WEBVTT 1 00:00:00.080 --> 00:00:00.680 Clarity vote. 2 00:00:00.760 --> 00:00:03.839 Chaos is now underway as we near the last few 3 00:00:03.879 --> 00:00:07.080 hours of where anything can happen. So today is going 4 00:00:07.120 --> 00:00:09.160 to be a good one. We'll get right into it. 5 00:00:09.519 --> 00:00:11.560 I want to showcase right here as we are one 6 00:00:11.640 --> 00:00:14.240 day away, guys, three hours and probably those last three 7 00:00:14.279 --> 00:00:16.320 hours are not going to matter because most everybody, if 8 00:00:16.320 --> 00:00:19.760 they're not leaving DC and they are staying over, then 9 00:00:19.879 --> 00:00:23.160 we might build a new counterclock. But right now, as 10 00:00:23.199 --> 00:00:27.000 of tomorrow, the Senate recess will be in play and 11 00:00:27.120 --> 00:00:30.199 Clarity may not be on the table. That of course, 12 00:00:30.199 --> 00:00:33.479 if you look at the polymarket, it does showcase this. 13 00:00:33.479 --> 00:00:34.799 This is the weekly. 14 00:00:34.479 --> 00:00:37.960 Right now on where Clarity odds are dropping to their 15 00:00:38.000 --> 00:00:41.000 lowest point in quite some time. And we're going to 16 00:00:41.079 --> 00:00:44.439 have a special guest on today. We'll break into this, 17 00:00:44.520 --> 00:00:47.359 but before we bring her on, I want to go 18 00:00:47.479 --> 00:00:49.880 over to a clip here, and this is of course, 19 00:00:49.920 --> 00:00:52.600 what's happening in Russia around regulation. 20 00:00:52.719 --> 00:00:53.280 Take a look. 21 00:00:53.960 --> 00:00:56.960 Russia passes the first comprehensive crypto law. 22 00:00:57.200 --> 00:00:58.840 Russia's new framework. 23 00:00:58.359 --> 00:01:01.679 Which is effective from first Septeman this year, has created 24 00:01:01.759 --> 00:01:04.280 the country's first full legal regime. 25 00:01:04.560 --> 00:01:07.359 Wat Guru picked this up fast over four hundred and 26 00:01:07.400 --> 00:01:10.239 thirty seven thousand views within hours. 27 00:01:10.359 --> 00:01:13.840 Russia has finally gone all in on crypto. 28 00:01:14.280 --> 00:01:16.239 I begin love this. 29 00:01:16.560 --> 00:01:18.359 Come on Russia. 30 00:01:18.480 --> 00:01:21.920 It landed on the same Tuesday as the clarity delay. 31 00:01:22.120 --> 00:01:26.079 We are falling behind everybody. So the US just lost 32 00:01:26.120 --> 00:01:27.680 to Russia in crypto. 33 00:01:27.959 --> 00:01:30.640 Don't mistake this for a full embrace of crypto. 34 00:01:30.959 --> 00:01:35.120 It's the opposite. This is regulation as control, not regulation 35 00:01:35.239 --> 00:01:35.879 as liberation. 36 00:01:36.239 --> 00:01:38.159 And get this, it's back by State Oho Bank. 37 00:01:38.200 --> 00:01:41.400 This serves Russian defense contractors and built by fugitive Oligar. 38 00:01:41.599 --> 00:01:46.680 And these depositories will need minimum equity somewhere between fifty 39 00:01:46.760 --> 00:01:50.120 million and two hundred million rubles just to operate. 40 00:01:50.359 --> 00:01:54.760 Russia still don't want people using crypto to buy everyday 41 00:01:54.760 --> 00:01:57.560 goods and services inside the country. 42 00:01:57.760 --> 00:02:01.120 Retail Russians are captured just thirty eight hundred dollars a year. 43 00:02:01.280 --> 00:02:03.760 That is absolutely tiny. And this was never about giving 44 00:02:03.760 --> 00:02:04.719 their citizens freedom. 45 00:02:04.879 --> 00:02:08.199 Large transfers to foreign accounts now require a mandatory forty 46 00:02:08.240 --> 00:02:09.080 eight hour hold. 47 00:02:09.159 --> 00:02:23.000 That doesn't sound like a super protection to me, all right. 48 00:02:23.039 --> 00:02:25.479 So the point being is that this was all I 49 00:02:25.520 --> 00:02:29.159 think theater, and we kind of expected this coming out 50 00:02:29.159 --> 00:02:32.120 of some other countries, and that of course kind of 51 00:02:32.159 --> 00:02:34.280 puts it into the front of what's happening here in 52 00:02:34.280 --> 00:02:36.240 the US. So I wanted to bring on Kret Calvert, 53 00:02:36.280 --> 00:02:38.840 who is the vice president for US policy at Coinbase. 54 00:02:38.879 --> 00:02:41.520 How are you, Kara, great, Thanks so much for having me. 55 00:02:41.879 --> 00:02:44.599 Okay, So a lot happening right now. We played a 56 00:02:44.639 --> 00:02:47.039 clip there, of course, of Russia, where really it's more 57 00:02:47.080 --> 00:02:49.199 of an oligarch set up over there, so it's not 58 00:02:49.319 --> 00:02:50.159 really regulation. 59 00:02:50.879 --> 00:02:51.960 We have seen good. 60 00:02:51.879 --> 00:02:55.560 Regulation though in places like Japan, which has been very 61 00:02:55.599 --> 00:02:58.159 pro and then of course you look at what's happening 62 00:02:58.199 --> 00:03:02.360 in Europe with Mika, and even to that extent, they've 63 00:03:02.400 --> 00:03:04.800 been somewhat regulatory, but at least they have a consumer 64 00:03:05.039 --> 00:03:09.000 element in it that is designed for obviously for users 65 00:03:09.039 --> 00:03:11.759 within crypto in general. But when you look at what's 66 00:03:11.759 --> 00:03:14.520 happening right now in DC, who would you say is 67 00:03:14.560 --> 00:03:17.319 standing in the way here on this last day before 68 00:03:17.840 --> 00:03:18.520 a recess. 69 00:03:19.800 --> 00:03:21.919 Well, it's been a long slog. I'd say that there 70 00:03:21.960 --> 00:03:24.919 are a few issues that are left. Ultimately, though, we 71 00:03:24.960 --> 00:03:26.840 need to get to sixty votes, so a very few 72 00:03:26.919 --> 00:03:29.039 number of people can hold out a lot of power, 73 00:03:29.280 --> 00:03:33.080 and there are a few issues that Democrats have identified 74 00:03:33.159 --> 00:03:34.680 as key to getting their votes. 75 00:03:34.759 --> 00:03:37.240 I think each one of those has been ticked off. 76 00:03:37.560 --> 00:03:40.960 Whether it comes from law enforcement, there's an entirely new 77 00:03:41.080 --> 00:03:43.919 law enforcement title combating a list at Finance. There's a 78 00:03:43.919 --> 00:03:45.319 new title on a list at Finance. 79 00:03:45.639 --> 00:03:47.199 There are new. 80 00:03:47.120 --> 00:03:51.560 Restrictions and consumer protections around intermediaries in the agriculture title. 81 00:03:51.840 --> 00:03:54.080 So there are a lot of provisions. And I think 82 00:03:54.199 --> 00:03:56.120 we've got a day left. As you noted, I love 83 00:03:56.199 --> 00:03:59.280 the clock. Everybody needs a good clock to get action. 84 00:03:59.599 --> 00:04:02.240 And I think that, you know, hopefully we have a vote, 85 00:04:02.280 --> 00:04:05.039 Hopefully we see a motion to proceed filed today, and 86 00:04:05.120 --> 00:04:07.240 ultimately I think the question is going to have to 87 00:04:07.280 --> 00:04:08.639 be called to see where people stand. 88 00:04:09.280 --> 00:04:09.919 Yeah, for sure. 89 00:04:09.919 --> 00:04:12.520 Well, I think the point is is that I think 90 00:04:12.639 --> 00:04:16.040 this would be a failure, especially for Republicans, if they 91 00:04:16.040 --> 00:04:18.160 don't even get it to the floor for a vote. 92 00:04:18.199 --> 00:04:20.959 So I think Thune, of course, is under the gun. 93 00:04:21.040 --> 00:04:21.480 Right now. 94 00:04:21.759 --> 00:04:24.920 What about the issue right now? Why hasn't Thune made 95 00:04:24.920 --> 00:04:27.199 a public statement on clarity? You think here we are 96 00:04:27.240 --> 00:04:28.240 a day before. 97 00:04:29.439 --> 00:04:31.639 Yeah, well, he said multiple times, and he wants to 98 00:04:31.680 --> 00:04:33.600 vote before they leave. I think the big question is 99 00:04:33.639 --> 00:04:36.120 when are they leaving? Are they leaving tomorrow? Are they 100 00:04:36.160 --> 00:04:38.920 leaving on Saturday. It's a bit like tetris when you're 101 00:04:38.959 --> 00:04:40.879 in the leadership's office trying to figure out how to 102 00:04:40.879 --> 00:04:43.600 get all these things to fit together with the time requirements, 103 00:04:43.920 --> 00:04:48.759 with the necessary you know, whether it's time agreements or amendments, 104 00:04:48.800 --> 00:04:50.439 you have to figure out how it all fits together. 105 00:04:50.519 --> 00:04:52.279 So I think that's the big question is when are 106 00:04:52.319 --> 00:04:55.079 they leaving and then if this can fit into that 107 00:04:55.120 --> 00:04:56.680 time that time allotment. 108 00:04:57.079 --> 00:05:02.079 Yeah, all right, so you're mentioning that a weekend. Do 109 00:05:02.160 --> 00:05:04.920 you feel like a weekend vote could actually happen here? 110 00:05:05.959 --> 00:05:06.600 Absolutely? 111 00:05:06.720 --> 00:05:08.519 I think that there is absolutely still time to get 112 00:05:08.519 --> 00:05:10.680 this across the finish line. I think the big question 113 00:05:10.759 --> 00:05:13.759 is whether or not it hangs out into September. When 114 00:05:13.759 --> 00:05:16.800 they come back on September fourteenth, I think the conventional 115 00:05:16.839 --> 00:05:18.800 wisdom is right now, they'll have a vote. 116 00:05:18.839 --> 00:05:21.199 It'll be a big moment. It'll be a moment. 117 00:05:20.920 --> 00:05:23.240 That the industry that certainly I've been waiting for for 118 00:05:23.240 --> 00:05:25.720 a decade. I started working in crypto in twenty sixteen, 119 00:05:26.160 --> 00:05:28.399 so this has not been an overnight process. It has 120 00:05:28.439 --> 00:05:31.000 been something that we had worked on for years, and 121 00:05:31.040 --> 00:05:32.879 I think the time has finally come where they're going. 122 00:05:32.800 --> 00:05:35.319 To call the vote all right, so you feel it 123 00:05:35.360 --> 00:05:37.439 still is a possibility of being in play. We may 124 00:05:37.439 --> 00:05:41.000 have to extend our countdown into the weekend. You had 125 00:05:41.120 --> 00:05:43.519 Senator Tillis though, also brought out something that let me 126 00:05:43.600 --> 00:05:45.319 kind of zoom in on that says that the White 127 00:05:45.360 --> 00:05:49.639 House is now engaging on a Bipartisan Clarity Act ethics text. 128 00:05:50.279 --> 00:05:54.040 This is almost unprecedented. We have not seen an administration 129 00:05:54.519 --> 00:05:59.240 go this far, especially this late in the game. And again, 130 00:05:59.319 --> 00:06:02.879 this looks at a possibility here of where this may 131 00:06:02.920 --> 00:06:06.160 eliminate all the issues that the Democrats were kind of 132 00:06:06.240 --> 00:06:09.560 pointing to. Do you feel that this is kind of 133 00:06:09.560 --> 00:06:12.680 the last thing or is this still a situation of 134 00:06:12.720 --> 00:06:14.079 protecting the banks and so on? 135 00:06:15.480 --> 00:06:18.240 This is absolutely one of the key gating factors, and 136 00:06:18.680 --> 00:06:21.680 it is unprecedented. Never before have we seen an ethics 137 00:06:21.759 --> 00:06:25.439 provision that has voluntarily been agreed to by a sitting 138 00:06:25.480 --> 00:06:27.920 president to put in place something that's never been done 139 00:06:27.920 --> 00:06:29.720 in the history of the United States. You've never had 140 00:06:29.759 --> 00:06:33.079 those types of ethics requirements, so that it really is unprecedented. 141 00:06:33.120 --> 00:06:36.279 And I think the question is do Democrats do they 142 00:06:36.279 --> 00:06:39.319 continue to ask for more? And I think Senator Tillis 143 00:06:39.319 --> 00:06:41.319 has actually played a really important role here of trying 144 00:06:41.360 --> 00:06:44.800 to determine what is the appropriate level of requirement and 145 00:06:45.879 --> 00:06:46.920 an ethics obligation. 146 00:06:47.279 --> 00:06:48.439 So he's working through that. 147 00:06:48.480 --> 00:06:51.240 I think he's got a good faith partner with at 148 00:06:51.319 --> 00:06:54.360 least with Senator Gego. The question is how much further, 149 00:06:54.720 --> 00:06:57.639 especially when there's something that will will directly impact the 150 00:06:57.639 --> 00:06:59.920 president and his family, and how do they think about that. 151 00:07:00.120 --> 00:07:02.560 So it's a big question and it's a big ask. 152 00:07:02.480 --> 00:07:05.800 And ultimately I think that this will not be This 153 00:07:05.879 --> 00:07:07.879 may be the final issue that has to be addressed 154 00:07:07.879 --> 00:07:10.920 because it's the last big one. Things like the banks, 155 00:07:10.959 --> 00:07:13.399 and we can get into the issues around rewards and 156 00:07:13.480 --> 00:07:17.079 interest and yield. I think the banks have certainly been 157 00:07:17.120 --> 00:07:21.480 successful in getting the community banks to be really active 158 00:07:21.519 --> 00:07:23.839 on Capitol Hill. I think there's a lot of sympathy 159 00:07:24.040 --> 00:07:27.360 for community banks. I think the larger banks have realized 160 00:07:27.399 --> 00:07:30.279 that and have put the community banks out in front 161 00:07:30.639 --> 00:07:34.000 and then have falled, I guess, kind of fallen back 162 00:07:34.040 --> 00:07:36.600 on the issues around oh, there are no law enforcement 163 00:07:36.600 --> 00:07:39.040 provisions in this bill. That's where the banks have now 164 00:07:39.120 --> 00:07:42.439 taken this. So the bank's issue is certainly still out there. 165 00:07:42.480 --> 00:07:45.120 But I think really, ethics is the issue that all 166 00:07:45.160 --> 00:07:46.439 eyes are watching right now. 167 00:07:46.279 --> 00:07:47.560 So ethics number one. 168 00:07:47.759 --> 00:07:51.399 But when you listen to Josh Holly, who is most 169 00:07:51.439 --> 00:07:54.319 of the time he's kind of been against crypto, but 170 00:07:54.360 --> 00:07:57.160 not for this reason. Right here and now he's talking 171 00:07:57.199 --> 00:08:00.199 about the effect on community banks. To your point point, 172 00:08:00.199 --> 00:08:02.480 the very point you were just making is that the 173 00:08:02.519 --> 00:08:05.360 ABA and the banking lobbies have been very effective, been 174 00:08:05.399 --> 00:08:08.240 able to reach some of these senators and lawmakers that 175 00:08:08.600 --> 00:08:11.439 now the community bank issue is coming up. So is 176 00:08:11.480 --> 00:08:14.519 this on Josh Holly's mind to where we would not 177 00:08:14.600 --> 00:08:16.680 be able to pivot him to a yes? FO, Do 178 00:08:16.759 --> 00:08:19.879 you feel like that has been kind of the closing 179 00:08:20.519 --> 00:08:22.800 argument for the banks to be able to kind of 180 00:08:22.839 --> 00:08:24.920 lock in on some of these Republicans? 181 00:08:26.199 --> 00:08:29.319 You know, Senator Holly is interesting every time we talk 182 00:08:29.360 --> 00:08:31.439 to them, there's a different issue in the office. 183 00:08:31.439 --> 00:08:34.639 So I'm not sure what would get Senator Holly too. 184 00:08:34.720 --> 00:08:38.360 Yes, and that this was the issue that he identified 185 00:08:38.440 --> 00:08:41.320 in public. Great now we know where he stands and 186 00:08:41.360 --> 00:08:43.879 at least what the particular issue is. I think that 187 00:08:43.960 --> 00:08:46.440 at the end of the day, there have not been 188 00:08:46.519 --> 00:08:49.519 solutions proffered by the banks on this. The only solution 189 00:08:49.639 --> 00:08:52.639 that they have offered is to ban third party rewards 190 00:08:52.879 --> 00:08:56.600 because it allows stable coins to directly compete with their 191 00:08:56.639 --> 00:09:00.320 payment operations. So again, this really isn't about deposits, about 192 00:09:00.360 --> 00:09:04.200 their payment and their competition in that and basically. 193 00:09:03.759 --> 00:09:04.799 In that environment. 194 00:09:05.159 --> 00:09:09.840 And so ultimately, with somebody like Senator Holly, you know, 195 00:09:09.879 --> 00:09:12.480 he's making a point, and whether or not he votes 196 00:09:12.519 --> 00:09:13.879 for this bill, I think he's going to have to 197 00:09:13.879 --> 00:09:14.320 look at. 198 00:09:14.200 --> 00:09:14.919 It on the merits. 199 00:09:14.960 --> 00:09:17.320 He's going to have to understand that this is better 200 00:09:17.320 --> 00:09:21.039 for America. You're opening scene with Russia. I mean, this 201 00:09:21.120 --> 00:09:23.879 is at its core a national security bill just as 202 00:09:23.960 --> 00:09:26.720 much as it's a consumer protection bill. America we are 203 00:09:26.879 --> 00:09:29.919 excellent at exporting things like our as we think about 204 00:09:29.919 --> 00:09:33.480 our deepest capital markets and our innovation and our leadership. 205 00:09:33.120 --> 00:09:34.519 But they also look to regulation. 206 00:09:34.799 --> 00:09:37.200 When we passed the Genius Act, all of a sudden, 207 00:09:37.240 --> 00:09:40.159 the rest of the world started taking notice. Central bankers 208 00:09:40.200 --> 00:09:43.279 were caring about this, other regulators were caring about this. 209 00:09:43.559 --> 00:09:49.039 We export good regulation. Instead, you have Russia deciding what's 210 00:09:49.519 --> 00:09:51.360 horrible regulation, and if. 211 00:09:51.279 --> 00:09:53.600 God forbid, other countries start to pick that up. 212 00:09:54.200 --> 00:09:56.279 That's where I think we're That's what I think Senator 213 00:09:56.320 --> 00:09:57.720 Holly is going to have to look at and other 214 00:09:57.759 --> 00:10:00.320 people who are trying to determine what is the best 215 00:10:00.320 --> 00:10:03.840 foundation here in the United States. Do we take an 216 00:10:03.960 --> 00:10:06.519 argument that is not founded in reality that this is 217 00:10:06.559 --> 00:10:09.840 going to impact community bank deposits. We have had stable 218 00:10:09.879 --> 00:10:12.720 coins out there for years, We've been offering rewards for 219 00:10:12.759 --> 00:10:15.159 four years. Genius has been a lot of the land 220 00:10:15.200 --> 00:10:18.559 for over a year now, and deposits have only gone up. 221 00:10:19.240 --> 00:10:22.279 So it doesn't make any sense. It's not founded in reality. 222 00:10:22.799 --> 00:10:24.600 But I get that it's a political problem. 223 00:10:25.320 --> 00:10:27.519 Well, yeah, I think the argument that the banks and 224 00:10:27.840 --> 00:10:29.399 definitely not on the side of the banks here, but 225 00:10:29.480 --> 00:10:34.960 they yes, you're right, they have seen deposits, depositors going up. 226 00:10:35.000 --> 00:10:37.039 I think it was almost seven percent year of a year, 227 00:10:37.159 --> 00:10:39.960 so continue that was JP Morgan. The point is is 228 00:10:40.000 --> 00:10:42.720 that fintech is kind of coming along, whether we see 229 00:10:42.759 --> 00:10:46.639 clarity or not. The other thing that's happening is companies 230 00:10:46.720 --> 00:10:49.399 like Citadel. You've got Jeff Dorman out there kind of 231 00:10:49.399 --> 00:10:53.600 attacking on what you guys are doing and blaming Coinbase 232 00:10:53.679 --> 00:10:56.279 that Armstrong was kind of at the core of not 233 00:10:56.320 --> 00:10:58.679 getting this across the line. Why do you think we're 234 00:10:58.720 --> 00:11:03.000 getting so much pressure, you guys, especially from people like 235 00:11:03.039 --> 00:11:04.559 Citadel and the DTCC. 236 00:11:05.080 --> 00:11:07.879 Why do you think that is, Well. 237 00:11:07.759 --> 00:11:11.080 It's ironic considering Citadel has had their fair share and 238 00:11:11.120 --> 00:11:13.480 their hand in making this much more difficult to get 239 00:11:13.519 --> 00:11:15.879 across the finish line. So I think that that is 240 00:11:15.919 --> 00:11:19.519 what you're seeing play out in real time on x 241 00:11:19.840 --> 00:11:21.519 is really a reflection of where people come down on 242 00:11:21.559 --> 00:11:24.919 the legislation and Coinbase. There's been nobody at the table 243 00:11:25.039 --> 00:11:27.720 longer than Coinbase. There's been nobody again. I started working 244 00:11:27.759 --> 00:11:31.000 for Coinbase in twenty sixteen, trying to get legislation passed, 245 00:11:31.039 --> 00:11:33.559 trying to get clear rules. So there's no company that's 246 00:11:33.559 --> 00:11:36.120 been at the table longer. I think it's really easy 247 00:11:36.120 --> 00:11:39.240 to have a scapegoat. It's really easy to point fingers 248 00:11:39.240 --> 00:11:42.759 out at one company or any one particular player. But ultimately, 249 00:11:43.080 --> 00:11:46.039 back in January, the bill was not ready for primetime. 250 00:11:46.320 --> 00:11:49.039 And what we have seen is that had we locked 251 00:11:49.080 --> 00:11:53.679 in some really problematic policy, it's so easy for opponents 252 00:11:53.720 --> 00:11:56.320 to fall back on the argument of process. Oh, this 253 00:11:56.440 --> 00:11:58.840 was already passed, this was already part of the debate, 254 00:11:58.879 --> 00:12:02.679 This was already locked in to legislative text. That process point, 255 00:12:03.679 --> 00:12:06.759 we would have handed that process point to opponents. So 256 00:12:06.799 --> 00:12:09.279 I think that we had to take a take action. 257 00:12:09.639 --> 00:12:12.879 That legislation was released with only a few days. It 258 00:12:12.879 --> 00:12:15.399 was released on a Monday night. We really had less 259 00:12:15.399 --> 00:12:18.480 than forty eight hours to evaluate a three hundred, four 260 00:12:18.519 --> 00:12:22.080 hundred page bill, and so that you know, that rapid 261 00:12:22.120 --> 00:12:25.840 movement prompted a lot of chaos, and ultimately we feel 262 00:12:25.879 --> 00:12:27.840 like it was in a better place now by far. 263 00:12:28.320 --> 00:12:30.600 But certainly, I mean, we've been working on this for 264 00:12:30.639 --> 00:12:32.879 a long time. It wasn't us who were dragging out 265 00:12:32.879 --> 00:12:36.000 these negotiations on Capitol Hill. I think there were many 266 00:12:36.080 --> 00:12:38.919 other players here. I think the Democrats have a lot 267 00:12:38.960 --> 00:12:41.399 of wins to show for their you know, eight months 268 00:12:41.399 --> 00:12:45.360 of negotiations and nearly four hundred extra pages. I think Republicans, 269 00:12:45.600 --> 00:12:47.799 you know, certainly have also been at the table and 270 00:12:47.879 --> 00:12:50.279 have have fought hard for what they want, and now 271 00:12:50.320 --> 00:12:53.279 you have a bipartisan product that's over six hundred pages long. 272 00:12:53.399 --> 00:12:56.279 So ultimately, you know, we also had a House passed 273 00:12:56.360 --> 00:12:58.440 clarity bill that would have been great. We could have 274 00:12:58.480 --> 00:13:00.679 passed that last year when we passed the Genius Act. 275 00:13:00.919 --> 00:13:03.720 But ultimately, that's how the Senate is. It's deliberative. 276 00:13:04.240 --> 00:13:05.039 Yeah, it is. 277 00:13:05.159 --> 00:13:08.440 And just to remind everybody, the period in which the 278 00:13:08.480 --> 00:13:11.039 Citadel guy was talking about was a period in which 279 00:13:11.080 --> 00:13:14.759 we were seeing the full court pressure on stable coin 280 00:13:15.000 --> 00:13:17.600 yields which was being introduced in that you know in 281 00:13:17.639 --> 00:13:20.440 that text markup that you're mentioning. So why do you 282 00:13:20.480 --> 00:13:24.080 think that Citadel and DTCC have not seen the kind 283 00:13:24.080 --> 00:13:27.600 of backlash because the banks, I think, have seen the 284 00:13:27.639 --> 00:13:29.840 backlash from the industry. But if you look at some 285 00:13:29.879 --> 00:13:34.240 of these kind of pseudo financial institutions that could also 286 00:13:34.320 --> 00:13:36.120 plan this, why aren't they getting the heat. 287 00:13:37.200 --> 00:13:38.360 Yeah, it's a good question. 288 00:13:38.440 --> 00:13:41.120 And just to go back for a second, back to January, 289 00:13:41.360 --> 00:13:43.600 it's a really good point. The provision that would have 290 00:13:43.720 --> 00:13:47.000 passed and would have been incredibly difficult to unwind, would 291 00:13:47.039 --> 00:13:49.759 have killed third party rewards. You couldn't have gone to 292 00:13:49.799 --> 00:13:52.960 use stable coins and got a balloon, as you know, 293 00:13:53.000 --> 00:13:55.360 as a reward in your local merchant shop. 294 00:13:55.440 --> 00:13:58.799 That would have been banned like that is insanity. 295 00:13:58.279 --> 00:14:00.840 When it comes to just pure competition, free markets, and 296 00:14:00.879 --> 00:14:05.200 open innovation. So we really, as I think as a 297 00:14:05.200 --> 00:14:07.480 company that is built on that and really believes in 298 00:14:07.720 --> 00:14:11.080 our mission is economic freedom. That just ran counter to 299 00:14:11.120 --> 00:14:14.279 everything we knew, and so we felt very strongly that 300 00:14:14.279 --> 00:14:15.799 that that we needed to take a stand then for 301 00:14:15.840 --> 00:14:19.600 our customers and frankly for the innovation itself. And back 302 00:14:19.639 --> 00:14:21.519 to your question about why, why do I think some 303 00:14:21.600 --> 00:14:23.919 of these other players who have had I think shadow 304 00:14:24.039 --> 00:14:26.799 operations to make this bill really difficult. I think at 305 00:14:26.840 --> 00:14:30.120 the end of the day, it's this is a disruptive technology, 306 00:14:30.480 --> 00:14:32.879 and we saw that fight play out in some of 307 00:14:32.919 --> 00:14:35.240 the some of the other sections of the bill. When 308 00:14:35.240 --> 00:14:38.440 we thought about securities laws, what does a security like 309 00:14:38.519 --> 00:14:41.159 what that bill back in January would have done was 310 00:14:41.200 --> 00:14:44.840 basically said, any new rules have to be identical to 311 00:14:44.879 --> 00:14:48.919 the old rules for securities. Well, if the old rules worked, 312 00:14:49.120 --> 00:14:51.679 we wouldn't be trying to make fit for purpose rules. 313 00:14:52.039 --> 00:14:56.000 And so there was the incumbent industry was very interested 314 00:14:56.039 --> 00:14:59.759 in locking in everybody into the same old rules where 315 00:14:59.799 --> 00:15:02.600 you have regulatory capture, and that, ultimately, I think is 316 00:15:02.600 --> 00:15:06.240 where the industry came together. At the end of the day, 317 00:15:06.399 --> 00:15:09.559 I've never seen the crypto industry so united. It actually 318 00:15:09.639 --> 00:15:14.399 brought everybody together to fight as as finally an industry 319 00:15:14.440 --> 00:15:17.159 that wanted, you know, a singular purpose, which was to 320 00:15:17.159 --> 00:15:19.759 get fit for purpose rules. So ultimately it brought the 321 00:15:19.759 --> 00:15:23.399 industry together. I think you see the where all the 322 00:15:23.440 --> 00:15:25.679 different places that are being disrupted is where you're seeing 323 00:15:25.679 --> 00:15:28.559 the most concerted effort to pose this film. 324 00:15:28.639 --> 00:15:29.679 Yeah, for sure. 325 00:15:29.759 --> 00:15:33.039 Well, and obviously the banking efforts that you know, we've 326 00:15:33.080 --> 00:15:37.480 been covering this for many years, and I myself have 327 00:15:37.639 --> 00:15:40.360 been surprised because you know, we've been in media for 328 00:15:40.360 --> 00:15:42.279 a couple of decades, so I've seen a lot of 329 00:15:42.320 --> 00:15:45.919 the let's just call it the pr strategies that many 330 00:15:45.960 --> 00:15:49.120 of these lobbies will take. And the one that has 331 00:15:49.159 --> 00:15:53.159 surprised me the most has been the ABA. I mean 332 00:15:53.200 --> 00:15:56.840 they have got like data scientists or somebody up there 333 00:15:56.919 --> 00:16:00.279 understanding exactly where to push buttons and pull triggers. I 334 00:16:00.320 --> 00:16:02.919 was looking at this here recently. This came in from 335 00:16:02.960 --> 00:16:05.559 punch Bowl and it was in reference to Rob Nichols. 336 00:16:05.559 --> 00:16:08.519 This is the president of the ABA, and of course 337 00:16:08.559 --> 00:16:12.679 he's commenting on guess what the editorial that the Wall 338 00:16:12.679 --> 00:16:15.879 Street Journal put out by guess who the editorial board? 339 00:16:16.679 --> 00:16:20.000 Interesting that we don't really know who the editorial board is. 340 00:16:20.440 --> 00:16:22.440 But the point is is that you're getting that kind 341 00:16:22.480 --> 00:16:25.519 of pressure right now. Who would be writing these kinds 342 00:16:25.559 --> 00:16:28.919 of things. Is this a seeded article from probably the ABA, 343 00:16:29.120 --> 00:16:30.639 or how does this get hapend to here? 344 00:16:31.159 --> 00:16:35.559 The talking points were almost identical to the letter that 345 00:16:35.639 --> 00:16:38.639 Rob Nichols sent you a few months ago, and the 346 00:16:38.720 --> 00:16:42.600 idea that again that this is a systemically risky endeavor 347 00:16:42.639 --> 00:16:45.519 when it comes to stable coins, when that there's no 348 00:16:45.639 --> 00:16:49.159 law enforcement protections in this bill, that there's concerns about DeFi, 349 00:16:49.799 --> 00:16:52.399 all of these, all of these issues that were raised 350 00:16:52.720 --> 00:16:56.000 truly read like the ABA or the BPI website, and 351 00:16:56.080 --> 00:16:59.039 so of course we're skeptical when we see that because 352 00:16:59.440 --> 00:17:01.559 it doesn't look like it's an unbiased approach. 353 00:17:01.639 --> 00:17:02.159 And then you have. 354 00:17:02.159 --> 00:17:06.000 Brendan being you know, Rob retweeting Brendan because Brendan had 355 00:17:06.039 --> 00:17:09.559 a point of view, and then Brendan retweeting Rob who 356 00:17:09.640 --> 00:17:11.880 had a similar point of view. It was an interesting 357 00:17:11.960 --> 00:17:14.960 dynamic that we saw, but the editorial board, it was 358 00:17:15.000 --> 00:17:18.400 frustrating because it didn't feel like an open and certainly 359 00:17:18.839 --> 00:17:22.000 we didn't have any kind of contact leading into that 360 00:17:22.079 --> 00:17:25.039 type of a conversation so or into that into that article. 361 00:17:25.160 --> 00:17:27.880 So I would just caution everybody. 362 00:17:27.599 --> 00:17:31.160 As you read it to understand where these talking points 363 00:17:31.200 --> 00:17:33.920 came from. Throw it into your favorite to your favorite 364 00:17:34.000 --> 00:17:35.559 LM and discover. 365 00:17:35.240 --> 00:17:37.720 And do a comparison. 366 00:17:37.920 --> 00:17:41.920 Yeah, the comparison of the two of the two pr positions, And. 367 00:17:41.880 --> 00:17:42.519 You might be right. 368 00:17:42.599 --> 00:17:44.920 I liked your you guys's response on this. You know 369 00:17:45.440 --> 00:17:48.680 what's kind of an in uh. I guess poking and 370 00:17:48.759 --> 00:17:51.359 fun at it fixed it there on. We're afraid of competition, 371 00:17:51.599 --> 00:17:53.559 which is, you know, we get it, we get it. 372 00:17:53.640 --> 00:17:57.240 Let's talk about our favorite senator now, and that of 373 00:17:57.279 --> 00:18:02.119 course is Senator Warren. And Warren came out. I feel 374 00:18:02.160 --> 00:18:03.720 like this was a little bit of a gas light. 375 00:18:03.759 --> 00:18:06.440 But she, of course is making her points known again 376 00:18:07.000 --> 00:18:09.839 the day before we're trying to get a vote across 377 00:18:09.880 --> 00:18:10.160 the line. 378 00:18:10.240 --> 00:18:10.960 Watch this clip. 379 00:18:11.559 --> 00:18:14.200 Do you think there's anything that could happen to change 380 00:18:14.240 --> 00:18:16.480 it so that it would be appeasing to you in 381 00:18:16.559 --> 00:18:16.960 any way? 382 00:18:17.079 --> 00:18:21.880 Of course, we need crypto legislation. I've been saying this 383 00:18:21.920 --> 00:18:24.400 for a long time. I put together a crypto bill. Yes, 384 00:18:24.440 --> 00:18:30.319 we need crypto legislation, but not this legislation. As far 385 00:18:30.359 --> 00:18:34.319 as I've heard, they've still not solved the problem of 386 00:18:34.480 --> 00:18:41.519 corruption of consumer, protection of national security, or protecting our economy. 387 00:18:41.640 --> 00:18:44.839 And until you solve those problems. I just don't see 388 00:18:44.920 --> 00:18:49.400 how anyone Democrat or Republican moves forward on this bill. 389 00:18:49.599 --> 00:18:52.480 Are you worried that the industry will leave the United States? 390 00:18:53.160 --> 00:18:55.160 I don't even know what that means. You mean that 391 00:18:55.200 --> 00:18:58.039 they will do their money laundering overseas? 392 00:18:59.200 --> 00:19:02.400 All right, So obviously the gas lighting continues from Senator Warren. 393 00:19:02.440 --> 00:19:05.519 She's a master at it, very good. I think most 394 00:19:05.559 --> 00:19:08.000 of those points have been debunked, and that is, of course, 395 00:19:08.039 --> 00:19:11.119 the ethics issue that was an issue has now started 396 00:19:11.160 --> 00:19:13.400 to draw down to almost no issue. And of course 397 00:19:13.440 --> 00:19:16.200 the national security has mostly been on the flip side, 398 00:19:16.240 --> 00:19:18.759 is that this is good for national security. There's a 399 00:19:18.839 --> 00:19:22.759 lot of benefits to this and innovation, Yeah, that can 400 00:19:22.839 --> 00:19:25.240 still leave the shores, and we are already starting to 401 00:19:25.240 --> 00:19:28.400