 Welcome to Digital Asset News or Dan for short. My name is Rob and today we're going to go over a pretty interesting piece about a meeting with a bunch of big hitters, the CFTC, the Fed share and the Treasury, as they're really what they're talking about is demanding regulation, which I know this is not what people want to hear, but it has to happen. What they're talking about here is just how dire we actually need it. So we'll take a look at the report, what's going to come about and what potentially could be leading us into the next big market. And then I'm going to talk to you about there's something brewing, there's something going on because we see this going on with traditional equities, with stocks, with crypto. We're going to take a look at what I call the whale shadows, earnings and CPI. And then I'm going to talk about videos on staking and diversification. So we're going to jump in real quick to what is going on. First of all, welcome. I appreciate everybody stopping by, do appreciate that very much and what the report is, is it is from EFSOC, the Financial Stability Oversight Council. That's quite a mouthful and it was quite boring. If you want to read it, there's a link in the description. It's a nice healthy 100 to almost 200 plus pages. Have fun with that. Or you can just listen to this video as I summarize everything. And before we get into it, I guess the big question would be what the heck is EFSOC? So EFSOC is the Financial Stability Oversight Council. Council is charged with identifying risks to the financial stability of the U.S., promoting market discipline and responding to emerging risks to the stability of the United States financial system. I find it interesting that these big heavy hitters, of course, they're all involved just how they talk about in the report just how much they want regulation. They have to move forward. This is a vast difference between 2013, 2014, 2017 when it was like regulation for crypto like, it's going to go away now, so don't even deal with it. And now here we are with the council that's composed of Treasury Secretary Janet Yellen, Federal Reserve Board Chairman Jerome Powell, Acting Comptroller of the Currency or the OCC Michael Sue, Consumer Financial Protection Bureau Director Rohit Chopra, Security and Exchange Commission Chief Gary Gensler, fan of the show, CFTC Chair Rostin Benham, Federal Deposit and Insurance Corporation Acting Chair Martin Gruenberg, and National Credit Union Administrative Chair Todd Harper and a handful of others. And that's everybody just sitting around going, what are we going to do with crypto? I think I just found it amazing. And this is what the report said. There's a great summary by CoinDesk. Thank you CoinDesk for making this palatable, that is for sure. But this is the report and of course for what is going on. So that is what it says, calling on Congress to define the line between a security and a non-security. I think I know people talk about regulation, how we don't need it and it's stupid and we're here to govern ourselves and libertarianism. I got to tell you, I think for the individual, yes, sure. It was not much regulation that's needed, although I think we still do. I think it really comes down to the big institutions. And like we talked about yesterday, institutions are here. Institutions are coming. You can see the reports from Coinbase and Kraken and Binance and a lot of big exchanges they put out and it'll show you just how much the institutions are actually already here and they're buying and they're doing a lot of things. And it's in the reports. We've covered this multiple times, but it's not as much as they should be because they don't have clarity. And this is what all these agencies want. Like Congress, you got to do something. You were put in there to actually write these bills, to pass these laws, and you can't do anything. And we'll talk about a bill that's out that I think could alleviate all this stuff. So FSOC said it believes federal agencies already have much of the authority they need to oversee large chunks of the crypto sector. The one area I really asked for Congress to get involved is defining just where the limits of securities regulation should be. And again, I found it fascinating that you've got Jerome Powell and you've got Gary Gensler and you got Janet Yellen and the CFTC acting chair just sitting around going, okay, who's going to take this? Who's going to take this? Because you know, if we let it run, Gary's like, I'll take everything. And everything's a security, but it doesn't work like that. It's called the democracy. Why it matters? The line is between a crypto security and a crypto commodity. What is it? Where exactly does the SEC's authority end and the CFTC's authority begin? And you've already seen them actually talking to each other saying, okay, maybe you can take this, maybe you can take that. And they go from there, but it's going to take some time. The report took aim at how a lot of the companies that offer services in the crypto ecosystem advertise themselves as regulated. Not too long ago, there was an there was an organization that was saying that your cash is FDIC insured. Well, not really. And it was through a third party. And of course, that was held in that third party and it all came about. They need clarity. I think there's a good idea of why we should have that. FSOC is concerned about money transmitter frameworks that don't have a huge focus on anti-money laundering controls, I suppose. I will say this, it's not like the banks are scot-free. We've seen them credit Swiss and some other ones that have been busted already for money laundering issues. But that's just outside of the realm of this video. In particular, Port says there are issues with the spot market for crypto. Namely, there is no federal spot market regulator or framework. I think that would be great if we would like to get a Bitcoin ETF and they can regulate the spot market. That would alleviate the concerns of what Gary Gensler is saying. So there's too much manipulation. Sure. In short, financial stability is the key concern. They talk about how there's a problem with hacks and crashes. A fairly significant section of the report is focused on the fact that much of crypto is built around speculative trading but is vulnerable to frequent hacks. I don't know how they're going to regulate hacks. I mean, we just saw that multiple airports were just hacked yesterday from Russian hackers. Now, whether that remains to be true if it is the Russian government or hackers who are based in Russia, I have no idea. But I mean, we see stuff like that. We see stuff with the credit agency where they lose all of our private data and is out there throughout the whole web. So if we're going to talk about that part, also talk about this other part with crypto. The important part is the recommendations. Regulators should treat crypto risks like they treat other risks. Nothing special. The third, fifth, sixth recommendation calls on Congress to get busy. Basically, get your A in gear because you guys aren't doing what you're supposed to be doing. Council recommends that Congress pass legislation that provides for explicit rulemaking authority for federal financial regulators over the spot market for crypto assets that are not securities. And that's the big thing. Tell us, here's the thing. This is very simple. I can't make this any more simple than what this is. Tell us the rules of the game so we can bend the rules to our win. That's really what it comes down to. I mean, I hate to say it like that, but that is just what it is. It's just like the IRS. They give you clear laws as to what is going to be taxed and what not taxed outside of crypto. I get you. But if you know those rules and you can understand, okay, this is what it is. This is the guidelines. This is where I can move. Then you can move a lot of different ways. And I think that's what the institutions are waiting for. They don't want to, they don't want to stick all their money into a place where there's massive bridge hacks and billions of dollars are lost. They have to answer for the people who believe in them and also their shareholders. They're not going to get into this place where like, hey, an algorithm stablecoin sounds like a good plan and they lose everything. So this is the thing I think that we need. And of course, I know people are going to say this in the comments and you are correct, where is regulation comes over regulation? I get that. However, just to step in the right direction, we'll fight them off as we see fit, moving down the road. But it's easier to win a war with a Trojan horse and get on the inside and fight from the inside and just pound on the door on the outside. That's just my thoughts. All right. So to finish this up, before I go off too much in a tangent. The recommendation five called for stablecoin legislation. Other recommendations include closer coordination between different regulators, whether that's state to state or with different types of regulatory entities. I think that would be good actually to get all the different states and go, okay, this is what we should, this is what we should go over. This is a security. This is not a security. This is a commodity and go from there. Having federal regulators continually build on and reassess their crypto. This is a good one. Let me read this again. Other recommendations include having federal regulators continually build out and reassess their crypto knowledge as they oversee and license different entities. So I'm going to play this video. I just thought about this. This is, um, let's be honest, uh, the people that are in Congress and some of the, some of the people that are enforcing these rules, they have no idea what they're doing, uh, because it's, it's a new industry. And I'm going to blame them. And it's very tough to learn, uh, all the things that are out here, all the jargon, all the, all the different parts. But there was this great video of, uh, Sam Bakman freed. I know some people hate him, but just listen, SPF was, he was testifying before a Congress and they were getting kind of snippety with him about the different parts. And he just laid it out, laid down the law and said, look, he doesn't know what you're talking about. Take a listen to this. But I, I actually found something a little bit offensive that was said. I'm going to be pretty blunt. The most of the traders on our platform know a lot more about these contracts than many of the people in this room, including many of the people in this room who are condescendingly talking to them about what they do and don't know and shouldn't, shouldn't be offered. Anyway, I just had to get off that off my chest a little bit. And I think it's to some points about consumer choice here. I'm not saying that should be a sort of like be all and end all, but I think there is something to be said for it. And I think that, that there is some irony in, in, in, in, in, you know, some of the statements made by people attempting to protect those who know massively more than they do about the topic and who understand these products extremely well, most of our users do. So yeah, just pretty much laying the law down. So when it says here, having federal regulators continually build on and reassess their crypto knowledge as they oversee and license different entities, when are they going to do that? How are they going to enforce that to their own regulators? Like they have to take a weekly test or something? I don't know. I just find it fascinating. That's what they called for. But it's, it's a step in the right direction. I'm not making fun of them. I'm just saying it's just interesting how they put it out. I wonder how that's going to do also as a call for a coordinated government wide approach to data and to the analysis, monitoring supervision and regulation of crypto asset activities. Look, I don't know if they live under a rock, but if you want to find anything that's super easy, that's what the block chains for every transaction, everything that's that has transpired between wallets is all out there in the public. So if you're trying to money launder or do those things, crypto is the worst place to do it. The best place to do it is just use cash. Trust me. I let me say that again. Don't trust me about that one. I've never laundered cash, but I'm just saying, if you want to hide some things, cash is a great way to do it. And also dirty banks. So then to finish this up, there was a report also on Monday with a New York Fed, which published a research paper that said it was supposedly safe stablecoins like USDC might pose a risk to the broader financial sector if it becomes a safe haven for people fleeing less safe stablecoins backed by sketchy assets. And I don't understand where they're going there with this USDC, the CEO layer went and testified before Congress and go look, I know you guys want everything backed by assets and dollars and things like that. Here's all our paperwork. Here's what we're backed by. We are liquid. We have everything backed one to one. So you can alleviate your fears. So I don't understand whether they're coming for with this unless they're like, Hey, this is bad news for us. But you know, it's great CBDC. Anyhow, let me just think about that in the comments section and to finish this up. There isn't a law or excuse me, a bill that is trying to make its way through Congress. And it's the Senator Lummis and Gillibrand, which is bipartisanship, one's a Senate or one's a Democrat, one's Republican. I like to see that as they work together. And this was came on June 7th and everything we just talked about, it kind of addresses it here addresses the CFTC and the SEC jurisdiction. What's a security? What's a commodity? Stablecoin regulation. Like we just talked about banking, tax treatments and interagency coordination. The same thing we was talking about. So I'm like, they want this to happen. You know, the F, the FSOC wants this to happen. Some of us want this to happen in crypto, myself included, and senators want this to happen. So let's just get this done and then move, move about. So I think this is a step in the right direction. Again, it's amazing how things have moved in 2017, pretty much the governments and agencies are just like, don't even try to regulate it because it's going to go away anyhow. And now here we are. So let me just think about that in the comments section. Let's move on to, and this is just going to go pretty quick after this, there's something brewing, there's something going on. There's a blow this up as a website. I'm always talking about look into Bitcoin.com. It's 100% free to pay anything. Great, great stuff all about Bitcoin. And one of these is whale shadows. And what the heck is that whale shadows? This shows when Bitcoins that have not been moved on chain for many years, finally move again. And I have to stress this, they're just moving Bitcoin. Now that they're moving it and selling it, it's just moving. You can't see when it's actually sold. But you can see, you know, like net flows, inflows and outflows for exchanges. Usually if they go to exchanges, usually means they're, they're selling, but that's not what's happening here. I just found it fascinating that in the orange is Bitcoin hasn't used moved in 10 plus years. And this purple is seven or nine years. Let me blow this up. There's a couple of things to note here. First of all, in September, you had like, this is over a thousand, this is Bitcoin, a thousand, 10,000, thousand, almost 10,000 in September moved by holders, holders who have had Bitcoin for seven or nine years happened again here, September 4th. What's this one? Oh, August 29th, excuse me. And then once it haven't moved in 10 plus years, this is almost about 500 or so. Yeah, couple here, couple here. And then it just stopped. Well, because we're not, we're not the January 20th or 23rd genius. Yeah, it's the November 22. So we've stopped for a bit. But one thing I want you to notice is this, you know, that whole thing about diamond hands and never move and or not never sell whatever else, just from just I want you to burn this into your head for a second. And that's when there's peaks, there's a lot of movement. There's a lot of movement of, of, of Bitcoin whales or Bitcoin people haven't, haven't moved theirs for quite some time when there's peaks. So just remember when people say diamond hands forever, they're like, I don't know if that's true, because it seems like when there's peaks, people are selling. And then also, well, number three, which now has a new wallet since June, I just want you to notice one other thing is that well, number three just sold a thousand Bitcoin. And they've been, they've been sporadically scantily accumulating. Actually, this is an accumulation since September 22. They just have been on hold like a holding pattern, like we don't know what's going on here. 0.01 Bitcoin is not anything for a whale that buys 470 Bitcoin, 1100 Bitcoin in August and June and July. But I find it interesting that they haven't been accumulating. They just sold six days ago, a big chunk of it. And remember, this is the week for earnings report for traditional equities stocks. And also the big one, the CPI is coming out October 13th. So in two days at 8 30 a.m. And it just seems like you can also take a look. I don't know what the market's doing. I'm assuming it's down. Correct me in the comments section. But these are the things that I think some people know a little bit behind the scenes and what I do. And that's what's going on. So let me just think about that in the comments. And then real quick, I wanted to do some more videos, some like how to's on staking. I know there's a lot of people who just got in 2021 and they think, you know, just just buy and hold, which is fine or buy and sell, whatever you want to do. I'm not a financial advisor. But I think there's a gap of knowledge about staking. I know some of you do it, some of you like it. But we were doing a video yesterday. There's a website DCA dash CC. And I showed just, you know, just a hundred dollars per week investing into Cardano. And we use Bitcoin, Ethereum and Cardano as for the example and also Sandbox. And in four years, I mean, you could have done some pretty big damage here. I mean, positive damage. If you would have sold the top, you know, the investment would have been 18,400, which is a good chunk of money. But if you would have sold, you would have had a value of 651,000. So I mean, DCA, it does work. It just depends on, you know, what you want to do, what's best for you and what products you want to get into. And someone made a good point. They said, yeah, Rob, but that's also without you even staking anything. I was like, hmm, it's a good point. I forgot about that. So like for Ethereum, first of all, I don't stake Ethereum. I'm not going to have my Ethereum locked up that long. I'm not a big fan of slashing. So I'm not going to talk about that. But the Solana, Cardano, Binance Chain, Avalanche, Polkadot, Polygon, Cosmos, I do want to talk about. Tron, not really. I don't have Tron, but I have near. And you can see here the rewards for staking. Like Ethereum is 4.71. All right. Solana is 5%. Okay. Cardano is 3. I think it's the industry averages between 4 and 6%. I know our stake pool gets above 4%. So I don't know why it's 3.5, whatever. Binance Chain, that's kind of weak. Avalanche, 8%. Polkadot, 14%. This is annual numbers. Polygon, 5%. And you don't have to do anything. You just got to stake it. 18%. Dang, 18% for Cosmos. That's the one I really want to do. And Tron, and then near, I've got staked right now for 10%. And a lot of these, what's cool about that, like with Cardano, like did you know that you don't give up your private keys to stake Cardano? That's why it's like the best experience of all time. And of course, we've got a couple of stake pools. There is a link in the description. It looks just like this. And you can go to our webpage, which pretty much lays out how that's done and how to do it. I know people don't like to stake sometimes because they're like, I'm worried about losing all my crypto. And I'm worried about transferring, because I don't really transfer too much. I get it. I understand. So just a real quick rule of thumb. When you're transferring any crypto, just do a test transaction. That's what I always do. I don't care if it's a wallet I've done many times. I'm like, hey, I'm going to send you something. And you know, if I owe somebody a thousand bucks, I'm like, hey, I'm going to send you $20 first to make sure you get it. And then I'll send the rest every single time I've done that. And with staking, it's the same thing. So don't worry about losing stuff. And then it cares with Cardano, you don't have to do that stuff. And then also, I like to stake within ledger because you keep it safe and you keep your private keys and all that stuff. And I'll go through Solana. I'll go through Cosmos. I'll go through, well, we've already done Avalanche, which is a pretty good one. But poke it out when you do, you can also do poke it out through ledger. So if that's something that interests you, perhaps, let me know in the comments and I'll rip out those videos because I always had to remind myself that, hey, there's people that are new and they need to know these things. And even if you've been around for quite some time, I think this is a good refresher. Also, how to back up your seed phrases. Also, how to check your seed phrases in your ledger to make sure it's still accurate and still works. I know people want that piece of mine. So I can do that. And that's what's going on. And then lastly, I know that the market sucks. I get it. But when we're talking about these things, remember, I'm talking about these things as far as like a diversification strategy. So 15% roughly is what I try to stake because the crypto is not doing anything. I'm just holding on to it. Might as well make some money off it. And of course, they have the IRA. I've got cash and stables. I do some DGEN plays. Check out my second channel, DGEN, Dan DGEN. If you want to lose all your money, essentially, that's just a gamble. That's basically gambling. And then, of course, my Amazon business and then properties. And then the last one is Masterworks because I own fractionalized shares of artwork and I think it's a good one. So I want to say thank you for Masterworks for sponsoring the video. I appreciate it. Here's what I've got. I got a bank scene of basket. Everything I talked to you about, I got skin in the game. I don't know anything about a basket. I know a bank scene, but so far on that basket, I'm up 39, almost 40%. And again, these are fractionalized. I don't own a whole bank scene. I don't have 10, 20 million dollars. But it's fractionalized shares. And guess what? It is registered with the SEC, just so you know. Here's the annualized returns. Not that you're going to get that, but I'm just saying here's what they've done in the past. Here's the performance so far against Russell, Mazdeck and S&P. And it's even kicking the tar out of crypto as well. Here's over the last 25 years, S&P real estate and gold. Here's what it's done again, 21, 33, 27, 33% appreciation, annualized. And what was the other one? Oh yeah, link in the description, that type of stuff. So there is that and I just want to finish off with this one, hang with me. I had I had a gentleman on for Masterworks and he's their CIO, Chief Investment Officer, and he was talking about something called the sharp ratio. And this is about how to invest as far as like the risk. And I think it's it's something to note of how Masterworks is doing this. I'm not saying this is for you. I'm just saying this is just an option. I've gotten into this and this is something that you could take a look at if you want to diversify. If you want to diversify, stick it on whatever you want to. I'm not telling you what to do. I'm just saying this is the information I have. So what what we were talking about here is just so close. And he was talking about the sharp ratio, how they do that. So just take a listen. This is about 50 seconds. Just take a listen and then we'll go in the Q&A. Hold on. And the sharp ratio, what it does is it basically measures an investment's return or how well or how poorly it's done relative to how much risk that investment actually had. You know, it's sort of like a measure of bang for the buck in a lot of ways. Right. So it's it's easy to look at an investment's return. Right. Did it go up or down or stay flat or whatever the case may be. But it's a little bit more nuanced and it's often a lot more informative to use something like a sharp ratio because it tells you, OK, we know how well or how poorly the investment did. But how about how much risk did I need to actually take to get that performance? Right. So in other words, maybe you got a really attractive return, but maybe you also had to take an extraordinary amount of risk to get that return. Right. That that's that's the type of information you would want to know how much risk you have to take to potentially get that return that you're getting. So we've introduced the sharp ratio for a lot of the the different artists markets that we track and we basically compare it to the sharp ratio that the S&P 500 has generated. And then we compare it to the S&P, excuse me, the sharp ratio for the overall art market as a whole. I mentioned I come from the traditional world of investment management. You know, I can tell you that there are a lot of professional hedge funds all over the world who would love to consistently hire traders whose strategies can generate sharp ratios of close to two. And yet, believe it or not, there are actually quite a few artists markets that have been generating sharp ratios of close to two. And that's it. So look, thanks for hanging with me on that one. And before we go to the Q&A, let me stress this. For masterworks and fractional issues of art, that is a very long term hold. So if you're not thinking years in the future, don't even look at it because it's like a two, three, five type of year play. And that's it. So look, I mentioned the thing about that in the comments section. I'm sure I'll get kicked at that one. But that's it. So look, if you stuck around, thanks. I appreciate it. This was fun times. Leave a like on your way out. Also consider subscribing and that is it. So now if you want to stick around, we're going to go over the Q&A. I'll answer all your burning questions, the best of my abilities, and we will go from there. If not, Adios, thank you so much. I do appreciate it. Let's get to it. Q&A, that's my favorite part of the day. All right.