 Welcome to the last set of news like a top stories in crypto and breaking down a bite-sized piece is today Just like the thumbnail suggests did we get clarity from SEC Chairman Gary Gensler as he talked out his testimony and statement in a sedent hearing committee that just took place roughly an hour ago So we're gonna take a look at what is going on there. But first I want to take a look at Kathy Wood and what she had to say as far as a price prediction of Bitcoin and as it relates to regulation We're gonna go over the set of hearing points. I want to say thanks to everyone who reached out to the senators We're gonna take a look at Senator Toomey and Gensler and they get into the actual clarity issue And then finally we'll wrap it up with Warren a daddy comment And what if as it relates to legislation for crypto currencies and digital assets? So go for all that stuff at first take a look. Let's go on the markets day Which is quite odd actually I see that's the market cap is actually up And this is after somewhat I kind of would deem as like somewhat negative comments as far as regulation But hey, why cap is up 2.1 1 trillion and I think Maybe if we if we really dig down into the into the depth what just was would take place Maybe it is actually good news and we'll get at that and everything else So we've got 2.1 trillion Bitcoin is at 46,700 dollars and he's looking pretty good Ethereum 3300 card on 240 and last 24 hours though We've had 5% bump for Bitcoin almost the same with Ethereum and everything else is up Except for Cardano had a great run now the smart counter tracks are in I think it's gonna settle down to around the 250 And here we are and then XRP watch out dollar pay to the dollar dollar 48 13 13% for uniswap. It's kind of odd because SEC is Potentially investigating them 12% for Tron. So yeah, it's a pretty good day for the market. So well, we'll take it what it is So that is what's going on the market per se. Let's just dig into what's going on If it was a pretty big day and it's this all really kind of is wrapped around something that Kathy Wood said She was going through. There's a assault Conference which is being taken place right now in New York City and what she was asked about was first of all Bitcoin price prediction what she is doing and then how that all relates to the legislation So I'm just gonna take a listen and you form your own opinion. So just check this out Bitcoin five years from now What's it worth? if if we're right and Companies continue diverse to diversify their cash into something like Bitcoin and institutions institutional investors start allocating 5% of their funds towards I'll just say Bitcoin for right now because we did that we framed it for Bitcoin could be for other cryptos as well We believe that the the price Will be tenfold of where it is today. So instead of 45,000 over 500,000 To regulators, especially US regulators need to buy into this in a major way I would also say that we just saw it in the last week Brian Armstrong runs Coinbase you have sticky Coinbase has now gotten into a somewhat bitter feud Yes, with the SEC over how The ability to offer effectively a yield product On some of these crypto currencies the Bitcoin will work. Yes I think regulators are working assumption from the beginning Was that and this was based on meeting with them meeting regulators both state and local and federal was that No regulator wanted to be blamed from preventing the next big technology breakthrough to happen in the US And that has proven true now. We've got Chairman Gary Gensler. I'm really happy. He understands crypto and understands the merits of bitcoin in particular He is a regulator though, and he is a hardcore regulator What Coinbase did? I mean, I was shocked when I saw Wells notice. Are you kidding? They haven't even released the product Like what is this and I think what that Wells notice is doing? It's it's a call out by regulators saying We got to discuss this stuff because this is happening very quickly and I think we are going to bring Courts into the system. This happened in Canada a company called 3iq sued The regulator there And one in court so they were able to issue bitcoin ETFs and and closed-end funds and ether as well So I am beginning to think that coinbase doesn't mind this at all And if you saw the stock reaction it hardly budged So a lot of things will dissect there first of all half annoying bitcoin. Sure. I'll take that If that happens, I'm sure the alts will do pretty darn well The last thing that you talked about which is exactly what I was saying before Which we did a live stream a couple of days ago where I said there's only one option And really it's going to come down to we just have to go to the courts had them figure it out And uh fight them fight back the sec a lot of people say you can't fight the sec Mark Cuban did it one in 2013 beat the sec like a drum like I've always talked about so Uh, I think what Kathy Woods is saying here is entirely correct unless There's another layer to this which I'll get to at the at the very end So first things first, uh, as far as like the senate hearing points, uh, themselves Here's what I here's here's the takeaway was this first of all If you've ever watched a debate, especially a presidential debate, they suck. They're awful Nothing really gets done. But in these these hearings, it's very cordial people like, you know, I'm glad you come in Now let's work together. Let's let's find a resolution I think that is the big thing that I took away from this one Also that nobody's a hundred percent right even ginsle is not a hundred percent right in this one And that outcomes are shaped through dialogue and that's why these things are brought forth Uh, second thing was was this there was three things that really brought up a time and again and again again First of all cryptocurrency was the very big thing that uh, really everybody want to talk about The second one was that that there's going to need to be climate change disclosures as far as global warming and everything else And they got into that in detail And uh, sure, you know, and which is weird to me that the sec is going to be a part of that But they're saying that it affects everything and I'm like, that's uh, it's a real change of position Uh, as as opposed to like the last two or three years And lastly, uh, they talked about order flow book regulation As it pertains like robin hood and things like that and uh, what it's going on But ginsle really just came out and says, I don't know if that's the issue Or if the issue is that there's not enough competition for that part And I thought that was interesting where he's more on the lines of we need more competition Which will kind of even everything out So that was with the points themselves And then also I want to say say this, uh, in that that video that we talked about I stressed that I can't do this alone and I need some help And I gave everybody their information as far as like the senators And uh, you must have done that because uh, every single question was about cryptocurrency So the big takeaway was this I want to say thanks to everybody who reached out to their senator to the congressman or whoever else The representative and said we need clarity for cryptocurrency because that was the main thing there So, uh, the two things the senate hearing was this every single senator every single one Well, almost everyone asked the question specifically about crypto and then uh, Because every single senator did that that just shows you just how important crypto is becoming This would never have happened in 2017. We would have lost our mind Minds if one senator would even mention cryptocurrency, but in this one, that's all it was So that is how big it's becoming and that's why you're at the right place the right time Again, not financial, uh advice just financial opinion. I I reversed that yesterday So, uh, I can't give you any investment advice. I'm not an investment advisor Just some guy who likes to make videos about cryptocurrency So that was that and now let's get into the meat and potatoes of it and just go into The actual Hearing so I want to play a couple a couple of splices. It's two hours long. If you got nothing to do Take a listen. It's very it's interesting how they come to their conclusions and things like that again very cordial But here are Four pieces of what I think are the most important thing and the first thing here is you're going to see uh senator to me Yes, senator to me from the legislation from before The last bill that we had talked about where everybody got together and he was going to ask the question like look The sec needs to do its job and he asked genzel directly and this is the very first opening statement, which is Do you think that crypto is a security or not? You have to have clarity take a listen In my view, the sec's job is not to make retail investing More expensive or unpleasant or difficult In america adults investing their own money should be free to decide how to do so Let me turn to cryptocurrency Which together with the blockchain technologies, this is a very very important and very promising new technology as you know The cryptocurrencies are actively traded on many platforms A really important question is whether a cryptocurrency is a security for regulatory purposes Under the how we are some other test Now based on your public statements It's pretty clear that you believe that some are securities, but others are not So i'm frustrated by the lack of helpful sec public public guidance Explaining how you make this distinction What makes some of them securities while others are not securities? I understand that the sec staff will privately provide feedback and analysis on whether a cryptocurrency Is a security, but why is this analysis private? Why not publicly announce what characteristics make a cryptocurrency a security or not a security? In other words, how do you apply how we and the reeves tests to these new products? Why wait to make the sec's views known only when it swoops in with an enforcement action in some cases years after the product was launched So first of all for an opening statement to me hit it the nail right in the head. He goes look we're adults and uh, we decide what we're going to invest into and the sec's job is to Protect us against fraud, but it is our harder money. So it's not like you are here To regulate us out of the things that we want to do. That's not how this thing works So I thought it was it was a great opening statement. Of course. He's asking point blank Why don't you make this public? Why aren't you doing the right things? Why aren't you doing your job? And then from there you're going to go to let's take a listen to uh, ginsler and his opening statement and um When he talks about these things what he first says i want you to remember The sec's job the sec's job is to protect the consumer and right here Are they protecting you or is it just like uh, to me just said like uh, you know You guys are regulating after the fact, which of course is uh, really going against the ripple xrp And of course, uh coin base if they decided to go forward. So just take a listen to ginsler's opening statement here And now for the crypto uh, because I know that you're all you know keenly interested We just don't have I believe enough investor protection and crypto finance the issuance of these tokens the trading and The lending frankly as I've said before I think it's more like the wild west I've asked the sec staff working with our fellow regulators of the commodity futures trading commission the bank regulators the treasury as well Using our current authorities. How can we best bring investor protection to these markets? I stand willing also to work with this committee and other committees of congress if you take up any legislative initiatives And then third issuer disclosure You see since the 1930s, we've had a basic bargain investors get to decide what risk they take that's up to investors But congress said that it should be based on full and fair disclosure of the issuers So right there are they helping or they hurting you? But what's interesting to me is that what ginsler said and what to me said are not too far off They both agreed the same type of thing. He said it since 1933 It is up to the investor to decide how much risk they want to take but there has to be adequate disclosures So what to me said and what ginsler said they are close and if they can just hash it out and really come to conclusion I think it can actually work But again, the question is are they helping or hurting you? And then this next piece is going to give you clarity and me clarity when I watch this You're gonna hear what ginsler Describes as what he believes most crypto currencies are take a listen I think I know your position Among other things is that not all crypto currencies are inherently securities, right? That's true There there's a small number that aren't but I think that The as chair Clayton said when he was in front of congress, I think very many of these Facts and circumstances are in vessel contracts So right there if you wanted clarity, you just got it This is what ginsler believes by the definition as far as like the howie test and the areves Test that was put out. He's saying look there. They are a security. They are an investment contract most most most crypto currencies Are a security? So that is what it is But then when we get into the weeds of it it really comes down to why do you think that is? And it really comes down to the laws that have been put out and what's really going on So what tomb is going to do is he's going to try to to really have him explain everything as it pertains the crypto But more importantly into stablecoins because he even believes that stablecoins are and going to say how do you do that? How do you know that so just take a listen? So some are and some aren't is basically what you're saying And i'm concerned that the sec has not provided sufficient definition And explained how it would apply the howie test, which I think is the Court standard for determining when something is an investment contract. So for instance stablecoins Do not have an inherent expectation of profit They're just linked to the dollar now you might use them in an attempt to make a profit, but that's a that's a second order activity Is it your view that stablecoins themselves can be securities? Um, I think it's a senator. They may well be securities. Um, as as uh, third good marshal wrote in the reeves opinion um in uh defining the scope of the market that it congress wished to Regulate congress painted a broad brush and it actually included about 35 different things inside the definition of a security in the 33 act I've just got limited time here. So I acknowledge that Um, here's my problem though. I think what you just said was that They may be Securities or that some are securities um to me a stablecoin doesn't meet the second prong of the howie test That there has to be an expectation of profits from the investment And so if it doesn't meet the howie test it looks to me Like it's not a security now. Maybe you've got a good argument for why some are and some aren't my whole point is I think we need to have clarity on this. I think you should publicly disclose this Apparently there are private conversations where you work with people who are proposing Particular structures and you give them advice your staff gives them advice I just think we ought to have that publicly and we certainly shouldn't be taking enforcement action Against somebody without having first provided that clarity well, um senator this this congress and uh could change the laws but the laws that we have right now Have a very broad definition of security including a note Including an investment contract and the like and my predecessor Chair Clayton and others actually put out a lot of guidance with regard to the howie I just I just kind of push back a little bit on that it it is broad, but it's well defined there is a very specific litany of The instruments that constitute securities as you know, there's better than I do Investment contract is one of them And there is a court decision that lays out the prongs for what constitutes an investment contract I'm just saying as a layman who can read English When I read those tests Stable coins don't seem to meet that test to me. Maybe I'm wrong, but if I can mis Interpret this I think others could too and some clarity public clarity. I think would be helpful Um, I see the red light, but I agree with you that that um, uh, some of these Tokens have been deemed to be commodities many of them are securities And the supreme court has weighed in a number of times you you noted the howie test We've talked about the reeves test was in the 1990s as well Um as weighed in and I think that there's a fair amount of clarity over the years So that is the whole thing. So there's a couple things to unpack here. First of all when he's talking about, you know The uh reeves test and the howie test. I think too me held his feet to the fire adequately and says you it's broad But it's defined and you have to actually give us clarity clarity clarity As soon as possible because you can't just take action and then you know how well these these problems come about and he's like Well, you know this and that but there was one thing that was interesting Is that genzler said Look, he goes you guys can change the laws, but these are the laws that we have in front of us Maybe genzler is just one of those guys who's like, you know what? This is what it states. This is what it says I have to go by the law just like how lawyers, you know, and the legal processes. This is what it is Maybe it's time for congress for senate for The You know supreme court to actually take a look at this and go, you know what? This is what we should really need to actually define as as a as a security as it relates to cryptocurrency digital assets And what it really takes because these how we how he tested in like the 30s the the Reeves opinion was the 1990 I mean, this is so ancient. I think we needed something totally new But what we have right now is what it is But to me personally when he talks about stable coins, I'm like really you can't even give him that But anyhow that is what it was for that Let me know what you think about that in the comment section But if you needed clarity, this is exactly where genzler is going most Are a security and some have been deemed a commodity bitcoin a theorem being one of them Hinman came out and gave that that public opinion in a speech that says that ethereum is adequately decentralized And then off you go So really just comes down to are they going to stick with that because if that's the case then you you really have overlap And I don't want to go into the minutiae, but that's your clarity right there So that is it for for that little piece and then uh, lastly I just want to go over just a couple of symbols Which I thought were pretty funny Which comes down to this uh warren senator warren came out and she had she had a great point and she had a dumb point and uh, not a dumb point just a goofy and uh, the first point she said was this she's like well If you're trying to protect investors and things go down 30 percent and all these Exchanges go down Well, how are we protecting them because they can't get out of their positions and she named specifically coinbase Uh for for that and I'm like that's a pretty good point Look if you want to get out of your positions and all of a sudden the exchange just goes down again, uh, there should be something that some type of Of adequate procedure where you can actually get into your exchange So you actually get out of a position I understand that it's just it's the free market and things like that But it was a good point like well, how are you going to do that? And then she started talking about dexes and the ethereum Price and we all know the gas fees, but it that's neither here nor there One of the other things that she talked about which I thought was kind of goofy was she said this she goes She talks about in financial inclusion No, but she said that the real thing that was bad was her point about the volatility And how 10 to 30 swings are just awful for the average retail investor and it just goes down to what to me and what Gins are talked about they go look You're welcome to take as much risk as you possibly can because it is up to you You're an adult and you're an american so go ahead and do whatever you want to do or wherever you're from I mean in america, that's what it is So if she's going to talk about like we need protection from people who just don't know how to invest That's not the point the point is people can take that the big thing is to protect them against fraud And that I think is where there was a disconnect and then next to last I'm going to play this clip which was a funny This is for the senator's name, but he's talking about The corporations and everything else that Ginsler oversees and he's and he just asked him a very basic question Take a listen, but as to the to the people and the companies that you regulate As chairman of the sec. Do you consider yourself to be their daddy? No, no Do you consider that to be your daddy? Fantastic question question of the day. That's pretty good. And then lastly, I'm just going to sum it up with this The reason why the internet was in stifled was because of legislation was because of clarity And that was section 2 section 230 where it states it was pretty much a thumbs up like this past 1996 Says an interactive computer service can't be treated website as the publisher or speaker of third party content This protects websites from lawsuits if a user posts something illegal Although there's exceptions and really it came down to This is what allowed the internet to kind of flourish because you can't have somebody come in there and posting things that that Would incriminate the website for which it was posted on everybody was scared about that and he said no No, you're not going to be held responsible for that And that is what allowed the internet to be what it is today So the whole thing is this I think that there has to be a little more clarity and I think we have to move forward There's two other options. Uh, there's two options. I see now one is We just go to court and we battle it out. Look mark humans able to beat the sec They're not unbeatable for Pete sakes and the next thing is unless Congress comes together and changes the laws in some way and and and to determine what what a security is There's this is what he's left with and this is where he's going to go The only other way that I can see it. This is a long shot is if they just say, okay We're going to determine what a security is what a commodity is and exactly what a currency is as relates to Cryptocurrency and digital assets and from this point forward That is what it is and no harm no foul. So everybody before You are left off the hook, but you have to register now This is the only thing that would that that would make sense to me because you have 6,000 different ones If they take a hard line and say, okay, guess what? 890 of cryptocurrencies are securities. You all sold Unregistered securities. We're going to find every single project out there and we're going to find all the exchanges You can do that But and I know people will say well, that's what all they want the money. They just want the money Yeah, but you know what you know what kind of position that would put America in They would put us so far back behind every other superpower that is out there It would leave us it would almost be like banning electricity And that's how detrimental that would be so that's how I see things anyhow, but that's it for today I know it was a long one, but there was a lot of great information. This is where this is where we're at So we found value in the video and go ahead and give it a thumbs up also consider subscribing We do things like this every single day up to date stuff and that is it So thanks so much for watching. I appreciate it. See you on the next one