WEBVTT

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<v Speaker 1>Tomorrow will be the first of two hearings this week

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<v Speaker 1>with the SEC and Congress. This will include Gary Ginster

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<v Speaker 1>and the Commissioners. You can expect fireworks and of course

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<v Speaker 1>crypto is going to be a big topic and is

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<v Speaker 1>the SEC about to lose its case against Coinbase. Got

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<v Speaker 1>some big updates for you guys. Let's get into it. Hey, everybody,

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<v Speaker 1>welcome into the Thinking Crypto podcast. You're home for cryptocurrency

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<v Speaker 1>news and interviews. I'm your host, Tony Edward. On your

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<v Speaker 1>way in a place of that subscribe button as well

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<v Speaker 1>as a thumbs up button and leave a comment below.

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<v Speaker 1>If you're listening on a podcast platform such as Spotify

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<v Speaker 1>or Apple, please leave a five star rating and review. Folks,

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<v Speaker 1>I want to just highlight what's happening with bitcoin right now.

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<v Speaker 1>It's sitting at sixty three thousand dollars. We're still waiting

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<v Speaker 1>to see that true breakout to the upside. And it

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<v Speaker 1>did cross sixty four thousand dollars yesterday, so let's hope

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<v Speaker 1>this week it can continue to momentum. But you know

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<v Speaker 1>it's going to be a process. We have to be

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<v Speaker 1>patient and let it do its thing. Now, something to

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<v Speaker 1>highlight yesterday literally had over one hundred and fifty million

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<v Speaker 1>USD minted by circle folks, and if you follow whale

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<v Speaker 1>alerts on Twitter you will see these updates. The first

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<v Speaker 1>batch that was minted was for fifty million, one hundred

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<v Speaker 1>and nine four hundred and forty nine one hundred and

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<v Speaker 1>it was at seven to fifteen am. The next amount

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<v Speaker 1>was straight up fifty million USDC minted at four thirty

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<v Speaker 1>four pm same day, and then finally at night ten

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<v Speaker 1>fifty four pm there was another fifty million minted. So

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<v Speaker 1>what does this mean. I've often shared it with you

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<v Speaker 1>guys with tether and other stable coins liquidity. The whales

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<v Speaker 1>are getting ready to take positions and so forth. And

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<v Speaker 1>this is why we don't only look at charts. We

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<v Speaker 1>look at fundamentals. We look at the macro and so

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<v Speaker 1>forth to see the full picture of what's happening in

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<v Speaker 1>this market. If anyone is just showing you charts and

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<v Speaker 1>not showing you the macro and so forth, they're not

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<v Speaker 1>giving you a full picture. So you have to look

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<v Speaker 1>at this market from all aspects, because the macro matter

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<v Speaker 1>is the fundamental matter. And you can say, well, hey,

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<v Speaker 1>the charge are the most important. Sure you can make

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<v Speaker 1>that case, but you've got to look at the full picture, right.

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<v Speaker 1>If you're only looking at one part of it, you're

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<v Speaker 1>going to miss where we're at and where we're going.

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<v Speaker 1>So very very interesting the amount of stable coins that

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<v Speaker 1>got minted yesterday, and you know where this is going

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<v Speaker 1>to go straight into the crypto market. Now. Tomorrow is

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<v Speaker 1>a very big day. It is the first of two

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<v Speaker 1>hearings with the SEC in Congress. Here Ron Hammond of

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<v Speaker 1>the Blockchain Association gave a summary. He said, this is

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<v Speaker 1>the week nearly everyone in crypto and Capitol Hill has

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<v Speaker 1>waited long for. SEC chair and the other SEC commissioners

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<v Speaker 1>will testify tomorrow before the House Financial Services Committee and

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<v Speaker 1>Wednesday with the Senate Banking Committee. Usually this is a

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<v Speaker 1>quieter hearing, but not this year. Let's break down what's

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<v Speaker 1>typical here and what makes these oversight hearings different. First,

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<v Speaker 1>the SEC Chair usually testifies in front of these committees annually,

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<v Speaker 1>so these hearings are standard. Gencer has also privately met

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<v Speaker 1>with policymakers over the past few months too. This is

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<v Speaker 1>where things start to deviate from the norm. With the

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<v Speaker 1>election around the corner, Typically members retreat to their party's position.

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<v Speaker 1>The party not in control of the sec rails against

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<v Speaker 1>the chair while others play defense. But we likely won't

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<v Speaker 1>see that this time. What he's talking about here is

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<v Speaker 1>we've seen a lot of top Democrats turn their backs

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<v Speaker 1>on Elizabeth Warren and they have been going after Gary

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<v Speaker 1>against her. Look at Richie Torres, you got Garren Soto,

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<v Speaker 1>you got Roe Connor, you got Walie Nickel, and you

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<v Speaker 1>even had Chuck Schumer in the Senate. That's a huge right.

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<v Speaker 1>So we're seeing a lot of Democrats in Congress are

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<v Speaker 1>turning pro crypto, and they recognize the spending Crypto is doing.

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<v Speaker 1>They realize this is a dumb place to be in

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<v Speaker 1>to be anti crypto, anti technology that's here to stay.

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<v Speaker 1>So many of them are going against Gary. The problem

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<v Speaker 1>is Elizabeth Warren has tons of power, and she's the one,

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<v Speaker 1>you know, spoon feeding Gary a lot of the questions

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<v Speaker 1>ahead of hearings, and they've collaborated together on their attack

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<v Speaker 1>on the industry. Right, So that's what's been the whole roadblock.

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<v Speaker 1>And of course Elizabeth Warren has Biden's ear. She's the

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<v Speaker 1>one that told him to veto the SAB one two

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<v Speaker 1>one repeal because remember that got repealed in the House

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<v Speaker 1>and the Senate. Democrats and Republicans both did that together,

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<v Speaker 1>but Biden vetoed it. You think Biden knew what the

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<v Speaker 1>hell this is? No, no, no, My friends, Elizabeth Warren

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<v Speaker 1>made the call. So Ron continues saying here instead, Gainser's

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<v Speaker 1>tactic at the agency on our multitude of fronts have

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<v Speaker 1>found him subject to fairly intense scrutiny from his own party,

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<v Speaker 1>whether it is the treatment of SEC staff or the

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<v Speaker 1>direction of the Enforcement Division. Gainser will find he has

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<v Speaker 1>fewer allies than before. Then there is the added element

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<v Speaker 1>of the other SEC commissioners joining Gainster, which is very uncommon.

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<v Speaker 1>On one hand, it gives Gainser more defense with the

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<v Speaker 1>two other Democrat commissioners flanking him on the stand and

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<v Speaker 1>largely in lockstep on his policies. The Republicans will be

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<v Speaker 1>the counter So, folks, we could see some fireworks here

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<v Speaker 1>because you got Hester and mark Uada, who are both

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<v Speaker 1>pro crypto, who have been trying to work with the industry.

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<v Speaker 1>You got Genser, right, we know where he stands. But

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<v Speaker 1>then you got these two Democrat commissioners who have been

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<v Speaker 1>anti crypto. In fact, they're so blatant about their anti

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<v Speaker 1>crypto stance. When the judge in the Great Scale lawsuits

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<v Speaker 1>said the SEC acted arbitrary and capricious, and then the

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<v Speaker 1>SEC commissioners had to vote for the approval of the

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<v Speaker 1>Bigcoin's body TFS. Can you believe that the two Democrat

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<v Speaker 1>commissioners voted no even though the judge the court said, hey,

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<v Speaker 1>what are you guys doing. You're acting arbitrary and capricious,

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<v Speaker 1>which is incredibly embarrassing from an agency like this and

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<v Speaker 1>credits against her. He voted yes with has the person Markuaeda.

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<v Speaker 1>So pretty pathetic, right, but it shows the political divide

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<v Speaker 1>and an agency like this is supposed to be neutral,

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<v Speaker 1>not political, but Gary Genser made it political. And he's

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<v Speaker 1>of course a puppet on strings being controlled by Elizabeth Warren,

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<v Speaker 1>who's a puppet on strings being controlled by TRADFI trying

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<v Speaker 1>to protect these banking and comes. So it should be

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<v Speaker 1>pretty incredible tomorrow, guys, I'm going to be locked into

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<v Speaker 1>this hearing, and of course i'll bring you to details

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<v Speaker 1>now ahead of the hearing tomorrow. Republicans on the House

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<v Speaker 1>Financial Services Committee and the Banking GOP, led by Patrick

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<v Speaker 1>McHenry and Senator de Lumus sent a letter to chair

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<v Speaker 1>against her, demanding the agency rescind the SAB one two

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<v Speaker 1>one which prevents banks from being able to custody crypto. Now,

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<v Speaker 1>we heard just last week that BNY Mellon is able

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<v Speaker 1>to circumvent this, and it's because they are licensed in

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<v Speaker 1>New York, which has its own regime there for licensing.

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<v Speaker 1>It's kind of nuts. We need a federal regime to

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<v Speaker 1>make all of this clear. Right because New York is

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<v Speaker 1>doing its own thing, Wyoming is doing its own thing.

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<v Speaker 1>You can't have that. But this is a big roadblock

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<v Speaker 1>that if they remove it, banks will be able to

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<v Speaker 1>custody crypto. And of course if they can custody, they

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<v Speaker 1>can do a lot more with trading and selling it

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<v Speaker 1>to their clients and much more. So. It would be

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<v Speaker 1>pretty big for the industry to have these banks come in.

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<v Speaker 1>And I believe in self custody, but I know, like

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<v Speaker 1>my mom and dad and grandma and grandpa are not

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<v Speaker 1>going to be able to do what I do. They're

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<v Speaker 1>going to go to ETF rout. They may go to

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<v Speaker 1>their bank which they trust and have been using for

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<v Speaker 1>years now. Over the years, I've given you guys the

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<v Speaker 1>mock scenario that the banks will call you up. Mister Jones,

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<v Speaker 1>missus Jones, how are you? Did you know? We offer

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<v Speaker 1>bitcoin now? You can buy through us. We'll take care

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<v Speaker 1>of it. We'll give you the month that you're reporting,

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<v Speaker 1>we'll custody it for you. That's coming. Grandma and grandpa

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<v Speaker 1>are going to get the call, right, Your mom and

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<v Speaker 1>dad are going to get the call. You may get

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<v Speaker 1>the call from your bank that they offer this now.

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<v Speaker 1>So that's where we're headed. But Genser and Elizabeth Warren,

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<v Speaker 1>you know, trying to slow this industry down as much

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<v Speaker 1>as possible, but they're going to lose, guys. Disruptive technology

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<v Speaker 1>always wins. They may slow us down, don't get me wrong.

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<v Speaker 1>They may put up these hurdles, but they won't win. Guys.

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<v Speaker 1>This technology will outlast them. Now Coinbase versus the SEC,

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<v Speaker 1>we got some big updates here. Paul Garwall, chief legal

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<v Speaker 1>officer at Coinbase, tweeted out today Coinbase made oral arguments

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<v Speaker 1>before the Third Circuit in our case against the SEC's

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<v Speaker 1>repeated arbitrary and capricious denial of our petition for rule making,

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<v Speaker 1>which we originally put forward over two years ago. And

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<v Speaker 1>he says the SEC refuses to provide a reasonable explanation

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<v Speaker 1>for its bare bones denial, yet it has wielded it's

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<v Speaker 1>purported authority to engage in an arbitrary enforcement campaign against

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<v Speaker 1>our industry. Regulation by enforcement does not but damage American consumers, innovation,

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<v Speaker 1>US competitiveness, and national security. Coinbase is determined to leave

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<v Speaker 1>no stone unturned in our efforts to get clarity for

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<v Speaker 1>our industry and the millions of Americans who hold crypto.

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<v Speaker 1>American consumers and our industry deserve better. We thank the

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<v Speaker 1>Third Circuit for its time and consideration. So, guys, if

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<v Speaker 1>Coinbase is able to score a win here, it will

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<v Speaker 1>be detrimental to the SEC. It will be at the

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<v Speaker 1>same level as the gray Scale case, because you have

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<v Speaker 1>the largest crypto exchange in the US, which is public,

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<v Speaker 1>which the SEC greenlighted to go public, knowing their business,

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<v Speaker 1>and if they able to score a win here, it's over.

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<v Speaker 1>In this situation, in conjunction with the loss to Ripple,

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<v Speaker 1>the loss to Grayscale, many Democrats turning on Elizabeth Warren

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<v Speaker 1>and Gary Ginser. Crypto spending over two hundred million dollars

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<v Speaker 1>this election cycle, the largest spender, which is incredible. Things

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<v Speaker 1>are not going to go well for against her in

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<v Speaker 1>the SEC and there's going to be major problems on

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<v Speaker 1>their end. Now. I know some of you're gonna say, hey,

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<v Speaker 1>that hearing tomorrow, they're just going to talk. Well, one

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<v Speaker 1>thing I've learned, because Elizabeth Warren has so much power

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<v Speaker 1>and Gainscer has so much power, and binding is just

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<v Speaker 1>listening to Elizabeth Warren. What it has done, what it

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<v Speaker 1>has yielded. It woke up a lot of Democrats and

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<v Speaker 1>who are now joining the Republicans. It has been a

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<v Speaker 1>snails pace process, but guys, it's paying off. And I

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<v Speaker 1>know some of you want to see instant action. I

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<v Speaker 1>do too, right, and we want to get Gangser kicked out,

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<v Speaker 1>but we need the Democrats to turn to continue to

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<v Speaker 1>turn on him, and then Elizabeth Warren and him will

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<v Speaker 1>be on an island by themselves. So we're making progress.

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<v Speaker 1>I know sometimes it seem that were not when we're

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<v Speaker 1>making progress now. Jake Trabirski weighed in on the coinbase

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<v Speaker 1>oral argument, saying, listening to this and the SEC Council

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<v Speaker 1>keeps saying digital asset securities to the court. Two weeks

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<v Speaker 1>after the different SEC Council apologized to a different court

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<v Speaker 1>for the confusion they caused by saying crypto asset securities,

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<v Speaker 1>but we're supposed to know what the rules are. Remember

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<v Speaker 1>in the Binance case, in the footnote they sent to

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<v Speaker 1>the court, We're sorry, we cause a lot of confusion

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<v Speaker 1>using digital asset securities. We're so sorry, judge, you know.

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<v Speaker 1>And then literally that same day they use it in

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<v Speaker 1>the E Toro settlement. Now they're using it again. This

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<v Speaker 1>is insane. I mean, this is unbelievable. But we got

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<v Speaker 1>to keep fighting to expose these liars and hypocrites. Now,

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<v Speaker 1>Dave Michaels, who's a crypto lawyer, and he says some

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<v Speaker 1>tough questions to the SEC today at the Third Circuit

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<v Speaker 1>about its approach to overseeing crypto. Hard to predict how

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<v Speaker 1>the panel will rule, but felt like two judges had

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<v Speaker 1>tougher questions for the SEC than Coinbase. One judge appears

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<v Speaker 1>to believe the SEC prefers to sue companies to writing rules.

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<v Speaker 1>Here's a quote. We won't tell you the answer until

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<v Speaker 1>we prosecute you, he said, echoing one of the industry's claims.

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<v Speaker 1>He's spot on, no clarity, just mass confusion and just

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<v Speaker 1>going around shaking down these companies. And it started with Ripple,

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<v Speaker 1>of course, and then it went to everything else. Everybody's

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<v Speaker 1>getting wells notices, everybody's getting a lawsuit. But the industry

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<v Speaker 1>is fighting back, punching back against the bully, as mentioned

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<v Speaker 1>the campaign spending, and the industry is proactively launching lawsuits

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<v Speaker 1>against the SEC. So, guys, as I've been saying, there's

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<v Speaker 1>light at the end of the tunnel here, we're winning.

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<v Speaker 1>It's a slow process, but we're winning now. Eleanor Turta

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<v Speaker 1>Fox Business highlighted that she's going to be publishing her

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<v Speaker 1>exclusive interview at SEC Commissioner Mark Uada very soon. And

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<v Speaker 1>the timing of this, I think, you know, Marky Wada

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<v Speaker 1>is timing this right because he got the hearings this week,

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<v Speaker 1>the election coming up and so forth. So it's interesting

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<v Speaker 1>how these things are playing out. Now. We got some

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<v Speaker 1>very interesting news around black rocking coin Base. So apparently

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<v Speaker 1>black Rock amended their custody agreement with Coinbase. They fill

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<v Speaker 1>an update with the SEC. Here's an excerpt as detail

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<v Speaker 1>in the SEC. Following the amendment updates, Section two point

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<v Speaker 1>one of the Custodial Services Agreement, coin based custody must

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<v Speaker 1>now process a withdrawal of digital assets to a public

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<v Speaker 1>blockchain address within twelve hours of receiving instructions from the

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<v Speaker 1>Trust or its authorized representatives, subject to specific balance requirements.

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<v Speaker 1>So this is good. It's important that you have these

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<v Speaker 1>checks and balances in place, so to speak, that Coinbase

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<v Speaker 1>indeed has the bitcoin. So there has been recent criticism

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<v Speaker 1>of Coinbase on how they're handling the custody with black

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<v Speaker 1>Rock and the buying of bitcoins. So remember that you know,

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<v Speaker 1>the cash may come in and it has to fulfill

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<v Speaker 1>the order based on you know, people who are buying

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<v Speaker 1>the ETF. But some people are arguing, hey, some of

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<v Speaker 1>these things look like paper bitcoin. I don't know all

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<v Speaker 1>the details, but there are some pseudo red flags here

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<v Speaker 1>and I still have to learn more about it. But

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<v Speaker 1>this makes sense what they're trying to do here, and

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<v Speaker 1>hopefully there's more because I really appreciate the transparency that

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<v Speaker 1>bit Wise Asset Management has done where they've released the

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<v Speaker 1>wallet addresses that store the bitcoin the bigcoins for their ETF,

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<v Speaker 1>and I think more of these issuers need to do that.

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<v Speaker 1>But will they all do it? Probably not right. Blackrock

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<v Speaker 1>may not want to do that, but I hope that

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<v Speaker 1>more of them do it. We need that transparency. I'm

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<v Speaker 1>gonna I'm not saying that, you know, black Rocks and

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<v Speaker 1>coinbas are like FTX and they're going to do something shady,

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<v Speaker 1>but I think having the transparency really helps to build

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<v Speaker 1>trust and that nothing shady is happening here now. Quick

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<v Speaker 1>word from our sponsor, folks, and that is Uphold, which

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<v Speaker 1>is a great crypto platform that is safe to use.

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<v Speaker 1>They're reliable. I've been using them for years. They don't

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<v Speaker 1>commingle or lend out your funds. They have three hundred

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<v Speaker 1>plus cryptocurrencies, Bitcoin and all the top all coins, and

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<v Speaker 1>like I said, I've been using it for years. I've

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<v Speaker 1>interviewed the CEO many times as CFO and so forth.

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<v Speaker 1>And they recently launched a new product called US Interest Accounts.

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<v Speaker 1>So essentially you can put your dry powder or your

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<v Speaker 1>crypto profits in here and earn up to five percent apy.

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<v Speaker 1>That's only for balances over one thousand dollars. If it's

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<v Speaker 1>below a thousand, you earn two percent. The best of

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<v Speaker 1>all is FDIC insured. There are no fees or subscription

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<v Speaker 1>so you don't have to pay anything. You can pull

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<v Speaker 1>your funds in and out at any point, so there's

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<v Speaker 1>no lock ups here, folks. So this is a really

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<v Speaker 1>great product and I'll be using it for some of

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<v Speaker 1>my crypto profits. So if you'd like to learn more

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<v Speaker 1>about Uphold, check out the link in the description. Now, folks,

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<v Speaker 1>Donald Trump was speaking at an event and I thought

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<v Speaker 1>he made an incredibly bullish statement, and I feel like

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<v Speaker 1>the narrative is being laid here for this to happen.

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<v Speaker 1>He says, I think crypto has got a great future.

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<v Speaker 1>Maybe we will pay off the thirty five trillion dollar debt. Wow,

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<v Speaker 1>what a statement, right, folks. And we know he's talked

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<v Speaker 1>about making bitcoin or reserve assets and he's full in

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<v Speaker 1>support of cryptos. So I feel the grond work is

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<v Speaker 1>being laid here. And imagine if crypto is adopted by

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<v Speaker 1>the IMF and these world governments and so forth, and

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<v Speaker 1>not all of it, but maybe they use bitcoin and

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<v Speaker 1>stable coins or something like that. I don't know how

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<v Speaker 1>it will all work, but it could be part of

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<v Speaker 1>how they fix some of this problem. Guys. It's very interesting.

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<v Speaker 1>We got news that global crypto investment products see three

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<v Speaker 1>hundred and twenty one million dollars in net weekly inflows

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<v Speaker 1>as rebound continues. So we're seeing vcs hedge funds and

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<v Speaker 1>all these things are up, and there's a lot of

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<v Speaker 1>capital raises happening, so it's pretty incredible. Global crypto funds

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<v Speaker 1>at asset managers such as black Rock, Bitwise, Fidelity, Grayscale,

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<v Speaker 1>appro Shares and twenty one Shares continued their rebound into

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<v Speaker 1>a second week, adding net inflows worth three hundred and

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<v Speaker 1>twenty one million dollars last week, according to coin Shares,

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<v Speaker 1>following two prior consecutive weeks of net outflows. Here's a quote.

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<v Speaker 1>The surge was likely driven by the Federal Open Market

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<v Speaker 1>Committee the FMC comments last Wednesday, which took a more

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<v Speaker 1>dubbish stance than anticipated, including a fifty basis point interest

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<v Speaker 1>rate cut. Coin Shares head of research James Butterfill said

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<v Speaker 1>in a Monday report total assets under management at the

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<v Speaker 1>funds grew nine percent as a result, with trading volume

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<v Speaker 1>also up nine percent on the week before at nine

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<v Speaker 1>point five billion dollars. So, guys, it's along the lines

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<v Speaker 1>of what we've been talking about on this podcast, that

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<v Speaker 1>easy money cycle is coming. While there may be short

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<v Speaker 1>term volatility, easier capital to be borrowing at the lower rate.

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<v Speaker 1>This benefits the business cycle, It benefits hedge funds, the vcs.

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<v Speaker 1>It helps people out who are trying to buy a house.

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<v Speaker 1>So more liquidity is going to come back, and businesses

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<v Speaker 1>will be able to borrow to hire, and you guys

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<v Speaker 1>know how the economy works, right, the Fiat money system,

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<v Speaker 1>and of course they're going to print money. They have

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<v Speaker 1>to service the debt as they cut the rates, so

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<v Speaker 1>more liquidity will end in, which benefits asset. So of

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<v Speaker 1>course you're seeing this influx of capital because they're like, oh,

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<v Speaker 1>there it is, right, here's the start of the easy

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<v Speaker 1>money cycle. Let's jump all in. This is not twenty

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<v Speaker 1>twenty two with the fat doing quantitative tightening, raising rates,

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<v Speaker 1>selling all their treasury, selling all their securities and all

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<v Speaker 1>these things, folks, So exciting times ahead. I hope you're

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<v Speaker 1>as bullish as I am, and have a plan as

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<v Speaker 1>I've been telling you guys, write down your price points

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<v Speaker 1>that you're taking profits at and stick to that plan. Guys.

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<v Speaker 1>You know, watch out for the emotions that are going

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<v Speaker 1>to come when we hit the euphoric phase and everyone's

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<v Speaker 1>greedy and then the uber drivers and your grandma and

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<v Speaker 1>everybody's talking about it. Right, that's where you gotta be

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<v Speaker 1>careful because you want to be a contrarian to the herd.

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<v Speaker 1>All right, folks, let me know what you think. Leave

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<v Speaker 1>your thoughts in comments below, hit the thumbs up button,

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<v Speaker 1>and don't forget to sign up for my free email newsletter.

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<v Speaker 1>It's one hundred percent free. It's on Substack. And also

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<v Speaker 1>be sure to grab a copy of my book, Rethinking Crypto.

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<v Speaker 1>Grab a copy to support the podcast. Grab a few

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<v Speaker 1>copies for your friends and family. It will make a

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<v Speaker 1>great holiday give help them to better understand crypto. And

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<v Speaker 1>if you bought a copy already, please please please leave

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<v Speaker 1>a rating and review. It will really help me out.

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<v Speaker 1>Thank you, guys. I appreciate you all, and I'll talk

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<v Speaker 1>to you all later