Latest / The Paul Barron Crypto Show / Coinbase Crashes BANKS!!🔥Crypto Clarity Delayed!🚨

Transcript

Coinbase Crashes BANKS!!🔥Crypto Clarity Delayed!🚨 · The Paul Barron Crypto Show

• 0:00
  Speaker 1: Coinbase is crashing the bank's party today. We'll break it
• 0:02
  Speaker 1: down for you. I do want to think our sponsor,
• 0:04
  Speaker 1: and that is Uphold. This is one of the places
• 0:07
  Speaker 1: guys you can out there, actually go out there and
• 0:09
  Speaker 1: get some rewards. And of course, the kind of cool
• 0:11
  Speaker 1: thing is is that we still have rewards because this
• 0:15
  Speaker 1: crappy bill did not make its way through Congress, and
• 0:17
  Speaker 1: we're going to talk all about that. Jump over to
• 0:19
  Speaker 1: uphold dot com. Use our link down below. You're going
• 0:21
  Speaker 1: to be able to get staking rewards. Three hundred different
• 0:24
  Speaker 1: assets available, So check it all out down below. Hit
• 0:27
  Speaker 1: the link. Let's go into a couple of points I
• 0:29
  Speaker 1: want to hit on quickly. Here's Brian Armstrong coming at
• 0:32
  Speaker 1: it hard. After reviewing the Senate Banking Draft next over
• 0:35
  Speaker 1: the last forty eight hours, Coinbase unfortunately can't support the
• 0:38
  Speaker 1: bill as written that was pretty much put on the
• 0:40
  Speaker 1: Senate Banking Committee, and of course the Banking Committee members
• 0:44
  Speaker 1: are pretty pissed about this. Imagine you put all this
• 0:47
  Speaker 1: work in, you put all these little golden eggs into
• 0:50
  Speaker 1: the bill, thinking you've just got it, and then right
• 0:53
  Speaker 1: there somebody says actually reads the bill and says no,
• 0:56
  Speaker 1: which is what happened. Of course, we saw the DeFi
• 0:59
  Speaker 1: Education Fund to Manelli broke it down very well, Amanda,
• 1:03
  Speaker 1: so nice job. She's been on the show before. She
• 1:06
  Speaker 1: went through the act, outlined all the different areas along
• 1:10
  Speaker 1: with the amendments and who was responsible for them. To
• 1:13
  Speaker 1: basically get everyone in crypto in an uproar around how
• 1:18
  Speaker 1: much freedom and liberties this bill would be taking away.
• 1:21
  Speaker 1: So it was a big deal. Elizabeth Warren had to
• 1:24
  Speaker 1: come in and of course do her thirty eight amendments.
• 1:26
  Speaker 1: That's always a good thing. So you can see this
• 1:29
  Speaker 1: was all about the banks from the beginning. Here is
• 1:31
  Speaker 1: CNBC because this is where they're actually blaming coinbase.
• 1:35
  Speaker 2: Take a look, because it felt like we were just
• 1:37
  Speaker 2: oh so close to something happening here and then I
• 1:41
  Speaker 2: don't know if you think that Brian Armstrong pulled the rug.
• 1:44
  Speaker 3: Listen, there was a markup schedule that got pushed, but
• 1:47
  Speaker 3: I'm still pretty optimistic about this. The key here is
• 1:50
  Speaker 3: we've got to have a framework that creates certainty, that
• 1:53
  Speaker 3: allows for the innovation and at the same time keeps
• 1:57
  Speaker 3: our banking industry healthy and.
• 1:59
  Speaker 1: Intactword there, keeps our banking industry healthy and intact. But
• 2:03
  Speaker 1: yet still innovation. Those were in the same sentence. So
• 2:06
  Speaker 1: when you look at where the bank health comes from,
• 2:09
  Speaker 1: well it comes from about six to seven hundred billion
• 2:12
  Speaker 1: in annual deposits, implying a gross interest earned on deposits
• 2:16
  Speaker 1: of around one to one point five trillion dollars. Worldwide,
• 2:20
  Speaker 1: banks now manage over one hundred trillion in deposits, so
• 2:24
  Speaker 1: they have a lot to lose when you have one
• 2:26
  Speaker 1: of the major bills going through Congress in the United States,
• 2:30
  Speaker 1: the biggest financial center in the world. And that's exactly
• 2:33
  Speaker 1: why Armstrong and of course Coinbase and the industry. I
• 2:37
  Speaker 1: feel like the industry was the one that pushed back,
• 2:39
  Speaker 1: and I think Coinbase saw the heat coming and of
• 2:42
  Speaker 1: course positioned accordingly. That's where we are right now. I
• 2:45
  Speaker 1: want to go to another clip here because this is
• 2:47
  Speaker 1: Jim Gramer talking about the banks and their stocks. Take
• 2:50
  Speaker 1: a look and just the last.
• 2:52
  Speaker 4: Two sessions shaping Morgan stock is down more than five percent.
• 2:56
  Speaker 4: Bank of America is off almost six percent, had over
• 3:00
  Speaker 4: four percent also, and Wells Fargo has just been hammerd.
• 3:05
  Speaker 4: So what the heck is called wrong here? I got
• 3:07
  Speaker 4: to tell you it's not the numbers. Most certainly not.
• 3:10
  Speaker 4: You know that the actual numbers were good. I still
• 3:12
  Speaker 4: believe in Wells Fargo longer term. But the stock is
• 3:15
  Speaker 4: finished though. But the stock has to finish going down,
• 3:19
  Speaker 4: and I don't think it is yet, all right.
• 3:21
  Speaker 1: I think Kramer got it wrong here, and that is
• 3:22
  Speaker 1: I think this is smart money that was looking at
• 3:25
  Speaker 1: the banks that were essentially going to get a substance
• 3:27
  Speaker 1: a handout coming through the Clarity Act, and they realized
• 3:30
  Speaker 1: from the tea leaves that were coming in pressure from
• 3:33
  Speaker 1: the industry, this was not going to happen. That's why
• 3:35
  Speaker 1: I think you started to see this in a precursor
• 3:37
  Speaker 1: coming into the stocks. Now Bank of America's earning calls
• 3:41
  Speaker 1: came out, we decided to put the PBN translator on
• 3:45
  Speaker 1: this one. Take a look. Now, move on to Gerard
• 3:49
  Speaker 1: Cassidy with RBC.
• 3:50
  Speaker 5: Number Antony alistair Hi there can you guys share with
• 3:54
  Speaker 5: us as we want to talk about stable coin deposits.
• 3:58
  Speaker 5: If the Meaning Congress, if they're not successful in closing
• 4:02
  Speaker 5: that loophole, what's kind of the impact that you guys
• 4:05
  Speaker 5: are thinking that could happen from this trend in stable
• 4:09
  Speaker 5: coin deposits.
• 4:12
  Speaker 6: So I think I would not look, we'll be fine,
• 4:17
  Speaker 6: you know, we'll have to We'll meet the customer demand
• 4:20
  Speaker 6: whatever may surface, and so I don't worry about it. I
• 4:26
  Speaker 6: think it affects the course of history of Bank of America. No,
• 4:29
  Speaker 6: will be competitive.
• 4:30
  Speaker 5: Very good, thank you, Brian. The industry it appears to
• 4:33
  Speaker 5: be setting up very well with deregulation, steepening yield curve,
• 4:37
  Speaker 5: you know, as bank insts. It seems like the worry
• 4:40
  Speaker 5: now is there aren't many worries out there, are there?
• 4:44
  Speaker 5: What do you guys focus on just to keep an
• 4:46
  Speaker 5: eye on in case something goes off the rails or something.
• 4:49
  Speaker 6: So don't be a commudgeon there, I agree today.
• 4:56
  Speaker 1: All right, So off the rails, I think is where
• 4:58
  Speaker 1: we are right now. The Bank's course didn't not get
• 5:00
  Speaker 1: their way on what we're seeing out of clarity, and
• 5:02
  Speaker 1: of course that started to open up a lot of
• 5:04
  Speaker 1: things around the future of this. It's another interesting point
• 5:09
  Speaker 1: is that Senators continue to kind of go in this direction.
• 5:12
  Speaker 1: And here is another example of this as they try
• 5:14
  Speaker 1: to explain stable coins. Take a look.
• 5:16
  Speaker 2: So this is what Brian Armstrong says that he's raising
• 5:19
  Speaker 2: his objections over the first is he believes that this
• 5:23
  Speaker 2: effectively would erode the CFTC's authority, making it, as he says, quote,
• 5:27
  Speaker 2: subservient to the SEC. The second is he believes that
• 5:30
  Speaker 2: that gives the government quote unlimited access to investors' financial records.
• 5:35
  Speaker 2: And the third pieces that he believes that this draft
• 5:38
  Speaker 2: amendment effectively would kill what's called rewards on stable coins.
• 5:43
  Speaker 2: How would all of that be overcome.
• 5:45
  Speaker 3: By having rewards that incent people to adopt crypto, but
• 5:49
  Speaker 3: doing that in a way that doesn't disadvantage banks where
• 5:54
  Speaker 3: there's a significant outflow of deposits, and to create an
• 6:00
  Speaker 3: environment where there's adequate competition.
• 6:02
  Speaker 1: Adequate competition with the banks. I like that. That's another
• 6:06
  Speaker 1: good one. And of course they understand this. The cool
• 6:09
  Speaker 1: thing here is they're saying it out in the open.
• 6:11
  Speaker 1: They understand where this is going. And I think this
• 6:14
  Speaker 1: is going to be an issue that we are going
• 6:16
  Speaker 1: to be faced with here for a little bit at
• 6:18
  Speaker 1: least until the corrections get made in this bill that
• 6:21
  Speaker 1: most likely will come through a little bit later. Here's
• 6:23
  Speaker 1: another clip. This is Sorkin's horrendous framing against coinbase.
• 6:27
  Speaker 2: Take a look, Santer, do you think that Brian Armstrong
• 6:30
  Speaker 2: and coinbase have too much power. It's unusual that that
• 6:34
  Speaker 2: sort of one constituency was able to maybe change the dynamic,
• 6:39
  Speaker 2: you know, in a day.
• 6:42
  Speaker 1: Here's the difference Coinbase has. It's not that they have
• 6:46
  Speaker 1: the power. It's actually you guys. You guys have the power.
• 6:49
  Speaker 1: It's not Coinbase. Coinbase is the conduit of a very
• 6:53
  Speaker 1: vocal industry and that is what got this thing moved
• 6:56
  Speaker 1: in the position it was. Obviously crypto x played a
• 6:59
  Speaker 1: huge part in this. But if you look at the
• 7:01
  Speaker 1: updated just this is a table right here of the
• 7:03
  Speaker 1: lobbies Okay, banks and finance around five hundred million in lobbying.
• 7:09
  Speaker 1: You look at Coinbase two point nine and this is
• 7:12
  Speaker 1: up to twenty five million on the fair shake seventy
• 7:14
  Speaker 1: five if you go on the high end, including other
• 7:18
  Speaker 1: you know, I won't call it dark money, but just
• 7:20
  Speaker 1: other ways of getting cash into it still one fifth
• 7:25
  Speaker 1: size of the banking lobby. And that I think is
• 7:27
  Speaker 1: the big difference here. Again, it is not Coinbase as
• 7:30
  Speaker 1: much as it is the crypto community. That's the point
• 7:34
  Speaker 1: that I think Sorkin does not understand. This is very
• 7:37
  Speaker 1: powerful community, not only in the way of investing, but
• 7:40
  Speaker 1: the amount of companies that it reflects on all right,
• 7:43
  Speaker 1: So there were a lot of companies that had legitimate
• 7:45
  Speaker 1: points that were coming out in support of what was
• 7:49
  Speaker 1: going on. The key here is the timing. They gave
• 7:52
  Speaker 1: it forty eight hours for this markup to come out,
• 7:55
  Speaker 1: and I think a lot of people didn't get a
• 7:57
  Speaker 1: chance to fully digest what was being present to them,
• 8:00
  Speaker 1: and it took some time for that to get through.
• 8:02
  Speaker 1: Here was Brad Garlinghouse hitting on this clarity beats chaos.
• 8:06
  Speaker 1: I would agree with that, but I disagree with all
• 8:08
  Speaker 1: the things they were putting at. Here's Vlad ten f
• 8:10
  Speaker 1: Of course stock tokens are available to our customers in
• 8:13
  Speaker 1: the EU, but not in our whole market. He wanted
• 8:16
  Speaker 1: that to get done. Of course you had our June
• 8:19
  Speaker 1: coming in and he kind of hit on it right here.
• 8:21
  Speaker 1: What's a stake if we don't resolve is and we
• 8:23
  Speaker 1: come to the table worse than giving foreign adversaries. We're
• 8:26
  Speaker 1: seeing all sorts of countries now starting to align to
• 8:30
  Speaker 1: compete in this area. Begins again. The United States has
• 8:34
  Speaker 1: dragons its feats because of special interest. That's all. It
• 8:37
  Speaker 1: boils down to special interest slowing down innovation for what
• 8:42
  Speaker 1: the hundredth time, the umpteenth time. We're going to go
• 8:45
  Speaker 1: a little bit further into this, because this was coinbase
• 8:48
  Speaker 1: revealing how much BS they actually found.
• 8:51
  Speaker 5: Tike.
• 8:51
  Speaker 7: Look, I'll give you one example. There's a there's language
• 8:55
  Speaker 7: and that effectively locks the SEC's hands and prevents from
• 8:59
  Speaker 7: taking the steps necessary to allow the tokenization of equity markets.
• 9:03
  Speaker 7: I think that would be a big mistake. I'm not
• 9:05
  Speaker 7: sure who would support that, but somehow it's in the
• 9:08
  Speaker 7: bill text. And so on the AML side, if you
• 9:11
  Speaker 7: have a peer to peer transaction, you and I want
• 9:13
  Speaker 7: to engage in a transaction that can't be a built
• 9:15
  Speaker 7: in presumptive surveillance layer that the government imposes. We don't
• 9:20
  Speaker 7: have that in traditional payments. If you and I transact,
• 9:23
  Speaker 7: if I mow your lawn and you give me twenty dollars,
• 9:25
  Speaker 7: the government has no presumptive right of surveillance, and we
• 9:28
  Speaker 7: need to make sure that on the BSA stuff we
• 9:30
  Speaker 7: don't build that kind of presumption.
• 9:33
  Speaker 1: All right, So they were starting to call bluff pretty heavily,
• 9:36
  Speaker 1: and I thought this was coming interesting because it came
• 9:39
  Speaker 1: out of the Banking and Housing and Urban Affairs and
• 9:42
  Speaker 1: it was one of the statements that they point out
• 9:44
  Speaker 1: as fact, the bill is not does the opposite of
• 9:47
  Speaker 1: targets elicit activity while protecting here's the word lawful software
• 9:52
  Speaker 1: development and innovation, protecting lawful meaning apparently there's unlawful speech.
• 9:59
  Speaker 1: That's the point we're getting at right there, and this
• 10:01
  Speaker 1: is the issue that we're going to be dealing with,
• 10:03
  Speaker 1: I think for some time. Here was another expost of course,
• 10:05
  Speaker 1: coming in from Senator Loomis, and of course she says
• 10:08
  Speaker 1: that she's extremely disappointed here. Why would you be disappointed
• 10:13
  Speaker 1: that we actually dodged a bullet here for the industry,
• 10:16
  Speaker 1: I think this is showing that they are continuing to
• 10:19
  Speaker 1: support the wrong characters overall. Another ex post here is
• 10:24
  Speaker 1: Ryan Rasmussen coming in from bit Wise. They of course
• 10:27
  Speaker 1: pivoted on this again to come in and say, no,
• 10:30
  Speaker 1: this is not good. Current draft of clarity is bad
• 10:33
  Speaker 1: for all of these things, and it is so you know,
• 10:36
  Speaker 1: us kind of coming out I think we were maybe
• 10:38
  Speaker 1: one of the first out there to say this was
• 10:40
  Speaker 1: absolutely a bad bill and get away from it. Protect
• 10:43
  Speaker 1: the yields was kind of the cornerstone of it. But
• 10:46
  Speaker 1: yet all this other stuff started to surface as more
• 10:48
  Speaker 1: analysts started to look at this, other things that I
• 10:51
  Speaker 1: want to kind of get in on here, guys, because
• 10:53
  Speaker 1: I don't understand this data. This is a report of
• 10:57
  Speaker 1: only twelve percent believe the government should stop consumers from
• 11:01
  Speaker 1: earning rewards. Who are these twelve percent the thing the
• 11:06
  Speaker 1: government should stop, you know, consumers from earning reward. I
• 11:10
  Speaker 1: don't know where this state it comes from, but this
• 11:12
  Speaker 1: is crazy. On the opposite side of this, there was
• 11:15
  Speaker 1: an extreme interest and popularity of earning yields, especially in
• 11:19
  Speaker 1: this affordability crisis that we're in. So coinbase went out
• 11:22
  Speaker 1: and did a TikTok campaign. Take a look at this one.
• 11:26
  Speaker 6: A new fight is brewing in Congress between crypto and
• 11:28
  Speaker 6: traditional finance, and it would eliminate reward benefits from millions
• 11:31
  Speaker 6: of Americans.
• 11:32
  Speaker 5: Oh, it's time to fight back.
• 11:35
  Speaker 3: It is Does its stand with crypto dot org to
• 11:37
  Speaker 3: call your senator and make your voice heard?
• 11:40
  Speaker 4: Yeah?
• 11:40
  Speaker 7: Sama, Crypto's extraordinary. I think their campaign has been going
• 11:43
  Speaker 7: on for maybe two days, three days, and I think
• 11:45
  Speaker 7: the number is actually two hundred and fifty thousand contacts
• 11:48
  Speaker 7: have been made with Senate offices, so emails, phone calls.
• 11:51
  Speaker 7: So you've had a number of bank CEOs calling their
• 11:53
  Speaker 7: senators and kind of using their influence to try to
• 11:56
  Speaker 7: get their way in this process. But at the same time,
• 11:59
  Speaker 7: you've had several hundred thousand Americans step up and say
• 12:02
  Speaker 7: they want a fare more democratized financial system. So we
• 12:06
  Speaker 7: feel very good about the public speaking up. And the
• 12:09
  Speaker 7: question is whether the Senate legislation ultimately reflects the interests
• 12:13
  Speaker 7: of the incumbent interests or the interests of the American public.
• 12:17
  Speaker 1: You know, I'm kind of a little upset with you guys.
• 12:20
  Speaker 1: Two hundred and fifty thousand. That was all we could
• 12:23
  Speaker 1: muster to get in and actually do something. Make a
• 12:26
  Speaker 1: call to your senator, let them know where you stand.
• 12:29
  Speaker 1: Come on, go over there, stand with crypto right there.
• 12:32
  Speaker 1: You can protect your rewards, that's the number one. It's
• 12:34
  Speaker 1: the easy one, as well as your financial freedoms now
• 12:37
  Speaker 1: because we're starting to unveil so many of those. But
• 12:39
  Speaker 1: you guys can of course do that over on standwcrypto
• 12:42
  Speaker 1: dot org. There is not a paid campaign by coinbase.
• 12:45
  Speaker 1: In fact, we are out there trying to help you
• 12:47
  Speaker 1: guys understand that this is the next generation of finance.
• 12:50
  Speaker 1: You're the ones that can protect it, So do it.
• 12:53
  Speaker 1: Let's get started. One of the last question that I
• 12:56
  Speaker 1: had was really what happens to the bill NeXT's a
• 13:00
  Speaker 1: clip that kind of explains.
• 13:01
  Speaker 8: So what comes next. Well, as the Senate Banking Committee
• 13:05
  Speaker 8: was passing their draft this week, the Senate Agricultural Committee
• 13:08
  Speaker 8: postponed its hearing, which was scheduled for tomorrow, with its
• 13:12
  Speaker 8: chair citing a need for more time. These two versions,
• 13:16
  Speaker 8: one from the Banking Committee and one from the Egg Committee,
• 13:19
  Speaker 8: will need to be reconciled before heading to a full
• 13:22
  Speaker 8: Senate vote. Once that's done, lawmakers will need to decide
• 13:26
  Speaker 8: how to move forward with the House version the Digital
• 13:28
  Speaker 8: Asset Market Clarity Act, which was passed earlier in the summer,
• 13:32
  Speaker 8: and then at the end one final bill will need
• 13:35
  Speaker 8: to go through both the House and the Senate before
• 13:38
  Speaker 8: landing on President Trump's desk to be signed. So while
• 13:41
  Speaker 8: the finish line may be in sight, there is still
• 13:44
  Speaker 8: a ways to.
• 13:44
  Speaker 1: Go, all right, So you can see it's it's definitely
• 13:48
  Speaker 1: in question right now. As we look at polymarket, the
• 13:52
  Speaker 1: dump from yesterday January fifteenth, and then all the way
• 13:55
  Speaker 1: down to around forty five percent as we are floating
• 13:59
  Speaker 1: at right now. Well, as you can see, there's a
• 14:01
  Speaker 1: lot of complexities always with the Senate ad side, they're
• 14:04
  Speaker 1: bill much more simplistic. All of these changes that we're
• 14:08
  Speaker 1: coming in from the Senate and what we're seeing now
• 14:11
  Speaker 1: that was really trying to be an ambush I think
• 14:14
  Speaker 1: on the crypto industry that of course, is all now
• 14:16
  Speaker 1: being pushed in. We could see this thing stretch into April.
• 14:20
  Speaker 1: It's very possible. So the key thing to do right
• 14:24
  Speaker 1: now is stay diligent, don't give up the ship. If
• 14:33
  Speaker 1: you like this video, like and subscribe, drop a comment
• 14:36
  Speaker 1: down below, and also join our free private member group.
• 14:40
  Speaker 1: The link is in the description.