Latest / The Paul Barron Crypto Show / CLARITY Deadline Fail🔥Ripple To The Rescue!?🚀 INTERVIEW with Adam Minehardt

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CLARITY Deadline Fail🔥Ripple To The Rescue!?🚀 INTERVIEW with Adam Minehardt · The Paul Barron Crypto Show

0:00
Speaker 1: Clarity Act is in failure mode and has Brad garling
0:03
Speaker 1: House maybe thrown out a lifeboat to all of this.
0:06
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Speaker 1: going there. Let's kind of run into some of the
0:46
Speaker 1: things that are happening around the Clarity Act. And of
0:50
Speaker 1: course this is a very key week and I'll explain why.
0:53
Speaker 1: But if you guys remember this is a good example.
0:55
Speaker 1: This is a throwback. Trump proposed the US Crypto Strategic Reserve,
1:00
Speaker 1: if you'll notice there, that was on March second, but
1:03
Speaker 1: last year, and of course you saw xrpiece, Allana, Ada,
1:07
Speaker 1: all of that being thrown in there. And the big
1:09
Speaker 1: deal was to get the Clarity Act through Congress by August.
1:14
Speaker 1: That was the original target zone of getting that done.
1:17
Speaker 1: That's August twenty twenty five. Of course, here we are
1:20
Speaker 1: in March, March second of twenty twenty six and no
1:24
Speaker 1: Clarity coming in. And a lot of this I think
1:26
Speaker 1: has been really boiled down to one thing. And you
1:28
Speaker 1: guys know this better than most, and that is that
1:31
Speaker 1: the White House is still considering backing I think backing
1:35
Speaker 1: the banks in terms of the stable coin yield. Many
1:38
Speaker 1: people would say, no, that's not necessarily what's happening right now.
1:41
Speaker 1: Patrick Witt, who is the guy who works for David Sacks,
1:44
Speaker 1: this is the crypto and Aizar, he made an unfortunate
1:47
Speaker 1: error of going out to the press and say, hey,
1:49
Speaker 1: we're going to get this done in March March first.
1:51
Speaker 1: Of course, since then that has all broken apart. We
1:54
Speaker 1: have seen failure after failure to attempt to get this
1:57
Speaker 1: through Congress, and many understand the there is an impasse
2:01
Speaker 1: that is occurring right now between the banks and cryptos.
2:04
Speaker 1: So Brad Garlinghouse jumps in and says, hey, the deal
2:08
Speaker 1: is wide open. The banks just need to act in
2:10
Speaker 1: good faith and walk through it. So here's Patrick Witt
2:14
Speaker 1: hitting it right there on the head with what garling
2:17
Speaker 1: House is saying. I agree with you pretty much. Remember
2:21
Speaker 1: that I think he has been in a position where
2:23
Speaker 1: he has been somewhat neutral, if not leaning into getting
2:27
Speaker 1: the banks to get their way in terms of at
2:29
Speaker 1: least coming.
2:30
Speaker 2: To a deal.
2:31
Speaker 1: But here recently there has been a little bit more
2:34
Speaker 1: pressure and I think he's starting to back off on this.
2:36
Speaker 1: And of course even David Sachs has started to come in.
2:40
Speaker 1: This was talking about Aston Campbell, who said, hey, if
2:42
Speaker 1: there's no deal in the language of genius controls is
2:45
Speaker 1: a broader than this banks backing themselves into a corner.
2:48
Speaker 1: He also reposted that, and then of course he reposted again.
2:52
Speaker 2: Here was David.
2:53
Speaker 1: Sachs saying, hey, you're doing a good job. By the way,
2:56
Speaker 1: Crypto has made major concessions on stable cooin yield. Time
3:00
Speaker 1: for the banks to reciprocate. So has sax and Wit
3:06
Speaker 1: slowly transitioned into supporting crypto or is something else bring Well,
3:12
Speaker 1: we thought, well, let's bring in an expert, a lobbyist
3:15
Speaker 1: who's been in DC for I think more than a
3:17
Speaker 1: decade coming in. And I want to bring in Adam Minhart,
3:20
Speaker 1: who is coming over from the head of public policy
3:23
Speaker 1: at chain Link.
3:24
Speaker 2: How are you good?
3:24
Speaker 3: Good? Thanks for having me on, Paul.
3:26
Speaker 1: All right, so let's get into it real quickly. I
3:28
Speaker 1: just want to flip over to the poly market because
3:31
Speaker 1: this is a big deal. We see this kind of
3:35
Speaker 1: mismash of it's up, it's down, it's in, it's out,
3:38
Speaker 1: And then of course we went sideways for a while
3:40
Speaker 1: at around sixty percent, and now all of a sudden,
3:42
Speaker 1: over the weekend we see this spike up here seventy percent.
3:46
Speaker 1: What is causing the probability to spike so high right
3:50
Speaker 1: now in DC around this?
3:52
Speaker 4: Yeah, yeah, I think you're seeing real traction in some
3:55
Speaker 4: of these White House led meetings, and I think you're
3:57
Speaker 4: starting to see a thaw between the bank exchange discussions
4:02
Speaker 4: going on. I think we saw that with Patrick Witz's
4:05
Speaker 4: response to the santor Letz tweet I think you're starting
4:10
Speaker 4: to see the political pressure come to bear here. We
4:12
Speaker 4: know the White House wants to deal very very much.
4:15
Speaker 4: A lot of time from a lot of very very
4:17
Speaker 4: senior people have been put into this. It's extremely rare
4:22
Speaker 4: to see that in DC on anything, let alone a
4:25
Speaker 4: bill like this, so a lot of people have put
4:28
Speaker 4: real political skin in the game. I think that's starting
4:30
Speaker 4: to bear on the process. I think they're starting to
4:33
Speaker 4: see the sides come together. No one wants to see
4:35
Speaker 4: this thing blow up. And we do have to remember
4:38
Speaker 4: that banks ironically need.
4:41
Speaker 3: The crypto deal.
4:42
Speaker 4: They need to know they need to do something about
4:46
Speaker 4: the genius loophole that they call it so well.
4:48
Speaker 1: I mean, you've been in a DC for what fifteen
4:51
Speaker 1: years or something, thirty thirty Okay, I undersold you there, man,
4:56
Speaker 1: thirty years. Have you ever seen this before where we've
5:01
Speaker 1: seen such especially something that is so evident that the
5:05
Speaker 1: president once done. I mean he goes all the way
5:07
Speaker 1: back into March of last year where he was trying
5:09
Speaker 1: to push this through. That it's taking this long. Is
5:12
Speaker 1: it just because of the power of the banks that
5:14
Speaker 1: has been able to fend this off.
5:17
Speaker 4: I think this has been one of the more unique
5:19
Speaker 4: processes we've seen. I think the reason for that is
5:23
Speaker 4: the policy here is so complex. You have technology policy,
5:28
Speaker 4: legal issues, you have banks and crypto, and the politics
5:32
Speaker 4: there don't divide based on party lines, which is probably
5:37
Speaker 4: the biggest challenge for all of this. It's easier when
5:40
Speaker 4: things fit neatly into Republican Democrat, but right here we're
5:43
Speaker 4: seeing that get really scrambled. I'll tell you this about
5:47
Speaker 4: the kind of DC. Things take a lot longer than
5:51
Speaker 4: people think. They created this model of democracy with conflict
5:57
Speaker 4: in mind. How Senate Republic's Democrat, White House, Congress, courts,
6:03
Speaker 4: et cetera. So it does take long. But I think
6:06
Speaker 4: this is this has been very painful, very very complicated,
6:10
Speaker 4: just given the technical, like the technical details of this,
6:13
Speaker 4: once you get down into the language of the bill,
6:16
Speaker 4: I mean you almost need a computer science degree, analog
6:19
Speaker 4: degree to get through some of this.
6:21
Speaker 2: Yeah, for sure.
6:22
Speaker 1: Do you think this was just a huge misstep by
6:25
Speaker 1: the White House of putting a March first deadline on this?
6:28
Speaker 2: Again, No, I don't.
6:31
Speaker 4: I think deadlines they're often missed in the city, but
6:35
Speaker 4: they're forcing mechanism, and I think it signals from the
6:38
Speaker 4: highest levels that we want something done by this time frame.
6:42
Speaker 3: So I think what that.
6:43
Speaker 4: Deadline did is it got people to the table multiple times,
6:48
Speaker 4: like physically together, which is.
6:50
Speaker 3: An accomplishment in the city.
6:53
Speaker 4: And it also led to a lot of calls downtown
6:56
Speaker 4: amongst banks, amongst crypto because they're was a deadline. So
7:01
Speaker 4: it was a really good forcing mechanism. Was a deadline
7:05
Speaker 4: met No, is it a big deal? Not?
7:07
Speaker 3: In my opinion.
7:08
Speaker 4: I think we're still very very close, and I think
7:10
Speaker 4: without a deadline we probably wouldn't be as close as
7:13
Speaker 4: we were as we are right now.
7:15
Speaker 1: All right, So how close do you think we are?
7:17
Speaker 3: I think within the next two weeks we're going to
7:19
Speaker 3: see something.
7:20
Speaker 2: In March, Okay, all right, I think.
7:22
Speaker 3: In March we see something. Now.
7:25
Speaker 4: I'm not to say it's going to be a deal
7:27
Speaker 4: that everybody likes, but I think it's a.
7:30
Speaker 3: Deal that will be made and try to add.
7:33
Speaker 2: Them at them.
7:34
Speaker 1: You can't say I think it's not going to be
7:36
Speaker 1: a deal that everybody What do you mean by that?
7:39
Speaker 3: I think on one side, you have exchanges which very
7:43
Speaker 3: much want to pay yield on static reserves.
7:46
Speaker 4: And on the other hand, you have banks who don't
7:48
Speaker 4: want them to be able to do that, So something's
7:51
Speaker 4: going to have to give on each side. I don't
7:54
Speaker 4: expect either one to fully win this completely. I think
7:58
Speaker 4: there's going to be concessions made. I'm not sure where
8:01
Speaker 4: the lines are going to be drawn. If there's going
8:03
Speaker 4: to be some permissible payment on some type of balances,
8:08
Speaker 4: not just transactions, which is what's been discussed and what
8:11
Speaker 4: was the basis for the also Brooks Tillis Amendment before
8:15
Speaker 4: the market got pulled last time. So I think we're
8:18
Speaker 4: going to see something that makes the banks partially happy,
8:22
Speaker 4: it makes the exchanges partially happy.
8:25
Speaker 1: That worries me a little bit because that usually means
8:28
Speaker 1: it's going to be some kind of Frankenstein thing that
8:30
Speaker 1: is goofy, you know, for the markets in general. Listen,
8:35
Speaker 1: I saw this come out last week. We did a
8:37
Speaker 1: whole video on it. It was the OCC post and
8:41
Speaker 1: it was reference to the implementing of the Genius Act
8:43
Speaker 1: for issue and some stable coins, and.
8:45
Speaker 2: We read through this.
8:46
Speaker 1: The clarity means that OCC is now reaching further into
8:51
Speaker 1: I guess guidance here. But who who would be telling
8:54
Speaker 1: the OCC to put this out? I mean, this is
8:56
Speaker 1: the office of the Comptroller of the of the government.
8:59
Speaker 4: So the simple answer is Congress is telling him to
9:01
Speaker 4: do it. My sense is they did not want to
9:04
Speaker 4: create the firestorm they have created. I think we're seeing
9:07
Speaker 4: issuers and exchanges alike be extremely confused is putting it lightly.
9:15
Speaker 4: I think very concerned is probably the right word here.
9:18
Speaker 4: That the OCC is going to take the step to
9:20
Speaker 4: close the loophole as it is. I think they looked
9:24
Speaker 4: at that bill, they read the language, and they tried
9:27
Speaker 4: to interpret it.
9:28
Speaker 3: The best they could.
9:30
Speaker 4: I think I expect the comment period to be extremely
9:34
Speaker 4: meaningful here. Under APA, all comments have to be read
9:38
Speaker 4: taken into account in some way. I'd expect. My read
9:43
Speaker 4: on this is I expect some modification when we moved
9:45
Speaker 4: to a final rule here.
9:47
Speaker 3: I don't think.
9:48
Speaker 4: I don't think we're going to see this draft rule
9:50
Speaker 4: end up in final form, is my case?
9:52
Speaker 2: Okay, all right?
9:54
Speaker 1: I mean the timing just seems very interesting, and you're
9:58
Speaker 1: you're saying that it's Congress. I look at it and
10:00
Speaker 1: I'm like, Congress has not been successful in getting anything done.
10:03
Speaker 1: How would they be able to dictate there? I think
10:05
Speaker 1: this is coming in from the White House now, whether
10:07
Speaker 1: it's coming from Sacks or Patrick Witt. I mean timing
10:11
Speaker 1: is like it literally happens the day before. All of
10:13
Speaker 1: this is starting to prove this does not This is
10:16
Speaker 1: not smelling good, Adam, I'm telling you, I hear you.
10:20
Speaker 4: I mean, usually things, usually coincidences don't happen in this city.
10:25
Speaker 4: And the idea that you'd have the National bank Regulator
10:29
Speaker 4: basically take the bank's interpretation of the.
10:32
Speaker 3: Genius Act and put it into a proposed rank.
10:35
Speaker 1: Yes, not buying that one, not buying that.
10:38
Speaker 4: Ye.
10:40
Speaker 1: Dirty pool somewhere is going on there in DC. My
10:43
Speaker 1: question is who is who is the pool master here?
10:46
Speaker 1: That's what I want to know.
10:48
Speaker 4: I mean, you know, the community banks have always been
10:52
Speaker 4: a force. Now, the OCC is not the regulator of
10:55
Speaker 4: community banks. The OCC is national banks, so the bigger,
11:00
Speaker 4: bigger guys. But I will say the political force within
11:03
Speaker 4: the banking industry. And you know I used to work
11:05
Speaker 4: for City Group and was part of all these these
11:09
Speaker 4: trade associations. The community banks are located in every senators state,
11:15
Speaker 4: in every Members of congress hometown. They likely go to
11:19
Speaker 4: barbecues with the members and senators. They've been uh, they've
11:23
Speaker 4: been part of these Members of Congress's community in a
11:27
Speaker 4: real way for a long time, and there's lots of employees.
11:31
Speaker 4: So the community banks have a real tangible grassroots network.
11:36
Speaker 4: A lot of folks in this town say they have one,
11:38
Speaker 4: but they don't. And I would say community banks really
11:42
Speaker 4: really do you These senators and members of Congress, House members,
11:47
Speaker 4: they likely know the presidents of the bank in their
11:51
Speaker 4: in their towns where they live. So there's really strong,
11:54
Speaker 4: deep personal connections. So the community banks are really.
11:58
Speaker 1: Yeah, these guys are all losing a lot of business,
12:02
Speaker 1: not to crypto companies, they're losing it to bigger banks Okay, JP, Morgan, Chase,
12:06
Speaker 1: you name it. Those guys are all starting to you know,
12:09
Speaker 1: kind of coalesce at the top and starting to eat
12:11
Speaker 1: away at that at the regional and especially these community banks.
12:15
Speaker 1: I would think, Adam, that this would give the community
12:18
Speaker 1: banks actually a tool in which they might actually get
12:23
Speaker 1: opportunities to grow, especially around crypto services and being able
12:28
Speaker 1: to hold assets digital assets within these banks. Why would
12:31
Speaker 1: that not be an advantage for them to actually level
12:34
Speaker 1: the playing field.
12:36
Speaker 4: To me, I think the way crypto is going is
12:38
Speaker 4: it looks like a more national type product.
12:41
Speaker 3: So I think if you're going to enter the crypto market.
12:43
Speaker 4: As a bank, I think it feels like the bigger players,
12:47
Speaker 4: the jesibs, the cities, the jp morgans are likely to
12:51
Speaker 4: issue a stable coin or tokenized deposit product and that
12:55
Speaker 4: can cross borders across states national where I think for
13:00
Speaker 4: the community banks, I think they're feeling that they're a
13:04
Speaker 4: much more localized operation.
13:06
Speaker 3: And don't see it now.
13:07
Speaker 4: There have been talks about a consortium stable coin across
13:11
Speaker 4: small and mid size banks that they could accept all.
13:16
Speaker 3: I think there's opportunity there.
13:18
Speaker 4: Deposit flight is already happening to big banks, and we
13:21
Speaker 4: already saw the money market mutual funds scare after two
13:25
Speaker 4: thousand and seven eight where the banks were very concerned
13:28
Speaker 4: that money market mutual funds were going to suck up deposits.
13:32
Speaker 3: That didn't happen either.
13:33
Speaker 1: Though exactly that didn't happen. And you're also looking at
13:36
Speaker 1: banks now performing. I mean, have you seen these earnings
13:40
Speaker 1: coming in in the last year. These earnings are absolutely skyrocketing,
13:43
Speaker 1: and you saw the numbers coming in from Circle this
13:45
Speaker 1: last week. I think that this is an opportunity. And
13:49
Speaker 1: we've had some community banks on our show. We had
13:52
Speaker 1: Vast Bank on three years ago when they were trying
13:55
Speaker 1: to break into crypto and basically got slapped down, you
13:59
Speaker 1: know in the markets. They had to pretty much retrace,
14:03
Speaker 1: you know, literally back out of the crypto market because
14:05
Speaker 1: of what was happening under Biden. Now there's an opening
14:08
Speaker 1: here real for someone like a Vast Bank. This is
14:11
Speaker 1: a little Tulsa bank that was in the process of
14:14
Speaker 1: trying to bring crypto to their customers.
14:16
Speaker 2: That's as community as it gets.
14:18
Speaker 4: The majority of community banks are going to be your
14:20
Speaker 4: bread and butter, checking accounts, savings accounts, and auto and
14:25
Speaker 4: small business loans.
14:27
Speaker 2: I don't see.
14:28
Speaker 1: People flying out of there to go buy a stable
14:31
Speaker 1: caright now and put it on. Those are people that
14:34
Speaker 1: are always going to be banking there.
14:36
Speaker 2: I know those people.
14:37
Speaker 1: You know, my mother is one of those mother in law,
14:39
Speaker 1: so we already see that. Hey, I want to talk
14:43
Speaker 1: about I want to play a clip for you. This
14:44
Speaker 1: is Charles Hoskinson and he's talking about the concern I
14:47
Speaker 1: think that a lot of the crypto community has, and
14:49
Speaker 1: that is in reference to retail investors.
14:52
Speaker 2: Take a look, you know, Brian Armstrong from coinbase is
14:55
Speaker 2: kind of positioning himself to be like like on behalf
14:58
Speaker 2: of retail why did they fight.
14:59
Speaker 5: For the developer protections that we put into the bill
15:02
Speaker 5: for defied developers. In fact, they had incentives to regulate
15:05
Speaker 5: the DeFi products so they don't get competition from the DEXes.
15:08
Speaker 3: And at some point they're the ones that we're going to.
15:09
Speaker 5: Be advocating to ban non custodial wallets and to make
15:12
Speaker 5: every transaction KYC inside the system.
15:15
Speaker 2: They're going to say it, they're going.
15:16
Speaker 3: To push it.
15:17
Speaker 1: I have not been a proponent of what Charles says
15:19
Speaker 1: a lot of times, but when he talks like that,
15:22
Speaker 1: I am a proponent of it because he is trying
15:24
Speaker 1: to protect self custody and then getting into the whole
15:27
Speaker 1: area around DeFi. That concerns me that they're going to
15:31
Speaker 1: try to start to control the code, and we understand
15:34
Speaker 1: where that's going.
15:35
Speaker 2: We've already seen it happen.
15:36
Speaker 1: So how close are we there, adam to any of
15:39
Speaker 1: those things happening now.
15:41
Speaker 4: On unhosted wallets, which I consider kind of the third
15:45
Speaker 4: rail of crypto policy.
15:47
Speaker 3: I feel like we're in a good spot.
15:48
Speaker 4: I don't think anyone is seriously talking about applying the
15:52
Speaker 4: bank seperc act KYCAML two unhosted wallets I think the
15:57
Speaker 4: issue of software developers and code is a live issue,
16:02
Speaker 4: and after stable coin and yield, I would say this,
16:06
Speaker 4: I would say DeFi in general and the protections afforded
16:10
Speaker 4: to software developers is probably the most challenging issue to solve.
16:15
Speaker 4: There's a bill called the Blockchain Regulatory Certainty Act that
16:18
Speaker 4: Tom Emmer wrote and passed the House.
16:22
Speaker 3: That bill would provide a safe.
16:25
Speaker 4: Harbor for software developers against criminal prosecution. That bill is
16:30
Speaker 4: in the base text of the Senate bill right now,
16:33
Speaker 4: and there's hope that that stays in. There's a specific
16:38
Speaker 4: reference that the DeFi industry and most of us in
16:40
Speaker 4: crypto really really support, and that's a reference to a
16:43
Speaker 4: criminal statute, section nineteen sixty of a Justice Department statute
16:51
Speaker 4: that would specifically exempt them from further criminal prosecution for
16:56
Speaker 4: the failure to register with FINSEN. Including the Blockchain Regulatory
17:01
Speaker 4: Certainty Act with a reference to nineteen sixty has become
17:05
Speaker 4: a top tier issue for DeFi and the broader community.
17:09
Speaker 3: The DeFi Education Fund has done a lot of great.
17:11
Speaker 4: Work on this, did a letter with over one hundred
17:14
Speaker 4: signees I think back in August, so we're fighting for that.
17:18
Speaker 4: But I would say that issue is probably the one
17:21
Speaker 4: that's going to be litigated most after Stable Point and Yield.
17:26
Speaker 4: Democrats definitely have a different view of the world on
17:28
Speaker 4: that than Republicans.
17:29
Speaker 1: Hey, do you think that this skirmish with what's happening
17:34
Speaker 1: in Iran right now is going to possibly derail clarity
17:38
Speaker 1: in any way?
17:39
Speaker 3: You know? I don't think so.
17:41
Speaker 4: I mean, the White House has staff devoted to these
17:44
Speaker 4: different spheres.
17:46
Speaker 3: Of policy, so there's an entire.
17:49
Speaker 4: Foreign Affairs National Security group there that's working on all this.
17:54
Speaker 3: Obviously you have the Pentagon as well.
17:56
Speaker 4: I don't see concentric circles where the cryptore world hits
18:00
Speaker 4: at national security in terms of removing personnel, so I
18:04
Speaker 4: expect us to still to.
18:06
Speaker 3: Be able to okay, walk and shoot on at the
18:08
Speaker 3: same time.
18:09
Speaker 4: I mean that said, we're seeing prices move up this
18:12
Speaker 4: morning as a result of that.
18:15
Speaker 3: I think there's a flight to safety here.
18:17
Speaker 4: So we're seeing kind of bitcoin and these other crypto
18:21
Speaker 4: assets kind of maybe form go back to kind of
18:24
Speaker 4: the digital gold narrative perhaps, But I do think we're
18:28
Speaker 4: going to see continued pressure on this irrespective of what's
18:31
Speaker 4: going on in Iran.
18:33
Speaker 1: I really do that worries me a little bit because
18:35
Speaker 1: I look at Rocana's bill that's coming through that could
18:40
Speaker 1: take some heat off of it at a very critical timing,
18:43
Speaker 1: because I think that vote's coming up is just in
18:45
Speaker 1: a couple of weeks. Then you look at this right here,
18:47
Speaker 1: which is a rany and crypto outflow. I mean, this
18:49
Speaker 1: is Senator Warden Warren's wet dream right here. She's gonna
18:54
Speaker 1: love this, She's gonna be pointing at this. I'm surprised
18:58
Speaker 1: we haven't seen it tip already that you know, the
19:01
Speaker 1: bad guys are using crypto to get out of Iran,
19:04
Speaker 1: you know, So do you think this will cause any problems.
19:08
Speaker 3: Now that I do?
19:09
Speaker 4: I mean, there is a narrative from Democrats that crypto
19:14
Speaker 4: is a primary mechanism for illicted.
19:16
Speaker 3: Finance and used by our adversaries.
19:19
Speaker 4: It is not to the extent they say it is,
19:22
Speaker 4: but this will certainly fuel that sort of narrative. We
19:26
Speaker 4: saw this with hamas we've seen this time and time again.
19:29
Speaker 4: The data shows a very very low level use cash
19:33
Speaker 4: and banks still make up the majority of illicit finance flows.
19:37
Speaker 3: That's continued to be the case.
19:39
Speaker 4: But you're right, this is going to be seized upon them.
19:43
Speaker 4: For the very for the very issue that we raised
19:45
Speaker 4: before on that that Blockchain Regulatory Certainty Act and that
19:48
Speaker 4: nineteen sixty provision of people making making technology that can
19:53
Speaker 4: be used by nefarious actors and where's that where's that
19:57
Speaker 4: line of liability fall?
20:00
Speaker 3: So I think this is going to make it harder.
20:03
Speaker 1: Well, just to be right there, Yeah, just to be
20:05
Speaker 1: clear though, what's happening in the outflow of irany of
20:08
Speaker 1: the Iran situation. These are exchanges, so regulated exchanges that
20:13
Speaker 1: have people's money, that are trying to just shore up
20:15
Speaker 1: their position.
20:16
Speaker 2: These are the good.
20:17
Speaker 1: Guys right now out flying. So it's not this is
20:21
Speaker 1: the thing. I'm hoping that maybe that's why we haven't
20:23
Speaker 1: seen the Democrats jump all over this, you know, just yet.
20:25
Speaker 1: Maybe they actually are not paying attention.
20:28
Speaker 3: And as you know, it's it's very clunk. I mean,
20:30
Speaker 3: all of the Iranian wallets are going to be sanctioned,
20:33
Speaker 3: so exactly.
20:34
Speaker 4: The idea that any US regulated entity could be doing
20:39
Speaker 4: business with an Iranian sanctioned wallet, like you know, it's
20:44
Speaker 4: it's hard to.
20:45
Speaker 3: Imagine that occurring.
20:46
Speaker 4: So I can't imagine that they're using bitcoin or something
20:51
Speaker 4: to fund their operations. You never know, I assume they're
20:54
Speaker 4: selling oil and receiving payment in some other mechanism, is my.
20:58
Speaker 1: Guess, maybe selling it, but they're not moving it right
21:01
Speaker 1: now because yeah, so that's under control. Hey, let's go
21:06
Speaker 1: to our lightning round, our rapid round of questions, just
21:09
Speaker 1: to get some analysis on this is our raw, unfiltered take.
21:12
Speaker 1: If the deal is not reached by end of month,
21:14
Speaker 1: now we're in March, crypto market will collapse, yes or no.
21:20
Speaker 3: No.
21:21
Speaker 4: I don't think the majority of the market's following this
21:23
Speaker 4: stuff that closely.
21:24
Speaker 1: I agree Democrats and banks are successfully tricking the industry
21:30
Speaker 1: by stalling. I don't know if the word tricking was right,
21:35
Speaker 1: but they're trying to like.
21:38
Speaker 3: Right. But I think there are some I'm going to
21:41
Speaker 3: go with the maybe.
21:42
Speaker 2: Okay, I'm gonna put you in the maybe market. Okay.
21:46
Speaker 3: I think there are some stall tactics here on both sides.
21:49
Speaker 4: With the elections looming here, the only thing I'd say
21:51
Speaker 4: is banks have an incentive to get some sort.
21:53
Speaker 3: Of deal here to close the loophole.
21:55
Speaker 4: So they want the right thing, They want the right deal,
21:58
Speaker 4: They want the right deal right now, it's wide open.
22:01
Speaker 3: I think Dems do see those elections on the horizon.
22:04
Speaker 1: Public pressure on the banks by this administration and certain
22:09
Speaker 1: crypto companies has been pathetic.
22:17
Speaker 2: You don't have to answer yes, I'll answer yes.
22:21
Speaker 3: I'm going to say no.
22:23
Speaker 4: Okay, I think I think there has been pressure brought
22:26
Speaker 4: on them. I just think this community bank lobby is very,
22:30
Speaker 4: very powerful. I don't want to say there's a movable force,
22:33
Speaker 4: but I think they're tough to.
22:34
Speaker 2: Move, tough to Who do we know at that?
22:38
Speaker 1: Okay, well, we got to start doing a little deeper
22:40
Speaker 1: research on that.
22:41
Speaker 2: For the community banks.
22:42
Speaker 1: David Sachson Witt knew that the US would attack Iran
22:46
Speaker 1: on March first, That's why we started to see some
22:48
Speaker 1: of this activity.
22:49
Speaker 3: What do you think I mean, I got to say
22:52
Speaker 3: a hard no on that.
22:54
Speaker 4: I'd find that hard to believe that anyone outside that interest.
22:57
Speaker 1: I'm kind of in that boat too. I don't think
22:59
Speaker 1: they were in the circle. Henceforward stable coin yield fight
23:04
Speaker 1: should be publicly live streamed. Why are we not seeing
23:07
Speaker 1: these Why are we not seeing these meetings? What's what's
23:11
Speaker 1: to hide? It addresses public needs. It definitely addresses the
23:17
Speaker 1: affordability issue with the United State Americans.
23:22
Speaker 4: I think there's a lot to be said for public
23:23
Speaker 4: disclosure of a lot of these private meetings, I do
23:26
Speaker 4: think keeping them private allows.
23:28
Speaker 3: The parties to be more candid. So I'm going to
23:30
Speaker 3: go with no.
23:31
Speaker 4: I know I sound like an old DC insider here,
23:33
Speaker 4: but and here again, I'm talking about the real negotiation meetings.
23:37
Speaker 4: I think if you did it publicly, people probably wouldn't
23:41
Speaker 4: be able.
23:41
Speaker 3: To say what they want.
23:42
Speaker 4: They'd go back and have regrets, and we probably wouldn't
23:45
Speaker 4: move much.
23:46
Speaker 3: Is my guess.
23:47
Speaker 1: What do the banks have to hide? What does scrypto
23:50
Speaker 1: have to hide?
23:50
Speaker 2: Here?
23:51
Speaker 1: It's just a simple I mean, I understand there are
23:54
Speaker 1: key issues that deal with people's and businesses profits.
23:58
Speaker 2: But I don't know. I think it's you know, open.
24:02
Speaker 1: Is better always there will be no discernible difference between
24:07
Speaker 1: a crypto bank and Wells, Fargo or Chase. And I'm
24:11
Speaker 1: gonna give you a in twelve months. In twelve months,
24:15
Speaker 1: what do you think.
24:17
Speaker 3: I'm going to say?
24:18
Speaker 4: I mean, I'm going to say no, I think there
24:22
Speaker 4: will be definitely a difference.
24:24
Speaker 1: Okay, you think there's going to be a difference, I'm agree.
24:27
Speaker 1: I agree with you. I think you'll see banks that
24:30
Speaker 1: are just like they have always been banks on banks
24:32
Speaker 1: and you know, serving the same customer that they've served
24:35
Speaker 1: for the last seventy years. You know, you're going to
24:37
Speaker 1: have the new guys that come in with nicer products,
24:40
Speaker 1: and they're going to get the kids that probably don't
24:42
Speaker 1: even have a bank account right now, they have a
24:43
Speaker 1: crypto wallet exactly. And or you know businesses and companies
24:48
Speaker 1: that are just so far out there on the edge
24:50
Speaker 1: they barely put anything in the bank. It's all sitting
24:52
Speaker 1: in crypto wallets. So you have those kind of things.
24:55
Speaker 1: Chain Link, though, will ultimately side with the banks to
24:58
Speaker 1: get a bill passed.
25:00
Speaker 3: I'm going to say no on that one.
25:02
Speaker 4: I think the reason is here.
25:06
Speaker 3: We're very much part of the crypto industry and we
25:09
Speaker 3: work with thanks and crypto.
25:12
Speaker 4: I think we'd like, we'd love a deal that satisfies everybody,
25:15
Speaker 4: but we're.
25:17
Speaker 2: Crypto crypto guys. That's good, good to hear.
25:20
Speaker 1: Window for pro crypto Dems to back Clarity is already closed.
25:24
Speaker 1: They cannot run in midterms having supported a bill that
25:28
Speaker 1: enables crypto corruption.
25:31
Speaker 2: Do you think that has I'm going.
25:32
Speaker 4: To say no, but it's extremely close to closing, and
25:36
Speaker 4: I think we have a lot of people on the
25:38
Speaker 4: political side, watching very very carefully close.
25:43
Speaker 3: You've seen some You've seen.
25:44
Speaker 4: Some house races targeted. I think I think the money
25:48
Speaker 4: on the sidelines.
25:49
Speaker 3: Is waiting and seeing what happens here. Ye, so I
25:53
Speaker 3: think they probably had a couple of weeks.
25:55
Speaker 1: Well, that leads me into this question. A couple of
25:57
Speaker 1: weeks you think, okay, all right, that leads me into
25:59
Speaker 1: this question. Crypto industry is wildly overestimating the impact of
26:04
Speaker 1: the fair Shake pack on the next election.
26:07
Speaker 2: Do you think that is the case?
26:08
Speaker 3: I'm going to say no.
26:09
Speaker 4: I mean, I still think sitting at two one hundred
26:12
Speaker 4: and ninety three million in fair Shake, it is a
26:15
Speaker 4: significant pot of money. And what I can see firsthand
26:19
Speaker 4: just in my interaction with people in the conversations I
26:21
Speaker 4: have on the sideline, is that is front and center
26:26
Speaker 4: for those members of Congress that think about campaigns.
26:31
Speaker 3: As a job.
26:33
Speaker 4: So that's that's going to be most House members, it's
26:36
Speaker 4: going to be senators in cycle. The sheer size of
26:41
Speaker 4: that and the willingness of Crypto to spend lots of
26:44
Speaker 4: money in top tier races, I think no member can
26:48
Speaker 4: shy away. I think it's already had effect. I think
26:50
Speaker 4: it'll have it. I think the interesting about fair shake
26:52
Speaker 4: is going to have an effect if the money's spent
26:54
Speaker 4: or not.
26:55
Speaker 1: So taking me into the no, I was a little
26:58
Speaker 1: bit on the fence as to whether not people were,
27:02
Speaker 1: you know, getting over zealous on that this is going
27:05
Speaker 1: to have a big impact. But now you're making me
27:08
Speaker 1: think you're right, and you're agin insider.
27:10
Speaker 4: You know, you know, I've worked for City Group, I've
27:13
Speaker 4: worked for Citing Group, and I've seen crypto. The ability
27:16
Speaker 4: for crypto, particularly founder level, to raise and spend money
27:21
Speaker 4: in the seven figures is unparalleled. I mean, maybe AI
27:25
Speaker 4: is the only other industry, but across industries oil, gas, pharma, banking,
27:30
Speaker 4: no one really comes close to the willingness of people
27:33
Speaker 4: to step up and spend that type of money.
27:35
Speaker 1: Maybe in this mid term they're you know, the radar
27:39
Speaker 1: is up for sure, and they're ready for it. So
27:41
Speaker 1: we'll see last question crypto industry is or no. Let's
27:45
Speaker 1: go to the last question. Last question. After Clarity passes,
27:48
Speaker 1: link token utility might improve.
27:51
Speaker 4: I really can't comment on the link token specifically, but
27:54
Speaker 4: I can talk about.
27:55
Speaker 3: Chain link lips.
27:57
Speaker 2: Okay, all right, I think, yes, I.
27:59
Speaker 3: Think what we're seeing is a broad convergence.
28:01
Speaker 4: I'm with you too, between Track five and DeFi and
28:05
Speaker 4: I think that's going to continue. And I think ets
28:08
Speaker 4: retirement plans, all the folks who are now moving money
28:11
Speaker 4: into crypto, we're moving into a regulated space. I think
28:14
Speaker 4: we're going to see that convergence and chain Link is
28:17
Speaker 4: working with everybody.
28:18
Speaker 3: So I think that's I like it. That's both well.
28:21
Speaker 1: Listen, we've been watching very closely what you guys are doing,
28:24
Speaker 1: what chain Link is doing. We continue to really track
28:27
Speaker 1: some of the bigger projects out there that will most
28:30
Speaker 1: likely have a lot of things that change when clarity
28:34
Speaker 1: is in. It's going to open up the opportunities for
28:37
Speaker 1: them to kind of, you know, elevate beyond maybe anything
28:40
Speaker 1: we can even imagine around some of the new products
28:43
Speaker 1: and services that are to launch. So, Adam, it's been
28:45
Speaker 1: great having you on. Thank you so much for being
28:48
Speaker 1: candid with us.
28:48
Speaker 4: We do appreciate it, definitely, Thank you so much, Paul,
28:51
Speaker 4: really appreciate the time.
29:00
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29:02
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29:06
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