Latest / The Paul Barron Crypto Show / 30 Days To Load Up?🚀Franklin Templeton Crypto💰Chris Perkins INTERVIEW

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30 Days To Load Up?🚀Franklin Templeton Crypto💰Chris Perkins INTERVIEW · The Paul Barron Crypto Show

0:00
Speaker 1: Thirty days to load up into your crypto bags or not.
0:03
Speaker 1: That's what we're going to be talking about today and
0:05
Speaker 1: really take a look at where this market could be heading.
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Speaker 1: in just a few taps. I want to jump into
1:02
Speaker 1: it to start with a clip that we actually listened
1:05
Speaker 1: to not long ago. We played it on one of
1:07
Speaker 1: the showshe Rebecca Walls or not too long ago, and
1:10
Speaker 1: I think we should play it again just so it
1:11
Speaker 1: kind of frames up because we've got Franklin Templon actually
1:14
Speaker 1: on the show today to break this down. Let's go
1:17
Speaker 1: to clip one.
1:18
Speaker 2: That just the fact that everybody says by October the
1:20
Speaker 2: markets are going to turn. The markets will probably start
1:23
Speaker 2: to turn prior to October because that anticipation of that event,
1:27
Speaker 2: people are going to want to be positioned before that
1:29
Speaker 2: to capture that growth opportunity. You need to own tokens position.
1:36
Speaker 1: But if you do look at ethereum, which is what
1:38
Speaker 1: she's referencing, this is a twenty two percent move in
1:41
Speaker 1: a month. I feel like this is coiling up for
1:44
Speaker 1: a bull run? Am I too early here?
1:46
Speaker 3: This is moving, It's happening, and you need to be
1:49
Speaker 3: buying and you need to be positioned now.
1:52
Speaker 4: You know, it's too late to be talking about in
1:54
Speaker 4: October time when we're talking about we need to be
1:56
Speaker 4: doing these things now, all.
1:58
Speaker 1: Right, So that's where we are right now. Of course,
2:00
Speaker 1: this is all pre to what could be happening with clarity,
2:03
Speaker 1: and also I think in general macro. So I wanted
2:06
Speaker 1: to bring in Chris Perkins. He's been with us before.
2:09
Speaker 1: He is now the head of Franklin Crypto over there.
2:13
Speaker 1: So how are you, Chris.
2:15
Speaker 3: I'm doing great, Paul, great to see you.
2:17
Speaker 1: How's the new job?
2:19
Speaker 3: I love it. I mean, what an incredible, storied institution.
2:23
Speaker 5: Franklin Templeton. This is a company that is all in
2:28
Speaker 5: on crypto. I mean, we're looking look at where we
2:30
Speaker 5: are in the market cycle right now, and Franklin is
2:33
Speaker 5: doubling down by bringing you across my team across, and
2:36
Speaker 5: I tell you what, we have a big mandate to
2:39
Speaker 5: grow and to scale and to bring our clients all
2:43
Speaker 5: over the world into this exciting crypto universe.
2:48
Speaker 3: And to do so, we have.
2:49
Speaker 5: To build like very scalable enterprise products. We're excited to
2:52
Speaker 5: do so, and it's a really interesting time.
2:56
Speaker 1: Well, I mean, we're going to talk about this later,
2:58
Speaker 1: but I will say this is that, you know, Franklin
3:00
Speaker 1: has put out a pretty aggressive roadmap. So maybe this
3:05
Speaker 1: move with you know, acquiring you guys is going to
3:07
Speaker 1: really start to accelerate that. I hope. So, because this
3:10
Speaker 1: is something that I think everybody's been waiting for let
3:13
Speaker 1: me jump over to our first topic, and that is
3:15
Speaker 1: the SEC is set to unveil this innovation exemption for
3:19
Speaker 1: token nice stocks as soon as Friday. So it looks
3:21
Speaker 1: like we might get a stack coming out of the
3:23
Speaker 1: SEC that would pave the way for essentially twenty four
3:27
Speaker 1: seven on chain trading, and most likely we're going to
3:31
Speaker 1: see other things coming out of the SEC because of
3:34
Speaker 1: the latency that is happening around regulation. How do you
3:38
Speaker 1: think this comes out to mars? This going to be
3:41
Speaker 1: good for the market or bad? And I'm talking about
3:42
Speaker 1: the crypto market.
3:44
Speaker 5: You know, yesterday we received a non exemption ourselves from
3:48
Speaker 5: the forty Act requirements and it got me thinking, you know,
3:53
Speaker 5: nineteen forty forty Act, that's what it stands for. Yeah,
3:57
Speaker 5: here we are in the year twenty twenty six, and
4:00
Speaker 5: so it absolutely makes sense that we need to adjust
4:04
Speaker 5: these old rules to really realize the benefits of this
4:09
Speaker 5: new technology. And so as you look at the natural
4:13
Speaker 5: state of markets, they are absolutely twenty four to seven.
4:17
Speaker 5: We put artificial barriers around them because we have major
4:22
Speaker 5: money centers and people go to sleep. That's changing too.
4:25
Speaker 5: We're having agents that are going to be on the scene.
4:27
Speaker 5: They don't go to sleep, they don't care. And so
4:29
Speaker 5: for the first time, our technology, which is really made
4:32
Speaker 5: possible by blockchain technology, unlocks twenty four seven markets. And so, honestly,
4:38
Speaker 5: I'm thrilled. I'm so happy that Chairman Atkins is taking
4:43
Speaker 5: has the courage and is taking the steps to address
4:46
Speaker 5: some of these you know, very well intentioned but outdated
4:50
Speaker 5: rules that will allow what we call on chain finance.
4:55
Speaker 3: The benefit here is profound.
4:56
Speaker 5: We're going to give people access, more accessed, and more
5:00
Speaker 5: access to democratized finance rather than in certain cases having
5:03
Speaker 5: to go through intermediaries. So and again, the twenty four
5:07
Speaker 5: to seven unlock is real. Now you mentioned that there
5:11
Speaker 5: may be a slowdown on legislation.
5:13
Speaker 3: Would love to talk about that.
5:16
Speaker 5: Whether we get legislation or not, it's going to be
5:19
Speaker 5: just fine. What legislation will do is it will enshrine
5:23
Speaker 5: things for a long time. But guess what we're going
5:26
Speaker 5: to get three years of precedent or so from these
5:28
Speaker 5: very very capable and knowledgeable Chairman, Chairman Sealing, Chairman Atkins.
5:33
Speaker 5: That's going to position us very very well. And to
5:36
Speaker 5: be honest with you, I think that if we had legislation,
5:39
Speaker 5: the traditional and incumbents would be better. Ben would would
5:42
Speaker 5: would reap more benefit than the crypto natives because we've
5:45
Speaker 5: been already operating in this space.
5:47
Speaker 3: Now.
5:47
Speaker 5: I think it's generally beneficial for all parties, but I
5:50
Speaker 5: think that the traditional folks may benefit even more if
5:53
Speaker 5: we get the legislation in its absence.
5:56
Speaker 1: Yeah, yeah, go ahead. Well, I think what point you're
5:59
Speaker 1: going with there is that there are two paths that
6:02
Speaker 1: still can be beneficial for crypto and I think to
6:05
Speaker 1: your point is that prad File has been positioning a
6:09
Speaker 1: lot of things over the past six to twelve months
6:12
Speaker 1: to kind of prepare for this, much like what Franklin
6:14
Speaker 1: Templeton has done, and especially with your no action, Are
6:18
Speaker 1: you guys planning a release of some major products soon
6:21
Speaker 1: because of these kinds of anticipated and now what seems
6:25
Speaker 1: to be real use case moves here.
6:30
Speaker 5: Paul, I'll be honest with you, I did not come
6:32
Speaker 5: here to not launch major products.
6:34
Speaker 1: Okay, all right, tell me then, So we've.
6:36
Speaker 3: Got we've got no, we've got big plans.
6:40
Speaker 5: I can't go into the specifics, but when it comes
6:43
Speaker 5: to strategies, this is what I can tell you. There
6:46
Speaker 5: is demand all over the world for folks to come
6:49
Speaker 5: into our industry in a very compliant, safe and scalable way,
6:53
Speaker 5: looking for different strategies and access, and it's our job
6:57
Speaker 5: to do so. So we have a very robust agenda.
6:59
Speaker 5: You're be hearing a lot of announcements from us again
7:03
Speaker 5: on products that will help people enter this space for
7:06
Speaker 5: the first time and for the people that have been around.
7:08
Speaker 3: Look, you know, we are huge believers in defive.
7:11
Speaker 5: People should be able to access DeFi wherever they want,
7:14
Speaker 5: but there are absolutely advantages to using a company like
7:18
Speaker 5: Franklin Templeton for some of those products and services, and
7:22
Speaker 5: we're going to lean into those those differentiators and I
7:26
Speaker 5: can't be more excited. But yes, you're going to see
7:28
Speaker 5: some big announcements and some big products coming up.
7:30
Speaker 3: I didn't come here not to do that.
7:32
Speaker 1: What is the trigger though, Is there something you're waiting
7:34
Speaker 1: on or is this just a situation of Hey, we're
7:37
Speaker 1: just not quite ready to roll these things out just yet.
7:42
Speaker 3: Yeah.
7:42
Speaker 5: I'm moving as quickly as possible to launch scalel strategies.
7:45
Speaker 3: You know, I've been at Franklin now for just over
7:49
Speaker 3: a month, and so we are We're definitely moving at one.
7:52
Speaker 5: Hundred miles an hour here to to do some big things.
7:57
Speaker 1: All Right, So you said something that I think is
7:58
Speaker 1: a little I'll say is a bit concerning because I'm
8:01
Speaker 1: always I'm a very you know, big proponent of DeFi
8:05
Speaker 1: in general, just for people to be able to kind
8:07
Speaker 1: of manage and operate without intermediaries. What how would this
8:12
Speaker 1: I'm going to try to draw this out of you.
8:14
Speaker 1: How would a centralized intermediary like Franklin really play in
8:20
Speaker 1: a big way that would draw in DeFi? Because DeFi
8:23
Speaker 1: is mostly ogs. I mean, it's not You're not going
8:25
Speaker 1: to typically have a new investor jump into DeFi day one,
8:29
Speaker 1: would you? Or do you think you're going to give
8:31
Speaker 1: them a gateway?
8:32
Speaker 5: Look, I love DeFi. I've been personally operating in DeFi
8:35
Speaker 5: for for a very long time. You know, you're familiar
8:38
Speaker 5: with to DeFi mullet right. And you saw what Robin
8:40
Speaker 5: Hood recently did as an example where they provided a
8:44
Speaker 5: lot of institutional access to come in.
8:47
Speaker 3: I think when I think of DeFi, and.
8:50
Speaker 5: It comes in all different shapes and forms, but what
8:53
Speaker 5: it what it is is a very important liquidity tool,
8:57
Speaker 5: like centers of liquidity for for all different types purposes
9:01
Speaker 5: and so there's no reason why. And and by the way,
9:04
Speaker 5: in years past, uh, from an institutional perspective, we've been
9:08
Speaker 5: able to access DeFi in a very compliant manner. And
9:12
Speaker 5: so I don't see like you know, Franklin Templeton competing
9:16
Speaker 5: with DeFi in any way, shape or form. To the contrary,
9:19
Speaker 5: I see us in the future is working with it
9:22
Speaker 5: and using it to access liquidity in a new and
9:27
Speaker 5: exciting way. So yeah, there there should be nothing concerning.
9:30
Speaker 5: We are DeFi lovers, not to mention even on like
9:34
Speaker 5: you know, with our venture strategies, we're active investors in
9:38
Speaker 5: DeFi protocols. We want to continue to support them in
9:42
Speaker 5: the ecosystem. There's a lot of value. Like think of
9:44
Speaker 5: how exciting it is right now. You've got three civilization
9:48
Speaker 5: changing technologies coming on the scene. You have crypto and
9:51
Speaker 5: DeFi and the democratization of finance that we love and
9:54
Speaker 5: enjoy and and hasn't really yet realized.
9:56
Speaker 3: Its full potential.
9:58
Speaker 5: You got AI, which is doing incredible things democratizing access
10:01
Speaker 5: to information. And then you've got quantum coming along right
10:06
Speaker 5: which there's no surprise that people are saying QDA and
10:08
Speaker 5: ASI are kind of coming at the same time could
10:11
Speaker 5: be as early as twenty thirty. You know, our job
10:14
Speaker 5: is to work to find those projects and to help
10:17
Speaker 5: accelerate them through or through things like our venture strategies.
10:20
Speaker 1: Right, yeah, for sure. Well, and I would agree that
10:23
Speaker 1: that it is a very interesting time to be living,
10:25
Speaker 1: and especially because all of this is so centered around
10:28
Speaker 1: mostly financial products. So I do agree with that. Okay,
10:32
Speaker 1: So speaking of financial products, one of this is going
10:34
Speaker 1: to be governing. And since we're not getting this necessarily
10:38
Speaker 1: at least right now through clarity, you've got the SEC
10:40
Speaker 1: holding an open meeting on Friday. This is what we're
10:42
Speaker 1: talking about. There can consider whether to issue a release
10:46
Speaker 1: proposing new rules to create a tailored offering regime for
10:50
Speaker 1: certain investment contracts involving crypto assets. So this gets me
10:54
Speaker 1: into the whole issue of should we be worried about
10:57
Speaker 1: the DTC and citadel in terms of influence on the SEC.
11:03
Speaker 5: You know, different institutions will have a different perspective. But
11:06
Speaker 5: as I've gotten to know Chairman Atkins and Chairman Sealiague
11:09
Speaker 5: over the years and their agencies, they're doing the right
11:13
Speaker 5: thing and they're focusing on principles. I've seen them make
11:17
Speaker 5: our decisions and have a lot of courage and at
11:20
Speaker 5: times gone toe to toe with the incumbents because I
11:24
Speaker 5: don't think, you know, Chairman Atkins is looking for his
11:26
Speaker 5: next big thing. I think he's very focused on his mission,
11:29
Speaker 5: which is to make the United States the crypto capital
11:32
Speaker 5: of the world to drive responsible innovation.
11:35
Speaker 3: And what are you going to see here?
11:36
Speaker 5: I think the SEC is going to try to balance
11:38
Speaker 5: very thoughtfully customer protections and access to twenty four to
11:44
Speaker 5: seven markets by unlocking things like the Okay and I
11:47
Speaker 5: think that's great. When what do you have to do well,
11:49
Speaker 5: there's a lot of like little and big rule changes
11:53
Speaker 5: again from nineteen thirty three from nineteen forty that that
11:56
Speaker 5: there are technical that they don't technically reconcile with what
12:00
Speaker 5: the technology can now do, but the principles are addressed,
12:03
Speaker 5: and so that's what you're going to see them come
12:05
Speaker 5: out with, like, for example, how does and this has
12:09
Speaker 5: been a part of their rulemaking already, how does something
12:12
Speaker 5: like a rule NMS like factor into this fragmented decentralized
12:16
Speaker 5: finance network where you have, for those who don't know,
12:20
Speaker 5: the national market standard, the national best bid and offer
12:22
Speaker 5: if you execute inequity, it has to be routed to
12:25
Speaker 5: the best price on the exchange, and so DEFIVE maybe
12:30
Speaker 5: not doesn't neatly reconcile with that. And I'm seeing these
12:34
Speaker 5: agencies put forth very thoughtful exemptions where and no actions
12:40
Speaker 5: to help unlock the principles that are supported by this technology.
12:44
Speaker 3: So, Okay, I'm super bullish, I'm super.
12:46
Speaker 1: Glad, I'm glad, you're bullish. I'm skeptical optimistic at the
12:50
Speaker 1: same time. But I look at DeFi and the potential
12:53
Speaker 1: for tokenized securities here all almost in some ways possibly
12:58
Speaker 1: getting centered or at he's corralled here by the DTCC
13:02
Speaker 1: as one gateway that could essentially kind of impact a
13:06
Speaker 1: lot of what we're seeing out there in the open market.
13:08
Speaker 1: If you look at x stox ono, those are good
13:10
Speaker 1: examples of open to markets. We've got new you know,
13:14
Speaker 1: potentials out there coming with jt X, you know, and Phoenix.
13:17
Speaker 1: So there are some some other players that most likely
13:21
Speaker 1: will take some of this. But I'm just a little
13:23
Speaker 1: concerned on this because there isn't clarity and the sec
13:25
Speaker 1: is now they get a lot listen, they get a
13:27
Speaker 1: lot of influence. We've seen it before, even though it
13:31
Speaker 1: was under Gary Gensler, but they do get a lot
13:33
Speaker 1: of influence by what's happening in Wall Street and specifically
13:36
Speaker 1: from the bigger players. So it is a concern of mine.
13:39
Speaker 1: I want to flip over to Mike Novagrass. This is
13:43
Speaker 1: a clip from him, and then I want to ask
13:44
Speaker 1: you because he's he's kind of banging on the issue
13:47
Speaker 1: of the meme coin with Trump, but I want to
13:49
Speaker 1: ask your opinion on how this affects the market. Here
13:53
Speaker 1: in a second, here.
13:54
Speaker 4: What Trump also and listen Paul Ackins telling me this.
13:58
Speaker 4: He said, listen, I'm all about this closure buyer. Beware,
14:02
Speaker 4: all of these Trump coins will fee the meme coin.
14:06
Speaker 4: If you read the frickin tiny fine print, it says, oh,
14:10
Speaker 4: I it's not even made all his money from selling
14:13
Speaker 4: the coins. Every transaction they got a marketing fee, and
14:17
Speaker 4: so it's all in the freaking fine print.
14:19
Speaker 1: And it's like, oh my goodness.
14:20
Speaker 3: The question is who reads the fucking find print.
14:23
Speaker 4: It's hard for Republicans. They are running on this thing
14:25
Speaker 4: that looks more and more corrupt.
14:28
Speaker 1: All right, So there you have Republicans running on this issue.
14:31
Speaker 1: Right now, We've got a White House that is really
14:34
Speaker 1: dealing with a pretty big headwind here is crypto done
14:37
Speaker 1: with Trump? Do you think in general.
14:41
Speaker 5: It's really you know, I've been at plenty of dinners
14:43
Speaker 5: where people have said, is President Trump good for crypto
14:47
Speaker 5: or bad for crypto? I think you can answer that
14:50
Speaker 5: in either direction. Let's talk about People don't talk about this,
14:54
Speaker 5: but I have been on I've been in publicly. I've
14:58
Speaker 5: fully stated that the Trump to has actually been good
15:01
Speaker 5: for crypto, and people are like, what the heck are
15:03
Speaker 5: you talking about, Chris. The reason why is because as
15:07
Speaker 5: I speak to institutions all over the world, it was
15:10
Speaker 5: the Trump token that shocked them to attention. Why Because
15:14
Speaker 5: they saw the capital formation power of this technology. If
15:18
Speaker 5: you look at the Trump token, it was launched out
15:20
Speaker 5: of Saturday night when everyone was asleep, and you had
15:23
Speaker 5: more capital that came into the system on a Saturday
15:26
Speaker 5: night while everyone was at a big dinner than the
15:28
Speaker 5: entire ipo market of that year, right. And so as
15:32
Speaker 5: you talk to institutions and you say, what was the
15:34
Speaker 5: light bulb that got you so focused on the power
15:36
Speaker 5: of crypto and its ability for capital formation, it was that.
15:40
Speaker 3: Now I'm not.
15:41
Speaker 5: Saying in any way, shape or form that the mean
15:45
Speaker 5: coin was was was like, you know, ethically the right.
15:48
Speaker 3: Thing to do or anything else.
15:49
Speaker 5: But I'm saying that it's important to step back and
15:52
Speaker 5: realize what this technology demonstrated. So look, that's that's that's
15:57
Speaker 5: one way to look at it. As we're going into clarity.
16:01
Speaker 5: What happens if clarity fails? I would say that whether
16:06
Speaker 5: the bill passes or not, it's positive because now you're
16:09
Speaker 5: going to have senators who are going to be on
16:11
Speaker 5: the record and.
16:13
Speaker 3: Guess what we're going right into midterms.
16:16
Speaker 5: Now, you know, we've seen the crypto industry has been
16:19
Speaker 5: very effective on the advuracy front. As we're going into midterms,
16:23
Speaker 5: suddenly crypto becomes part of the dialogue again. And one
16:27
Speaker 5: of the challenges that we've had is that it's faded
16:29
Speaker 5: from the dialogue.
16:30
Speaker 3: It's it's people.
16:31
Speaker 5: Are talking about AI and other new things. But if
16:34
Speaker 5: you go into the midterms and the airwaves start becoming
16:37
Speaker 5: saturated with talk about crypto and some of the positive
16:41
Speaker 5: impacts of crypto, then you know, you could start seeing
16:46
Speaker 5: what happens after midterms. Well, you go into Thanksgiving and
16:48
Speaker 5: crypto starts emerging as part of the dialogue again.
16:51
Speaker 3: I think that's net positive for our industry.
16:55
Speaker 1: Okay, So, well, timing, I think is the challenge you
16:58
Speaker 1: have there because they're they're isn't a lot of spending
17:01
Speaker 1: going in right now that it's going to affect midterms.
17:04
Speaker 1: It's going to have to be the og or people
17:06
Speaker 1: that are very native to crypto, or just audiences like
17:09
Speaker 1: ours that you have a lot in the game and
17:13
Speaker 1: may understand kind of the history behind this. But the
17:16
Speaker 1: new voter, who is someone that might be looking at Crypto,
17:19
Speaker 1: I think is the one that is going to be
17:21
Speaker 1: off shelter. They're not necessarily going to get influenced to
17:24
Speaker 1: vote one way or the other. So that is a
17:27
Speaker 1: concern that may not end well for Crypto. We'll see
17:31
Speaker 1: how this plays out midterms, because we're going to have
17:34
Speaker 1: a Senate and a House that is going to be challenged,
17:37
Speaker 1: and then after that, who knows. And that's providing that
17:40
Speaker 1: something doesn't happen in September or October. For clarity for
17:43
Speaker 1: all this with okay, so with Crypto somewhat being bored
17:48
Speaker 1: right now, what would you say is the new narrative
17:52
Speaker 1: if Crypto was looking at what would should be we
17:55
Speaker 1: be watching for right now in terms of a narrative.
18:00
Speaker 5: So we're less focused on narratives at our shop. We're
18:03
Speaker 5: more focused on fundamentals. And what does that mean is
18:06
Speaker 5: that you're seeing a disparity between the tokens without fundamentals
18:09
Speaker 5: and those with fundamentals. Which are the protocols that are
18:12
Speaker 5: driving revenue? What are the which are the companies that
18:15
Speaker 5: are driving revenue? This is an institutional era. It's a
18:19
Speaker 5: departure from narrative as we're seeing the institutionalization of the
18:23
Speaker 5: space take place and a more important focus on fundamentals,
18:30
Speaker 5: which is where it should have been. Now, that doesn't
18:32
Speaker 5: mean to say that narrative doesn't help, you know, boost price.
18:36
Speaker 5: You know, narrative is a factor that impacts the price.
18:39
Speaker 5: Why do assets go up because there's more buyers and
18:41
Speaker 5: sellers and do narratives contribute to that?
18:43
Speaker 3: For sure?
18:44
Speaker 5: But as long term investors, our thesis is to focus
18:47
Speaker 5: on fundamentals.
18:49
Speaker 1: Okay, so speaking of fundamentals, I'm going to play a
18:52
Speaker 1: clip here of Tom Lee and he's talking about a
18:55
Speaker 1: broader d risking in the markets right now and possibly
18:59
Speaker 1: it's coming for really soon, and then we'll play into
19:01
Speaker 1: what you're talking about, which is fundamentals.
19:03
Speaker 6: Let's go here in retrospect. Very thankful because you have
19:06
Speaker 6: the market at a high. Four sectors are out performing,
19:08
Speaker 6: a fifth is basically in line. Half the index is
19:10
Speaker 6: doing better than the index. You can't really do too
19:13
Speaker 6: much better than that. It's pretty good.
19:16
Speaker 1: The nuance in your bullishness.
19:18
Speaker 7: It has been and it remains to be that you
19:21
Speaker 7: still think we're going to have a sizeable correction in
19:24
Speaker 7: the market before we have a pickup. I think we've
19:27
Speaker 7: had a rolling bear market and a lot of groups
19:29
Speaker 7: mag seven and software, crypto and now the AI stocks,
19:35
Speaker 7: but we haven't had a broad de risking. I think
19:38
Speaker 7: that is later this year, and it probably is around
19:41
Speaker 7: this inflation derangement syndrome, that is the market is very
19:45
Speaker 7: concerned about, you know, whether the Fed should be hiking
19:47
Speaker 7: in September. I think there's a real battle until September.
19:51
Speaker 7: But our take, of course is at inflation's much weaker,
19:54
Speaker 7: I think that there won't be a hike in September.
19:56
Speaker 1: All right, Chris, you heard Tom there? Do you agree
19:59
Speaker 1: with them on a d risk land this year?
20:02
Speaker 3: We remain very constructive.
20:04
Speaker 5: I think that, as I said earlier, we believe in
20:08
Speaker 5: a focus, a renewed focus on fundamentals, there will be
20:12
Speaker 5: there will be projects that perform well and other projects
20:16
Speaker 5: that don't.
20:17
Speaker 3: As you start thinking about macro macro.
20:20
Speaker 5: Rates, they have a pretty monumentous effect on asset prices.
20:25
Speaker 3: I think our house view within.
20:27
Speaker 5: You know, my division at least, is that we were
20:30
Speaker 5: very constructive on the rates landscape. We think that prediction
20:34
Speaker 5: markets have maybe overplayed their hand on the possibilities of
20:37
Speaker 5: a rate hike. We think that Chairman Wars is unlikely
20:42
Speaker 5: to raise rates going into the end of the year,
20:45
Speaker 5: and so we think we're very constructive through that lens.
20:49
Speaker 5: And look, despite the challenges that we've seen on the
20:53
Speaker 5: geopolitical plunt and the strait of Hormus, oil is not
20:56
Speaker 5: at two hundred, right, and I think we were seeing
20:58
Speaker 5: some constructive and flat prints that will give Worsh and
21:02
Speaker 5: the FED the comfort to not raise rates.
21:04
Speaker 3: I just don't see it.
21:06
Speaker 5: We don't see it, at least again in my little
21:08
Speaker 5: part of the woods here in the crypto space, we
21:11
Speaker 5: don't see worsh raising rates well.
21:13
Speaker 1: I mean, we're setting on seventy eight hundred today and
21:17
Speaker 1: the likelihood of us hitting eight thousand, I mean, it's real,
21:20
Speaker 1: It's very possible. On the SMP. So beyond that you
21:23
Speaker 1: look at other catalysts that could start to activate markets.
21:28
Speaker 1: I'm kind of curious the issue that we have continued
21:32
Speaker 1: to see around security. This, of course was a recent
21:35
Speaker 1: one by Treasure that had some difficulties. This basically wasn't
21:39
Speaker 1: a hack guys. This was essentially their shipper, people who
21:43
Speaker 1: ship you your cards or your devices, was exposed. Data
21:48
Speaker 1: was exposed, so they didn't get funds. They just got
21:50
Speaker 1: names and shipping addresses, which are very efficient and being
21:53
Speaker 1: able to do social engineering. So you look at that
21:56
Speaker 1: all these wallet hacks along with something like this in
21:58
Speaker 1: terms of data breaches, is this going to push people
22:01
Speaker 1: back into centralized exchanges? What do you think?
22:05
Speaker 5: Yeah, it's a great question, and unfortunately we're at a
22:08
Speaker 5: period of max disruption caused by AI.
22:14
Speaker 3: However, we believe that in the medium term AI is.
22:18
Speaker 5: Going to actually be beneficial for crypto and itssecurity explain.
22:24
Speaker 5: So yesterday, we've been on the record is saying that
22:28
Speaker 5: we need a full policy response. We've been taking a
22:31
Speaker 5: number of actions to try to and if you're to
22:33
Speaker 5: ask me, I believe that security is the biggest issue
22:37
Speaker 5: holding up crypto from its full potential people are scared
22:41
Speaker 5: of operating on chain because they should be.
22:43
Speaker 3: We've seen hack after hack, and why is that. It's
22:45
Speaker 3: because state.
22:46
Speaker 5: Operators are maneuvering against our startups, maneuvering against retail and
22:51
Speaker 5: it's completely unacceptable.
22:55
Speaker 3: And so we've done a couple of things.
22:56
Speaker 5: Yesterday, I mean just now, I think today we signed
22:58
Speaker 5: on to a letter for on the Bitcoin Policy Institute.
23:02
Speaker 5: We believe that the defenders must have access to the
23:05
Speaker 5: best frontier models. And again, if this is accomplished, we
23:10
Speaker 5: believe that in the medium term that the defenders.
23:13
Speaker 3: Will have an edge over the attackers. Now is there's something.
23:16
Speaker 1: Else in AI. Essentially to be able to AI will
23:19
Speaker 1: be out on the.
23:20
Speaker 5: Front AI will be a I think more of a
23:23
Speaker 5: benefit than a detriment to security in the future. But
23:29
Speaker 5: we've lacked a full government policy response. And last night
23:33
Speaker 5: something happened that I've been pushing for for years. It
23:36
Speaker 5: looks like, after two hundred years, the United States has
23:40
Speaker 5: resurrected the concept of privateering or letters of mark.
23:45
Speaker 3: This is a big deal.
23:47
Speaker 5: It came out last night via memoranda. Christian Carlo and
23:50
Speaker 5: I advocated for this. Former Chairman of the CFTC a
23:53
Speaker 5: couple of years back in an op ed it looks
23:55
Speaker 5: like it finally caught on, and the White House came
23:57
Speaker 5: out yesterday. What this means is that for the first time,
24:01
Speaker 5: the government will be empowering the sophistication in might of
24:05
Speaker 5: the private sector to go on offense against our adversaries.
24:09
Speaker 3: It's a highly regulated and controlled regime.
24:12
Speaker 5: But as a Naval Academy graduate, I will tell you
24:14
Speaker 5: it was the naval privateers that really helped win the
24:18
Speaker 5: Revolutionary War, and it helped end the War of eighteen twelve.
24:21
Speaker 5: And here we are now, you know, going back to
24:24
Speaker 5: our constitution. This idea is as American as apple pie.
24:28
Speaker 5: Look at Article one, Section eight of the Constitution and
24:31
Speaker 5: it looks like finally we'll have an offensive capability in
24:35
Speaker 5: an attempt to restore security. So again, medium term, I'm
24:38
Speaker 5: super bullish. It's just gonna take a little bit of
24:40
Speaker 5: time to get this going.
24:42
Speaker 1: But well that will be good for defensive measures, I
24:47
Speaker 1: think yes, And I think you're right, State actors. We're
24:50
Speaker 1: already seeing this, you know, all along, and it's not
24:54
Speaker 1: been something new, but I think now the fact that
24:56
Speaker 1: we're getting so you know, top tier because crypto is
25:00
Speaker 1: now becoming looked at by Wall Street, major investors' institutions,
25:05
Speaker 1: and I think going to be by family offices and
25:08
Speaker 1: private wealth that is really starting to look in their stretch.
25:11
Speaker 1: So privacy is going to be a huge situation. Thanks
25:15
Speaker 1: for being a good sport. We appreciate it all the
25:18
Speaker 1: all the time. We always give you a hard time,
25:20
Speaker 1: but I think you're one of those people that you know,
25:23
Speaker 1: you take it and roll with the punches, which is
25:25
Speaker 1: the good thing overall. Chris, So thanks a lot man.
25:27
Speaker 3: Good to see you fall. Thanks for having me.
25:29
Speaker 4: I'm in.
25:36
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25:38
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25:42
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