Latest / The Paul Barron Crypto Show / SEC Boosts Crypto Sentiment!🔥Market Turnaround?🚀

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SEC Boosts Crypto Sentiment!🔥Market Turnaround?🚀 · The Paul Barron Crypto Show

0:00
Speaker 1: Sentiment is roaring. The markets are too, and it's all
0:02
Speaker 1: because of what's happening right now with the SEC with
0:05
Speaker 1: a big rulemaking procedure that happened today. We'll get into
0:08
Speaker 1: it today. I think this is going to be a
0:09
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Speaker 1: Use the link down below and get started. So what
0:48
Speaker 1: is all this about in terms of the market absolutely
0:51
Speaker 1: skyrocketing today We'll show you some of the charts. Will
0:53
Speaker 1: it all boils down to this right here, which was
0:55
Speaker 1: a four hundred page document that was issued by the SEC.
1:00
Speaker 1: I see all in reference to regulation on crypto assets
1:03
Speaker 1: and the idea of what it might look like. Now,
1:07
Speaker 1: we've broken this down into a handful of slides just
1:09
Speaker 1: to kind of break this down for you to easily
1:12
Speaker 1: understand it. Who's in, who's out? What are some of
1:15
Speaker 1: the rules that are easy enough to understand? Because this
1:17
Speaker 1: is foreignerd page, nobody wants to read that much. I
1:19
Speaker 1: want to go to a clip real quick, because this
1:21
Speaker 1: is Paul Atkins kind of explaining a little bit. Take
1:23
Speaker 1: a look.
1:24
Speaker 2: So today I'm excited to announce that the SEC is
1:28
Speaker 2: taking the most historic step yet to modernize federal securities
1:33
Speaker 2: regulations for crypto assets. Now, let me be clear, the
1:37
Speaker 2: SEC continues to support congressional work on the Clarity Act,
1:42
Speaker 2: and we expect to see the bill reach the President's desk.
1:46
Speaker 2: We are acting the work before us is too important.
1:50
Speaker 2: It is the Commission's answer to the question that has
1:53
Speaker 2: puzzled innovators since the birth of the blockchain, how can
1:57
Speaker 2: I raise capital to develop a crypt asset while I
2:01
Speaker 2: am still working to develop the network where it will
2:04
Speaker 2: be used?
2:05
Speaker 1: All right, So that Paul being Paul Atkins's chair at
2:08
Speaker 1: the SEC, and it really boiled down to a couple
2:11
Speaker 1: of things. You just look at the market. Here's Ethereum
2:14
Speaker 1: absolutely rockets up the chart from nineteen hundred today all
2:18
Speaker 1: the way up to what it's trading at right now.
2:20
Speaker 1: Almost twenty one hundred Bitcoin was up, you know, fives
2:23
Speaker 1: almost six percent. We had XRP up, we had Chainley
2:28
Speaker 1: going up. Literally everything in the market is in the
2:31
Speaker 1: green right now as we see these rules take place.
2:35
Speaker 1: So it boiled down to a handful of things that
2:38
Speaker 1: really came out of this four hundred page document. And
2:42
Speaker 1: what we've done is kind of put this in a
2:44
Speaker 1: position where you guys can maybe understand a little bit
2:46
Speaker 1: better the rule they passed kind of in private, And
2:49
Speaker 1: I'll explain this. One of the things that happened is
2:52
Speaker 1: look at the timeline here August fourteenth. Remember that meeting
2:55
Speaker 1: last week. It was canceled kind of abruptly and really
2:58
Speaker 1: for no reason at all. It was just a scheduling issue.
3:01
Speaker 1: So we questioned that immediately. The other thing that we
3:05
Speaker 1: think happened was a secret vote that commissioners signed off
3:08
Speaker 1: on this particular ruling with basically one by one, no debate,
3:13
Speaker 1: no livestream, no transcript came out of that, and immediately
3:17
Speaker 1: on this they released the four hundred pages literally on
3:20
Speaker 1: the same day, so it was ready, had to be ready.
3:23
Speaker 1: The proposal drops anyway, and this is four days after
3:27
Speaker 1: the meeting that was supposed to happen died. So at
3:31
Speaker 1: the same time you had that video that I just played,
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Speaker 1: a very polished response that rolls this out and ships
3:38
Speaker 1: almost simultaneously with the content. So this clearly was an
3:44
Speaker 1: orchestrated move that plays into it. How often does the
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Speaker 1: Commission approve a rule that's this big without a public
3:50
Speaker 1: meeting is the other question I think everybody should ask,
3:53
Speaker 1: and that, of course has happened. So let's show you
3:55
Speaker 1: what the breakdown was. So these are four areas to
3:59
Speaker 1: pay attention to a million dollar lane, which is we'll
4:01
Speaker 1: get into the seventy five million dollar lane, the escape patch,
4:06
Speaker 1: and then what it doesn't touch. So the five million
4:09
Speaker 1: dollar lane essentially is kind of the one that I
4:11
Speaker 1: think would cover almost everyone to a certain extent. You
4:14
Speaker 1: can raise five million over four years, no financials, no
4:17
Speaker 1: reporting either, I mean nothing, absolutely nothing, no limit on
4:20
Speaker 1: what you put in the seventy five million dollar lane.
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Speaker 1: You can raise seventy five million a year. You have
4:26
Speaker 1: to have financials, ongoing reporting. That's a traditional model. People
4:30
Speaker 1: are capped also on this at ten percent. The escape patch,
4:34
Speaker 1: you file what they call a form tr so you
4:37
Speaker 1: basically just saying, hey, I finished the project or I
4:39
Speaker 1: finished the investment, and you don't promise anymore. And that's
4:43
Speaker 1: pretty much it. Token is deemed not a security. What
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Speaker 1: it doesn't touch is exchanges, custody trading, and that was
4:51
Speaker 1: essentially Clarity's job. This does none of that. So if
4:54
Speaker 1: the five million dollar lane has no financials, no limits,
4:57
Speaker 1: what protects the buyer or the investor in that lane.
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Speaker 1: That's the problem that I see with it right now,
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Speaker 1: the backwards protection. The seventy five million dollar lane, real
5:07
Speaker 1: financial statements, ongoing public reports, you know, typical stuff, but
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Speaker 1: your capped at ten percent based on your network. That's
5:14
Speaker 1: so an accredited investment lane. The five million dollar lane,
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Speaker 1: which ironically is not accredited, and it has no cap,
5:21
Speaker 1: so you can put all your private investment into it,
5:24
Speaker 1: literally fund the whole project. So really what you should
5:27
Speaker 1: have is no cap at all on any of these.
5:29
Speaker 1: But it boils down to this kind of pushing people
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Speaker 1: into kind of the degenerate lane because there's no cap
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Speaker 1: at all. That's a big issue versus going into legit projects.
5:39
Speaker 1: Say legit projects, there's probably going to be some legit
5:41
Speaker 1: projects in the five million dollar lane, But why cap
5:44
Speaker 1: retail at all. That's the other factor that has always
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Speaker 1: been in the line of trad fi that everybody has argued.
5:51
Speaker 1: And the course it's living now and continuing here on
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Speaker 1: these documents. What your limit looks like? So if you
5:57
Speaker 1: make fifty grand a year, one hundred grand a year,
5:59
Speaker 1: it's ten percent. Can kind of see your five and
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Speaker 1: ten k cap. That's your cap. If you make two
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Speaker 1: hundred grand, there's no limit because you're an a credit investor,
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Speaker 1: now no limit if you're worth million in any deal
6:09
Speaker 1: people actually want the allocation goes to whoever isn't capped,
6:14
Speaker 1: and that's going to be the accredited route. So the
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Speaker 1: accredited line hasn't moved in decades, and that's the problem.
6:19
Speaker 1: Should a twenty twenty six rules still use this model?
6:23
Speaker 1: That is the question. And remember this is still a
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Speaker 1: write up. It's not a rule that could not be changed.
6:28
Speaker 1: I think there might be some lawsuits that maybe come
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Speaker 1: out of this to try to get it changed. We'll
6:32
Speaker 1: see if that plays out. But the middleman play is
6:36
Speaker 1: where it gets interesting. This is nothing in the rule
6:39
Speaker 1: stops this from happening. You've got a seventy five million
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Speaker 1: dollars deal, retail gets capped. Rich buyer's you know, don't.
6:45
Speaker 1: If you've got the credited networth, you can do it.
6:48
Speaker 1: One fund is going to buy that, no sea long
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Speaker 1: or how much accredited money. It takes no restriction on securities,
6:55
Speaker 1: and they can sell on day one and then you
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Speaker 1: buy it back from them at a price after the markup.
7:02
Speaker 1: That's the only way you get access to it if
7:03
Speaker 1: you wanted like dollar cost average or something. So can
7:07
Speaker 1: one fund buy an entire qualified offering and then resell
7:09
Speaker 1: it the same day? That's a question. Does the build
7:12
Speaker 1: of a culture of TRADFI dumping on retail and secondary market, Yes,
7:16
Speaker 1: it does build a culture of that. So it is
7:19
Speaker 1: something that I think, again, this is traditional finance all
7:22
Speaker 1: over from the way it looks now. It doesn't mean
7:25
Speaker 1: that this can't build trad FI into the blockchain. I
7:29
Speaker 1: get that there's going to be a lot of people
7:30
Speaker 1: that argue that from trad file that saying this is
7:33
Speaker 1: going to open up a lot of opportunity for every
7:36
Speaker 1: investor out there, and I think it may this is
7:39
Speaker 1: why you're seeing so much of the of the pump
7:42
Speaker 1: in the market right now. But what the cap doesn't do,
7:44
Speaker 1: you're locked in, You're not locked in. These are not
7:46
Speaker 1: restricted securities and no rule based holding period. You can
7:50
Speaker 1: still DCA, so that's going to be after the open
7:53
Speaker 1: market is out there, So ten percent on the offering itself,
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Speaker 1: but then you can go open market and then the
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Speaker 1: cap reset, so it applies per offering, not on a
8:02
Speaker 1: lifetime allowance. States are preempted, so there's not going to
8:06
Speaker 1: be any of that where every state is going to
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Speaker 1: be different. And so secondary sales cleared pretty much nationwide,
8:12
Speaker 1: so no fifty sale paperwork that you have to do
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Speaker 1: if you're out there trying to do this in the
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Speaker 1: seventy five million dollars lane. But if retail can freely
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Speaker 1: buy it once it trades, you know, what's the ten
8:22
Speaker 1: percent cap accomplished? And that's where I think they need
8:25
Speaker 1: to remove at least that portion of it where retail
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Speaker 1: can get in. One note in the document that we
8:31
Speaker 1: went through, the foreigner pages, Coinbase actually was cited in
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Speaker 1: there saying that they should remove these caps. So that's
8:38
Speaker 1: kind of coinbase, very pro the retail investor, which is
8:42
Speaker 1: a good thing. Now this is the weird done declaration.
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Speaker 1: This is like you've got the five million dollar project
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Speaker 1: or network and you have to go out and say
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Speaker 1: you're finished. You sign a form. It's this little tr
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Speaker 1: forum that essentially certifies your complete and there's nothing you know,
8:57
Speaker 1: you promised to build afterwards, So nothing new is your promise,
9:01
Speaker 1: no new commitments to develop a token going forward. Ever.
9:05
Speaker 1: That's it. You basically release it into the wild. There
9:08
Speaker 1: isn't out wasn't that work works? The SEC says upkeep
9:13
Speaker 1: and upgrades don't count as essential efforts. But who decides
9:18
Speaker 1: the completion or the functional idea of where you're done?
9:23
Speaker 1: You know? And that's the point is the SEC is
9:26
Speaker 1: essentially going to have to rule on that at a
9:28
Speaker 1: later date. So that's going to a little bit of
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Speaker 1: a gray area, and I think it will be challenged
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Speaker 1: quite a bit here. So who gets nothing from this
9:36
Speaker 1: right now? Some of the protocols that people actually use
9:39
Speaker 1: right now uniswap ave, Morpho and then every live protocol.
9:45
Speaker 1: This is a rule book for new offerings only. So
9:48
Speaker 1: if your token already trades, it doesn't change anything. So
9:52
Speaker 1: any of that is happening out there, you're kind of
9:56
Speaker 1: where you are right now, which is in limbo. So
9:59
Speaker 1: let's say that that you are a company that's trying
10:01
Speaker 1: to become a security there's really no path for it.
10:05
Speaker 1: Ripple is a good test case of this. They asked
10:07
Speaker 1: for a line. Ripple told the SEC in January that
10:10
Speaker 1: decentralization is in a binary state. What they got was
10:14
Speaker 1: vague words. And that's what we're getting at right now
10:17
Speaker 1: in terms of this document. That's the problem right now.
10:19
Speaker 1: It's seventy five million a year. I mean, that's that's
10:21
Speaker 1: going to be nothing for companies that are out there
10:23
Speaker 1: processing payments like Ripple in the billions. So there's no
10:26
Speaker 1: path here. So what's left. It's a twenty twenty three
10:29
Speaker 1: court ruling that gave a little bit of guidance, still
10:33
Speaker 1: no rule on their own. So again, could Ripple ever
10:36
Speaker 1: use this as safe harbor with RLUSDXRPL development while they're live? Nope,
10:41
Speaker 1: I don't think so. I don't think they could. So
10:43
Speaker 1: let's get into one thing that the SEC actually put
10:45
Speaker 1: in this from their own data, and this was Regulation A,
10:48
Speaker 1: which is where they capped the amount that you can
10:50
Speaker 1: raise from the public, and of one hundred and forty
10:53
Speaker 1: seven a year that we're out there. These are reggae
10:56
Speaker 1: offerings that came across the SEC's desk. This did the
11:01
Speaker 1: SEC as the proof that it works, where it really doesn't,
11:04
Speaker 1: because nine or fourteen were approved issues where they actually
11:09
Speaker 1: raised anything at all, meaning nobody executed on it. So
11:11
Speaker 1: nobody applied it because it didn't work. So why would
11:15
Speaker 1: they put that in there? And who would be in
11:17
Speaker 1: charge of putting that in this particular offering. These are
11:21
Speaker 1: very interesting questions that I think a lot of people
11:23
Speaker 1: eventually will ask and kind of try to figure out
11:27
Speaker 1: how this actually applies to down the road. The other
11:30
Speaker 1: read is maybe the strongest case against the argument, and
11:34
Speaker 1: that is that this rule only covers issuance. This is
11:37
Speaker 1: the exact ground that clarity leaves alone. Maybe it is
11:42
Speaker 1: a regulator writing around the bill that it still expects
11:45
Speaker 1: on the fifteenth. Okay, maybe the SEC still thinks, hey,
11:47
Speaker 1: we're going to see this on the fifteenth of September.
11:50
Speaker 1: Interesting timing here. Explain that here in a second. And
11:53
Speaker 1: then what a sixteen Z said was don't put this
11:57
Speaker 1: in there at all, And they backed the gold then
12:00
Speaker 1: told the Task Force to leave it out out for
12:02
Speaker 1: Congress to do, which is the Clarity Act. So right
12:06
Speaker 1: now it's only a proposal. There is a comment period
12:09
Speaker 1: for this, sixty days out comment window. It's what the
12:14
Speaker 1: public gets, and they canceled the public meeting. Don't let
12:19
Speaker 1: them skip the public comment, which is what we're dealing
12:21
Speaker 1: with right now. And I think a lot of people
12:23
Speaker 1: need to put this out there right now, just in
12:25
Speaker 1: the concerns, because there are some things that are at
12:28
Speaker 1: least showing effort here by the SEC, and I think
12:31
Speaker 1: that's why you're seeing the market respond the way it is.
12:35
Speaker 1: All right, so let's get into what's happening today here.
12:38
Speaker 1: In just a little bit, probably as we air this video,
12:40
Speaker 1: this meeting will be happening at two thirty. This is
12:43
Speaker 1: where Trump is expected maker marks along both the SEC
12:46
Speaker 1: and the CFTC. So you have Sea Leagan Atkins there
12:51
Speaker 1: along with that is going to be both crypto and
12:54
Speaker 1: tradfi executives. These are the ones they are expected to attend. Coinbase, Ripple, Payward,
12:59
Speaker 1: Crack and Gemini, chain link A sixteen Z Paradigm, Blockchain,
13:04
Speaker 1: dot Com. You got Mike Shell Belshie at BICCO. I
13:07
Speaker 1: don't know if he'll show up, but he might. Cody
13:10
Speaker 1: Carbone over at Digital Chamber Blockchain Association. With Summer, you
13:14
Speaker 1: got the Crypto Council for Innovation. The New York Stock
13:17
Speaker 1: Exchange will be their ice, and then Nasdaq will be
13:20
Speaker 1: there as well, so Friedman, then you'll have Patrick Witt.
13:25
Speaker 1: One thing that is missing here is Robinhood. Robin Hood
13:27
Speaker 1: is not on this list. I don't know if this
13:29
Speaker 1: was a missy by eleanor or if maybe Robinhood bowed out.
13:34
Speaker 1: Not sure, but be interesting because Robinhood should be there
13:38
Speaker 1: as well. You look at some of the things that
13:41
Speaker 1: are happening and the way the market is responding. This
13:43
Speaker 1: is a bitcoy. Just on the Bigo on the daily
13:45
Speaker 1: up seventeen percent right there. You could look at others
13:48
Speaker 1: playing within this space as well, and I'll show you
13:52
Speaker 1: coinbase up right there, what eleven almost twelve percent, Robinhood
13:56
Speaker 1: up six So you can see the impact on the
13:58
Speaker 1: market is real and the real question is does the
14:02
Speaker 1: sentiment carry forward going all the way into clarity. So
14:08
Speaker 1: let me know if you guys think that this is
14:10
Speaker 1: meaning a very bullish move because at least we're getting
14:13
Speaker 1: something heading in the right direction. There's some problems with it, sure,
14:18
Speaker 1: those need to be worked out, and I think maybe
14:20
Speaker 1: through the comment period that might be where some of
14:23
Speaker 1: this is addressed. And the real question is is how
14:26
Speaker 1: does this envelope around. What's going to happen with clarity
14:29
Speaker 1: if it gets passed, think about the other thing. If
14:33
Speaker 1: it does not get passed. What does this do for
14:35
Speaker 1: the market in general? Does this give us a pathway
14:38
Speaker 1: or does it open up the layer of just constant
14:41
Speaker 1: rulemaking coming forward from the SEC and the CFTC. So
14:47
Speaker 1: think about that. Right now, guys, CFTC is going to
14:49
Speaker 1: be holding a major meeting this is August twentieth, possible
14:55
Speaker 1: participants from Coinbase, Ripple, Polymarket, and Calshi prediction markets and
15:00
Speaker 1: then Wall Street leaders. So what is up with that?
15:03
Speaker 1: Coinbase and Ripple. Very interesting that we have these guys
15:07
Speaker 1: all at this one CFTC meeting also coming up next week.
15:10
Speaker 1: Point being, there is a lot of things happening right
15:14
Speaker 1: now between tradfi and crypto. Some of this might be
15:18
Speaker 1: very good for the market, at least the way it
15:19
Speaker 1: looks right now. If we'll go back to the charts
15:21
Speaker 1: and look at bitcoin right now flying up to sixty
15:24
Speaker 1: eight k. We could see this wicking right there up
15:27
Speaker 1: to seventy k, which it has almost done today. You've
15:30
Speaker 1: got eth right there, holding right now at almost twenty
15:34
Speaker 1: one hundred, wicking right now up to twenty one to twelve.
15:37
Speaker 1: So does this hold? This bullish move right now going
15:42
Speaker 1: into clarity? Let me know what you guys think in
15:45
Speaker 1: the comments below. We'll continue to cover this because this
15:48
Speaker 1: is big news. If you like this video, like and subscribe,
15:58
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