Speaker 1: Tomorrow will be the first of two hearings this week
Speaker 1: with the SEC and Congress. This will include Gary Ginster
Speaker 1: and the Commissioners. You can expect fireworks and of course
Speaker 1: crypto is going to be a big topic and is
Speaker 1: the SEC about to lose its case against Coinbase. Got
Speaker 1: some big updates for you guys. Let's get into it. Hey, everybody,
Speaker 1: welcome into the Thinking Crypto podcast. You're home for cryptocurrency
Speaker 1: news and interviews. I'm your host, Tony Edward. On your
Speaker 1: way in a place of that subscribe button as well
Speaker 1: as a thumbs up button and leave a comment below.
Speaker 1: If you're listening on a podcast platform such as Spotify
Speaker 1: or Apple, please leave a five star rating and review. Folks,
Speaker 1: I want to just highlight what's happening with bitcoin right now.
Speaker 1: It's sitting at sixty three thousand dollars. We're still waiting
Speaker 1: to see that true breakout to the upside. And it
Speaker 1: did cross sixty four thousand dollars yesterday, so let's hope
Speaker 1: this week it can continue to momentum. But you know
Speaker 1: it's going to be a process. We have to be
Speaker 1: patient and let it do its thing. Now, something to
Speaker 1: highlight yesterday literally had over one hundred and fifty million
Speaker 1: USD minted by circle folks, and if you follow whale
Speaker 1: alerts on Twitter you will see these updates. The first
Speaker 1: batch that was minted was for fifty million, one hundred
Speaker 1: and nine four hundred and forty nine one hundred and
Speaker 1: it was at seven to fifteen am. The next amount
Speaker 1: was straight up fifty million USDC minted at four thirty
Speaker 1: four pm same day, and then finally at night ten
Speaker 1: fifty four pm there was another fifty million minted. So
Speaker 1: what does this mean. I've often shared it with you
Speaker 1: guys with tether and other stable coins liquidity. The whales
Speaker 1: are getting ready to take positions and so forth. And
Speaker 1: this is why we don't only look at charts. We
Speaker 1: look at fundamentals. We look at the macro and so
Speaker 1: forth to see the full picture of what's happening in
Speaker 1: this market. If anyone is just showing you charts and
Speaker 1: not showing you the macro and so forth, they're not
Speaker 1: giving you a full picture. So you have to look
Speaker 1: at this market from all aspects, because the macro matter
Speaker 1: is the fundamental matter. And you can say, well, hey,
Speaker 1: the charge are the most important. Sure you can make
Speaker 1: that case, but you've got to look at the full picture, right.
Speaker 1: If you're only looking at one part of it, you're
Speaker 1: going to miss where we're at and where we're going.
Speaker 1: So very very interesting the amount of stable coins that
Speaker 1: got minted yesterday, and you know where this is going
Speaker 1: to go straight into the crypto market. Now. Tomorrow is
Speaker 1: a very big day. It is the first of two
Speaker 1: hearings with the SEC in Congress. Here Ron Hammond of
Speaker 1: the Blockchain Association gave a summary. He said, this is
Speaker 1: the week nearly everyone in crypto and Capitol Hill has
Speaker 1: waited long for. SEC chair and the other SEC commissioners
Speaker 1: will testify tomorrow before the House Financial Services Committee and
Speaker 1: Wednesday with the Senate Banking Committee. Usually this is a
Speaker 1: quieter hearing, but not this year. Let's break down what's
Speaker 1: typical here and what makes these oversight hearings different. First,
Speaker 1: the SEC Chair usually testifies in front of these committees annually,
Speaker 1: so these hearings are standard. Gencer has also privately met
Speaker 1: with policymakers over the past few months too. This is
Speaker 1: where things start to deviate from the norm. With the
Speaker 1: election around the corner, Typically members retreat to their party's position.
Speaker 1: The party not in control of the sec rails against
Speaker 1: the chair while others play defense. But we likely won't
Speaker 1: see that this time. What he's talking about here is
Speaker 1: we've seen a lot of top Democrats turn their backs
Speaker 1: on Elizabeth Warren and they have been going after Gary
Speaker 1: against her. Look at Richie Torres, you got Garren Soto,
Speaker 1: you got Roe Connor, you got Walie Nickel, and you
Speaker 1: even had Chuck Schumer in the Senate. That's a huge right.
Speaker 1: So we're seeing a lot of Democrats in Congress are
Speaker 1: turning pro crypto, and they recognize the spending Crypto is doing.
Speaker 1: They realize this is a dumb place to be in
Speaker 1: to be anti crypto, anti technology that's here to stay.
Speaker 1: So many of them are going against Gary. The problem
Speaker 1: is Elizabeth Warren has tons of power, and she's the one,
Speaker 1: you know, spoon feeding Gary a lot of the questions
Speaker 1: ahead of hearings, and they've collaborated together on their attack
Speaker 1: on the industry. Right, So that's what's been the whole roadblock.
Speaker 1: And of course Elizabeth Warren has Biden's ear. She's the
Speaker 1: one that told him to veto the SAB one two
Speaker 1: one repeal because remember that got repealed in the House
Speaker 1: and the Senate. Democrats and Republicans both did that together,
Speaker 1: but Biden vetoed it. You think Biden knew what the
Speaker 1: hell this is? No, no, no, My friends, Elizabeth Warren
Speaker 1: made the call. So Ron continues saying here instead, Gainser's
Speaker 1: tactic at the agency on our multitude of fronts have
Speaker 1: found him subject to fairly intense scrutiny from his own party,
Speaker 1: whether it is the treatment of SEC staff or the
Speaker 1: direction of the Enforcement Division. Gainser will find he has
Speaker 1: fewer allies than before. Then there is the added element
Speaker 1: of the other SEC commissioners joining Gainster, which is very uncommon.
Speaker 1: On one hand, it gives Gainser more defense with the
Speaker 1: two other Democrat commissioners flanking him on the stand and
Speaker 1: largely in lockstep on his policies. The Republicans will be
Speaker 1: the counter So, folks, we could see some fireworks here
Speaker 1: because you got Hester and mark Uada, who are both
Speaker 1: pro crypto, who have been trying to work with the industry.
Speaker 1: You got Genser, right, we know where he stands. But
Speaker 1: then you got these two Democrat commissioners who have been
Speaker 1: anti crypto. In fact, they're so blatant about their anti
Speaker 1: crypto stance. When the judge in the Great Scale lawsuits
Speaker 1: said the SEC acted arbitrary and capricious, and then the
Speaker 1: SEC commissioners had to vote for the approval of the
Speaker 1: Bigcoin's body TFS. Can you believe that the two Democrat
Speaker 1: commissioners voted no even though the judge the court said, hey,
Speaker 1: what are you guys doing. You're acting arbitrary and capricious,
Speaker 1: which is incredibly embarrassing from an agency like this and
Speaker 1: credits against her. He voted yes with has the person Markuaeda.
Speaker 1: So pretty pathetic, right, but it shows the political divide
Speaker 1: and an agency like this is supposed to be neutral,
Speaker 1: not political, but Gary Genser made it political. And he's
Speaker 1: of course a puppet on strings being controlled by Elizabeth Warren,
Speaker 1: who's a puppet on strings being controlled by TRADFI trying
Speaker 1: to protect these banking and comes. So it should be
Speaker 1: pretty incredible tomorrow, guys, I'm going to be locked into
Speaker 1: this hearing, and of course i'll bring you to details
Speaker 1: now ahead of the hearing tomorrow. Republicans on the House
Speaker 1: Financial Services Committee and the Banking GOP, led by Patrick
Speaker 1: McHenry and Senator de Lumus sent a letter to chair
Speaker 1: against her, demanding the agency rescind the SAB one two
Speaker 1: one which prevents banks from being able to custody crypto. Now,
Speaker 1: we heard just last week that BNY Mellon is able
Speaker 1: to circumvent this, and it's because they are licensed in
Speaker 1: New York, which has its own regime there for licensing.
Speaker 1: It's kind of nuts. We need a federal regime to
Speaker 1: make all of this clear. Right because New York is
Speaker 1: doing its own thing, Wyoming is doing its own thing.
Speaker 1: You can't have that. But this is a big roadblock
Speaker 1: that if they remove it, banks will be able to
Speaker 1: custody crypto. And of course if they can custody, they
Speaker 1: can do a lot more with trading and selling it
Speaker 1: to their clients and much more. So. It would be
Speaker 1: pretty big for the industry to have these banks come in.
Speaker 1: And I believe in self custody, but I know, like
Speaker 1: my mom and dad and grandma and grandpa are not
Speaker 1: going to be able to do what I do. They're
Speaker 1: going to go to ETF rout. They may go to
Speaker 1: their bank which they trust and have been using for
Speaker 1: years now. Over the years, I've given you guys the
Speaker 1: mock scenario that the banks will call you up. Mister Jones,
Speaker 1: missus Jones, how are you? Did you know? We offer
Speaker 1: bitcoin now? You can buy through us. We'll take care
Speaker 1: of it. We'll give you the month that you're reporting,
Speaker 1: we'll custody it for you. That's coming. Grandma and grandpa
Speaker 1: are going to get the call, right, Your mom and
Speaker 1: dad are going to get the call. You may get
Speaker 1: the call from your bank that they offer this now.
Speaker 1: So that's where we're headed. But Genser and Elizabeth Warren,
Speaker 1: you know, trying to slow this industry down as much
Speaker 1: as possible, but they're going to lose, guys. Disruptive technology
Speaker 1: always wins. They may slow us down, don't get me wrong.
Speaker 1: They may put up these hurdles, but they won't win. Guys.
Speaker 1: This technology will outlast them. Now Coinbase versus the SEC,
Speaker 1: we got some big updates here. Paul Garwall, chief legal
Speaker 1: officer at Coinbase, tweeted out today Coinbase made oral arguments
Speaker 1: before the Third Circuit in our case against the SEC's
Speaker 1: repeated arbitrary and capricious denial of our petition for rule making,
Speaker 1: which we originally put forward over two years ago. And
Speaker 1: he says the SEC refuses to provide a reasonable explanation
Speaker 1: for its bare bones denial, yet it has wielded it's
Speaker 1: purported authority to engage in an arbitrary enforcement campaign against
Speaker 1: our industry. Regulation by enforcement does not but damage American consumers, innovation,
Speaker 1: US competitiveness, and national security. Coinbase is determined to leave
Speaker 1: no stone unturned in our efforts to get clarity for
Speaker 1: our industry and the millions of Americans who hold crypto.
Speaker 1: American consumers and our industry deserve better. We thank the
Speaker 1: Third Circuit for its time and consideration. So, guys, if
Speaker 1: Coinbase is able to score a win here, it will
Speaker 1: be detrimental to the SEC. It will be at the
Speaker 1: same level as the gray Scale case, because you have
Speaker 1: the largest crypto exchange in the US, which is public,
Speaker 1: which the SEC greenlighted to go public, knowing their business,
Speaker 1: and if they able to score a win here, it's over.
Speaker 1: In this situation, in conjunction with the loss to Ripple,
Speaker 1: the loss to Grayscale, many Democrats turning on Elizabeth Warren
Speaker 1: and Gary Ginser. Crypto spending over two hundred million dollars
Speaker 1: this election cycle, the largest spender, which is incredible. Things
Speaker 1: are not going to go well for against her in
Speaker 1: the SEC and there's going to be major problems on
Speaker 1: their end. Now. I know some of you're gonna say, hey,
Speaker 1: that hearing tomorrow, they're just going to talk. Well, one
Speaker 1: thing I've learned, because Elizabeth Warren has so much power
Speaker 1: and Gainscer has so much power, and binding is just
Speaker 1: listening to Elizabeth Warren. What it has done, what it
Speaker 1: has yielded. It woke up a lot of Democrats and
Speaker 1: who are now joining the Republicans. It has been a
Speaker 1: snails pace process, but guys, it's paying off. And I
Speaker 1: know some of you want to see instant action. I
Speaker 1: do too, right, and we want to get Gangser kicked out,
Speaker 1: but we need the Democrats to turn to continue to
Speaker 1: turn on him, and then Elizabeth Warren and him will
Speaker 1: be on an island by themselves. So we're making progress.
Speaker 1: I know sometimes it seem that were not when we're
Speaker 1: making progress now. Jake Trabirski weighed in on the coinbase
Speaker 1: oral argument, saying, listening to this and the SEC Council
Speaker 1: keeps saying digital asset securities to the court. Two weeks
Speaker 1: after the different SEC Council apologized to a different court
Speaker 1: for the confusion they caused by saying crypto asset securities,
Speaker 1: but we're supposed to know what the rules are. Remember
Speaker 1: in the Binance case, in the footnote they sent to
Speaker 1: the court, We're sorry, we cause a lot of confusion
Speaker 1: using digital asset securities. We're so sorry, judge, you know.
Speaker 1: And then literally that same day they use it in
Speaker 1: the E Toro settlement. Now they're using it again. This
Speaker 1: is insane. I mean, this is unbelievable. But we got
Speaker 1: to keep fighting to expose these liars and hypocrites. Now,
Speaker 1: Dave Michaels, who's a crypto lawyer, and he says some
Speaker 1: tough questions to the SEC today at the Third Circuit
Speaker 1: about its approach to overseeing crypto. Hard to predict how
Speaker 1: the panel will rule, but felt like two judges had
Speaker 1: tougher questions for the SEC than Coinbase. One judge appears
Speaker 1: to believe the SEC prefers to sue companies to writing rules.
Speaker 1: Here's a quote. We won't tell you the answer until
Speaker 1: we prosecute you, he said, echoing one of the industry's claims.
Speaker 1: He's spot on, no clarity, just mass confusion and just
Speaker 1: going around shaking down these companies. And it started with Ripple,
Speaker 1: of course, and then it went to everything else. Everybody's
Speaker 1: getting wells notices, everybody's getting a lawsuit. But the industry
Speaker 1: is fighting back, punching back against the bully, as mentioned
Speaker 1: the campaign spending, and the industry is proactively launching lawsuits
Speaker 1: against the SEC. So, guys, as I've been saying, there's
Speaker 1: light at the end of the tunnel here, we're winning.
Speaker 1: It's a slow process, but we're winning now. Eleanor Turta
Speaker 1: Fox Business highlighted that she's going to be publishing her
Speaker 1: exclusive interview at SEC Commissioner Mark Uada very soon. And
Speaker 1: the timing of this, I think, you know, Marky Wada
Speaker 1: is timing this right because he got the hearings this week,
Speaker 1: the election coming up and so forth. So it's interesting
Speaker 1: how these things are playing out. Now. We got some
Speaker 1: very interesting news around black rocking coin Base. So apparently
Speaker 1: black Rock amended their custody agreement with Coinbase. They fill
Speaker 1: an update with the SEC. Here's an excerpt as detail
Speaker 1: in the SEC. Following the amendment updates, Section two point
Speaker 1: one of the Custodial Services Agreement, coin based custody must
Speaker 1: now process a withdrawal of digital assets to a public
Speaker 1: blockchain address within twelve hours of receiving instructions from the
Speaker 1: Trust or its authorized representatives, subject to specific balance requirements.
Speaker 1: So this is good. It's important that you have these
Speaker 1: checks and balances in place, so to speak, that Coinbase
Speaker 1: indeed has the bitcoin. So there has been recent criticism
Speaker 1: of Coinbase on how they're handling the custody with black
Speaker 1: Rock and the buying of bitcoins. So remember that you know,
Speaker 1: the cash may come in and it has to fulfill
Speaker 1: the order based on you know, people who are buying
Speaker 1: the ETF. But some people are arguing, hey, some of
Speaker 1: these things look like paper bitcoin. I don't know all
Speaker 1: the details, but there are some pseudo red flags here
Speaker 1: and I still have to learn more about it. But
Speaker 1: this makes sense what they're trying to do here, and
Speaker 1: hopefully there's more because I really appreciate the transparency that
Speaker 1: bit Wise Asset Management has done where they've released the
Speaker 1: wallet addresses that store the bitcoin the bigcoins for their ETF,
Speaker 1: and I think more of these issuers need to do that.
Speaker 1: But will they all do it? Probably not right. Blackrock
Speaker 1: may not want to do that, but I hope that
Speaker 1: more of them do it. We need that transparency. I'm
Speaker 1: gonna I'm not saying that, you know, black Rocks and
Speaker 1: coinbas are like FTX and they're going to do something shady,
Speaker 1: but I think having the transparency really helps to build
Speaker 1: trust and that nothing shady is happening here now. Quick
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Speaker 1: Donald Trump was speaking at an event and I thought
Speaker 1: he made an incredibly bullish statement, and I feel like
Speaker 1: the narrative is being laid here for this to happen.
Speaker 1: He says, I think crypto has got a great future.
Speaker 1: Maybe we will pay off the thirty five trillion dollar debt. Wow,
Speaker 1: what a statement, right, folks. And we know he's talked
Speaker 1: about making bitcoin or reserve assets and he's full in
Speaker 1: support of cryptos. So I feel the grond work is
Speaker 1: being laid here. And imagine if crypto is adopted by
Speaker 1: the IMF and these world governments and so forth, and
Speaker 1: not all of it, but maybe they use bitcoin and
Speaker 1: stable coins or something like that. I don't know how
Speaker 1: it will all work, but it could be part of
Speaker 1: how they fix some of this problem. Guys. It's very interesting.
Speaker 1: We got news that global crypto investment products see three
Speaker 1: hundred and twenty one million dollars in net weekly inflows
Speaker 1: as rebound continues. So we're seeing vcs hedge funds and
Speaker 1: all these things are up, and there's a lot of
Speaker 1: capital raises happening, so it's pretty incredible. Global crypto funds
Speaker 1: at asset managers such as black Rock, Bitwise, Fidelity, Grayscale,
Speaker 1: appro Shares and twenty one Shares continued their rebound into
Speaker 1: a second week, adding net inflows worth three hundred and
Speaker 1: twenty one million dollars last week, according to coin Shares,
Speaker 1: following two prior consecutive weeks of net outflows. Here's a quote.
Speaker 1: The surge was likely driven by the Federal Open Market
Speaker 1: Committee the FMC comments last Wednesday, which took a more
Speaker 1: dubbish stance than anticipated, including a fifty basis point interest
Speaker 1: rate cut. Coin Shares head of research James Butterfill said
Speaker 1: in a Monday report total assets under management at the
Speaker 1: funds grew nine percent as a result, with trading volume
Speaker 1: also up nine percent on the week before at nine
Speaker 1: point five billion dollars. So, guys, it's along the lines
Speaker 1: of what we've been talking about on this podcast, that
Speaker 1: easy money cycle is coming. While there may be short
Speaker 1: term volatility, easier capital to be borrowing at the lower rate.
Speaker 1: This benefits the business cycle, It benefits hedge funds, the vcs.
Speaker 1: It helps people out who are trying to buy a house.
Speaker 1: So more liquidity is going to come back, and businesses
Speaker 1: will be able to borrow to hire, and you guys
Speaker 1: know how the economy works, right, the Fiat money system,
Speaker 1: and of course they're going to print money. They have
Speaker 1: to service the debt as they cut the rates, so
Speaker 1: more liquidity will end in, which benefits asset. So of
Speaker 1: course you're seeing this influx of capital because they're like, oh,
Speaker 1: there it is, right, here's the start of the easy
Speaker 1: money cycle. Let's jump all in. This is not twenty
Speaker 1: twenty two with the fat doing quantitative tightening, raising rates,
Speaker 1: selling all their treasury, selling all their securities and all
Speaker 1: these things, folks, So exciting times ahead. I hope you're
Speaker 1: as bullish as I am, and have a plan as
Speaker 1: I've been telling you guys, write down your price points
Speaker 1: that you're taking profits at and stick to that plan. Guys.
Speaker 1: You know, watch out for the emotions that are going
Speaker 1: to come when we hit the euphoric phase and everyone's
Speaker 1: greedy and then the uber drivers and your grandma and
Speaker 1: everybody's talking about it. Right, that's where you gotta be
Speaker 1: careful because you want to be a contrarian to the herd.
Speaker 1: All right, folks, let me know what you think. Leave
Speaker 1: your thoughts in comments below, hit the thumbs up button,
Speaker 1: and don't forget to sign up for my free email newsletter.
Speaker 1: It's one hundred percent free. It's on Substack. And also
Speaker 1: be sure to grab a copy of my book, Rethinking Crypto.
Speaker 1: Grab a copy to support the podcast. Grab a few
Speaker 1: copies for your friends and family. It will make a
Speaker 1: great holiday give help them to better understand crypto. And
Speaker 1: if you bought a copy already, please please please leave
Speaker 1: a rating and review. It will really help me out.
Speaker 1: Thank you, guys. I appreciate you all, and I'll talk
Speaker 1: to you all later