Latest / The Paul Barron Crypto Show / Stablecoin Yields BANNED Before CLARITY Act!!?🚫Crypto Betrayal🔥

Transcript

Stablecoin Yields BANNED Before CLARITY Act!!?🚫Crypto Betrayal🔥 · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Clarity news is here, and today we're going to be
• 0:02
  Speaker 1: breaking it down for you because we may have a
• 0:04
  Speaker 1: rug pull in play. Could it be good news, could
• 0:06
  Speaker 1: it be bad news. We'll give you the insight on
• 0:09
  Speaker 1: all of this. Before we get started, I do want
• 0:10
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• 0:13
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• 0:27
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• 0:29
  Speaker 1: KYC right now, so take advantage of that. I'll explain
• 0:33
  Speaker 1: that here in a second, because it's going to get
• 0:35
  Speaker 1: interesting as we start to seeing things going forward. Senate Democrats,
• 0:38
  Speaker 1: of course, our meeting on the crypto market structure build
• 0:40
  Speaker 1: to discuss today at two point thirty. This is ahead
• 0:44
  Speaker 1: of the White House stablecoin deadline of March first. And
• 0:47
  Speaker 1: let's just make a reality known. The White House has
• 0:51
  Speaker 1: already pretty much put this out there that this is
• 0:53
  Speaker 1: going through. And if you look at the clarity opportunity
• 0:57
  Speaker 1: within polymarket right there, it goes from what was around
• 1:00
  Speaker 1: forty five percent or so, skyrocketing above to sixty five
• 1:05
  Speaker 1: and now here we're holding at seventy percent in terms
• 1:08
  Speaker 1: of Clarity going through. And there's one reason, guys, and
• 1:12
  Speaker 1: one reason only. That is that the White House has
• 1:16
  Speaker 1: sided with the banks to ban stable coins. It's that simple,
• 1:20
  Speaker 1: banned stable coins in terms of yield. And this is
• 1:22
  Speaker 1: the issue that we are facing right now with all
• 1:26
  Speaker 1: this happening. You've got coinbase getting a little bit of
• 1:29
  Speaker 1: selling pressure easing, and of course this is a lot
• 1:31
  Speaker 1: of people looking at do you buy the dip and
• 1:34
  Speaker 1: where we are right now and have been seeing, and
• 1:36
  Speaker 1: of course the recovery opportunity that could happen once Clarity
• 1:39
  Speaker 1: goes through. And let's take a look at something because
• 1:42
  Speaker 1: this is the issue that pretty much denounced it all,
• 1:45
  Speaker 1: and that is that Jonathan Gold, who is coming in
• 1:47
  Speaker 1: from the OCC, says the goal is the system where
• 1:49
  Speaker 1: stable coins can flourish in a safe and sound manner.
• 1:53
  Speaker 1: This essentially is being dictated to buy the OCC in
• 1:58
  Speaker 1: terms of the fact that yields will no longer be available.
• 2:01
  Speaker 1: This is why we will see Clarity go through. And
• 2:04
  Speaker 1: here it is right from the Comptroller himself. I'm proud
• 2:07
  Speaker 1: to give you guys works of months that the OCC
• 2:09
  Speaker 1: team has done to develop this proposal and rule looking
• 2:13
  Speaker 1: forward to continuing to embrace the innovation. And this is
• 2:17
  Speaker 1: implementing the Genius Act issuance for stable coins, which a
• 2:20
  Speaker 1: source of course takes genius and puts it into play,
• 2:24
  Speaker 1: which has been already been approved. But the key here
• 2:27
  Speaker 1: is now it starts to go into effect to all
• 2:29
  Speaker 1: of these different banks, etc. And this is the other
• 2:32
  Speaker 1: factor that you got to look at right here here
• 2:34
  Speaker 1: was Cody car Bone, which I was surprised Cody jumped
• 2:36
  Speaker 1: in on this one, but here he is. We appreciate
• 2:39
  Speaker 1: the USOCCC has softly engaged with our members throughout this process.
• 2:43
  Speaker 1: We look forward to submitting comments and continuing servers resource
• 2:47
  Speaker 1: around all of this. And remember the issue here is
• 2:50
  Speaker 1: that the OCC has simply said there will be no
• 2:53
  Speaker 1: stable coin yields. This is now banned. The obvious situation
• 2:58
  Speaker 1: is it puts a lot of pressure on the markets.
• 3:01
  Speaker 1: And I think in general this could be a good
• 3:03
  Speaker 1: thing and a bad thing at the same time, depending
• 3:05
  Speaker 1: on where you fall. But it could be good because
• 3:07
  Speaker 1: it's going to get of course, clarity through, but it
• 3:10
  Speaker 1: does start to put a lot of pressure on what
• 3:14
  Speaker 1: will be the winners. And I think this is interesting
• 3:16
  Speaker 1: right here. Stable cooin interest gone winners are bank deposits
• 3:20
  Speaker 1: are obviously going to be the big winners here. But
• 3:22
  Speaker 1: then you're also looking with Visa and MasterCard, particularly Visa direct,
• 3:28
  Speaker 1: which is what I think will be intriguing to watch
• 3:31
  Speaker 1: because nobody's going to want to hold phone of funds
• 3:33
  Speaker 1: and stable coins without interest, and obviously people would not
• 3:37
  Speaker 1: be switching if that's not the case, So bank flight gone.
• 3:41
  Speaker 1: Don't worry about that. Here was an intriguing thing though.
• 3:44
  Speaker 1: This was from WU Blockchain. Meta Mask has now partnered
• 3:48
  Speaker 1: with MasterCard to launch a payment card in the US
• 3:52
  Speaker 1: and this is featuring on chain rewards. Okay, so we'll
• 3:55
  Speaker 1: call them what you want, but this essentially is a
• 3:58
  Speaker 1: meta Mask card requiring KYC. That's how they get you.
• 4:05
  Speaker 1: This was a question on at two GROC was all
• 4:09
  Speaker 1: of this bullish or bearish for Coinbase. Some people could say, well,
• 4:14
  Speaker 1: GROC says, yeah, we think it's bullish for coinbase because
• 4:17
  Speaker 1: it's going to get this through and Coinbase's business is
• 4:20
  Speaker 1: going to be able to proceed forward. You're going to
• 4:22
  Speaker 1: see a huge onboarding opportunity, and if you look at
• 4:25
  Speaker 1: that side of the business, yes, it is bullish. If
• 4:28
  Speaker 1: you look at the bad side of it is the
• 4:29
  Speaker 1: revenue coming in from stable coins and stable coin yields
• 4:33
  Speaker 1: is absolutely you know, torpedoed, So that in essence is
• 4:37
  Speaker 1: kind of a win and a loss. The granted, I
• 4:40
  Speaker 1: think most people would say that the trading opportunity is
• 4:43
  Speaker 1: probably greater for coinbase than it is in terms of
• 4:47
  Speaker 1: stable coin sides, but still it's bad for you as
• 4:50
  Speaker 1: an American because you're not going to be able to
• 4:51
  Speaker 1: get those yields coming in on stable coins. The OCC's
• 4:54
  Speaker 1: proposed Genius Act blueprint, this is essentially coming in from
• 4:58
  Speaker 1: the White House, and what it means for points here
• 5:00
  Speaker 1: it is, I want to scan down into a few points.
• 5:04
  Speaker 1: The OCC goes beyond the statutory text with a sophisticated
• 5:08
  Speaker 1: anti evasion framework. Remember those words, because it gets into it.
• 5:13
  Speaker 1: The OCC explicitly reserves authority to challenge arrangements not captured
• 5:19
  Speaker 1: by the presumption, meaning they kind of can set their
• 5:22
  Speaker 1: own rules. Is pretty much what this is saying. So
• 5:24
  Speaker 1: when you look at timing, this is very critical because
• 5:26
  Speaker 1: this pretty much says that we're going to have implementation
• 5:30
  Speaker 1: of Clarity through probably immediately, we can have as early
• 5:34
  Speaker 1: as tomorrow. And because they're essentially setting it up right here,
• 5:38
  Speaker 1: so the timing intriguing right here. Other things that I
• 5:41
  Speaker 1: want to kind of focus in crypto industry's best argument
• 5:44
  Speaker 1: for preserving yield through the Clarity Act may have been
• 5:48
  Speaker 1: preemptively addressed by the regulators, so that in itself kind
• 5:52
  Speaker 1: of hits home. A sixty day commitment window is the
• 5:55
  Speaker 1: industry's opportunity. This is kind of where we stand right now.
• 5:59
  Speaker 1: But I think this is all but done. It's just
• 6:02
  Speaker 1: a matter of getting it through Congress now and signing
• 6:05
  Speaker 1: off on it. Banning of stable coin yields will happen.
• 6:09
  Speaker 1: And that is the I guess the situation that whether
• 6:13
  Speaker 1: you agree with the banks, because this is something that
• 6:17
  Speaker 1: I think we have kind of been looking at for
• 6:19
  Speaker 1: a while, was some of these statements coming out of
• 6:22
  Speaker 1: the White House, especially around March first. Was this more
• 6:25
  Speaker 1: a warning to banks. No, it wasn't. It was a
• 6:29
  Speaker 1: warning to coinbase. It was like, hey, get on board
• 6:31
  Speaker 1: because this is coming, and sure enough we find out
• 6:34
  Speaker 1: that in fact, it truly is. So when you look
• 6:37
  Speaker 1: at this issue that of course comes out. I just
• 6:40
  Speaker 1: wonder how midterms is going to play out, because I
• 6:42
  Speaker 1: feel that coinbase will most likely feel as though they
• 6:45
  Speaker 1: have been rub pulled, and this is most likely not
• 6:48
  Speaker 1: going to be our last fight because there's going to
• 6:51
  Speaker 1: be a lot more coming down the pipeline, and the
• 6:54
  Speaker 1: banking lobby is trying incredibly hard. I would agree to
• 6:57
  Speaker 1: harm consumers and protect their motes, which is what's happening
• 7:00
  Speaker 1: right now, and so far, guys, they are winning. Speaking
• 7:04
  Speaker 1: of winning, here is Elizabeth Warren attacking Sam Bankman freed,
• 7:09
  Speaker 1: and she's going after his statement right there is that
• 7:12
  Speaker 1: he was kind of jumping on the clarity bandwagon saying, hey,
• 7:15
  Speaker 1: I tried to push this through, of course to the
• 7:17
  Speaker 1: fact that he was a big fraud and a big
• 7:20
  Speaker 1: a lot of wrongdoings involved, but the idea that he
• 7:24
  Speaker 1: was even bringing this up was kind of ludicrous. Even
• 7:28
  Speaker 1: Senator Lummis also kind of jumped in. Someone looking to
• 7:31
  Speaker 1: pardon is really what he was after. Right here, my
• 7:34
  Speaker 1: legislation can be far more different than the bill you
• 7:37
  Speaker 1: tried to basically buy from Congress over my objection in
• 7:41
  Speaker 1: twenty twenty two, and that of course, was SBF. Do
• 7:45
  Speaker 1: you think SBF will get a pardon to say yes,
• 7:49
  Speaker 1: pardon no pardon down below in the comments. I can't
• 7:53
  Speaker 1: imagine that he would. If he gets a pardon, this
• 7:56
  Speaker 1: would be this would be endgame, I think for Crypto,
• 8:00
  Speaker 1: I don't know how that would be any kind of
• 8:02
  Speaker 1: good news. Also, remember that the Pentagon is infringing even
• 8:07
  Speaker 1: further as we get a final author to Anthropic. So
• 8:12
  Speaker 1: this is crazy, guys. Now, Anthropic seeking unrestricted military access
• 8:17
  Speaker 1: of AI capabilities. And this is all of the AI
• 8:20
  Speaker 1: companies that are out there basically handing over the keys
• 8:25
  Speaker 1: of many of the AI tools that you're using today.
• 8:27
  Speaker 1: So just remember what you're doing in AI. Nothing is private.
• 8:33
  Speaker 1: Remember that, guys, nothing is private. Nothing's private in your Gmail,
• 8:36
  Speaker 1: nothing's private in your email, if you're not using proton Mail,
• 8:39
  Speaker 1: a Cape mobile device, and a handful of others. If
• 8:42
  Speaker 1: you want privacy, you're going to need to take a
• 8:46
  Speaker 1: different approach because this is getting all centralized right now.
• 8:49
  Speaker 1: Let's get into some other rage coming in from the Rage,
• 8:54
  Speaker 1: and what they're talking about is Senator Tom Cottoner, who
• 8:56
  Speaker 1: is trying to push out that this would be a
• 8:58
  Speaker 1: new addition to the Patriot and the Bank Secrecy Act
• 9:01
  Speaker 1: that would prevent legal aliens from opening up accounts in
• 9:04
  Speaker 1: the US financial institutions. I didn't know that you could
• 9:07
  Speaker 1: open an account in the US financial institution. But if
• 9:09
  Speaker 1: this is something where you're looking at the unbanked, this
• 9:13
  Speaker 1: is going to drive more and more of this out
• 9:16
  Speaker 1: of the traditional finance system for sure. Let me go
• 9:19
  Speaker 1: to a clip real quick, because this gets into Jimmy
• 9:21
  Speaker 1: over at, mister Bass and I'll explain why. Because this
• 9:24
  Speaker 1: is a big deal because I think awareness and reaching
• 9:28
  Speaker 1: the unbanked and just in general, people who are not
• 9:31
  Speaker 1: necessarily in the system as much might have a shot.
• 9:34
  Speaker 1: Take a look at this.
• 9:35
  Speaker 2: You care about the future of bitmine there therefore I do.
• 9:38
  Speaker 2: Oh bitmind is a leader in the ethereum staking market.
• 9:42
  Speaker 2: And if you think about stable coin and the ability
• 9:45
  Speaker 2: to provide a lower cost of capital and pass that
• 9:48
  Speaker 2: on to the consumer, ethereum is the backbone of stable
• 9:52
  Speaker 2: coin and the blockchain, and so we're big fans of ethereum.
• 9:56
  Speaker 2: We think the defive movement is really important and the
• 9:59
  Speaker 2: benefit hits that it brings consumers in greater access, democratization,
• 10:04
  Speaker 2: lower cost of capital, the ability to move capital around
• 10:07
  Speaker 2: the world in a safe and secure way long term.
• 10:09
  Speaker 2: How many different businesses you think you can be in
• 10:12
  Speaker 2: when you have one point four to five billion users,
• 10:14
  Speaker 2: there's a lot of share of wallet that you could gain.
• 10:17
  Speaker 1: So the point of that clip there was really to
• 10:19
  Speaker 1: kind of outline what mister Beast is trying to do
• 10:21
  Speaker 1: with Beast Industries. As you guys know, we've reported that here,
• 10:24
  Speaker 1: and this is something that Jimmy, mister Beace has been
• 10:27
  Speaker 1: trying to do, and that is making finance become easier
• 10:31
  Speaker 1: to access for everyone. And I think crypto is going
• 10:34
  Speaker 1: to be the way that he does that. It'll be
• 10:36
  Speaker 1: intriguing because remember that he's a global phenomenon, so this
• 10:39
  Speaker 1: is going to reach a lot more than just the
• 10:41
  Speaker 1: United States. But it will bring I think the next
• 10:44
  Speaker 1: generation into blockchain and whether or not we see it
• 10:47
  Speaker 1: in traditional methods, which are basically being painted us painting
• 10:51
  Speaker 1: us into a corner right now into the traditional financial system,
• 10:56
  Speaker 1: because that's really what is happening. All of crypto is
• 10:59
  Speaker 1: being herded into the trad fi system that has existed
• 11:03
  Speaker 1: for twenty five years. That is why I think you're
• 11:06
  Speaker 1: seeing the kicking and screaming in the industry of people
• 11:09
  Speaker 1: that know. But this is going to cause a bag pump.
• 11:12
  Speaker 1: This is going to cause crypto to go up. The
• 11:15
  Speaker 1: real question is is what does it do long term? Overall?
• 11:18
  Speaker 1: Do we still get more Jane Street kind of activity
• 11:20
  Speaker 1: out there? Those kind of things. For sure, you can
• 11:23
  Speaker 1: go further into this because Calshi just did the same
• 11:26
  Speaker 1: exact thing, and this was in reference to an inside
• 11:29
  Speaker 1: trading issue that occurred. Again, this was if you haven't followed,
• 11:33
  Speaker 1: this was an editor with mister Bees that got caught
• 11:36
  Speaker 1: inside trading. The thing that was interesting to me is
• 11:40
  Speaker 1: that Calshie could enact these fines upon a user, and
• 11:45
  Speaker 1: of course this was all in a limo with the CFTC.
• 11:47
  Speaker 1: So I just wonder if calsh is now getting into
• 11:51
  Speaker 1: a position where they're giving more fuel to their competition
• 11:54
  Speaker 1: for a decentralized model and possibly an exit out of
• 11:59
  Speaker 1: traditional prediction markets, be on the lookout for this. This
• 12:01
  Speaker 1: could be a big one right here. And you know,
• 12:03
  Speaker 1: when you look at this, I mean it wasn't just
• 12:05
  Speaker 1: the fact that they got him for this, it was
• 12:07
  Speaker 1: the excessive find. Remember, the find did not come from
• 12:10
  Speaker 1: the government, came from Calshi, and they use this thing
• 12:12
  Speaker 1: called an aggressive multiplier, which basically was a five x
• 12:16
  Speaker 1: of a four thousand dollars trade. So this guy literally
• 12:18
  Speaker 1: got a five hundred percent penalty for doing this, and
• 12:22
  Speaker 1: it was all enacted within the CALSHI ecosystem. So I
• 12:25
  Speaker 1: don't like those kinds of moves in the sense of
• 12:28
  Speaker 1: regulation framework because it does create I think, very bad
• 12:33
  Speaker 1: blood and bad faith in the industry, especially when there
• 12:36
  Speaker 1: are alternatives. As we start to see other countries starting
• 12:40
  Speaker 1: to rise up in this area of decentralized finance, and
• 12:43
  Speaker 1: here are the United States, it's all centralizing into bank
• 12:48
  Speaker 1: and traditional finance and of course regulatory frameworks here speaking
• 12:53
  Speaker 1: of that, here's Mike Salig. He's talking about our exchanges
• 12:55
  Speaker 1: are the CFTC's first line of defense in policy and
• 12:59
  Speaker 1: trading in prediction markets. This is basically them saying the
• 13:01
  Speaker 1: same thing, We're going to enforce all of this, and
• 13:05
  Speaker 1: this is where you guys need to be very very
• 13:07
  Speaker 1: careful in trading any of those kind of deals. Here,
• 13:12
  Speaker 1: of course, was an interesting issue also because it's starting
• 13:15
  Speaker 1: to shut down cash to bitcoin, because this will start
• 13:18
  Speaker 1: to move into ATM providers now being locked into the
• 13:22
  Speaker 1: sense of where you have to create an ID to
• 13:24
  Speaker 1: be able to actually generate a Bitcoin purchase from an
• 13:28
  Speaker 1: ATM machine with cash. So more pushing into this. And
• 13:33
  Speaker 1: this was a CATO Institute dropping this in there. Because
• 13:35
  Speaker 1: the Clarity Act would now regulate bitcoin ATMs under the
• 13:37
  Speaker 1: Bank Secrecy Act and require all of this. Look at
• 13:40
  Speaker 1: the list here, let me zoom in on this. This
• 13:42
  Speaker 1: would be labeled as money transmitting businesses. Every one of
• 13:45
  Speaker 1: these would be listed that way. So this is going
• 13:49
  Speaker 1: to apply kycmail measures. You're going to have a limit
• 13:53
  Speaker 1: activity one per account. You're going to be required to
• 13:55
  Speaker 1: hold the money for seventy two hours before customers could
• 13:58
  Speaker 1: send them money. I mean, come on, guys, this is
• 14:02
  Speaker 1: getting you understand They do this in China right now. Yeah,
• 14:08
  Speaker 1: this is talking about doing this here in the United States.
• 14:11
  Speaker 1: That is what we're talking about. Guys. This is getting
• 14:13
  Speaker 1: overreach at the next level. And it's happening right now
• 14:18
  Speaker 1: with all of that being said, And I mean, it's
• 14:20
  Speaker 1: kind of like a slap you in the face and
• 14:22
  Speaker 1: then shake your hand kind of situation right now is
• 14:24
  Speaker 1: what's happening with Clarity. Where will bitcoin be by the
• 14:27
  Speaker 1: end of March. Will we see a pump to eighty five,
• 14:32
  Speaker 1: a moderate side swipe or some retracement. Let's go with retracement.
• 14:38
  Speaker 1: Everybody's liking the pump. Huh. We had Gareth on yesterday.
• 14:43
  Speaker 1: He said we were going to see a moderate pump,
• 14:45
  Speaker 1: possibly eighty to eighty five, and then look for a
• 14:48
  Speaker 1: pullback and by end of March. Remember that's thirty days away.
• 14:51
  Speaker 1: A lot can happen in thirty days. Just to summarize, guys,
• 14:54
  Speaker 1: this I think is the perfect statement on X. You
• 14:57
  Speaker 1: only need two words because this is inside baseball. Caroline
• 15:02
  Speaker 1: Famm right there simply saying get ready because the game
• 15:06
  Speaker 1: is already decided. The OCC has put down the playbook
• 15:10
  Speaker 1: and everybody's going to play ball this way. And of
• 15:12
  Speaker 1: course coinbase is on the out on this one. I
• 15:15
  Speaker 1: want to see how they play in the midterms. We'll
• 15:18
  Speaker 1: be covering that, so make sure and stay tuned for
• 15:20
  Speaker 1: that one. If you like this video, like and subscribe,
• 15:29
  Speaker 1: drop a comment down below, and also join our free
• 15:32
  Speaker 1: private member group. The link is in the description