Latest / The Paul Barron Crypto Show / Banks OUTPLAYED Crypto🚨CLARITY's September Vote Too Late?💥Anchorage Digital INTERVIEW

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Banks OUTPLAYED Crypto🚨CLARITY's September Vote Too Late?💥Anchorage Digital INTERVIEW · The Paul Barron Crypto Show

• 0:00
  Speaker 1: The banks of one again and that of course is
• 0:02
  Speaker 1: happening in DC all around. Clarity today will break it
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• 0:45
  Speaker 2: Just to get started.
• 0:46
  Speaker 1: I want to lead off before I bring on our guest,
• 0:48
  Speaker 1: Kevin Weisaki coming in from Anchorage Digital. I want to
• 0:52
  Speaker 1: lead off with this clip that kind of puts things
• 0:55
  Speaker 1: in perspective.
• 0:56
  Speaker 2: Take a look.
• 0:57
  Speaker 3: I'm having a beer. Why because today is a good day.
• 1:01
  Speaker 3: The good guys, won.
• 1:02
  Speaker 1: I teamed up with Indivisible and Americans for Financial Reform
• 1:06
  Speaker 1: and together we beat the corrupt crypto bill, the Clarity Act, a.
• 1:09
  Speaker 3: Few months ago.
• 1:10
  Speaker 2: The odds of it passing, we're seventy five percent. Now
• 1:13
  Speaker 2: it's dead. In fact, we beat it.
• 1:15
  Speaker 1: So bad they didn't even bring it up for a vote.
• 1:18
  Speaker 3: Cheers, all right.
• 1:21
  Speaker 1: So, and that, of course is Ben McKenzie has been
• 1:23
  Speaker 1: one of the actors that have been out there pushing
• 1:27
  Speaker 1: on this for quite some time, and I do say
• 1:28
  Speaker 1: that is as an actor for the industry. So I
• 1:32
  Speaker 1: wanted to bring on Kevin Weisaki to kind of talk
• 1:34
  Speaker 1: about this and take a look at the current situation.
• 1:38
  Speaker 2: Kevin, So, welcome back into the show. How are you.
• 1:40
  Speaker 3: I'm doing well. Thank you for having me. Paul.
• 1:42
  Speaker 1: Okay, so, last time we were on, you were very
• 1:46
  Speaker 1: pro this is going to happen. We are going to
• 1:48
  Speaker 1: see it. It's going to go through. Things didn't turn
• 1:51
  Speaker 1: out that way. Obviously. We are now seeing some pretty
• 1:56
  Speaker 1: I think interesting fallout within the industry and also I
• 1:59
  Speaker 1: think a lot of confused usion around that.
• 2:01
  Speaker 2: So we want to clear that up today.
• 2:03
  Speaker 1: I want to start off, first of all, what do
• 2:08
  Speaker 1: you feel in terms of how this landed for the Republicans,
• 2:13
  Speaker 1: if you look at Brendan Peterson, he.
• 2:14
  Speaker 2: Kind of hit it right here.
• 2:16
  Speaker 1: He says, hey, listen the community bankers who urged center
• 2:19
  Speaker 1: Republicans to slow down the Clarity Act, You'll notice that
• 2:22
  Speaker 1: it actually boiled down.
• 2:23
  Speaker 2: This was Brad.
• 2:24
  Speaker 1: Bolton, one of the CEOs of a small community bank
• 2:27
  Speaker 1: that came in and it was basically him saying, hey,
• 2:30
  Speaker 1: it took community bankers like me out of the middle
• 2:32
  Speaker 1: of nowhere, telling senators this is the real effect of it.
• 2:37
  Speaker 1: These were kind of the last ditch efforts of what
• 2:39
  Speaker 1: the banking industry was able to successfully do to get
• 2:43
  Speaker 1: this delayed.
• 2:44
  Speaker 2: First of all, what is your response on that?
• 2:47
  Speaker 1: Obviously that was effective, But do you think there's more coming?
• 2:52
  Speaker 4: I think it's still a little bit early. Right there's
• 2:54
  Speaker 4: a good chance we're going to get a vote on
• 2:55
  Speaker 4: this in September. The banks ironically need the Clarity Act
• 3:01
  Speaker 4: to pass right now. Basically, yield on stable coins through
• 3:05
  Speaker 4: genius is the law of the land, and any third
• 3:07
  Speaker 4: party can provide it. I think it's premature to say
• 3:10
  Speaker 4: that this is over. I think it's premature to say
• 3:12
  Speaker 4: either side is one I also think it's really interesting
• 3:15
  Speaker 4: in the marketplace where you're seeing the number of banks
• 3:17
  Speaker 4: actually get into the space through stable coins and certainly
• 3:20
  Speaker 4: tokenis deposits. So it's good's this isn't over and there's
• 3:25
  Speaker 4: a little bit more to be written on this, and
• 3:27
  Speaker 4: it'll be interesting to see how it all plays out well.
• 3:30
  Speaker 1: Of course, one thing you could consider right now is
• 3:32
  Speaker 1: that bureaucratic rules will start to make their way into
• 3:36
  Speaker 1: crypto because of non clarity that could come from the SEC.
• 3:41
  Speaker 2: But if you look at that.
• 3:43
  Speaker 1: I mean, Kevin, wouldn't you agree that the banks have
• 3:45
  Speaker 1: been pretty much the best in the game at being
• 3:49
  Speaker 1: able to manipulate how rules are written from a lot
• 3:52
  Speaker 1: of our bureaucrats, won't they be able to come in
• 3:54
  Speaker 1: and kind of force their own way through of getting
• 3:57
  Speaker 1: their way in the way of rule making versus in
• 4:00
  Speaker 1: the way of how Congress is trying to set this up.
• 4:03
  Speaker 4: I definitely have a lot of influence. But I think
• 4:06
  Speaker 4: even with the Genius Act right, there's going to be
• 4:07
  Speaker 4: a rulemaking unyield. I think because the lower bright they're
• 4:10
  Speaker 4: not going to be able to change that. It's still
• 4:13
  Speaker 4: going to be limited. They're not going to be able
• 4:15
  Speaker 4: to restrict yield.
• 4:16
  Speaker 3: So I don't know.
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  Speaker 4: I think it's to be determined here. They do have influence,
• 4:21
  Speaker 4: but you look at some of the big fronts right
• 4:23
  Speaker 4: now on banks and crypto, whether it's access to fed
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  Speaker 4: Master accounts, whether it's occ charters, whether it's stable cooin, yeald,
• 4:32
  Speaker 4: there's been a lot of success by the digital asset
• 4:34
  Speaker 4: community on all those fronts. So I don't have the
• 4:38
  Speaker 4: doom and gloom that some people have over this. I
• 4:41
  Speaker 4: think it's still early enough where we can write this ship.
• 4:44
  Speaker 4: And again, like I think the banks really need the
• 4:46
  Speaker 4: Clarity Act if they're concerned about yield.
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  Speaker 2: All right, Well, okay, so I can't.
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  Speaker 1: I can't quite get my head around this because they
• 4:54
  Speaker 1: have been fighting so hard and it's kind of even
• 4:57
  Speaker 1: evident right here. This was in reference to Mike Rounds,
• 5:01
  Speaker 1: who was kind of interesting because the statement here we
• 5:05
  Speaker 1: ask Senator Mike Rounds this morning that what bankers need
• 5:10
  Speaker 1: to appeel so strong they know us, and Rounds kind
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  Speaker 1: of when in each of us knows the people personally,
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  Speaker 1: So this gets into a very personal situation with many
• 5:21
  Speaker 1: of these lawmakers. The bankers seem to have kind of
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  Speaker 1: the inside track not only to what's happening in the
• 5:27
  Speaker 1: local communities. They have the inside track on how to
• 5:30
  Speaker 1: attach to the bigger senators that have kind of led
• 5:33
  Speaker 1: the charge, and that means Warren Diego's senator, also Brooks,
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  Speaker 1: many of which kind of have been in this position before.
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  Speaker 1: I just don't know if, based on what I'm seeing
• 5:43
  Speaker 1: right now, if this actually goes to a vote, because
• 5:48
  Speaker 1: right now, explain to me what happens when they come back,
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  Speaker 1: because my understanding that this is just a cloture vote, right,
• 5:54
  Speaker 1: not a vote on clarity, just a cloture vote.
• 5:57
  Speaker 3: That's exactly right.
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  Speaker 4: It's a procedural vote to get on to discerning whether
• 6:02
  Speaker 4: or not the Senate will actually ultimately pass this bill.
• 6:04
  Speaker 3: So it's a procedural vote that just kicks us off.
• 6:06
  Speaker 3: But you need sixty votes.
• 6:08
  Speaker 4: So right now, I mean you need at least ten Democrats.
• 6:11
  Speaker 4: You might need more because they are about seven or
• 6:13
  Speaker 4: eight Republicans that may not be in favor of this
• 6:15
  Speaker 4: legislation at this moment. But I want to point out
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  Speaker 4: right the biggest thing here is ethics. Right yield is
• 6:22
  Speaker 4: getting a lot of attention right now. But if we
• 6:24
  Speaker 4: can get to a bipartisan agreement on ethics. That's what
• 6:28
  Speaker 4: really opens the door for us to consider this legislation again.
• 6:31
  Speaker 4: Without the ethics deal, I don't think you can get
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  Speaker 4: to sixty yield. I actually think there are a couple
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  Speaker 4: of Senators that are definitely hearing out their constituents talking
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  Speaker 4: through this, saying it might not be exactly what they want.
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  Speaker 4: But if all of a sudden you have a by
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  Speaker 4: Parson ethics deal, I could see some of these senators
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  Speaker 4: that have expressed concern maybe coming back over to support
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  Speaker 4: clarity without any changes on yield. I've talked to a
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  Speaker 4: senator also Brooks office, right key negotiator on the Democrats
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  Speaker 4: side for that yield provision and clarity, and they made
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  Speaker 4: it very clear that they don't want to open this
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  Speaker 4: back up.
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  Speaker 3: Now.
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  Speaker 4: There are a handful of senators Republican and Democrats that
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  Speaker 4: are considering it, but I don't know that they have
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  Speaker 4: a majority yet at this point.
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  Speaker 1: All right, So if they don't, okay, So that's the
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  Speaker 1: question right now, because I think the issue is being
• 7:14
  Speaker 1: able to get to that sixty And I don't know
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  Speaker 1: how to trust these guys because you know, we've been
• 7:19
  Speaker 1: watching this for months, almost eighteen months now really following
• 7:23
  Speaker 1: it very closely full research. We've probably interviewed more people
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  Speaker 1: on this topic than anybody maybe in the world in
• 7:32
  Speaker 1: terms of how this potentially will play out. And one
• 7:35
  Speaker 1: of the things that keeps haunting me is the way
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  Speaker 1: that our lawmakers will promise something and even to the
• 7:41
  Speaker 1: point of where they were saying, hey, we're going to
• 7:43
  Speaker 1: stay late, we're going to you know, extend our session,
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  Speaker 1: and we're going to get this across the line, and
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  Speaker 1: then they end up going with a voice vote to
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  Speaker 1: actually leave Congress and not get this underway last minute.
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  Speaker 2: Thoon throws this.
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  Speaker 1: On the cloture for possibly getting on the docket in September.
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  Speaker 1: These are the kind of tactics that I'm I didn't anticipate.
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  Speaker 2: Well I should have anticipated.
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  Speaker 1: But I didn't as actually see them playing out the
• 8:09
  Speaker 1: way they are right now. Let's assume that we go
• 8:12
  Speaker 1: back in September and they go into a situation on
• 8:17
  Speaker 1: that first day, what are the true options that they
• 8:21
  Speaker 1: can get into, because my understanding, there's like five different
• 8:23
  Speaker 1: things that can actually occur here other than just a vote.
• 8:29
  Speaker 4: Well, one of the good things is that before the
• 8:32
  Speaker 4: Senate left, they got through a lot of the Senate nominations.
• 8:34
  Speaker 4: They got through the Russian sanction, so that clears uptime
• 8:36
  Speaker 4: in September.
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  Speaker 3: Now there are other issues going on.
• 8:39
  Speaker 4: They have NBAA, they have the NIL deal, they might
• 8:43
  Speaker 4: do reconciliation three point zero, and of course clarity. So
• 8:46
  Speaker 4: that's roughly four things that are kind of on the
• 8:48
  Speaker 4: dock at for September. I really, Paul, I really think
• 8:53
  Speaker 4: that's like, if we're going to get a bill across
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  Speaker 4: the finish line, we need to buy partisan ethics deal.
• 8:58
  Speaker 4: And it doesn't so much better matter what's in it.
• 9:01
  Speaker 4: What matters is there are enough Democrats that support it.
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  Speaker 4: I think the yield issue, I think the Blockchain Regulatory
• 9:07
  Speaker 4: Certainty Act, some of the illicit finance finance issues, some
• 9:11
  Speaker 4: of the agriculture text issues, I think those are all secondary.
• 9:17
  Speaker 4: So I think there's actually a lot of pressure right
• 9:19
  Speaker 4: now to figure out a deal on that, and if
• 9:21
  Speaker 4: that can't be done, then I don't think we're going
• 9:25
  Speaker 4: to get the bill. So it really to me comes
• 9:28
  Speaker 4: down to ethics, and I think what we're going to
• 9:30
  Speaker 4: see in the not so distant future is some of
• 9:32
  Speaker 4: these agencies coming out with rulemakings on crypto very pro
• 9:35
  Speaker 4: crypto rulemaking. Obviously the administration has done a ton of
• 9:38
  Speaker 4: that with the various agencies.
• 9:39
  Speaker 3: But I think that's going to happen on steroids soon,
• 9:42
  Speaker 3: all right, So.
• 9:43
  Speaker 1: A couple of things to line it up for our audience.
• 9:45
  Speaker 1: September fifteenth is when they returned. That's when you know
• 9:48
  Speaker 1: Thune is kind of ear marked this to potentially go
• 9:51
  Speaker 1: in and remember this date is a vote for a vote.
• 9:55
  Speaker 1: It's simply just to say, you know, negotiations are over.
• 9:58
  Speaker 1: I guess they have agreed the negotiations are over and
• 10:01
  Speaker 1: that they would put this up for a vote. So
• 10:03
  Speaker 1: how are they negotiating anything with all of these senators
• 10:07
  Speaker 1: out of d C?
• 10:08
  Speaker 2: Now?
• 10:09
  Speaker 1: I mean you would assume that most of this stuff
• 10:11
  Speaker 1: is being done in person. I would think, how would
• 10:14
  Speaker 1: they be negotiating anything right now?
• 10:16
  Speaker 3: Yeah, it's a good question.
• 10:18
  Speaker 4: A lot of this is done at the staff level,
• 10:20
  Speaker 4: right it's Patrick from the White House. It's a key
• 10:24
  Speaker 4: staff for Senator Lovez Shumer having conversations, negotiating trade associations
• 10:33
  Speaker 4: working on this legislation. Also various companies weighing in on
• 10:38
  Speaker 4: it as well, So a lot still happens during the
• 10:41
  Speaker 4: August recess it's a bit of a misnomer calling it
• 10:43
  Speaker 4: a recess in my opinion. Staff are usually still there
• 10:47
  Speaker 4: and are they're pretty busy. So they're going to work
• 10:50
  Speaker 4: on this over the August recess and again hopefully we
• 10:53
  Speaker 4: can get a bipartisan deal on ethics.
• 10:57
  Speaker 2: What do you think the odds are right now? I mean,
• 10:59
  Speaker 2: if you look at it to I mean there's.
• 11:00
  Speaker 1: Been a little bit of movement right here on clarity,
• 11:02
  Speaker 1: actually quite a bit of a spike. This is the
• 11:04
  Speaker 1: one week from that low right there of about fourteen percent,
• 11:07
  Speaker 1: it's spiked up.
• 11:09
  Speaker 2: Why is that?
• 11:12
  Speaker 4: Well, I think it's all or nothing. Right, You're either
• 11:15
  Speaker 4: going to get a bill or you don't. And if
• 11:17
  Speaker 4: it truly is the ethics issue, that's the lynchpin to
• 11:20
  Speaker 4: force a vote where that's tough on the Democrats. I
• 11:24
  Speaker 4: like those odds if we get that, so I would
• 11:27
  Speaker 4: say without an ethics deal, it's it's probably zero. If
• 11:31
  Speaker 4: you get an ethics deal, I think you're at seventy
• 11:33
  Speaker 4: five percent.
• 11:35
  Speaker 3: Right. It really hinges on that. Yeah, everything is.
• 11:39
  Speaker 1: Hasn't the White House already come back and said that
• 11:42
  Speaker 1: with the Gagos provisions that they had agreed to that
• 11:46
  Speaker 1: second round of ethics. Hasn't that already been somewhat agreed upon.
• 11:52
  Speaker 4: I don't think they've agreed to the tillis Diego text,
• 11:57
  Speaker 4: and they've been relatively quiet. It would be great, though,
• 12:01
  Speaker 4: if if both sides continue to work on it and
• 12:04
  Speaker 4: they came to a resolution. I don't know that they
• 12:06
  Speaker 4: will for certain, and that's why I think you're going
• 12:08
  Speaker 4: to see a lot more activity at the agencies in
• 12:10
  Speaker 4: the near future.
• 12:12
  Speaker 3: We still might have a vote.
• 12:13
  Speaker 4: In the set of the culture vote, like the vote
• 12:15
  Speaker 4: to vote, like you said, but I would expect that
• 12:17
  Speaker 4: to fail if there's not an ethics thing I think.
• 12:19
  Speaker 4: I think from the Democrat offices I've spoken with, they're
• 12:22
  Speaker 4: thinking about it in this way. So they're like, look,
• 12:24
  Speaker 4: we have a various constituencies. Some of them are very
• 12:28
  Speaker 4: anti Trump. Trump allegedly has made a lot of money
• 12:31
  Speaker 4: off of digital assets. They're that constituency doesn't like it.
• 12:35
  Speaker 4: They're not going to do anything that is perceived supporting Trump.
• 12:38
  Speaker 4: So they feel that their hands are tied. They can't
• 12:40
  Speaker 4: do that, So they they're saying they need a stronger
• 12:42
  Speaker 4: ethics language. They also push back really hard on any
• 12:45
  Speaker 4: type of culture vote. Before they adjourned because they thought
• 12:49
  Speaker 4: it was a show vote. They thought, then when we
• 12:52
  Speaker 4: like then the packs would like load ups spend a
• 12:55
  Speaker 4: bunch of money Republicans and it would be quite unfair.
• 12:58
  Speaker 4: And I think Fuond ultimately decided, you know what, I
• 13:01
  Speaker 4: now have seven or eight Republicans that are at least
• 13:03
  Speaker 4: flirting with the idea of not voting for this.
• 13:05
  Speaker 3: I can't do the show vote anymore.
• 13:07
  Speaker 4: I can't show strong for this bill among Republicans because
• 13:11
  Speaker 4: there are a couple that are like probably like I said,
• 13:15
  Speaker 4: seven or eight, but a core maybe like three or
• 13:17
  Speaker 4: four that could be a problem. So that's where we
• 13:21
  Speaker 4: stand right now. And I think I'm saying the same.
• 13:25
  Speaker 4: I really do think it comes down to ethics.
• 13:27
  Speaker 3: All right.
• 13:28
  Speaker 1: So and I just want to make this clear for
• 13:30
  Speaker 1: everybody that this is a major I think this is
• 13:32
  Speaker 1: a major flaw right now in the Republican party in
• 13:36
  Speaker 1: the sense that we have that many people that are
• 13:38
  Speaker 1: going against this, in the sense of you know where
• 13:41
  Speaker 1: most Republicans are set up on this right now, and
• 13:43
  Speaker 1: that is to get you know, clarity through. And this
• 13:46
  Speaker 1: also makes me believe that there is something else at
• 13:50
  Speaker 1: work here.
• 13:51
  Speaker 2: I want to play a clip.
• 13:52
  Speaker 1: Because the anti crypto ads are already starting to run,
• 13:56
  Speaker 1: and we know who's behind this.
• 13:57
  Speaker 2: Let me show you this. Take a look. You have
• 14:00
  Speaker 2: a real choice.
• 14:01
  Speaker 5: Anti Craig voted to let Trump make billions selling crypto coins.
• 14:05
  Speaker 5: I won't, and Heggy Flanagan I approve this message. Minnesota
• 14:09
  Speaker 5: deserves a real fighter and a real Democrat.
• 14:12
  Speaker 3: Crypto's special interests published from me pals will create a
• 14:15
  Speaker 3: show of financial market.
• 14:16
  Speaker 4: If that is market case.
• 14:18
  Speaker 5: More fine infromuction for protections for your meaning, it's fretch
• 14:23
  Speaker 5: harboring people for all loss of life.
• 14:25
  Speaker 4: Retire mistakes, college savings, your family's feature.
• 14:29
  Speaker 5: It's all online the same Dusty check this crypto scam.
• 14:35
  Speaker 1: All right, So this is just the beginning of what
• 14:37
  Speaker 1: could be a full blown, you know, ad campaign that's
• 14:40
  Speaker 1: going to be heating up. Then you could go over
• 14:43
  Speaker 1: to investors for transparency. This is another one in reference
• 14:47
  Speaker 1: to financial innovation. The only problem is this course is
• 14:51
  Speaker 1: anti crypto. But the point is we can't figure out
• 14:54
  Speaker 1: who actually is behind it, nor do they even take donations.
• 14:58
  Speaker 1: So I'm assuming this is going to be another special
• 15:00
  Speaker 1: interest group that continues to push on this.
• 15:02
  Speaker 2: Then you look at.
• 15:04
  Speaker 1: The situation right now between fair shake, and obviously what
• 15:08
  Speaker 1: you guys are doing and you're you know, Blocksham Leadership
• 15:12
  Speaker 1: Fund obviously is kind of the repositioning of that. But
• 15:14
  Speaker 1: I think the point getting at is that this is
• 15:17
  Speaker 1: getting very tight. If there's not actions taken right now,
• 15:23
  Speaker 1: the like by any one of these lobby groups that
• 15:25
  Speaker 1: are out there, you know, trying to and I should
• 15:27
  Speaker 1: say support groups that are out there trying to defend
• 15:30
  Speaker 1: for crypto in general, and possibly you know, be able
• 15:35
  Speaker 1: to succeed in some way of getting some of these
• 15:37
  Speaker 1: lawmakers out of office that are voting against this. The
• 15:40
  Speaker 1: likelihood is all of this is going away before we
• 15:43
  Speaker 1: even get back in in September, because most of these
• 15:45
  Speaker 1: votes are probably going to be mailed in anyway. So
• 15:48
  Speaker 1: it's almost as though this is almost too late now.
• 15:51
  Speaker 1: No matter what happens, you can't threaten them for losing
• 15:55
  Speaker 1: office because it's likely that this won't get a show vote.
• 15:58
  Speaker 1: We won't know who even to you know, go in
• 16:00
  Speaker 1: and support and not to support. So how would you
• 16:03
  Speaker 1: answer that for the crypto industry in general, with all
• 16:06
  Speaker 1: that happening, Well.
• 16:08
  Speaker 4: I think you have to ask yourself, what if there
• 16:11
  Speaker 4: was a show vote, all the packs put their money
• 16:13
  Speaker 4: into Republicans, and then the rev they came back in
• 16:16
  Speaker 4: September and the Dems were like, you know what, We're
• 16:18
  Speaker 4: just going to vote no because you gave all the
• 16:20
  Speaker 4: money to the Republicans. Right, you have to think that
• 16:24
  Speaker 4: that would not be a good position for industry, That
• 16:26
  Speaker 4: would not be a good position for this bill. So
• 16:28
  Speaker 4: I think we have to be very prudent about you know,
• 16:31
  Speaker 4: which policymakers are really helpful here, which ones are not.
• 16:35
  Speaker 4: And I think when you're on the ground talking to
• 16:37
  Speaker 4: these folks, you have a clear pictures who's really behind
• 16:42
  Speaker 4: this stuff, who's on the fence, and who's opposed.
• 16:46
  Speaker 3: I think I do think.
• 16:47
  Speaker 4: If you did get to a point on this legislation
• 16:49
  Speaker 4: where you took the the ethics issue out and you
• 16:52
  Speaker 4: were just voting on policy, I think most members of
• 16:55
  Speaker 4: Congress in the Senate right would vote for this. And
• 16:58
  Speaker 4: I think that because of all the things that these
• 17:00
  Speaker 4: as just set for the most part, you want consumer protections, well,
• 17:04
  Speaker 4: there's registration and reporting requirements through the SEC and the
• 17:07
  Speaker 4: CFTC for centralizing intermedia is like exchanges and roker dealers.
• 17:11
  Speaker 4: Another consumer production that's great in there right now in exchange.
• 17:15
  Speaker 4: If it fails, you might not get your funds back.
• 17:17
  Speaker 4: The law and the clarity is that would become law,
• 17:19
  Speaker 4: it would say explicitly that those are customer funds, so
• 17:21
  Speaker 4: it's bankruptcy remote. That's a huge consumer protection with So
• 17:27
  Speaker 4: we'll have to see what happens with the pack stuff.
• 17:29
  Speaker 4: And it is getting late in the cycle on this
• 17:30
  Speaker 4: answer to your question, but I think it would have
• 17:32
  Speaker 4: been a mistake to deploy all those funds too early
• 17:35
  Speaker 4: and then potentially alienate anyem from supporting the legislation.
• 17:39
  Speaker 1: Okay, so too late, you know. I think this goes
• 17:42
  Speaker 1: back because it was way too late.
• 17:44
  Speaker 2: So really the war was lost.
• 17:46
  Speaker 1: I feel like months and months ago when the banks
• 17:49
  Speaker 1: were able to successfully put this on a derail path,
• 17:53
  Speaker 1: and now it's in a position where we as the industry,
• 17:56
  Speaker 1: we really don't have any choice.
• 17:57
  Speaker 2: You have to wait. You have to wait to see
• 17:59
  Speaker 2: how this plays out.
• 18:00
  Speaker 1: What coulse even at post on this in terms of
• 18:04
  Speaker 1: whether they don't push it through or even put it
• 18:05
  Speaker 1: up for a vote. Let's say it gets through cloture.
• 18:07
  Speaker 1: It doesn't mean it's guaranteed to get up for a vote.
• 18:10
  Speaker 1: Let's assume they just don't put it up for a
• 18:12
  Speaker 1: vote after cloture. At what point does the industry go, Okay, well,
• 18:16
  Speaker 1: it's too late to affect this midterm now. And now
• 18:20
  Speaker 1: you've got the House pretty much and most likely going
• 18:25
  Speaker 1: to be controlled by Democrats, and that's going to create
• 18:29
  Speaker 1: in its own way, probably a flurry of investigations. I
• 18:33
  Speaker 1: can't even imagine the amount of investigations that are coming
• 18:36
  Speaker 1: if the House is lost to the Democrats, because that's
• 18:38
  Speaker 1: typically where these investigations are sprung from. So that in
• 18:42
  Speaker 1: itself is only going to showcase crypto in another way,
• 18:46
  Speaker 1: possibly really bad again. So how would the industry be
• 18:50
  Speaker 1: able to defend against this? It just I'm looking at
• 18:52
  Speaker 1: it like they've been outplayed here almost every angle.
• 18:58
  Speaker 4: I would say it's already been baked for a while
• 19:01
  Speaker 4: that the House is going to go Democrat. Well we're
• 19:02
  Speaker 4: really talking about here is whether the Senate will stay
• 19:05
  Speaker 4: red or go blue. You know, often there's an October surprise,
• 19:10
  Speaker 4: if there's a voter, there's not a vote in September.
• 19:13
  Speaker 4: I think there's still an ability to influence the outcome
• 19:16
  Speaker 4: of those elections. And I think there are a number
• 19:19
  Speaker 4: of crypto voters. There are a number of people that
• 19:21
  Speaker 4: view this technology as advantageous to you know, make their
• 19:25
  Speaker 4: life better, at least on the margins. So I wouldn't
• 19:27
  Speaker 4: be surprised if there's still a way to influence at
• 19:31
  Speaker 4: least the Senate races in November.
• 19:35
  Speaker 1: All right, well, influence the Senate races in November. Obviously,
• 19:39
  Speaker 1: this is still going to be tight. I think most
• 19:41
  Speaker 1: of the votes are going to be in by November,
• 19:43
  Speaker 1: probably in by October, so a lot of this is
• 19:46
  Speaker 1: going to still be kind of ruminating around DC whether
• 19:49
  Speaker 1: or not we even get a vote or not. You
• 19:50
  Speaker 1: have Senator Lumis also putting in right now. She of
• 19:54
  Speaker 1: course is going after the editorial or at the editorial
• 19:56
  Speaker 1: board there in terms of the Clarity Act, which is
• 19:59
  Speaker 1: worth support. And then you had her and also moreno
• 20:03
  Speaker 1: actually going in together and trying to go against being
• 20:07
  Speaker 1: banks when it comes to protecting credit card you know, fees,
• 20:10
  Speaker 1: et cetera. So this is one of the things that
• 20:12
  Speaker 1: kind of slowed it down in the Genius Act was
• 20:14
  Speaker 1: when that was put up. When credit card fees were
• 20:18
  Speaker 1: attacked during the Genius Act, that was one of the
• 20:20
  Speaker 1: big deals I think that came off of the table
• 20:23
  Speaker 1: and helped the Genius Act get through that of course
• 20:25
  Speaker 1: now being potentially pushed on here.
• 20:28
  Speaker 2: So here we are.
• 20:29
  Speaker 1: Man, how much ground do you think that banks are
• 20:32
  Speaker 1: going to gain in the next thirty days.
• 20:33
  Speaker 2: I mean, we had thirty five days.
• 20:34
  Speaker 1: That's a lot of time between now and just the
• 20:37
  Speaker 1: cloture vote.
• 20:39
  Speaker 4: I don't think they gained anything unless clarity passes. Right,
• 20:42
  Speaker 4: Genius is the law of the land. You don't restrict
• 20:45
  Speaker 4: yields unless clarity passes. That's why we got a let
• 20:49
  Speaker 4: this play out at still too early. I know, like
• 20:53
  Speaker 4: we were talking about earlier, community banks have been very
• 20:55
  Speaker 4: active on this stuff, and there are a lot of
• 20:56
  Speaker 4: concerns about yield. If those concerns are true, you need clarity.
• 21:04
  Speaker 4: So we're gonna have to wait and see. Yet, there
• 21:08
  Speaker 4: are a lot of political factors. Again, ethics is the
• 21:10
  Speaker 4: most important piece. But you know, community banks should should
• 21:14
  Speaker 4: be in favor of this legislation.
• 21:18
  Speaker 3: Restricts it further.
• 21:19
  Speaker 2: Yeah, Kevin, I don't know. I just look at it
• 21:21
  Speaker 2: this way.
• 21:22
  Speaker 1: This let's just assume that it doesn't go through. And
• 21:26
  Speaker 1: to me, if I'm in the banking industry, it's.
• 21:30
  Speaker 2: The perfect plus. I mean, it's the perfect place for me.
• 21:32
  Speaker 2: To do this.
• 21:33
  Speaker 1: It's no longer even questioned what Congress had intended because
• 21:36
  Speaker 1: the Genius Act is the law of the land. Now
• 21:39
  Speaker 1: I can go directly into the CFTC and the SEC
• 21:42
  Speaker 1: work my magic as the banking industry, the ABA, and
• 21:45
  Speaker 1: start to correlate how to basically create rules around this that.
• 21:50
  Speaker 2: Are going to benefit me.
• 21:51
  Speaker 1: So I think it actually benefits them. If this doesn't
• 21:54
  Speaker 1: go through, they then can go in and do what
• 21:56
  Speaker 1: they do best, and that is manipulate how a lot
• 21:58
  Speaker 1: of this bureaucratic are work is done as law.
• 22:02
  Speaker 4: I think they would need an Act of Congress to
• 22:04
  Speaker 4: restrict yield. I don't think the OCC rulemaking will be
• 22:07
  Speaker 4: finalized in the coming months and will know the answer
• 22:10
  Speaker 4: on yield then, so they might be banking on the
• 22:15
  Speaker 4: fact that the OCC does something, but because of lower Bride,
• 22:17
  Speaker 4: I think that's impossible. So they're gonna have to find
• 22:20
  Speaker 4: a vehicle in the next Congress that's divided and deal
• 22:24
  Speaker 4: with the same struggle where we have with clarity getting
• 22:26
  Speaker 4: a super majority in the Senate and the majority in
• 22:27
  Speaker 4: the in the House, and then also the Republican president
• 22:31
  Speaker 4: to agree to a major change to his signature legislation
• 22:34
  Speaker 4: for cryptoh I don't think that's going to happen.
• 22:38
  Speaker 1: Interesting all right, Well, here's Gray Scale Zach Panel. He's
• 22:43
  Speaker 1: on our show quite a bit, and he says Crypto
• 22:45
  Speaker 1: can keep advancing in I Clarity Act fails, and he's
• 22:48
  Speaker 1: talking about what I'm getting at, which is the SEC
• 22:51
  Speaker 1: rule making. I'm concerned about this on the SEC rule
• 22:54
  Speaker 1: making side, especially with the bank influence there. You think
• 22:57
  Speaker 1: that we were talking about this pre show. You think
• 23:00
  Speaker 1: that the SEC might actually accelerate some rulemaking. Do you
• 23:03
  Speaker 1: think that's going to happen before September or do you
• 23:06
  Speaker 1: think they'll wait and to see how it plays out
• 23:09
  Speaker 1: in early September.
• 23:12
  Speaker 4: I think they're going to move on their own schedule now,
• 23:14
  Speaker 4: and I would expect it to be expeditiously. I think
• 23:17
  Speaker 4: they've been holding back. I also think this actually helps
• 23:20
  Speaker 4: with the Clarity debate in Congress. It puts pressure on
• 23:23
  Speaker 4: the nose or those that are on the fence if
• 23:25
  Speaker 4: they see the agencies acting, if they want to have
• 23:28
  Speaker 4: a greater hand and constructing the rules of the road
• 23:31
  Speaker 4: for Crypto, they should pass the Clarity Act. Otherwise it
• 23:34
  Speaker 4: will be the agencies that will be writing the rules
• 23:37
  Speaker 4: of the road.
• 23:38
  Speaker 1: Okay, So I mean that's an interesting angle in the
• 23:41
  Speaker 1: sense that the SEC forces Congress hand.
• 23:44
  Speaker 2: So that's one angle.
• 23:46
  Speaker 1: Maybe they were waiting for the recess to occur and say, Okay,
• 23:49
  Speaker 1: it's not going to happen, so we've got to go
• 23:51
  Speaker 1: ahead and implement this.
• 23:52
  Speaker 2: That's a possibility, or you have to go the other.
• 23:55
  Speaker 1: Option, and that is now, let's just wait and see
• 23:58
  Speaker 1: if Congress actually does what they say they're going to
• 24:01
  Speaker 1: do within exit thon exiting office and say we're going
• 24:04
  Speaker 1: up first thing two pm on September or in September,
• 24:08
  Speaker 1: and we're going.
• 24:08
  Speaker 2: To get this done. So it could roll it back
• 24:11
  Speaker 2: even further.
• 24:11
  Speaker 1: I don't know that delaying another thirty days would be
• 24:14
  Speaker 1: that much of an impasse for the industry, but it
• 24:18
  Speaker 1: would showcase the SEC's ability to at least maybe get
• 24:23
  Speaker 1: something in play for the industry around rulemaking.
• 24:26
  Speaker 2: So I'm kind of on the fence with this.
• 24:28
  Speaker 1: I'm intrigued with your angle that they may try it
• 24:31
  Speaker 1: that way, but so far I just haven't seen anything
• 24:35
  Speaker 1: out of them that has kind of implemented that for sure.
• 24:39
  Speaker 1: All right, let's talk about this because as we start
• 24:42
  Speaker 1: to see more negativity coming from the industry. How do
• 24:47
  Speaker 1: you think this is going to play out? As I
• 24:49
  Speaker 1: was talking about earlier, once the House is lost to
• 24:52
  Speaker 1: the Democrats, the likelihood is we're going to see all
• 24:55
  Speaker 1: sorts of things coming at the Trump family, most likely
• 25:00
  Speaker 1: around everything's from World Liberty five to you name the
• 25:03
  Speaker 1: entity that's been involved in it, you know, all the
• 25:05
  Speaker 1: way down to uh, you know, Wig Cops, all the
• 25:08
  Speaker 1: way down into Canter Fitzgerald. I mean, there's you could
• 25:11
  Speaker 1: go just start stacking this. Do you think that the
• 25:15
  Speaker 1: industry is prepared for that?
• 25:19
  Speaker 4: Uh, I've been expecting this for a long time. Again, like,
• 25:22
  Speaker 4: I think it's like I said, I thought it was
• 25:25
  Speaker 4: been baked for a while that the House is going
• 25:26
  Speaker 4: to turn blue, and I think this is a natural
• 25:29
  Speaker 4: place for Democrats to go.
• 25:32
  Speaker 3: So I think everyone is expecting this. It's gonna be difficult, though.
• 25:36
  Speaker 3: There's gonna be a lot of incoming.
• 25:38
  Speaker 4: So, yeah, there's gonna be hearings, there's gonna be uh investigations, right,
• 25:44
  Speaker 4: There's there's gonna be a lot of activity on this front.
• 25:46
  Speaker 4: And it'll be even worse if the if the Senate
• 25:48
  Speaker 4: is controlled by the Dems as well.
• 25:51
  Speaker 1: Yeah, well, the fact that it's gonna even let's assume
• 25:54
  Speaker 1: that the Senate holds right now, uh, and the House
• 25:58
  Speaker 1: is right now for the most part, the House looks
• 26:00
  Speaker 1: as though it's going to turn blue.
• 26:02
  Speaker 2: But this is going to.
• 26:03
  Speaker 1: Course create as we all know. I mean, it's like
• 26:05
  Speaker 1: what we're seeing with Fauci right now. I mean, this
• 26:07
  Speaker 1: is front and center news. So everybody's going to be
• 26:09
  Speaker 1: talking about this, even non crypto and non tech and
• 26:13
  Speaker 1: even non finance podcasts and shows are going to be
• 26:16
  Speaker 1: talking about this for months and months and months, which
• 26:19
  Speaker 1: is going to be I think it could end up
• 26:21
  Speaker 1: damaging crypto, maybe permanently, at least in the United States.
• 26:26
  Speaker 2: What do you think about that?
• 26:27
  Speaker 1: Do you think that if this does not land well
• 26:31
  Speaker 1: in September and the House turns blue and we start
• 26:34
  Speaker 1: to see this kind of craziness, what do you think
• 26:37
  Speaker 1: happens after that?
• 26:41
  Speaker 4: I think it's going to be challenging, but I think
• 26:44
  Speaker 4: there's only a small part of the industry that's affected
• 26:48
  Speaker 4: by this directly. Obviously, it brings up a lot of
• 26:53
  Speaker 4: topics that are that are difficult for the industry. But
• 26:57
  Speaker 4: one of the things that it's really great that I've
• 26:58
  Speaker 4: seen over the last eighteen months is just how much
• 27:01
  Speaker 4: digital assets and blockchain has been accepted broadly by traditional
• 27:05
  Speaker 4: financial institutions. So yes, there's gonna be some negative publicity,
• 27:09
  Speaker 4: but overall, I think we'll definitely be fine.
• 27:12
  Speaker 1: Yeah, all right, well listen, I'm glad that you still listen.
• 27:16
  Speaker 1: I look at all of these angles. I'm looking at
• 27:19
  Speaker 1: it from a political standpoint, but also from a technology standpoint.
• 27:22
  Speaker 1: Technology usually wins in the end, but at this point,
• 27:26
  Speaker 1: right now, there is a head wind that I think
• 27:30
  Speaker 1: is very challenging, and that, of course, I think is
• 27:32
  Speaker 1: the banks. The banks will continue to play hardball, pushing
• 27:36
  Speaker 1: in ways maybe we don't even understand just yet, and
• 27:39
  Speaker 1: that's going to be the thing that plays out maybe
• 27:41
  Speaker 1: over the next thirty days. Hey, Kevin, we're gonna get
• 27:44
  Speaker 1: you back on because in September, either you're right or
• 27:47
  Speaker 1: you're wrong on this. Okay, either I'm right or I'm wrong,
• 27:52
  Speaker 1: and we're going to find out in September. So I'm
• 27:53
  Speaker 1: going to bring you back and we can do a
• 27:55
  Speaker 1: victory dance or we can hand you your roses, whichever
• 27:59
  Speaker 1: is is uh is required at that time.
• 28:02
  Speaker 3: Okay, Yeah, that sounds fun.
• 28:05
  Speaker 2: All right, thanks, Thanks, for like Kevid. We appreciate it.
• 28:14
  Speaker 1: If you like this video, hit like and subscribe, drop
• 28:17
  Speaker 1: a comment down below, and also join our free private
• 28:20
  Speaker 1: member group.
• 28:21
  Speaker 2: The link is in the description