Latest / The Paul Barron Crypto Show / Stablecoin Bill Fails!🚨Retail Investors Lose... for Now🔥INTERVIEW w/ Jennifer Schulp

Transcript

Stablecoin Bill Fails!🚨Retail Investors Lose... for Now🔥INTERVIEW w/ Jennifer Schulp · The Paul Barron Crypto Show

• 0:06
  Speaker 1: A lot happening in DC, all about the stable coin bill,
• 0:08
  Speaker 1: but also some other issues that will break down today
• 0:11
  Speaker 1: for you guys. You don't want to miss it. My
• 0:12
  Speaker 1: name is Paul Barrew. Welcome back into tech Path. Let's
• 0:15
  Speaker 1: get in and started. I do want to thank our sponsor,
• 0:17
  Speaker 1: this is Coinbase. This of course is a great place
• 0:18
  Speaker 1: for you guys to start your crypto journey. And whether
• 0:21
  Speaker 1: you're investing in Bitcoin or Ethereum or another all coin,
• 0:24
  Speaker 1: digital assets in general, you can do all of that
• 0:27
  Speaker 1: over on coinbase.
• 0:28
  Speaker 2: It's very easy to set up.
• 0:30
  Speaker 1: You can get up two hundred bucks in crypto when
• 0:32
  Speaker 1: you get started just by using our link down below,
• 0:35
  Speaker 1: So do that.
• 0:36
  Speaker 2: It does help the channel. Let's break into it today.
• 0:38
  Speaker 1: I want to get into the topic of yesterday's video
• 0:41
  Speaker 1: we put out, and that was all around the stable
• 0:43
  Speaker 1: coin bill that was going to go through and Elizabeth
• 0:47
  Speaker 1: Warren at the eleventh hour came in with her minions
• 0:51
  Speaker 1: and were able to pretty much stop what was going on.
• 0:55
  Speaker 1: And even John Deaton kind of put a little bit
• 0:58
  Speaker 1: of a fun tick on our yesterday because the whole
• 1:01
  Speaker 1: point was is that they still do not understand crypto.
• 1:05
  Speaker 1: Elizabeth Warren was able to recruit enough Democrats to be
• 1:09
  Speaker 1: able to stay that bill to where they're going to
• 1:11
  Speaker 1: probably get another shot at it on Monday. Let me
• 1:14
  Speaker 1: go into a clip to kind of give you a recap.
• 1:17
  Speaker 2: Take a look.
• 1:18
  Speaker 3: Not having voted in the affirmative, the motion is not
• 1:20
  Speaker 3: agreed to.
• 1:21
  Speaker 4: This is a vote to kill the crypto industry here
• 1:24
  Speaker 4: in America, and it's a shame.
• 1:25
  Speaker 5: It frustrates me to watch people looked at me in
• 1:27
  Speaker 5: my eyes and tell me we're almost there.
• 1:30
  Speaker 2: I just need one more thing. It frustrates me to
• 1:34
  Speaker 2: watch them turn their back.
• 1:36
  Speaker 6: I don't know why you vote against proceeding to a
• 1:39
  Speaker 6: bill after you voted to refer that same bill.
• 1:42
  Speaker 2: To the floor.
• 1:43
  Speaker 7: In fact, we had a vote of eighteen to six,
• 1:45
  Speaker 7: which of course makes you wonder if this is about
• 1:48
  Speaker 7: the bill at all.
• 1:49
  Speaker 2: What changed? What changed politics?
• 1:52
  Speaker 4: The Democrats have the power to say no, and that's
• 1:56
  Speaker 4: exactly what we just did.
• 1:58
  Speaker 7: We're not shutting down. We don't want to shut this down.
• 2:01
  Speaker 7: To me, I want to be clear. Do you have
• 2:03
  Speaker 7: enough members across the aisle that I want? They want
• 2:06
  Speaker 7: to see this pass. So what I'm going to be
• 2:08
  Speaker 7: asking for is that we collapse. Today's vote and Monday's
• 2:11
  Speaker 7: vote into a single vote on Monday.
• 2:14
  Speaker 4: Quote, the world is watching while American lawmakers twiddle their thumbs.
• 2:19
  Speaker 1: One of the most important things to keep in mind
• 2:20
  Speaker 1: if you just look at bitcoin doesn't matter, right, Bitcoin
• 2:23
  Speaker 1: doesn't care.
• 2:24
  Speaker 7: We are not defeated. We are simply delayed.
• 2:28
  Speaker 2: All right.
• 2:29
  Speaker 1: So all this being pushed off to Monday, most likely
• 2:32
  Speaker 1: for a new reformatted bill for stable coins.
• 2:36
  Speaker 2: This is going to be a good conversation.
• 2:38
  Speaker 1: I want to bring in Jennifer Sholup, who is coming
• 2:40
  Speaker 1: in from the Cato Institute, who has been around this
• 2:43
  Speaker 1: topic quite a bit, and not only the stable coin
• 2:45
  Speaker 1: side of things, but also some of the derivatives that
• 2:47
  Speaker 1: will get boiled into this, primarily around a credit and investors.
• 2:52
  Speaker 2: So, Jennifer, thank you for coming on the show.
• 2:54
  Speaker 3: Thanks for having me on.
• 2:55
  Speaker 2: All right, So.
• 2:56
  Speaker 1: Jennifer, let's just break down. First of all, I want
• 2:58
  Speaker 1: to get your opinion. Do you feel like Monday is
• 3:01
  Speaker 1: going to change the course of this legislation at all?
• 3:05
  Speaker 3: So I'm not positive it's going to be Monday, but
• 3:08
  Speaker 3: I do expect this legislation to come back to the
• 3:11
  Speaker 3: floor at some point. The politics are difficult. There's been
• 3:15
  Speaker 3: a lot of focus on the Trump family's activities in
• 3:18
  Speaker 3: the crypto space, and that's made it a lot harder
• 3:21
  Speaker 3: for these bills to move in kind of a bipartisan
• 3:25
  Speaker 3: or even a political manner.
• 3:27
  Speaker 5: Right.
• 3:28
  Speaker 3: So, I think there's a lot of agreement about the substance.
• 3:30
  Speaker 3: I hope that shines through, and I think there's a
• 3:32
  Speaker 3: lot of opportunity for that agreement to still to still
• 3:35
  Speaker 3: make it make it a reality.
• 3:38
  Speaker 1: Banks will most likely go this direction. We see all
• 3:40
  Speaker 1: sorts of companies that have already started to move in
• 3:42
  Speaker 1: this direction, so it definitely is going to be intriguing.
• 3:46
  Speaker 1: I want to talk a little bit about the associated
• 3:49
  Speaker 1: component related to a credit investors. Now, you've done a
• 3:53
  Speaker 1: lot of work on this. Here's a little bit from
• 3:55
  Speaker 1: the Cato Institute right here, sophistication or discrimination. Primarily the
• 3:58
  Speaker 1: write up you had here is all about how incredited
• 4:02
  Speaker 1: investors work. And for those of you that don't understand this,
• 4:06
  Speaker 1: in my opinion, this is one of the big issues
• 4:09
  Speaker 1: that sets up the wealth gap here in the United States.
• 4:13
  Speaker 1: Maybe you could give us a quick rundown of how
• 4:16
  Speaker 1: this could possibly change here if we were to get
• 4:19
  Speaker 1: something that would be pro non accredited investor sure.
• 4:25
  Speaker 3: So the accredited investor standard, if you're not familiar with it,
• 4:29
  Speaker 3: prohibits most people from investing in most private securities offerings,
• 4:34
  Speaker 3: so the type that aren't on the NYSE or Nasdaq,
• 4:38
  Speaker 3: unless those people make a certain amount of money. The
• 4:42
  Speaker 3: thresholds are a salary of at least two hundred thousand
• 4:45
  Speaker 3: dollars a year for a single person, three hundred thousand
• 4:48
  Speaker 3: dollars a year for a household, or have a net
• 4:51
  Speaker 3: worth of over a million dollars. The numbers kind of
• 4:54
  Speaker 3: shift on that, but it's somewhere between ten and twenty
• 4:57
  Speaker 3: percent of the population now qualify to be able to
• 5:00
  Speaker 3: make those investments. But that means most Americans can't invest
• 5:05
  Speaker 3: in private investments, and private investments tend to be for
• 5:09
  Speaker 3: the smaller companies who are just starting out, where those
• 5:13
  Speaker 3: investments might be riskier, but there's a lot of more
• 5:16
  Speaker 3: upside in terms of being able to make a bigger return,
• 5:21
  Speaker 3: assuming that the risk doesn't flow the other way. In fact,
• 5:23
  Speaker 3: risk and return or two sides of the same coin.
• 5:27
  Speaker 3: So in order to be able to make those returns,
• 5:31
  Speaker 3: you've got to take on more risk, and this accredited
• 5:34
  Speaker 3: investor standard blocks people from being able to do so.
• 5:38
  Speaker 1: From van Ak, he's basically saying, Hey, one of the
• 5:41
  Speaker 1: biggest keys of FIT twenty one, which is going to
• 5:43
  Speaker 1: be kind of a companion bill, I believe that will
• 5:47
  Speaker 1: most likely get passed almost at the same time that
• 5:49
  Speaker 1: this stable coin bill gets passed. The biggest issue is
• 5:52
  Speaker 1: no accredited investor or suitability checks.
• 5:55
  Speaker 2: That would be a.
• 5:56
  Speaker 1: Huge change in the current status of how incredit investing
• 6:01
  Speaker 1: and just general investing works. Do you think that that
• 6:05
  Speaker 1: will make it through and actually get voted on to
• 6:09
  Speaker 1: where you know, any American could go out and really
• 6:12
  Speaker 1: start to expose themselves to you know, these kinds of
• 6:15
  Speaker 1: tactics as far as investing.
• 6:18
  Speaker 3: So the market structure bill that the House is put
• 6:20
  Speaker 3: out for discussion at this point is basically limited to
• 6:24
  Speaker 3: kind of the crypto space, so I'll talk about that
• 6:27
  Speaker 3: rather than kind of the broader all private market investments.
• 6:30
  Speaker 3: I do expect that any sort of final market structure
• 6:35
  Speaker 3: legislation here will allow people to generally invest in these
• 6:40
  Speaker 3: crypto commodities rather than limiting it to accredited investors. In fact,
• 6:46
  Speaker 3: that's been one of the problems right now is if
• 6:49
  Speaker 3: you want to try to create a securities law compliant
• 6:54
  Speaker 3: crypto offering. You have to comply with these private offering
• 7:00
  Speaker 3: rules most of the time limiting you to accredited investors.
• 7:04
  Speaker 3: So the crypto opportunities which are meant to be broad
• 7:08
  Speaker 3: based available to everyone. That's the whole great part about
• 7:11
  Speaker 3: crypto democratization of access and availability on the blockchain, all
• 7:18
  Speaker 3: is secure. Right now, you're probably limited to offering your
• 7:22
  Speaker 3: token to people who make over two hundred thousand dollars
• 7:24
  Speaker 3: a year. That doesn't work. It's not just against the
• 7:29
  Speaker 3: crypto ethos, but it's also against the ability of people
• 7:32
  Speaker 3: to participate in this system.
• 7:35
  Speaker 1: Yeah, I think that this is one of the biggest
• 7:37
  Speaker 1: challenges of the industry. It's been around for you know,
• 7:39
  Speaker 1: traditional investing for quite some time, but as it flows
• 7:42
  Speaker 1: over to the innovation around crypto, it gets pretty intriguing.
• 7:46
  Speaker 1: I want to go to a clip because this is
• 7:49
  Speaker 1: where some people believe this has actually damaged our economy.
• 7:52
  Speaker 2: Take a look what was the cost associated with it?
• 7:55
  Speaker 2: What did you raise and what did you spend.
• 7:57
  Speaker 4: So our reggae raised about fifteen million dollars, it costs
• 8:00
  Speaker 4: probably three million dollars to run the reggae and that's
• 8:03
  Speaker 4: why we see small teams who are trying to be
• 8:06
  Speaker 4: upstarts moving off short today, and so you would agree
• 8:08
  Speaker 4: that we have to create a new system absolutely all right.
• 8:11
  Speaker 2: So he's talking about a regulation A.
• 8:13
  Speaker 1: This is a funding round, you know, for companies that
• 8:16
  Speaker 1: are out there raising capital, lot of overhead to be
• 8:19
  Speaker 1: able just to get that done here in the United
• 8:21
  Speaker 1: States because of all of the stipulations, requirements, legal fees,
• 8:26
  Speaker 1: filing with different organizations, obviously with the SEC, and many more.
• 8:31
  Speaker 1: I mean, that would be a major boom I would
• 8:34
  Speaker 1: think for innovation, for companies to be able to start
• 8:38
  Speaker 1: up here in the United States with a much easier
• 8:41
  Speaker 1: access to private capital. Do you think that can really happen?
• 8:47
  Speaker 3: So I agree. I think it is a great path
• 8:50
  Speaker 3: opener for innovation and for private companies. Regulation A isn't
• 8:54
  Speaker 3: simply limited to accredited investors. But it's very expensive to
• 8:58
  Speaker 3: do a reggae offering, and it was designed to be
• 9:02
  Speaker 3: a cheaper alternative to a full scale IPO. Well it's
• 9:07
  Speaker 3: still very expensive and for smaller companies that are looking
• 9:11
  Speaker 3: to raise from everyone and looking to raise smaller amounts
• 9:15
  Speaker 3: of money, it's just not feasible. I do think there's
• 9:18
  Speaker 3: a path here for crypto to be able to have
• 9:22
  Speaker 3: its own exemption and to be able to be able
• 9:25
  Speaker 3: to do more broad based fundraising more cheaply. I think,
• 9:29
  Speaker 3: assuming that we get past a crypto bill, I would
• 9:34
  Speaker 3: expect that to be in a crypto market structure bill.
• 9:37
  Speaker 3: And actually that's part of a broader conversation that's happening
• 9:41
  Speaker 3: just outside of the crypto crypto fundraising as well. There's
• 9:46
  Speaker 3: been a lot of talk on Capitol Hill about how
• 9:49
  Speaker 3: do we make it easier for companies to raise money,
• 9:52
  Speaker 3: particularly small companies, And there's a lot of bipartisan support
• 9:57
  Speaker 3: for clearing those paths ways and making it easier for
• 10:01
  Speaker 3: people to innovate and listnesses. So it's not just that
• 10:06
  Speaker 3: crypto is moving on its own, it's that crypto is
• 10:09
  Speaker 3: moving as part of a bigger conversation here about making
• 10:13
  Speaker 3: it easier to help our economy grow.
• 10:17
  Speaker 1: If this ban were to get past me to where
• 10:20
  Speaker 1: you know, in everyday individuals could invest in different companies
• 10:23
  Speaker 1: like this, how much of an influxtion in terms of
• 10:27
  Speaker 1: potential pipeline opportunity is there, especially from the capital side
• 10:32
  Speaker 1: of things.
• 10:32
  Speaker 2: Would you wager to guess at what that.
• 10:36
  Speaker 1: Might look like as far as what it might do
• 10:38
  Speaker 1: to impact the industries.
• 10:40
  Speaker 3: So I don't have a good number. I'm not the
• 10:43
  Speaker 3: numbers person on these things, but I think it opens
• 10:46
  Speaker 3: up a lot of potential capital on the crypto side,
• 10:49
  Speaker 3: it opens up every day average investors to be able
• 10:53
  Speaker 3: to participate in the projects that they think are worthy,
• 10:58
  Speaker 3: and more broadly, it opens up opportunities for investors to
• 11:03
  Speaker 3: take a chance on something that they think is going
• 11:05
  Speaker 3: to be, say the next generation, something that they want
• 11:09
  Speaker 3: to see happen. Whether that ultimately translates into everyone being
• 11:14
  Speaker 3: able to get into the investment that they want to
• 11:16
  Speaker 3: I think is a different question. There's a lot of
• 11:19
  Speaker 3: other rules in the security space that sometimes make it
• 11:22
  Speaker 3: less attractive to have people putting in one hundred dollars
• 11:25
  Speaker 3: as opposed to one hundred thousand dollars. So there's a
• 11:29
  Speaker 3: lot of moving pieces here. But I think undoubtedly if
• 11:32
  Speaker 3: we made the opportunities available, people would move towards taking
• 11:38
  Speaker 3: advantage of them, and I think that that has positive
• 11:41
  Speaker 3: impacts on innovation and entrepreneurship.
• 11:45
  Speaker 1: Well, there's a couple of things that are brewing right now.
• 11:48
  Speaker 1: I want to go to a clip and then I
• 11:50
  Speaker 1: want to get your opinion on this because this is
• 11:52
  Speaker 1: this could be maybe a new format that's going to
• 11:55
  Speaker 1: be laid out for making this available to everyday people investors.
• 12:00
  Speaker 1: And if you look at the demographics that are really
• 12:04
  Speaker 1: entering the investing category right now, a lot of that
• 12:07
  Speaker 1: is millennials and eventually we'll see gen z in here
• 12:09
  Speaker 1: as well.
• 12:10
  Speaker 2: They are much more.
• 12:11
  Speaker 1: Tuned into crypto digital assets versus traditional markets. I want
• 12:16
  Speaker 1: to go to the CEO of Robinhood. He talks about
• 12:19
  Speaker 1: this very issue, take a look.
• 12:21
  Speaker 5: And you also have things like mean Coins. That's sort
• 12:24
  Speaker 5: of like my dark horse contender of what could disrupt
• 12:28
  Speaker 5: the traditional IPO. Once a system gets to a certain
• 12:32
  Speaker 5: level of cruft, it's hard to kind of like reform
• 12:35
  Speaker 5: it from the inside. It's small at first, it's niche,
• 12:39
  Speaker 5: but then more and more people start using it, it
• 12:41
  Speaker 5: becomes useful. You can imagine a multi tiered system of
• 12:46
  Speaker 5: listings based on the level of disclosure. You're a startup
• 12:51
  Speaker 5: and you don't want to make any disclosure, well maybe
• 12:54
  Speaker 5: we put like a red skull and crossbones when we're
• 12:58
  Speaker 5: sort of like presenting that that asset to customers. If
• 13:02
  Speaker 5: you can make raising capital for a new venture as
• 13:05
  Speaker 5: easy as you know, launching a mean cooin. He just
• 13:07
  Speaker 5: press a button, maybe upload some information, create some create
• 13:11
  Speaker 5: some information about your company, and suddenly you get access
• 13:14
  Speaker 5: to this global market that would have been useful for
• 13:16
  Speaker 5: me starting out.
• 13:18
  Speaker 1: So h you look at Robinhood, who's kind of reformatted
• 13:22
  Speaker 1: finance in general. If you just look about stock trading
• 13:24
  Speaker 1: now with crypto, they're now becoming or attempting to become
• 13:28
  Speaker 1: a bank, They're already already doing credit card services. This
• 13:31
  Speaker 1: could be a major leap in the direction if we
• 13:34
  Speaker 1: do get an accredited investor ban, you know this issue
• 13:37
  Speaker 1: banning the requirements. Do you think that would open up
• 13:41
  Speaker 1: what Vlad is talking about there where maybe a Robin
• 13:44
  Speaker 1: Hood could literally create almost instantaneous IPOs for a lot
• 13:50
  Speaker 1: of these kind of companies.
• 13:51
  Speaker 3: I has a really optimistic vision and it's one that
• 13:54
  Speaker 3: I'd like to see us move towards where we Right now,
• 13:58
  Speaker 3: what we have in terms of capital raising is a
• 14:00
  Speaker 3: very fragmented system. It's overlapping, it's complex. If you want
• 14:05
  Speaker 3: to invest in certain types of investments, you need to
• 14:07
  Speaker 3: know the right place to look for them, you need
• 14:10
  Speaker 3: to know how to get there. Back in twenty twelve,
• 14:14
  Speaker 3: when they passed the Jobs Act and created equity crowdfunding.
• 14:17
  Speaker 3: The idea was that you could go and create kind
• 14:20
  Speaker 3: of that skull and crossbones level that lat is talking about.
• 14:24
  Speaker 3: There the smallest companies providing the most minimal disclosure. But
• 14:28
  Speaker 3: you can't get those on a standard exchange. You have
• 14:32
  Speaker 3: to go to a specific place to find them. And
• 14:35
  Speaker 3: if we were able to have a more kind of
• 14:38
  Speaker 3: unified system where I would say tiered fundraising is tiered
• 14:44
  Speaker 3: disclosure is one way to think about it. But being
• 14:47
  Speaker 3: able to ease the path of investors to finding those
• 14:52
  Speaker 3: opportunities and ease the path of entrepreneurs to be able
• 14:55
  Speaker 3: to raise the money, being able to do a stock
• 14:59
  Speaker 3: offering is quickly. A meme coin is a wonderful thing.
• 15:02
  Speaker 3: Say it doesn't involve tens of thousands of dollars of
• 15:04
  Speaker 3: lawyers at a minimum and weeks or possibly more of
• 15:09
  Speaker 3: SEC review. That itself adds a lot to the ability
• 15:15
  Speaker 3: of people to innovate and to build businesses.
• 15:18
  Speaker 1: Well, I mean, in reality, launching a meme coin now
• 15:21
  Speaker 1: that the SEC has deemed it not a security almost
• 15:25
  Speaker 1: gives companies the ability to do things like that, at
• 15:29
  Speaker 1: least from a I guess if you want to call
• 15:30
  Speaker 1: it a capital raise or a membership fee or whatever
• 15:34
  Speaker 1: you make. But the key is is there's no promise.
• 15:36
  Speaker 1: You know, there's no promise that there is a return
• 15:39
  Speaker 1: on capital. So that's going to be interesting to see
• 15:42
  Speaker 1: how this could play out, because if it does get legitimized,
• 15:44
  Speaker 1: I mean you look at you know, projects like angel
• 15:47
  Speaker 1: list and the syndicates that have been built around this
• 15:50
  Speaker 1: in the past, for those kinds of the hybrid approach
• 15:53
  Speaker 1: toward being able to invest. How much of an impact
• 15:55
  Speaker 1: do you think this will have on the VC world?
• 15:58
  Speaker 1: Is it would it be if everybody could become an
• 16:00
  Speaker 1: investor today, if that build or that particular rule didn't exist,
• 16:05
  Speaker 1: Would this impact the VC world?
• 16:08
  Speaker 3: I think it changes the VC world. I'm not sure
• 16:10
  Speaker 3: that we lose the VC world because, as I said before,
• 16:14
  Speaker 3: there's there's a time and a place for investments of
• 16:19
  Speaker 3: one hundred thousand dollars or a million dollars. That's different
• 16:23
  Speaker 3: from the time and the place for your startup first
• 16:26
  Speaker 3: thousand dollars or your first twenty five thousand dollars. So
• 16:30
  Speaker 3: there remains place in the ecosystem for a lot of
• 16:33
  Speaker 3: different types of investors. I would say in vcs. Also,
• 16:38
  Speaker 3: vcs and angels also bring to the table other things
• 16:41
  Speaker 3: that are not just money a lot of times, yeah,
• 16:43
  Speaker 3: for entrepreneurs, advice and other things. I think it changes.
• 16:46
  Speaker 3: It just changed the format though, and it changes the
• 16:48
  Speaker 3: way the world works. And it also changes some of
• 16:52
  Speaker 3: the problems that we have in the VC space where
• 16:55
  Speaker 3: vcs can get caught in a rut. They fund projects
• 16:59
  Speaker 3: that they're familiar with, the fund projects that come from
• 17:01
  Speaker 3: people that they're familiar with.
• 17:03
  Speaker 2: Yeah, you don't get the new everyone.
• 17:05
  Speaker 3: Yeah, if everyone's got more opportunity, I think there's a
• 17:08
  Speaker 3: chance for capital little to flow more freely between lots
• 17:12
  Speaker 3: of different projects and lots of different people from around
• 17:15
  Speaker 3: the country, not just Silicon Valley.
• 17:19
  Speaker 2: Yeah.
• 17:19
  Speaker 1: I can imagine where you would have smarter investors that
• 17:23
  Speaker 1: could start to form you know, their own in way
• 17:26
  Speaker 1: I guess the syndicate with research and tools like that,
• 17:30
  Speaker 1: especially with AI, now to where you can really start
• 17:33
  Speaker 1: to do a lot of due diligence on companies.
• 17:35
  Speaker 2: Essentially that's what a DVC.
• 17:36
  Speaker 1: Does before they invest and then actually outperform a VC.
• 17:41
  Speaker 2: Could you imagine that would be that would be the
• 17:44
  Speaker 2: ultimate I.
• 17:45
  Speaker 3: Want to monologies technology is going to make a big
• 17:48
  Speaker 3: change here too, not just in research, but in connecting
• 17:53
  Speaker 3: people who might not have otherwise been connected, being able
• 17:57
  Speaker 3: to reach investors.
• 18:00
  Speaker 2: Point.
• 18:01
  Speaker 3: It's a new world that's been changing slowly, but I
• 18:04
  Speaker 3: think it's going to start changing a little bit more
• 18:06
  Speaker 3: quickly now the technology is sped up.
• 18:08
  Speaker 2: Yeah.
• 18:08
  Speaker 1: I love that crypto is kind of leading away, or
• 18:11
  Speaker 1: at least knocking on the door of where innovation could
• 18:13
  Speaker 1: shift across a lot of different financial sectors.
• 18:16
  Speaker 2: I want to go to this last clip.
• 18:17
  Speaker 1: This is Michael Sailor talking about how many IPOs could
• 18:21
  Speaker 1: be coming if all of this were to open up.
• 18:24
  Speaker 2: Take a look.
• 18:25
  Speaker 6: Trump Coin may be valuable because Trump's a celebrity. Katie
• 18:29
  Speaker 6: Perry token could be valuable. Tom Brady coin could be valuable.
• 18:32
  Speaker 6: On the other hand, some of them won't be valuable.
• 18:36
  Speaker 6: There's four hundred million companies in the world. I can
• 18:40
  Speaker 6: imagine every company issuing their own digital token. You're a
• 18:44
  Speaker 6: country called member, I tokenize it, you can trade it.
• 18:47
  Speaker 6: Tokenized country called membership would be more valuable than non tradable,
• 18:52
  Speaker 6: non fungible.
• 18:54
  Speaker 1: So what Sailor is getting at is really almost like
• 18:57
  Speaker 1: an entire new ecosystem of how funding could occur, whether
• 19:02
  Speaker 1: it is a stacked digital token that's related to a
• 19:06
  Speaker 1: more eased IPO process, or maybe even something more relaxed,
• 19:11
  Speaker 1: like I mean, even if you go down all the
• 19:12
  Speaker 1: way into private investing, like a regulation d where you
• 19:16
  Speaker 1: can raise like a million dollars, you know, with the
• 19:20
  Speaker 1: sec still but it's it does open up a lot
• 19:24
  Speaker 1: of opportunity here. When you see what Sailor is talking about,
• 19:28
  Speaker 1: do you think that's feasible for companies to just start
• 19:31
  Speaker 1: raising capital based on a token injection.
• 19:34
  Speaker 3: I think it depends on the company, and I think
• 19:35
  Speaker 3: it depends on where our securities laws end up on
• 19:38
  Speaker 3: this front, because I would say what Sailor's talking about
• 19:42
  Speaker 3: too is a lot of tokenization that may or may
• 19:44
  Speaker 3: not be a capital raise. Right the country club membership
• 19:49
  Speaker 3: might be a different type of tokenization. Trump coin might
• 19:53
  Speaker 3: be a different type of tokenization depending on what it
• 19:55
  Speaker 3: is they're going to do with that money. So it
• 19:58
  Speaker 3: really depends on how well we create a regulatory system
• 20:04
  Speaker 3: that functions in this space, unlike the one right now
• 20:08
  Speaker 3: that does not function very well, as to whether or
• 20:12
  Speaker 3: not tokenization is going to become a better way to
• 20:17
  Speaker 3: do capital raises. I don't think it is today. But
• 20:21
  Speaker 3: part of that reason is that the securities laws are
• 20:24
  Speaker 3: not modernized to take into account and to permit this
• 20:28
  Speaker 3: to happen. There's plenty of space for that change to happen,
• 20:32
  Speaker 3: and we're seeing some good progress on Capitol Hill and
• 20:35
  Speaker 3: within the sec itself towards say, recognizing the benefits here
• 20:41
  Speaker 3: that could come.
• 20:42
  Speaker 1: Well, I know the cryptosomach coming up. You're going to
• 20:44
  Speaker 1: have Blackrock in there obviously talking about token is securities.
• 20:47
  Speaker 1: You're going to have Robinhood in there trying to figure
• 20:49
  Speaker 1: out how to create this next generation of investors and
• 20:53
  Speaker 1: getting them into a quicker ramp up to have access
• 20:57
  Speaker 1: to assets outside of traditional stocks, along with a handful
• 21:00
  Speaker 1: of other Wall Street types. So the likelihood is that
• 21:03
  Speaker 1: finally we're going to see a lot more integration coming
• 21:07
  Speaker 1: down the pipe here. I key Again, it just gets
• 21:10
  Speaker 1: back to the framework. If we can get the legal
• 21:12
  Speaker 1: framework from DC aligned, innovation could really just start bubbling
• 21:18
  Speaker 1: up from anywhere within the Wall Street ecosystem. So a
• 21:22
  Speaker 1: definite lot of opportunities here for sure. Hey, it's been
• 21:25
  Speaker 1: great having you on the show. Thank you so much,
• 21:27
  Speaker 1: Jennifer for coming in. We appreciate it, and we'll definitely
• 21:30
  Speaker 1: have you back as things get going here on these bills.
• 21:34
  Speaker 3: Yeah, this has been great, always happy to talk.
• 21:37
  Speaker 2: Excellent, Thank you so much.
• 21:38
  Speaker 1: All right, guys, if you're not in the Diamond Circle,
• 21:40
  Speaker 1: make sure and jump in on that. This is a
• 21:42
  Speaker 1: great place to get additional content from us. It's our
• 21:45
  Speaker 1: own private email group and you can join for free.
• 21:48
  Speaker 2: It's very simple.
• 21:49
  Speaker 1: We always leave a link down below, and if you're
• 21:51
  Speaker 1: also wanting to communicate with me directly, I'm actually in
• 21:54
  Speaker 1: the Telegram group and I chat in there with users
• 21:57
  Speaker 1: all the.
• 21:57
  Speaker 2: Time, feel free to jump in on that. We leave
• 21:59
  Speaker 2: a link.
• 21:59
  Speaker 1: We all only have one of those groups, so watch
• 22:01
  Speaker 1: out for the fake ones that are out there, and
• 22:04
  Speaker 1: of course follow me on x at Paul Baron. We'll
• 22:07
  Speaker 1: catch you next time right here on tech Path.