. But I think people
• 2:19
  Speaker 1: miss something and this is a good statement right here.
• 2:21
  Speaker 1: Jeff Park hit on this. It's surprising how many people
• 2:23
  Speaker 1: overlook the most important thing David Sachs said yesterday, and
• 2:26
  Speaker 1: it was stable coin demand could lower long term interest rates. Now,
• 2:31
  Speaker 1: there are some things here that when I dove into
• 2:33
  Speaker 1: this and started doing a write up. I actually just
• 2:36
  Speaker 1: posted this over on our sub stack this morning, and
• 2:39
  Speaker 1: there's a few a few key things here. One is
• 2:42
  Speaker 1: the economic dilemma that we're faced, which is around two
• 2:45
  Speaker 1: trillion a year right now in terms of our deficit.
• 2:48
  Speaker 1: And at the same time, other global currencies are still
• 2:51
  Speaker 1: looked at as lass stable, so the potential for the
• 2:54
  Speaker 1: dollar to still be a worldwide reserve asset is still there.
• 2:59
  Speaker 1: It's not as though it's going away. But there's a
• 3:01
  Speaker 1: couple of points within this. If you guys want to
• 3:02
  Speaker 1: read my full article, go over to PB network on substack.
• 3:06
  Speaker 1: You'll get it. But there's a couple of scenarios that
• 3:08
  Speaker 1: could play out here. One is the US would encourage
• 3:11
  Speaker 1: US stable coin expansion. That's going to be companies like
• 3:13
  Speaker 1: Circle and I anticipate others. Global adoption of these stable
• 3:16
  Speaker 1: coins will increase rapidly. That's coming. Sachs mentioned that yesterday
• 3:21
  Speaker 1: supply will inflate and then digital assets absorbs the less
• 3:25
  Speaker 1: the liquidity. So this is going to be where we'll
• 3:27
  Speaker 1: see US treasury yields starting to decrease and then boom,
• 3:30
  Speaker 1: you've got usd the dollar maintaining its global you know,
• 3:35
  Speaker 1: dominance worldwide. So this is very I think calculated move
• 3:39
  Speaker 1: by the Trump administration to possibly use stable coins as
• 3:43
  Speaker 1: maybe a pseudo CBDC, not controlled by the central banks,
• 3:47
  Speaker 1: but controlled by organizations around the world. This is going
• 3:50
  Speaker 1: to get most likely banks are going to get more
• 3:52
  Speaker 1: involved in this, so watch out for things like JP
• 3:55
  Speaker 1: Morgan and others. So I want to go to this clip,
• 3:57
  Speaker 1: which is David Sachs immediately after that pressence.
• 4:00
  Speaker 2: Look what I had to say, those chairmen I think
• 4:02
  Speaker 2: are very committed. President Trump is committed, and I think
• 4:05
  Speaker 2: we can do something here. But as you know, moving
• 4:09
  Speaker 2: legislation through Congress takes time. But I think this is
• 4:11
  Speaker 2: something we could do in the next six months.
• 4:13
  Speaker 3: The feasibility of a bitcoin reserve, you said, that's being studied.
• 4:17
  Speaker 3: It's one of the first things that's on the table here.
• 4:21
  Speaker 3: What goes into that process. Is that something that would
• 4:24
  Speaker 3: be standalone or is that something that could potentially be
• 4:26
  Speaker 3: tucked into, say a sovereign wealth fund, which has been
• 4:29
  Speaker 3: the speculation today on the heels of that executive order.
• 4:33
  Speaker 2: I guess as possible that the Sovereign Wealth Fund could
• 4:36
  Speaker 2: decide that they want to make bitcoin or digital assets
• 4:38
  Speaker 2: part of its portfolio. You're going to have to ask
• 4:40
  Speaker 2: the incoming commerce sectory of Howard Lutnik about that. The
• 4:46
  Speaker 2: item that President Trump asked our working group on Digital
• 4:48
  Speaker 2: Assets to study is whether it's feasible to create either
• 4:52
  Speaker 2: a bitcoin reserve or some sort of digital asset stockpile.
• 4:56
  Speaker 2: And so we're going to be looking at that question.
• 4:58
  Speaker 2: We haven't committed yet to doing it, but it's one
• 5:00
  Speaker 2: of the first things we're gonna be looking at all.
• 5:02
  Speaker 1: Right, So a couple of things that he said there
• 5:04
  Speaker 1: six months I think was the one thing. Time frame
• 5:06
  Speaker 1: here is really ramped up quickly, and I think we're
• 5:09
  Speaker 1: going to see some pretty big moves very quickly. This
• 5:11
  Speaker 1: is going to be a very active year for crypto
• 5:14
  Speaker 1: in general. So buckle up, it's going to be hot.
• 5:16
  Speaker 1: Let's go into a couple other statements out there. Here,
• 5:18
  Speaker 1: of course, is Imman coming in from Avalanche, and he's
• 5:22
  Speaker 1: basically saying clarity isn't just a policy, it's a competitive
• 5:25
  Speaker 1: advantage for the US, and David Sachs knows that. But
• 5:29
  Speaker 1: the future is on chain and it won't be a
• 5:31
  Speaker 1: single chain. I agree with that as well. And I
• 5:34
  Speaker 1: think Sachs is also leaning in on digital assets as
• 5:37
  Speaker 1: a whole. Even though he's mentioning these very cautious about
• 5:41
  Speaker 1: he presents that not saying just bitcoin, but digital assets often,
• 5:45
  Speaker 1: so I think that is going to be the case.
• 5:46
  Speaker 1: With all that being said, Hester Pierce came in and
• 5:48
  Speaker 1: set up a new blog post right here the journey begins.
• 5:51
  Speaker 1: So this is basically kind of getting going around the
• 5:54
  Speaker 1: new scenario that's playing out within the SEC. A couple
• 5:57
  Speaker 1: of items that are difficult to read, but I'm going
• 5:59
  Speaker 1: to try to highlight them here. Please be patient. You
• 6:03
  Speaker 1: know this is getting going. The task Force in a
• 6:04
  Speaker 1: good place, but they're trying to do something you know
• 6:06
  Speaker 1: that's you know, obviously legal for it. She also went
• 6:09
  Speaker 1: on further in the article to say a few other
• 6:12
  Speaker 1: things that I think are very important. If people want
• 6:14
  Speaker 1: to buy a token or a product that lacks clear
• 6:16
  Speaker 1: or long term value proposition, people do it all the time.
• 6:19
  Speaker 1: They should feel free, but not should but should not
• 6:22
  Speaker 1: be surprised if some data price shops. Now, I think
• 6:24
  Speaker 1: a lot of people are grown up in the investing
• 6:26
  Speaker 1: community and may understand that. Hopefully most people are getting
• 6:30
  Speaker 1: a lot more education now that this is finally coming
• 6:33
  Speaker 1: out to reality, and a lot more people are being involved,
• 6:36
  Speaker 1: including companies like a lot of the banks that will
• 6:38
  Speaker 1: most likely get in here. But they're going to say
• 6:40
  Speaker 1: don't look to Mama government to tell them what to
• 6:42
  Speaker 1: do or not to do, nor to bail them out
• 6:45
  Speaker 1: when they do something that turns out badly. So that's
• 6:47
  Speaker 1: basically second setting up the SEC to say, hey, listen,
• 6:50
  Speaker 1: we're not going to bail you out. The FDIC is
• 6:52
  Speaker 1: not coming and running in here with you know, a
• 6:55
  Speaker 1: bailout or in some case a bail in. So this
• 6:58
  Speaker 1: is going to be maybe a very new framework going
• 7:02
  Speaker 1: all of this. Let's go into a couple of other
• 7:05
  Speaker 1: things I want to get in And the SEC also
• 7:07
  Speaker 1: reduced their crypto enforcement efforts. This is going to be
• 7:10
  Speaker 1: reassigning over fifty lawyers that we're working on cryptocurrency cases.
• 7:15
  Speaker 1: So the likelihood is a lot of this stuff, as
• 7:17
  Speaker 1: I said, would get dropped very quickly coming out of
• 7:21
  Speaker 1: the SEC. And I think finally we're in play over
• 7:24
  Speaker 1: at the SEC. Other points Right here, they launched their
• 7:27
  Speaker 1: Crypto Task Force on the website, and the cool thing
• 7:31
  Speaker 1: is is you're going to be able to communicate directly
• 7:33
  Speaker 1: with Hester Pierce, specifically around what you're doing as maybe
• 7:38
  Speaker 1: a blockchain developer or a company. This is opening up
• 7:41
  Speaker 1: a complete new era for the SEC. I want to
• 7:44
  Speaker 1: go to a couple of clips here. This one is
• 7:47
  Speaker 1: of Hester Pierce talking about that they're not going to
• 7:50
  Speaker 1: lead by enforcement. Take a look, and.
• 7:53
  Speaker 4: So the best I can do is to tell people
• 7:55
  Speaker 4: that we really do want to have this conversation. We
• 7:58
  Speaker 4: are not taking an enforcement first approach. We're taking an
• 8:03
  Speaker 4: approach that is trying to get to regulatory clarity, to
• 8:07
  Speaker 4: again regulations that achieve our objectives and also allow people
• 8:12
  Speaker 4: to try new things. So I think when people start
• 8:16
  Speaker 4: to see that there's that that is a reality, and
• 8:19
  Speaker 4: they see projects coming through the other side of the
• 8:22
  Speaker 4: door with the ability to move forward. That will encourage
• 8:27
  Speaker 4: other people to come in.
• 8:29
  Speaker 1: Yeah, this will be a big, big statement, and I
• 8:32
  Speaker 1: think Pairs of course leading the Crypto Task Force, mark
• 8:35
  Speaker 1: you Ada coming in as the interim. There's a lot
• 8:37
  Speaker 1: of opportunity here. I think that is very positive. She
• 8:41
  Speaker 1: also went on to talk about the Howie test, and
• 8:43
  Speaker 1: this is what she had to say.
• 8:45
  Speaker 4: But I think we have we have not thought very
• 8:49
  Speaker 4: with a lot of legal precision, and so what I
• 8:51
  Speaker 4: want us to do is go back to the drawing
• 8:53
  Speaker 4: board and try to think more carefully about when an
• 8:58
  Speaker 4: asset it's self might be a security, which is possible,
• 9:02
  Speaker 4: and then when the broader question of when something might
• 9:07
  Speaker 4: be sold in connection in a securities transaction, and so
• 9:12
  Speaker 4: in that instance the Howie test might still come into play.
• 9:15
  Speaker 4: But we want to make it clear so that people
• 9:17
  Speaker 4: know one way or the other whether they're in or out,
• 9:20
  Speaker 4: and what the implications are for secondary transactions, which is
• 9:24
  Speaker 4: again something that is complicated if you're talking about an
• 9:29
  Speaker 4: investment contract under Howie.
• 9:31
  Speaker 1: Yeah, that's the thing that I think everybody understands. The
• 9:33
  Speaker 1: secondary markets have really been the one the things that
• 9:36
  Speaker 1: have muddied the waters which is really the need to
• 9:39
  Speaker 1: readdress and what she's saying and readdress howie as a
• 9:43
  Speaker 1: test for a security. With all of that happening, you
• 9:46
  Speaker 1: also add Giancarla coming in. This is the former chair
• 9:49
  Speaker 1: of the CFTC. He talks about FIT twenty one and
• 9:52
  Speaker 1: whether or not this could happen quickly. Take a look.
• 9:55
  Speaker 5: You had the House Financial Services Committee and the House
• 9:59
  Speaker 5: agg Canmmittee, along with other committees, introducing that legislation at
• 10:04
  Speaker 5: the same time, demonstrating that they saw a comprehensive approach
• 10:09
  Speaker 5: to the regulation of digital assets. Some might be digital security,
• 10:13
  Speaker 5: some might be digital commodities, and the need to work together.
• 10:16
  Speaker 5: Now FIT twenty one has got Senate sponsors and as
• 10:20
  Speaker 5: it was proposed yesterday, the notion that there would be
• 10:24
  Speaker 5: a priority list that would work bicamerally between the Senate
• 10:30
  Speaker 5: and the House to get FIT twenty one done. This
• 10:33
  Speaker 5: is really the way Congress should work in a very
• 10:36
  Speaker 5: comprehensive fashion.
• 10:38
  Speaker 1: Man, there is so much stuff happening that is good
• 10:40
  Speaker 1: for crypto. If you're brand new to this space, I
• 10:44
  Speaker 1: don't think you guys realize the trials that this space
• 10:49
  Speaker 1: has gone through. So if you've stuck around Finally, I
• 10:52
  Speaker 1: think you're going to have your day. And this is
• 10:54
  Speaker 1: kind of the icing on the keg that I think
• 10:56
  Speaker 1: proves it, and that is that the sec rus the
• 11:00
  Speaker 1: head of litigation. This is the head guy that was
• 11:03
  Speaker 1: going out after crypto companies, and this is Jorge and
• 11:07
  Speaker 1: there he's now going over to the IT department. This
• 11:10
  Speaker 1: is coming from the Wall Street Journal, so I'm assuming
• 11:12
  Speaker 1: that's a good source. But the point is there is
• 11:15
  Speaker 1: a new sheriff in town. We are seeing a evolution
• 11:19
  Speaker 1: change right before us in the financial architecture of the
• 11:22
  Speaker 1: United States. It's all being driven around blockchain, and I
• 11:25
  Speaker 1: think the digital asset field is going to be at
• 11:28
  Speaker 1: the front of everything. Now everybody's asking, well, why not
• 11:31
  Speaker 1: all coin season? Has it ended? Is it over? Everybody's
• 11:35
  Speaker 1: looked at I mean, if you look at the all
• 11:36
  Speaker 1: coins and the retracement that we've seen over the last
• 11:40
  Speaker 1: really four or five months, most of these are down
• 11:43
  Speaker 1: sixty eighty ninety percent. And if you look at the
• 11:46
  Speaker 1: dominance of bitcoin, because it could still continue to climb
• 11:50
  Speaker 1: for a little bit before we start to see this adjustment,
• 11:53
  Speaker 1: but the market cap spike to a near four year
• 11:55
  Speaker 1: high this week. All coins took another major loss. Other things,
• 11:59
  Speaker 1: Bitcoin price held up a little bit better in face
• 12:02
  Speaker 1: of a lot of uncertainty with all these tariffs and
• 12:05
  Speaker 1: the flux that the Trump administration is also inflicting on
• 12:09
  Speaker 1: the market. But at the same time, I think the
• 12:12
  Speaker 1: key here is very early, and I think the fact
• 12:15
  Speaker 1: that we're seeing not a complete market maildown across any
• 12:18
  Speaker 1: of these we are going to see a next generation
• 12:22
  Speaker 1: of where a lot of this kind of that golden
• 12:24
  Speaker 1: age that Trump talks about quite a bit. Now, with
• 12:27
  Speaker 1: all that happening, you do have to have the Senate
• 12:31
  Speaker 1: Banking Committee coming in to really kind of get a
• 12:33
  Speaker 1: framework around how deep banking is going to work, because
• 12:35
  Speaker 1: this has a bit of a problem choke point two point zero.
• 12:37
  Speaker 1: This has been a problem, and I think the administration
• 12:39
  Speaker 1: is getting their hands around it. We're going to do
• 12:41
  Speaker 1: a full video on this for you guys, so make
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