 I'm not lying to you right now. I really do mean this. I'm not lying to you right now. I really do mean this I'm not lying to you right now. I really do mean this and now the gentleman from California, Mr. Kahana is recognized for five minutes Thank You mr. Chair. Thank you for your leadership. Thank you to ranking member Thompson for his leadership Mr. Duffy you obviously have a very strong opinions about cryptocurrency. So let's start with the basics Could you tell the committee what you understand and how you define blockchain? And can you tell us some of the use cases of cryptocurrency for the American public? Yeah, you know, I had a conversation with somebody in the industry and I believe that the use case of crypto currency You can start with the definition of blockchain. How do you understand the blockchain? The blockchain is is a node Either centralized or decentralized run by different platforms with parts of information that only certain people that have access to it can Change that information and once it's in the blockchain that stays there and in order to amend the information It's a lot of procedures and protocols to go through the blockchain. It's a very complicated procedure I think it's an excellent form of Commerce for medical records things of that nature. So I do think what do you see as some of the use cases? Use cases of blockchain. Yeah, and cryptocurrencies Well, the use I don't know if there's a use case of here The one blockchain that's been talked about today is Ethereum use case for stable coins. Do I think there's a use case? I'm happy to answer your question, but which one you want me answer Stable coins. Yes, or not. You think there's a use case. Do I think there's a use case for stable coins? I think there was until the other day that didn't go so well for stable coins. So I'm not so sure if there's a use case for them I do believe Okay, do you think there's a use case for soul? I think I think the United States government sir needs to be involved in central banks Do you think there's a use case for Solano or some of the other of the top 10 crypto? I'm not a crypto expert sir. I list Bitcoin in I do I have opinions about an application sir not about cryptocurrency now You talk about here under oath you say if I could just quick you because you may want to take this back I don't know I don't take anything back FDX FDX. Well, you're under oath, sir I'm not under oath. I understand FDX has no capital requirements for participants Is that really are you going to stick to that under oath because see the CFTC is part 39? regulation requires capital requirements for FDX or For any of these exchanges. Are you really saying they have zero capital requirements? Or do you want to amend that statement given you know sir? You're moving away from your microphone? I'm at can you read the statement that you'd like me to I'm asking you sir You have a saying so that FDX has quote no capital requirements for participants I I think that's on its face a false statement Given that the CFTC part 39 regulation requires Capital requirements and FDX does have a capital requirement for for margins I said their capital requirements are not the same as they are for other institutions I said what you said sir under oath you have get submitted to this committee a statement that is false You said the regime has no capital requirements for participants I would strongly recommend that you have someone in your team Well, I'd like to read that statement because I happen to disagree with you sir Well, it's your testimony It's you know, I get it. I'd like to see the statement that you are referring to I can't just go of what you're reading Capital is capital is not the same as margin congressman Well, sir, I I want you to after this submit something that is accurate Recognizing you're giving testimony the United States Congress. You don't know much about cryptocurrencies You're opining on cryptocurrencies, and then you're giving false statements to the Congress that you aren't even staying You weren't even knowing that you're submitting you write FDX quote has no capital requirements for participants. That's just false Sir, I'll be happy to read my testimony back to you if you would like But if you want to make this into a court of law, I'm happy to participate in that Well, it's not a court of law. It's that you can't go give false statements to the United States Congress I'm well aware sir. I testified in front of this committee over 50 times. I'm well aware of the procedures this committee Well, then can you I would submit submit that you need to correct the record because you have quote your testimony No capital requirements for participants that anyone who has basic understanding of the CFTC knows that part 39 would make that a Completely wrong statement, of course the capital requirements, and I suggest in the future that you do some homework and what crypto currencies I appreciate you telling me to do my homework. I assure you sir and the amount of years I've been in this business I forgot more than most people ever know Well, I appreciate it I hope you will correct the record so you're accurate and not giving false testimony. I don't give false testimony sir It's not what I do I yield back my comment. I had a meeting with Sam Bankman Fried for the first time in March this past year. I never met the man. He asked to meet with me at a conference and I sat down with them. I said, what is your end goal? He says well, I want to compete with you I said great. I'm all for competition. What do you want to do? He says well, I want to compete with you in crypto. I said, why would you do that? I said, I'll tell I'll give you one better. How about if I give you my crypto franchises worth 30 million dollars? And we'll go from there. He says well, what do you want? I said, you know what I want Let me be your risk manager. I'll clear it to make sure it's done properly He says well, you won't deploy my model. I said your model is crap Why would I deploy a model that's going to introduce risk to the system? Of course, I'm not going to deploy your model He turned me down flat out turned me down and that's right away. I said to him I said, you know what? You're a fraud. You're an absolute fraud You're supposedly were $26 billion and you're an altruist and you said I said if you're an altruist at 26 billion How come does that not a $10 billion donation going to somebody right this moment in time? How about a $15 billion donation? I said, you know what? I said my net worth doesn't start with any bees I'll give you three to one that I have more money than you. I said, I'll tell you what I'll give you four to one. I got more money in my right pocket than your net worth I said, you're a fraud and I'm going to make sure that we get this out there and that was it So we went to Congress. I testified and I have been to Congress 25 years I've never seen a Washington DC like I saw at that time from the regulators to the members of Congress Singing hymns that I never heard before And I got berated in a congressional hearing but I would not back off I said that you could lose 85 to 90% of your value overnight And I said he will not commit to keeping this just a crypto I said the reason is because he wants to deploy it across all asset classes I said that is a biblical disaster a few people allow this to happen Well, I didn't know how right I was going to be in a short period of time So you lost 85% of his FTT tokens and literally one day So the point being is we went through this whole thing and then I worked back with the agency and I said They wanted to approve it for just crypto I said well that would be lovely except that'd be an arbitrary decision to approve a regulatory change for one asset class And they argued with me said no, it's not we have the ability to do it I said well, we're gonna have an argument here because I will sue and So we'll sue the agency over this because we think it's wrong We need and I met with every agricultural producer in this country and I explained to them exactly if their asset class went under This type of model what could happen to their hedges at 11 o'clock on a Saturday night when they're unbeknownst What's going on when they're being auto liquidated and they think their crops are hedged? I said this is the most detrimental thing. I've ever seen in my entire life. So I'm upset by this But I'm a measured upset. I'm a very measured upset because nobody else was calling BS on these clowns But me my friends at the intercontinental exchange are the only other exchange that said we do not like this as well Everybody else fun to talk about the innovation