Speaker 1: Here we go again, guys. The Senate is now put
Speaker 1: Clarity on a delay path. Now there may still be
Speaker 1: an option here, but we are going to break it
Speaker 1: down for you guys, so don't miss this one. I
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Speaker 2: Let's just get into it.
Speaker 1: I want to first lead off with, well, we had
Speaker 1: to create a new timer in this time, we're going
Speaker 1: to create it the other way. And that is how
Speaker 1: many days it's been since the House passed Clarity into
Speaker 1: the Senate. That is now three hundred and eighty five days.
Speaker 1: That's crazy that it has been that long since the
Speaker 1: House has put this through, and of course, with everything
Speaker 1: that's going on in DC, you have the situation pretty
Speaker 1: much going to a grinding to a halt here on polymarket,
Speaker 1: as you can see, setting at fourteen percent when it
Speaker 1: comes to clarity. And I think this is a situation
Speaker 1: right now that we have to analyze some very close statements.
Speaker 1: We've got some clips today and I'm also going to
Speaker 1: bring on Rebecca Wallser from Wallser Wealth of Management to
Speaker 1: kind of break this down.
Speaker 2: Rebecca, how are you.
Speaker 3: I'm great, Thanks for having me. Paul glad to be here,
Speaker 3: all right, So Rebecca.
Speaker 1: I want to showcase something to you quickly. This was
Speaker 1: a political piece put out this of course with Senator Thune,
Speaker 1: who has pretty much been the guy that is the
Speaker 1: lynch pin on getting this done.
Speaker 2: And one thing that.
Speaker 1: Is said right here, and I'll zoom in on this
Speaker 1: for you guys to see it a little bit. But
Speaker 1: you'll notice that he told reporters that we're getting all
Speaker 1: of this queued up in reference to clarity for first
Speaker 1: thing when we come back in September. This is the
Speaker 1: big point because I think the market may have read
Speaker 1: this differently. Is this is the first time that Thune
Speaker 1: has given a date even though it's a month, but
Speaker 1: it's still a date. So my question to you is,
Speaker 1: do you feel like this is another punting setup or
Speaker 1: do you feel like maybe they actually have something in
Speaker 1: plan for September?
Speaker 2: What are your thoughts?
Speaker 4: I mean, I do think that the everyone is aware
Speaker 4: of this act, everyone is in the world is aware
Speaker 4: that it needs to get through. So I do I
Speaker 4: have some reticence to believe that we're going to come
Speaker 4: straight back from you know, from the summer break for
Speaker 4: the Senators and get a vote in September or first thing.
Speaker 4: I think they're back to thirteenth I want to say.
Speaker 4: And you know, it doesn't look like to me there's
Speaker 4: actual still consensus. It seems like we're still having an
Speaker 4: impass not only around the Ethics provision, but also some
Speaker 4: of the come being regulated by this at Agriculture Committee,
Speaker 4: so you know that being their domain, the commodities being
Speaker 4: in their domain the way it's structured right now, so
Speaker 4: it still seems like there's some meat that is left unresolved.
Speaker 4: And I also noted in that same article that you
Speaker 4: just mentioned, the political article, that Thune did say they
Speaker 4: would have three weeks Paul to.
Speaker 3: Actually work on it when they came back.
Speaker 4: So he's even kind of forecasting that this is not
Speaker 4: fully resolved, which is why even a cloture vote today
Speaker 4: wouldn't have really made a lot of sense. It's not
Speaker 4: a resolved ready to go for a vote. They don't
Speaker 4: have the sixty votes, and so there's work to be
Speaker 4: done and it's not going to be just back. We're
Speaker 4: back and we're ready to vote, like you know, because
Speaker 4: so many people were expecting to see some kind of
Speaker 4: vote this week, we were really we get a vote
Speaker 4: this week. And what this tells me is when he
Speaker 4: comes says we're coming back right to it.
Speaker 3: When we come back, we've got three weeks to work
Speaker 3: on it.
Speaker 4: That tells me that he still sees there's a lot
Speaker 4: of work to be done to resolve the differences between
Speaker 4: the Democrats and Republicans.
Speaker 2: Well, listen to the Democrats.
Speaker 1: I think we have a very good position right now
Speaker 1: because they're able to claw in a lot of their
Speaker 1: needs and wants coming out of this bill, because it
Speaker 1: is a very important bill to Trump and the administration.
Speaker 1: If you look at the calendar to your point, coming
Speaker 1: back on the week of the thirteenth, they actually go
Speaker 1: into session on the fourteenth, They'll go through four days,
Speaker 1: then they have another four days on the next week,
Speaker 1: and then another what is it, four days, all the
Speaker 1: way into the first of October. So you can kind
Speaker 1: of see there is a window here of where this
Speaker 1: could potentially still occur, and to your point, maybe there
Speaker 1: is still some negotiations happening. I want to play a
Speaker 1: clip for you because this will get into a little
Speaker 1: bit more detail on where.
Speaker 2: I think this is coming from.
Speaker 1: And I still believe that the banks are behind all
Speaker 1: of this.
Speaker 2: Let me play this for you.
Speaker 5: Here's how Wall Street Journal editorial board put it on Tuesday.
Speaker 5: But I'm just putting up the headline clarity for crypto
Speaker 5: comma sort of, and then they say the Senate bill
Speaker 5: to regulate the digital currency needs changes to reduce risks
Speaker 5: to the financial system. I think this is a warning
Speaker 5: for all of us that bill is not ready for
Speaker 5: prime time. You would agree that that would be a concern,
Speaker 5: would you not.
Speaker 6: Yes, Senator Congress should act in this space. So good
Speaker 6: for Congress to be acting. And so we do have
Speaker 6: concerns with the bill as we understand it today, but
Speaker 6: we haven't quite seen it, so we don't really know.
Speaker 2: But we agree.
Speaker 6: I agree with the Wall Street Journal editorial from yesterday.
Speaker 6: I think it's very well written.
Speaker 1: All right, So we've called this out a couple of
Speaker 1: times on the Wall Street Journal. Is they have these
Speaker 1: very unusual editors not to be named, that put this
Speaker 1: kind of thud out. And then ironically this comes up
Speaker 1: in a random hearing over in DC that really didn't
Speaker 1: have anything to do with what's going to actually be
Speaker 1: done here. Then you have Senator Jerry Moran, who is
Speaker 1: opposing clarity. So he's the newest one that has come
Speaker 1: out of the cobwebs here.
Speaker 2: And has entered the case.
Speaker 1: And I still this guy has never even been mentioned
Speaker 1: by any of the lobbyists that I've.
Speaker 2: Talked to, lobbyists that I've talked to, that this guy
Speaker 2: is even an issue.
Speaker 1: And then right after that, Rebecca, you have Wall Street
Speaker 1: Journal putting out another piece talking about Wells Fargo rolling
Speaker 1: out a token it's deposit program that's not even available
Speaker 1: right now for corporate clients.
Speaker 2: So this looks very orchestrated to me.
Speaker 1: I know how dirty these guys are now because we've
Speaker 1: been covering this for a couple of years and I'm
Speaker 1: surprised how many dirty tricks they're playing. What are we
Speaker 1: going to expect from them going into September?
Speaker 4: Well, what I think this is really set in the
Speaker 4: stage four Paul is like, you know, either we can
Speaker 4: in the digital asset world, and I'm in both worlds, right,
Speaker 4: I'm in both, But in the digital asset world, if
Speaker 4: we allow in other words, if they make it seem
Speaker 4: like they are going to not vote for Clarity at
Speaker 4: all unless the banking problem is fixed, we might get
Speaker 4: a Clarity Act, Paul, But is it going to be
Speaker 4: the Clarity Act that keeps America as the innovator or
Speaker 4: is it going to be a Clarity Act that puts
Speaker 4: a massive moat around our legacy banks and doesn't allow
Speaker 4: the United States to innovate.
Speaker 3: It really is offensive that we are innovating.
Speaker 4: I mean literally SpaceX and Nvidia, you know, are looking
Speaker 4: at starmind, you know, data centers in space.
Speaker 3: We're able to be doing.
Speaker 4: That, but we can't get you know, financial mechanations passed
Speaker 4: in our own Congress that are protecting legacy technology. And
Speaker 4: in other words, what I'm trying to say is, if
Speaker 4: you start to see sinators now kind of pulling back
Speaker 4: and saying we aren't even going to vote for this,
Speaker 4: especially on the Republican side, unless this deals with the
Speaker 4: concerns we have for small town Kansas city banks. I'm sorry, Senator,
Speaker 4: we can't change the time. We are in a period
Speaker 4: of moving to blockchain. It is happening globally. This is
Speaker 4: not a US based thing where the US Congress can
Speaker 4: come in and say no, no, no, we're going to
Speaker 4: protect the banks. This is a global sweep to a
Speaker 4: new way of transacting financial transactions. And thank god, I
Speaker 4: actually think that wells Fargo. It's interesting that they are
Speaker 4: now talking about tokenization on the blockchain. It's kind of like,
Speaker 4: not the same, but similar to the way, you know,
Speaker 4: we've been talking about Japanese banks getting on board and
Speaker 4: saying we'll be your infrastructure, will roll this out, We're
Speaker 4: going to be your go to to make crypto currencies work.
Speaker 4: So I don't know if they're trying to give banks
Speaker 4: more time to see if they can come up with
Speaker 4: a way that they can get into the game. But
Speaker 4: if they are trying to scare us now that this
Speaker 4: might not even have sixty votes because the banks are
Speaker 4: so vocal, then you know, we could either get no
Speaker 4: act or we could get an ACT that we don't want,
Speaker 4: And how is that helpful for us? That's not that's
Speaker 4: the exact opposite of what we need. So this is
Speaker 4: a huge problem, all right.
Speaker 1: So there there has been kind of a situation like this, Rebecca.
Speaker 1: If you look back at Netflix and their potential acquisition
Speaker 1: with Warner Brothers, this was kind of because everybody was
Speaker 1: looking at that as you know, either it's going to
Speaker 1: go sideways, it's going to go down if it doesn't happen.
Speaker 1: But the moment that they were out of the bidding,
Speaker 1: it actually allowed that industry to kind of move along,
Speaker 1: you know. And I'm just wondering, if clarity does go
Speaker 1: off the table, is this a okay we now have
Speaker 1: certainty that that's not going to happen, and can we
Speaker 1: move along from there?
Speaker 2: Do you think we'd see some sideways a crash?
Speaker 1: Where do you where would you see the digital asset
Speaker 1: market going if it doesn't go through?
Speaker 4: I mean, if we have status quo, we have to
Speaker 4: look at what is status quo? Like, you don't get
Speaker 4: new you know, clarity around regulation around.
Speaker 3: What is this? You know, who is in charge?
Speaker 4: We already pretty much know, it's not going to be
Speaker 4: you know, from the from the perspective of it being
Speaker 4: a commodity and not belonging under the c SEC as
Speaker 4: a security.
Speaker 3: If we can agree that that's the.
Speaker 4: Framework we're all operating under right now without in the
Speaker 4: absence of clarity, then perhaps it's not the worst thing
Speaker 4: because we can continue to innovate and yet know that
Speaker 4: the Congress can't get a bipartisan you know, consensus on how.
Speaker 3: To regulate this, and so what does that leave The.
Speaker 4: Only concern, of course, the huge, the biggest concern is
Speaker 4: that if that is not enough of of clarity for
Speaker 4: the operations that are moving forward with implementing blockchain solutions
Speaker 4: and tokenization, all these you know, stable point issuers, all
Speaker 4: of these things, if they cannot if they don't feel
Speaker 4: they have the regulatory framework security and it's it's clear
Speaker 4: enough that they feel comfortable to move forward to actually
Speaker 4: implement all of this, all the solutions and all the
Speaker 4: things they want.
Speaker 3: To bring forward, then that that would be the problem.
Speaker 4: Right they're too afraid that they that they are going
Speaker 4: to do that it's not clearly defined and basically be sued,
Speaker 4: and so then you could really stifle innovation from not
Speaker 4: having a regulatory framework that people feel comfortable operating it,
Speaker 4: and that would be the biggest problem.
Speaker 1: Yeah, I mean we are in a position now, and
Speaker 1: you mentioned the ethics situation. I want to play a
Speaker 1: clip for you because this is Trump talking about this,
Speaker 1: and it was a bit surprising to me. I was
Speaker 1: kind of taken back by how far along ethics was.
Speaker 2: Let me play this clip.
Speaker 7: But I do it very simply because we can't let
Speaker 7: China have it or Japan have it. And in the bill,
Speaker 7: they want me to be different than everybody else, and
Speaker 7: so you're against that way. So I'm like, well, I
Speaker 7: don't mind putting it in a blind trust. I don't
Speaker 7: run myself anyway. I let my kids run it. You know,
Speaker 7: they're not involved in government. I don't talk to them
Speaker 7: about government. I truck them about much other than to
Speaker 7: say I love you kids. You know, they're good kids.
Speaker 7: That takes a lot of pressure of our dollar. It's
Speaker 7: a good thing for our country.
Speaker 2: All right.
Speaker 1: So Trump right there saying I'm willing to do a
Speaker 1: blind trust. This has been another factor that the Democrats
Speaker 1: have kind of pushed for administration that's ever been exposed
Speaker 1: to this kind of restriction and even though it's going
Speaker 1: to be a temporary restriction, even until he's out office,
Speaker 1: so it's like there are only targeting this guy. I
Speaker 1: think Trump is looking at using Clarity as leverage, saying, hey,
Speaker 1: you need to get this cross or otherwise it's going
Speaker 1: to look good bad for you Democrats. And you know,
Speaker 1: the other alternative is is that it actually may be
Speaker 1: the economy that everybody's pressing on. What do you think, Yeah, I.
Speaker 4: Mean, I think that the average your audience accepted, you know,
Speaker 4: the average American is not following what Clarity is, what
Speaker 4: it does, even what the digital you know, conversion to
Speaker 4: tokenization and crypto platforms, blockchain is even happening.
Speaker 3: So I don't think that the mainstream voter is clued in.
Speaker 4: It's not going to be Paul until these things actually
Speaker 4: start affecting how you're checking out and your you know,
Speaker 4: your ability to really start to leverage this as stable
Speaker 4: coins and as these things become more of the mainstream
Speaker 4: way to pay, then I think it would have a
Speaker 4: much bigger impact for those of us that are in
Speaker 4: the know. I think that this is a really big
Speaker 4: problem that it has that it's been over a year
Speaker 4: since the House passed it, and that the Senate hasn't been.
Speaker 3: Able to get it done.
Speaker 4: And in the absence of getting it done, if it
Speaker 4: creates innovation outside of us, that is an absolute problem
Speaker 4: that Trump should be harping on. And the and the
Speaker 4: incidence of getting it done before the midterms. But having
Speaker 4: it be protective too protective of the banks. I think
Speaker 4: that's a whole another thing that you could really harp
Speaker 4: on with the with we don't.
Speaker 3: I don't want that. I want that the least.
Speaker 4: I'd rather have none, nothing at all, than an act
Speaker 4: that is going to try to put this massive mode
Speaker 4: around our banking industry. I I believe if you have
Speaker 4: to legislate and oppose and and and and instead of innovating.
Speaker 4: If you're legislating instead of innovating, you've already lost.
Speaker 3: You're already a dying industry.
Speaker 4: And it's it's time for you to get like Wills
Speaker 4: Fargo is doing and saying what can we do on
Speaker 4: the blockchain? What can we do it with tokenization? And
Speaker 4: so yeah, this is a huge problem for America. Whether
Speaker 4: the average American voter is any has any clue about
Speaker 4: this at all. I I have a feeling that they're
Speaker 4: too involved in social media to even understand with that.
Speaker 1: Yeah, well, I think to your point is the innovation
Speaker 1: cycles sometimes are well ahead of what mainstream is exactly,
Speaker 1: and then they only realize that down the road and
Speaker 1: find out, oh, we're behind because we didn't, you know,
Speaker 1: our lawmakers didn't make moves back three years ago, which
Speaker 1: is what we're talking about now.
Speaker 4: And I just want to say, I am still so
Speaker 4: disgusted if we as a country pass a bill that
Speaker 4: only has an ethics provision that relates to the current
Speaker 4: sitting administration. I just can't even put into words how
Speaker 4: disgusting that is, Like, you really don't care about the
Speaker 4: ethics for anybody else except for this sitting president. And
Speaker 4: even if they want to say, well, he offered it
Speaker 4: to begin with, Even if they want to say that,
Speaker 4: if you're serious about ethics, why would it apply to
Speaker 4: every administration? Why would it apply to every member of Congress?
Speaker 4: Why does it apply to just a sitting administration?
Speaker 3: A president? Is disgusting?
Speaker 2: All right?
Speaker 1: I want to go over to the rate potential rate
Speaker 1: hike and possibly maybe a rate pause. We'll see, how
Speaker 1: do you think this changes Warsh's position? Just the jobs numbers.
Speaker 1: I know, the you know, the inflation numbers haven't come
Speaker 1: in yet, but what about just this job's numbers. Is
Speaker 1: he looking at this any differently?
Speaker 2: Now?
Speaker 3: I think he's vindicated.
Speaker 4: I think the consternation that happened in the financial markets
Speaker 4: and all the financial media last week about his FOMC
Speaker 4: meeting and you know, his ability, his lack of wanting
Speaker 4: to give guidance, his lack of wanting to really control
Speaker 4: the short end of the curve, even though we had
Speaker 4: three dissenters. I think that he was very clear that
Speaker 4: he wants to give less guidance, maybe possibly have less meetings,
Speaker 4: and he thinks that the market itself will do a
Speaker 4: lot of the heavy lifting. It certainly did on the
Speaker 4: long end. You know, from after the FOMC meeting, so
Speaker 4: you had a lot of people and the financial media
Speaker 4: it was kind of weird. They're coming out and saying,
Speaker 4: you know, oh gosh, there's a real strong case for
Speaker 4: hikes and he's you know, he's not doing it. And
Speaker 4: they were really questioning him already, like you know, give
Speaker 4: the guy a minute, give him a beat. And now
Speaker 4: that we see this weakness in the labor market, this
Speaker 4: is really making those people that were really kind of
Speaker 4: out there beating a drum saying, gosh, you really should
Speaker 4: have taken action there. There was really a lot enough
Speaker 4: data to support it.
Speaker 3: I think that he's vindicated, and.
Speaker 4: This just lets us know that, you know, a lot
Speaker 4: of this. We also got a may revisions downward as well,
Speaker 4: So if you look at the June and made revisions together,
Speaker 4: it's over one hundred thousand jobs downward that we weren't expecting.
Speaker 4: And then also we did expect this to be a
Speaker 4: relatively positive you know number at eighty five. Eighty to
Speaker 4: eighty five was consensus. We had some out letters that
Speaker 4: said one hundred and fifteen, but for the most part
Speaker 4: we were at, you know, an eighty eighty five consensus,
Speaker 4: and to get a loss of twenty three with a
Speaker 4: consensus that high, obviously the ADP members came in week
Speaker 4: this week, but nobody was expecting this large of a loss,
Speaker 4: And this just obviously boosts Worsh's position to wait and see,
Speaker 4: to let the market do the finagling and the talking.
Speaker 4: And again, I think he's going to continue to have
Speaker 4: this stance until his task force really deliver the data
Speaker 4: that they're supposed to deliver to him by the end
Speaker 4: of the year, and I think after he has the
Speaker 4: data from the task force, we'll start to see a
Speaker 4: lot more opinions and changes being formulated. But I really
Speaker 4: think he's trying to give enough space for the market
Speaker 4: to breathe and for these numbers to come in and
Speaker 4: let's see what the market is really doing. I think
Speaker 4: that was very smart, very strategic, and I'm glad that
Speaker 4: he's not getting ruffled by the financial media basically trying
Speaker 4: to tell him and push him, really push him to
Speaker 4: take action.
Speaker 1: Well, you know, I think the situation with the FED
Speaker 1: is one he was put in a pretty hard position.
Speaker 1: The real question will be as if we do really
Speaker 1: see any kind of consensus on inflation numbers, because those
Speaker 1: will be the key components coming back here in just
Speaker 1: a little bit.
Speaker 2: So with not only jobs.
Speaker 1: And inflation, you look at GDP and what that may
Speaker 1: look like throughout the end of the year, Moon numbers
Speaker 1: potentially could be coming in.
Speaker 2: I don't know.
Speaker 1: If the economy is truly cooling, then maybe this is
Speaker 1: a position that warsh is kind of queuing up for.
Speaker 1: I want to jump over to something that Besant did
Speaker 1: and everybody knows about the famous you know, buy Japanese
Speaker 1: yen note. So here is a quote, here's a clip
Speaker 1: of Besant talking about this issue and how it applies
Speaker 1: to the end.
Speaker 6: Take a look automatically, that should lead to more dollar
Speaker 6: strength over time.
Speaker 4: Are we intervening in the currency market right now strengthening
Speaker 4: the ends happening?
Speaker 3: Absolutely not.
Speaker 6: We have a strong dollar policy.
Speaker 1: Kobe Eesy put out the end carry trade maybe is dying.
Speaker 1: In other words, the carry trade is losing its influence
Speaker 1: in the market.
Speaker 2: We have a different opinion on this.
Speaker 1: But do you think that Besant is in fact trying
Speaker 1: to orchestrate some sort of market correlation to where the
Speaker 1: dollar and the end are playing into this? Where do
Speaker 1: you Why do you think he's going this direction?
Speaker 3: Well, there's no doubt.
Speaker 4: So you know, the end was that it's low and
Speaker 4: forty years and the dollar was at strongest than forty years.
Speaker 4: You can't have with all of the carry trade that
Speaker 4: has been executed, with how much a capital is in
Speaker 4: our markets through and from the carry trade, you cannot
Speaker 4: have that reverse. We cannot see a reverse carry trade.
Speaker 4: And so you have you know, Japan obviously buying its
Speaker 4: own in but you had a really interesting thing. It's
Speaker 4: just really coming out that what they did last Thursday,
Speaker 4: last Friday was obviously Besent did sell, but he sold
Speaker 4: euros and so he bought yen not through selling dollars,
Speaker 4: because he is very clear that he wants a strong
Speaker 4: dollar policy.
Speaker 3: He does not want to weaken the dollar to support
Speaker 3: the en.
Speaker 4: So what they did is circumvent that and go out
Speaker 4: and sell euros to actually buy in.
Speaker 3: And the issue, of course.
Speaker 4: With the ECB is that they did not let the
Speaker 4: ECB know ahead of time. They told them, They alerted
Speaker 4: them after the fact, and that's kind of not been done.
Speaker 4: There's usually more Western coordination that you would normally reach
Speaker 4: out and talk about that first. That wasn't done, it
Speaker 4: was executed and then they were informed, and I think
Speaker 4: that that is that says a lot.
Speaker 2: You look at Japan's FSA.
Speaker 1: This is a whole new division that's set up to
Speaker 1: do basically to orchestrate digital assets and stable coins.
Speaker 2: It starts today, Yeah sout, so here we go.
Speaker 1: Japan's Financial Services Agency will create a dedicated division to
Speaker 1: oversee digital assets and stable coins, which are digital assets
Speaker 1: pegged to FIA currencies. So this is happening with one
Speaker 1: of their biggest banks, which is SBI. So you look
Speaker 1: at that happening right now, and it seems as though
Speaker 1: this almost sounds like they're putting the carry trade on
Speaker 1: chain to me. And this is a good point of
Speaker 1: this right here. Here's the Remember this happened not too
Speaker 1: long ago. This was talking about truck drivers that would
Speaker 1: be able to receive stable coins, and essentially it was
Speaker 1: Amazon Japan which was among one of the clients that
Speaker 1: were rolling out these stable coin payments.
Speaker 2: So this is real.
Speaker 1: This is the ultimate of what should be happening here
Speaker 1: in the United States.
Speaker 3: That was exactly where I was just going to say.
Speaker 3: It's like, look at Japan.
Speaker 4: Their bank is one of their largest banks, is saying hey,
Speaker 4: I'm SBI, I'm going to be your your backbone. Then
Speaker 4: you have them creating an entire you know, government body
Speaker 4: around just this and we can't even get our two
Speaker 4: sides to agree because we have to protect legacy industries
Speaker 4: and prevent a presidency from making money on blockchain.
Speaker 3: It's sad. It's sad.
Speaker 4: It's almost like I have to say it's got I
Speaker 4: have to say it, you know, Paul. It's like we
Speaker 4: are literally watching this transpire and us losing prominence as
Speaker 4: and globally in front of our eyes.
Speaker 3: We're watching it in front of our eyes. I it's
Speaker 3: it's sad.
Speaker 1: Yeah, listen, we've had Soda what Nambi on the show before.
Speaker 1: And this guy is part of the organization that essentially
Speaker 1: helped set this up. And this was a tweet he
Speaker 1: put out in early August and what he said the
Speaker 1: big statement right here in the coming months, we will
Speaker 1: make the on chain yen carry trade possible.
Speaker 2: Then you look at some of.
Speaker 1: The reporting that's been coming out of this. I want
Speaker 1: to go to a clip real quick that has Sota
Speaker 1: talking about this, and then I want to show you
Speaker 1: an inside report here.
Speaker 2: Take a look.
Speaker 8: For example, you know in the US has gpui on
Speaker 8: the branch sheet, and you would like to use GPI
Speaker 8: savory coin for on chance at the monument.
Speaker 2: How much capital do you think is ready to deploy.
Speaker 8: Our target at the end of the year is likely
Speaker 8: a couple over one hundred million, But incoming years VI
Speaker 8: would like to issue you know, billions, even you know,
Speaker 8: ten billions or even more.
Speaker 2: Billions, even more.
Speaker 1: All right, So that's that's a big deal, especially by
Speaker 1: end of year.
Speaker 2: That would be a very fast uptake in general.
Speaker 1: Wow, Japanese institutions care more about ethereum versus bitcoin.
Speaker 2: Yes, this was.
Speaker 1: Way before, guys, that one Japan started initiating all these regulatory.
Speaker 2: Measures, way before. It was also.
Speaker 1: Before we started to see the architecture being revealed. Even
Speaker 1: though Soto was telling us right there in that interview,
Speaker 1: it's going to happen. And here we are July thirty first,
Speaker 1: and sure enough it has happened within that. You look
Speaker 1: at this right here, Rebecca, this is the uptake in
Speaker 1: crypto asset accounts in Japan.
Speaker 3: Wow.
Speaker 1: And this could literally go into the billions very quickly.
Speaker 1: To his point, how much of an impact and how
Speaker 1: would this work if the yen carry trade is actually
Speaker 1: transacted on chain, if there is a way that this
Speaker 1: starts to move into digital assets.
Speaker 4: To see that you have, you know, a massive industry
Speaker 4: economy like Japan being this innovative this fast.
Speaker 2: Yeah, it's a little scary.
Speaker 4: I almost, I almost my brain is going to is
Speaker 4: Japan trying to be the leader of the of the
Speaker 4: digital financial revolution of the world? I mean, what has
Speaker 4: happened here? And it would make sense for them to
Speaker 4: try to do that ball because with a reverse carry trade,
Speaker 4: if they can get the carry trade on the blockchain
Speaker 4: and they can kind of obfuscate what the unwinding would be,
Speaker 4: you know in a traditional financial world, then they they're
Speaker 4: they're buying their relevance into the future.
Speaker 3: And yeah, that is.
Speaker 4: That means we're becoming also, I mean, you know, the
Speaker 4: carry trade being a separate issue again, just all of
Speaker 4: the things that they're doing to continue to be able
Speaker 4: to be relevant even in the in the face of
Speaker 4: rising yields, which is a problem for them.
Speaker 1: Yeah, yeah, rising eields problem for Japan. Obviously, we've seen
Speaker 1: this move and it was it was surprising to us
Speaker 1: even when we reported on it about a month ago,
Speaker 1: how fast Japan was moving on these regulatory alignments and
Speaker 1: then for their tax position already to be putting much
Speaker 1: in frame. I mean they went down from like a
Speaker 1: what was a fifty percent taxation on crypto gains capital
Speaker 1: gains down to like a twenty percent. So the likelihood
Speaker 1: of tax orientation along with innovation, along with regulation, now
Speaker 1: you've got the trifecta of everything happening right, which is
Speaker 1: usually what drives markets.
Speaker 4: Exactly, which is why my brain is forming a hypothesis saying,
Speaker 4: is Japan really making a play here to be the
Speaker 4: innovator financially of the blockchain?
Speaker 1: Well, SBI probably is going to have a big, big
Speaker 1: portion of that, and we know how that plays into
Speaker 1: a lot of other the digital assets out there. You
Speaker 1: guys know what I'm talking about before. Okay, So I
Speaker 1: have two more clips for you before I let you go.
Speaker 1: This one is Tom Lee, and Tom Lee is somewhat
Speaker 1: of a permeable and he's got another statement here to
Speaker 1: happen in August, and I want to get your opinion
Speaker 1: if you think that's a possibility.
Speaker 9: Take a look the de leveraging that happened a couple
Speaker 9: of weeks ago, put a lot of cash on the sidelines,
Speaker 9: got sentiment quite bearish, and then on top of people
Speaker 9: getting very skeptical of the FED, got markets to de risk.
Speaker 9: And now I think, as earnings have been good and
Speaker 9: I think there's a rethink of how inflation might be
Speaker 9: cooler than expected, and of course AI is still strong,
Speaker 9: there's going to be a chase. I think that chase
Speaker 9: takes us towards seventy nine hundred eight thousands.
Speaker 6: Most people who are putting out bullish notes site.
Speaker 2: Both of the facts that you did.
Speaker 6: There were some froth that needed to be worked out,
Speaker 6: there was some leverage that got a little bit too high,
Speaker 6: and all of that needed to be worked out.
Speaker 2: And then the backbone of the whole thing the earnings.
Speaker 1: Yeah, so earnings has been somewhat inflationary. You know, we've
Speaker 1: just continued to see that. I wouldn't say all of
Speaker 1: it though, is of where we're trading right now, well
Speaker 1: upwards of over seven thousand now, and you look at
Speaker 1: the S and P five hundred as it sets right now,
Speaker 1: eight thousand.
Speaker 2: What do you think I mean?
Speaker 4: Remember I had told you before that I think we
Speaker 4: could easily be at eight thousand by the end of
Speaker 4: the year. I don't know that we'll get straight to
Speaker 4: eight thousand this month, although a lot of people are
Speaker 4: calling for it. But you know, it's just been you know, Paul,
Speaker 4: these earnings are just outrageous outside. You cannot discount SMP
Speaker 4: five hundred doing fifty percent earnings growth in one year.
Speaker 4: You cannot contain that. So it is inflationary. It is
Speaker 4: a hyperbolic. It will push the markets higher. We were,
Speaker 4: you know, we had gotten into the fear territory again,
Speaker 4: when all that froth was being worked through and all
Speaker 4: of that leverage was being worked through, and now.
Speaker 3: We're back over to greed.
Speaker 4: We're back to the you know, fifty nine to sixty
Speaker 4: on the on the greed scale, So people are less
Speaker 4: afraid now of a pullback. I do think we have
Speaker 4: the August option expirations August twenty first, so that could
Speaker 4: be some consternation there because there's a big rollover. But
Speaker 4: I mean, I have absolutely believed that eight thousand is
Speaker 4: very possible, don't I don't ever like to say it's
Speaker 4: going to be you know, like like this month or
Speaker 4: even next month, but at the rate, at the clip rate,
Speaker 4: as long as we don't have a scare. And obviously
Speaker 4: one of the biggest reservations that I have is the
Speaker 4: AI the moon shot Kimmy three, what that vulnerability to
Speaker 4: our capex because we are so driven right now on
Speaker 4: f y twenty seven and even twenty eight capex projections.
Speaker 4: The hyperscalers are doing great. Mag seven is discounted and
Speaker 4: doing better. So you've got a lot of things moving
Speaker 4: in the right direction. But again, if we do get
Speaker 4: some kind of additional hey, we can do this faster,
Speaker 4: cheaper in China. Then that will have an impact on Capex,
Speaker 4: which will have a deliritating impact down the chain, because
Speaker 4: all everything is a rising tide. The AI tide is
Speaker 4: rising all of these boats together.
Speaker 2: Hey, I want to show one last clip here.
Speaker 1: This is Sandy over at Franklin Templeton set a call
Speaker 1: and she's she and I have been on the show
Speaker 1: many times around where Franklin Templeton is going. They're a
Speaker 1: pretty aggressive organization right now, they've just added some new
Speaker 1: digital asset people. But listen to what she had to say,
Speaker 1: and then I want to get your opinion on certain tokens.
Speaker 10: Take a look, right, if Franklin Templeton is recording our
Speaker 10: future investment transactions on a blockchain like ethereum, you need
Speaker 10: to own e. And so demand for the native cryptocurrencies
Speaker 10: by people who are actually operating businesses in the space,
Speaker 10: I think is going to surge. And then as the
Speaker 10: cryptocurrency surge, the treasuries of these foundations start to have
Speaker 10: more and more capital that they can deploy to developers
Speaker 10: to begin developing apps, and then the quality of those
Speaker 10: apps starts going up, which we're already seeing in the
Speaker 10: gaming industry. I mean it used to be I needed
Speaker 10: to own the equity of a company to capture growth,
Speaker 10: and now I really believe you need to own the
Speaker 10: tokens of a network to capture growth. That just the
Speaker 10: fact that everybody says by October the markets are going
Speaker 10: to turn. The markets will probably start to turn prior
Speaker 10: to October because that anticipation of that event, people are
Speaker 10: going to want to be positioned before that to capture
Speaker 10: that growth opportunity. You need to own tokens.
Speaker 2: All right, So talking her book, I get it.
Speaker 1: I'm fine with that. You know, this is Franklin Templeton.
Speaker 1: We love them, and you guys kind of understand the position.
Speaker 1: But if you do look at Ethereum, which is what
Speaker 1: she's referencing, this is a twenty two percent move in
Speaker 1: a month, all right, not bad for if you're buying
Speaker 1: the bottom at Ethereum right there at around fifteen hundred,
Speaker 1: trading right almost at two thousand now nineteen seventeen. As
Speaker 1: we record today, with clarity possibly getting some clarity one
Speaker 1: way or the other, the market starting to get a
Speaker 1: correction an eight thousand s and p Japan going full
Speaker 1: tilt into digital assets. I feel like this is coiling
Speaker 1: up for a bull run here, Rebecca, Am I wrong?
Speaker 1: Am I too early?
Speaker 2: Here?
Speaker 3: I don't think you're wrong.
Speaker 4: The timing is always the thing, especially when we're in
Speaker 4: the middle of monetization and innovation, right, So I'm talking
Speaker 4: about monetization on the AI side, on the stock on
Speaker 4: the equity side, and then we're innovating and implementing those
Speaker 4: innovations as we go. So I don't think you're wrong.
Speaker 4: The timing is the question. Yeah, and of course anything
Speaker 4: that could derail it. I mean again, I would rather
Speaker 4: have no clarity than a clarity that is too protective
Speaker 4: of legacy. It's just not what we need to listen
Speaker 4: to her. It's like this is moving, it's happening, and
Speaker 4: you need to be buying, and you need to be
Speaker 4: positioned now. You know, it's too late to be talking
Speaker 4: about in October time when we're talking about we need
Speaker 4: to be doing these things now.
Speaker 2: So I go to the AI trade.
Speaker 1: You could go to the AI trade and look at that,
Speaker 1: and many people would say, well, you've already missed the
Speaker 1: AI trade. You needed to be positioned eighteen months ago,
Speaker 1: which is what people will say in twelve months for
Speaker 1: digital assets I believe.
Speaker 4: Yeah, I mean I think, I don't think you're wrong.
Speaker 4: I've been a long time believer of Etheroerem, specifically because
Speaker 4: of their smart contracts, the ability. I mean that to
Speaker 4: me is really a future way of we're doing as
Speaker 4: a lawyer, you.
Speaker 3: Know, contracting.
Speaker 4: It's not going to be the traditional way of doing contracting.
Speaker 4: It's going to be a blockchain platform. It's going to
Speaker 4: be completely different. I'm a huge, big fan of ethereum
Speaker 4: and I do think that it's implications long term are
Speaker 4: massive for commercialization.
Speaker 1: Yeah, you look at the move that Robin Hood has
Speaker 1: made with robin Hood Chain. That alone, I think is
Speaker 1: going to make it or bring it mainstream. We're already seeing,
Speaker 1: you know, insaane growth within that chain itself, and the
Speaker 1: possibilities are just beginning.
Speaker 2: And Vlad's pretty cagey.
Speaker 1: I think he's going to ask for forgiveness on a
Speaker 1: lot of his strategies, and which is what Robin Hood is,
Speaker 1: you know.
Speaker 2: Famous for.
Speaker 3: That's what you have to do in this environment.
Speaker 4: You have to just do it and then ask for
Speaker 4: you know, forgetness after the fact, because you can't innovate
Speaker 4: and such an uncertain environment, you have to just.
Speaker 3: Do it yourself. You have to go forward and then
Speaker 3: deal with the consequences.
Speaker 1: All right, you guys, If you want to reach Rebecca Wallser,
Speaker 1: you can do that over at Walls or Wealth Management.
Speaker 2: She of course, is on the show quite a bit.
Speaker 2: We love to have her.
Speaker 1: She always got to has a great insight. So Rebecca,
Speaker 1: thank you so much for coming in there.
Speaker 3: We please so much. Paul is great to have you in.
Speaker 4: Let's pray for a big bull run and let's p
Speaker 4: let's and some actual clarity around clarity.
Speaker 3: We need it.
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