Latest / The Paul Barron Crypto Show / Jerome Powell U.S. Crypto Hearing🚨Meme Coins & Stablecoins🚀

Transcript

Jerome Powell U.S. Crypto Hearing🚨Meme Coins & Stablecoins🚀 · The Paul Barron Crypto Show

0:07
Speaker 1: Capitol Hill is busy in the cryptotopic and of course
0:10
Speaker 1: so they were going to be talking about whether or
0:11
Speaker 1: not they have crafted a path forward and break it
0:15
Speaker 1: down for you guys. My name is Paul Barher. Welcome
0:16
Speaker 1: back into tech path. I do want to think our
0:18
Speaker 1: sponsored today and that is Tangent, a great place for
0:21
Speaker 1: self custody. You guys can join the self custody crowd
0:24
Speaker 1: by going over to tangent dot com. Get in on
0:26
Speaker 1: your own secure crypto and hardware wallet and it's a card.
0:30
Speaker 1: It looks like a little credit card for you guys
0:31
Speaker 1: that maybe have never want to see one of these
0:33
Speaker 1: works in conjunction with an app on your Android or
0:36
Speaker 1: your iPhone. Very easy to set up and super secure,
0:41
Speaker 1: so easy, it only takes three minutes to set this
0:43
Speaker 1: thing up. Very simple to order as well. Just hit
0:45
Speaker 1: that get Tangent button right there. That's going to get
0:47
Speaker 1: you into the three card set. You guys can float around.
0:50
Speaker 1: Get the black one, you'll love that one, the Stealth
0:52
Speaker 1: card and it's super simple.
0:55
Speaker 2: Hips right too.
0:55
Speaker 1: You guys can activate them almost immediately, get started in
0:59
Speaker 1: self custody, get coins and your tokens off of these
1:02
Speaker 1: exchanges all right. Let's go into a couple of topics today. One,
1:06
Speaker 1: of course, as you guys know, we had the Monetary
1:09
Speaker 1: Policy hearing with Jerome Powell. We touched on that one yesterday.
1:12
Speaker 1: This had an extension kind of a part two. And
1:14
Speaker 1: we'll also get into the one that I think was
1:17
Speaker 1: most important, and that was this one right here. A
1:19
Speaker 1: golden age of digital assets, the path forward. This had
1:22
Speaker 1: a lot of people in it. Kraken was there, President
1:26
Speaker 1: of Crypto Council for Innovation. You had a ton of people.
1:31
Speaker 1: Of course, the guy from PayPal was there. All of
1:33
Speaker 1: this was potential for doing something good and there's some
1:39
Speaker 1: interesting things that came out of this that I think
1:41
Speaker 1: you guys will want to watch. Let's go to the
1:42
Speaker 1: first clip. Have you guys take a look and see
1:45
Speaker 1: what you think. This is where Jerome Palell is talking
1:47
Speaker 1: a little bit more around crypto banking.
1:49
Speaker 3: Take a look any extra things that we can do
1:53
Speaker 3: to protect the traditional banking system.
1:55
Speaker 4: We don't want to get in the way of banks
1:57
Speaker 4: serving perfectly legal customers as long as they understand and
2:00
Speaker 4: the risks you're speaking to custody, well, custody is more
2:03
Speaker 4: than the second thing is undertaking activities on their own.
2:06
Speaker 4: So I think we need to be mindful that many
2:08
Speaker 4: of these activities can very well be done inside of banks,
2:11
Speaker 4: and custody may well be one of them. In fact,
2:13
Speaker 4: and FED regulated banks. There are lots of crypto activities
2:17
Speaker 4: happening now, they've just happened under a framework where we
2:20
Speaker 4: made sure that the bank understood and we understood exactly
2:23
Speaker 4: what they're doing, right.
2:26
Speaker 1: All right, So there you have it. I mean that
2:28
Speaker 1: is chair Palell basically saying, yes, crypto activities within banks,
2:32
Speaker 1: it's just a scenario that much like any other AML scenario,
2:36
Speaker 1: anti money laundering scenario that happens in a bank, crypto
2:40
Speaker 1: should be no different treated like any other assets. So
2:42
Speaker 1: that I like, and it's a good focus. Now, of
2:45
Speaker 1: course you have to think about these hearings and who
2:47
Speaker 1: else would come in on this. This, of course is
2:50
Speaker 1: going to get into Maxine Waters. She gets on the
2:52
Speaker 1: whole data privacy thing, and I'll comment after this clip.
2:55
Speaker 1: But take a look.
2:57
Speaker 5: Would you like to tell us today that you won't
3:00
Speaker 5: doage into the federal Reserve? You're gonna let them in.
3:04
Speaker 3: I don't have anything for you on that.
3:06
Speaker 5: And the people of this country are being violated because
3:09
Speaker 5: all of our privacy has been taken up by Elon
3:14
Speaker 5: Mosk and Trump, and we don't know what all they
3:17
Speaker 5: have on us, our bank accounts, everything in our lives.
3:21
Speaker 5: So I want to protect it in the fan, mister Powell, Yeah.
3:24
Speaker 6: I find it very ironic that my colleagues on the
3:27
Speaker 6: other side of the isle and ranking member and her
3:29
Speaker 6: remarks take a sudden interest in data privacy. They worked
3:35
Speaker 6: very hard to force banks to report the financial transactions
3:39
Speaker 6: of individuals at six hundred dollars.
3:43
Speaker 1: All right, so data privacy, Maxie Water's kind of going
3:46
Speaker 1: out on both sides of her mouth there. Obviously you
3:48
Speaker 1: have to look at social media. There's been a lot
3:50
Speaker 1: of data privacy issues, credit card companies, banks, you name it.
3:53
Speaker 1: So this kind of scenario that they're playing into, I
3:55
Speaker 1: think is really more of a posturing position, both for
3:58
Speaker 1: Democrats because they realize they don't really have control of
4:01
Speaker 1: what's going to happen in Congress. And of course that
4:04
Speaker 1: all leads into another topic, and this was about doze
4:08
Speaker 1: coin and DOGE the Department of Government Efficiency, and this
4:13
Speaker 1: of course was by our friend Brad Sherman. Take a look, But.
4:16
Speaker 7: I want to focus on dodgecoin and Bitcoin went up
4:19
Speaker 7: twenty two percent. One coin, Dodgecoin went up in one
4:24
Speaker 7: week six times as fast as Bitcoin, and then they
4:29
Speaker 7: named a big time department after the coin. Assuming that
4:34
Speaker 7: dodgecoin isn't a security, Is it subject to insider trading laws? No,
4:41
Speaker 7: it is not trade on that make a lot of money.
4:47
Speaker 7: And they say that Musk isn't smart.
4:50
Speaker 8: If I were the at the CFTC today twenty fourteen,
4:53
Speaker 8: someone came to me with the doze coin instead of bitcoin,
4:56
Speaker 8: I wouldn't have declared that a commodity. Okay, it shouldn't
4:59
Speaker 8: be traded as a commodity.
5:02
Speaker 1: All right, So you can see this scenario behind this.
5:05
Speaker 1: Still not a lot of education or what's happening in
5:08
Speaker 1: the crypto market, So we have some work to do,
5:10
Speaker 1: you know, in DC. Hopefully these lawmakers are going to
5:13
Speaker 1: get to a point where they understand this. You know,
5:15
Speaker 1: Elon Musk himself is still only owning a bunch of
5:18
Speaker 1: doge coin consistently, so it's not as though this is
5:22
Speaker 1: a play on it. And of course I think doge
5:25
Speaker 1: this is just a serendipity situation that has occurred before,
5:29
Speaker 1: so I don't know, this is one of those things
5:31
Speaker 1: that again it Congress doing Congress things, which is most
5:35
Speaker 1: of the time not getting anything done. So they have
5:38
Speaker 1: to always pick on something because the Democrats are in
5:41
Speaker 1: that position right now where they are in a little
5:43
Speaker 1: bit of a pickle, and guess what they go after.
5:45
Speaker 3: Take a look.
5:47
Speaker 1: Early this year, Trump launched his own cryptocurrency, meme coin.
5:51
Speaker 3: He just started his own meme coin.
5:53
Speaker 5: It was a scam.
5:54
Speaker 7: The trump coin pumped up to seventy five dollars and
5:58
Speaker 7: now dump down to seventeen dollars.
6:02
Speaker 5: When Trump launched his own meme coin. After Trump's token crashed,
6:08
Speaker 5: I asked, what is it? They said, it's not an investment.
6:11
Speaker 5: What do you think about this?
6:12
Speaker 8: I mean, look, this is like, you know, paying to
6:14
Speaker 8: join a fan club. It's exactly the kind of behavior
6:17
Speaker 8: we should be trying to tamp down.
6:19
Speaker 3: Does anybody know what it's trading at today?
6:22
Speaker 9: Well, I think value is in the eye of the holder,
6:24
Speaker 9: and a lot of these are sentiment driven.
6:26
Speaker 3: Well it's fine, I see you all smiling.
6:30
Speaker 9: We'll refer to them as fecal coins for the purpose
6:32
Speaker 9: of this hearing.
6:36
Speaker 1: All right, So you know when you look at that,
6:39
Speaker 1: you get to remember meme coins are just that they
6:41
Speaker 1: are fun and for the most part it creates a community,
6:44
Speaker 1: and that is most of the time around any other
6:46
Speaker 1: collectible that's out there. If you think about that. Here's
6:49
Speaker 1: an example of the fecal coin right there, of course
6:53
Speaker 1: jumping up. So unfortunately we missed that one. Oh well,
6:56
Speaker 1: it's just one of those things. And of course it
6:59
Speaker 1: never uh never feared. We're always going to get some
7:03
Speaker 1: kind of meme coin action. But across some of these
7:05
Speaker 1: statements out there, Sherman goes on a little bit further.
7:08
Speaker 1: Now it gets into a little bit more interesting discussion,
7:11
Speaker 1: and this is about stable coins and what he thinks
7:14
Speaker 1: about them.
7:15
Speaker 3: Take a look the Genius Act.
7:17
Speaker 10: I'm always worried about anything Zola from the Senate with
7:20
Speaker 10: the title genius in it.
7:21
Speaker 7: How's the stable coin different from more money market mutual fund?
7:26
Speaker 3: Now it's cooler because it's called a coin.
7:28
Speaker 8: You know today stable coins aren't stable.
7:31
Speaker 7: What does a stable coin tied to the US dollar
7:33
Speaker 7: offer the investor?
7:35
Speaker 8: The way I think about stable coins is they should
7:37
Speaker 8: not be an investment vehicle. They should not pay internet and.
7:42
Speaker 7: Not even the little bit of interest I get up.
7:44
Speaker 8: Well, not to start out with, I think.
7:48
Speaker 3: So it's worse there.
7:49
Speaker 6: Thank you, Chairman.
7:50
Speaker 3: That was a very interesting dialogue.
7:52
Speaker 6: The question could be why did they make decide to
7:55
Speaker 6: make calculators when an abacist can do?
7:59
Speaker 1: You know, this is the thing that we're dealing with.
8:01
Speaker 1: I think again, it gets in these scenarios where many
8:04
Speaker 1: of these congress members are trying to protect. You know,
8:07
Speaker 1: I would say it the banking industry because remember, most
8:10
Speaker 1: of stable coins are paying yields in excess of that
8:13
Speaker 1: of what a normal bank would pay on your US dollar.
8:16
Speaker 1: If they get to that point where banks are going
8:18
Speaker 1: to have to execute on that kind of expectation by
8:20
Speaker 1: the American consumer, that's going to put some pressure on Now.
8:24
Speaker 1: Remember there's been many companies that have started to launch
8:26
Speaker 1: stable coins. PayPal as one of them. Their CEO was
8:29
Speaker 1: there today and he had a perfect chance to really
8:33
Speaker 1: kind of win the audience over and he kind of
8:36
Speaker 1: missed the mark. Take a look what he had to say.
8:39
Speaker 11: The reality is, do we have that many migrants using
8:44
Speaker 11: crypto or stable coins to transmit remittancees?
8:50
Speaker 3: I don't have data for that.
8:51
Speaker 11: Do you have any data on the breakdown by income
8:55
Speaker 11: of the consumer that does use stable.
9:00
Speaker 3: I don't know. That we have that data, but I
9:02
Speaker 3: can consultant.
9:02
Speaker 11: With what team, But the reality is unless you're really
9:05
Speaker 11: very rich, you're not doing any of this.
9:09
Speaker 1: All right, I wish she'd have been a little bit
9:11
Speaker 1: more prepared because if you just do a little bit
9:13
Speaker 1: of research on this two point four million potential Latino
9:16
Speaker 1: migrants right now, our cryptocurrency uses a total stock to
9:21
Speaker 1: transfer around seven ordred million annually, seven or forty million annually,
9:24
Speaker 1: So it is being used, of course, yes, it is
9:28
Speaker 1: working within those ecosystems. PayPal is surprising to me, and
9:32
Speaker 1: we've already seen this in other ways of it being used. This,
9:35
Speaker 1: of course was during the Ukraine War and how much
9:37
Speaker 1: of this was still being transmitted via the stable coin
9:42
Speaker 1: tether and that was before we really started to see
9:44
Speaker 1: the strength of USDC.
9:46
Speaker 6: So even with that.
9:47
Speaker 1: Though, you're talking about almost two hundred and twelve million
9:50
Speaker 1: that got into that. If you look at that compared
9:52
Speaker 1: to when you look at traditional FIAT, of course, you
9:55
Speaker 1: can kind of see what was aid to Ukraine right there,
9:57
Speaker 1: a hundred six billion, but humanitarian support were only two
10:00
Speaker 1: point eight billion of all of that support going in it.
10:03
Speaker 1: So the percentage wise of the crypto went into the
10:07
Speaker 1: market to support the Ukraine war was significant in comparison
10:10
Speaker 1: to what we've seen on these humanitarian Remember, all these
10:13
Speaker 1: fees are still being transacted through swift banks, all sorts
10:18
Speaker 1: of money handlers out there that continuously take their slice
10:21
Speaker 1: of the pie, which is what crypto really eliminates.
10:24
Speaker 7: A lot of.
10:25
Speaker 1: So that again goes back to the point of what
10:27
Speaker 1: I'm getting at now. Richie Torres had a very good
10:30
Speaker 1: statement on this. Richie is a democrat, though he is
10:34
Speaker 1: one that understands a little better of what this means
10:37
Speaker 1: to innovation and really the financial markets take a look.
10:40
Speaker 12: What is the cost of transferring money via the conventional
10:44
Speaker 12: payment system versus the crypto or stable coin payment system.
10:48
Speaker 3: But information coming from sources like the World Bank would
10:51
Speaker 3: put the average cost in the rent of around six percent,
10:54
Speaker 3: with the target of I think that the decide target
10:57
Speaker 3: for the war banks to bring that down to three percent.
11:00
Speaker 12: Old Bank has a sustainability development goal of three percent.
11:03
Speaker 3: What is your cost? We don't charge any transfer fees.
11:06
Speaker 12: So it's zero when it comes to the transaction fees.
11:09
Speaker 12: And then if you factor in the spread for the
11:12
Speaker 12: foreign currency exchange rate, what would it be See less
11:14
Speaker 12: than three percent.
11:16
Speaker 3: In many cases it will be less than three percent,
11:19
Speaker 3: all right, So you.
11:19
Speaker 1: Can kind of see the point that is starting to
11:22
Speaker 1: roll in on this. And remember there's a lot of
11:24
Speaker 1: things that you know have been attempted before by federal gummer.
11:28
Speaker 1: Remember you guys probably remember fedwire. I'm sure you remember that.
11:32
Speaker 1: The whole idea was is that at some point it
11:34
Speaker 1: was going to make you know, being able to transfer
11:36
Speaker 1: fund so much better. And of course your own pal
11:39
Speaker 1: kind of debates that completely.
11:43
Speaker 12: Take a look at what he had to say, access
11:45
Speaker 12: to fedwire could play a role in radically reducing the
11:49
Speaker 12: cost of remittances and payments for the lowest income Americans.
11:54
Speaker 12: What is your position on expanding fire fed wire access
11:58
Speaker 12: for the purpose of reducing the cost of roomenses and payments.
12:01
Speaker 4: Fed wire is really between banks. These are very large
12:04
Speaker 4: wholesale transactions. It's one of the world's most important, if
12:08
Speaker 4: not the most important, financial market utility. I don't think
12:11
Speaker 4: we're looking to open it up to, you know, to
12:14
Speaker 4: retail customers. I think, you know, faster retail payments and
12:18
Speaker 4: particularly cross border payments are a subject of a lot
12:21
Speaker 4: of work in the international sphere, and I think we
12:24
Speaker 4: all understand it's important to lower the costs and the
12:26
Speaker 4: risks of those.
12:29
Speaker 1: So right there you have it, fed wire done, never
12:31
Speaker 1: going to make it to retail. This is going to
12:33
Speaker 1: be a factor that again goes toward the strength of
12:36
Speaker 1: crypto because that will alleviate a lot of these kind
12:39
Speaker 1: of fees that we're talking about going forward. The other
12:41
Speaker 1: thing you have to worry about is this whole self
12:43
Speaker 1: custody scenario because even though Congress is now mostly in
12:47
Speaker 1: the Republican camp to where they control the House and
12:50
Speaker 1: Senate and being able to actually get some of these
12:52
Speaker 1: bills passed. Remember there were a lot of bills that
12:55
Speaker 1: came in with the caveat of self custody, self custody
12:59
Speaker 1: being able to hold your own crypto being banned. Of course,
13:02
Speaker 1: this is them still going after it.
13:04
Speaker 2: Take a look by your customer, Yah, I'm not worried
13:07
Speaker 2: about your customers, the people U K. White see it.
13:09
Speaker 2: I'm worried about people that are out there on.
13:11
Speaker 3: The dark web.
13:12
Speaker 2: For the record, say exactly how you can guarantee that
13:14
Speaker 2: when you bring on a crypto asset that that value
13:17
Speaker 2: has not been used in an illicit transaction.
13:19
Speaker 8: They can be transferred on self hosted wallets, which raises
13:23
Speaker 8: a lot of issues of evasion of sanctions and financial crime.
13:27
Speaker 10: If you don't protect self custody, you essentially don't have.
13:31
Speaker 3: All you really do is change which in your mediaries
13:33
Speaker 3: are involved.
13:34
Speaker 10: And some of the arguments that that I would hear
13:36
Speaker 10: from the other side of the isle was there was
13:37
Speaker 10: worried about frauds, so it couldn't be used.
13:40
Speaker 3: Yeah, I'm just a foro.
13:41
Speaker 10: I got here a small town all year from rural
13:43
Speaker 10: North Carolina. But the best analogy I would know it
13:45
Speaker 10: would be someone saying you shouldn't use a twenty dollars
13:48
Speaker 10: bill because there might be a counterfeit one out there somewhere.
13:51
Speaker 6: The reality is, you know, in anything.
13:54
Speaker 10: You have, there's going to be frosters and criminals who
13:56
Speaker 10: try to come in and abuse a system.
13:58
Speaker 1: And so you can kind of see. There's still some
14:02
Speaker 1: debate out there, but I think this is all coming
14:04
Speaker 1: down to a scenario where it's posturing trying to position
14:08
Speaker 1: against it. I doubt that there's going to be any
14:11
Speaker 1: of the voting Republicans that would most likely pass these
14:14
Speaker 1: bills sway to the other side. Now, could there be sure, Yes,
14:17
Speaker 1: there could be but I think the frustration that everybody
14:21
Speaker 1: is dealing with is they just want to get a
14:22
Speaker 1: bill through the House and Senate, and they want to
14:25
Speaker 1: get it done. Now Here was Kraken talking about just that.
14:28
Speaker 3: Take a look.
14:29
Speaker 9: So I know there's been discussion of let's wait, let's
14:32
Speaker 9: move stable coins first, let's wait on market structure. We
14:35
Speaker 9: cannot wait any further, and Congress doesn't need to move
14:39
Speaker 9: a market structure bill that solves every single problem in
14:41
Speaker 9: the ecosystem. We are talking about the most basic foundational
14:45
Speaker 9: rules of regulating centralized exchanges.
14:49
Speaker 1: All right, and you can kind of see it. They're
14:51
Speaker 1: just saying, listen, guys, the framework's in place. I think
14:54
Speaker 1: what we're going to see here is most likely the
14:57
Speaker 1: administration starting to put some pressure on to get some
15:00
Speaker 1: of this through. So that's what I'm looking for next,
15:03
Speaker 1: is some of these hearings that actually will be a
15:06
Speaker 1: path forward some rather than these posturized hearings that are
15:10
Speaker 1: just basically a lot of talking points and people that
15:12
Speaker 1: don't know what they're talking about, nor do they understand
15:14
Speaker 1: crypto to an extent that it needs to be understood,
15:17
Speaker 1: especially at our nation's capital. So we're going to cover
15:20
Speaker 1: this and much more so. You guys stick around on
15:22
Speaker 1: the channel, we'll try to get back to that. Of course,
15:24
Speaker 1: you're not in the Diamond circle. Get in right now.
15:26
Speaker 1: It's a great place to get additional content. Also, join
15:29
Speaker 1: our own Telegram group. We leave a link down there
15:31
Speaker 1: as well. You can reach me out there on x
15:34
Speaker 1: at Paul Barrett. We'll catch you next time right here
15:36
Speaker 1: on tech Path