HUGE Crypto Regulation News! SAB 121 Repeal, FIT Bill Vote, Gary Gensler, Donald Trump
the SC been losing the courts we’ve been seeing a lot of trickling from Democrats saying I don’t think the SEC is doing that good of a job from what I’m hearing from folks and again whether it be the industry or within their their districts or what have you um and this is potentially a referendum both on the SEC and how they’re operating in crypto but also referend them on one single person which is Gensler himself so I think it’s you know these are a lot of Dynamics in play here but again the best part about it is this is the first time we’ll have it on record they R voting on Market structure legislation in 2 [Music] weeks this content is brought to you by uphold which is one of the top crypto platforms out there which allows you to easily buy sell trade Bitcoin and the top altcoins in the market uphold list 260 plus cryptocurrencies they also allow you to trade precious metals such as gold silver Palladium and platinum I’ve been a user of uphold since 201 18 so I can vouch with this platform they have full transparency reports and they don’t co-mingle or lend out your funds they also have a great product called Vault which is an assisted self- custody product a vault allows you to maintain custody of your funds and the keys are split so uphold holds one and you hold two and if there’s any issues if you lose one of your keys uphold will help restore these uh keys and you can maintain uh access to your fund it’s 24/7 instant trading it’s trustless so this is a great feature that uh can give you peace of mind where you don’t have to worry about if you lose your private keys and much more uh so if you’d like to learn more about uphold please visit the link in the description welcome to the thinking crypto podcast your home for cryptocurrency news and interviews I’m your host Tony Edward and with me today is Ron Hammond of the blockchain association Ron is the director of government relations uh Ron great to have you lots to talk about yes there is Tony lots to talk about always good to be back uh let’s dive into it Ron uh man I I’m I’m almost flustered because I don’t know where to start because last week was incredible let’s start with the repeal of Sab 121 and with the Democrats joining Republicans tell us about that definitely so for those who don’t know Sab 121 it’s an accounting principle guidance like I put out there well it wasn’t Guidance the SEC was trying to say it’s guidance it was a rule but it dates back two years ago and uh for those who aren’t much in the policy weeds this is pretty much the rule that’s really preventing uh folks like b&y melon from cussing crypto uh they have to double Count Their balance sheets and you know for a lot of folks maybe especially like the newer wave of folks who are uh not as crypto native but they want to dive in the idea of having a bank being your custodian uh you know that that appeals a lot of folks um you know myself included there’s a lot of people say I trust the banks I you know maybe I’m not sure too much of this with coinbase or these other custodians or self cussy I’m not tooo comfortable with but for the banks to get uh you know to have a role here be really helpful to get a lot more either Mass adoption but also kind of a new wave of folks coming into the ecosystem so this has been going on again for two years this whole battle and uh we come to the house for votes and they call it a congressional review act this is basically when Congress says we do not agree with what the agency uh has proposed or has done and we are trying to roll that back um and Congress is on a really really thin margin as you know the house only has two votes right now I believe as majority the Senate only has one um and so we’ve seen a couple of these Congressional review acts actually make it to the president’s desk um it’s unclear for sa 121 that’s going to be the case for this one uh but it will go to a vote in the Senate this week but what happened to your point last week was a major major developments because sa21 got 21 Democrats to go against a Joe V Betto threat the SC chair who was on Capitol Hill the week before talking to Democrats about why this bill uh and C proposal was unnecessary and the SC is right in their View and we saw an outright rejection uh for again a lot of new faces on the Democrat side joining the Republicans and pushing back on this uh and again I will stress this is an issue that both the banks and crypto agree on um so there’s a lot of forces at play here both from the advocacy and lobbying side but also there is this the anti- Gensler sentiment that I think can’t be ignored and I think we’re going to see a lot of that play out in the next couple of weeks with the all these other crypto bills will go into to later on getting a vote but it’s really important to highlight that there’s a lot of factors here at play but 21 Democrats who took a tough vote again they could have voted all no on this and politically it probably would not affected them too much but this is a major development where 21 publicly went on record against Gary gunster and I can confirm there are several others who wanted to support Sab 121 the house side but the Optics politically of going against Joe Biden um in a presidential election year when he’s you know against ropes and these polls um uh they did not think it was wise to do that politically so I want to stress there are several others out there that would probably voted for it if it was not a you know again a CRA it was just a standard bill but a CRA pretty much forces Congress to move hence why we’re going to see that Senate vote sometime this week likely wow and Ron do you know that letter that was sent saying Joe Biden would veto this if it made it up to his desk was that Elizabeth Warren because it doesn’t seem like that’s Joe Biden I mean like this is what staff do staff do they write this is why the members of Congress have staff to write letters you know when lizza Warren sends 20 plus letters a month on crypto it’s not her it’s the staff to the staff’s gr she do write a lot of letters whoever she or she may be so I have to give him props what staff do and that’s why member of Congress rely on staff to do a lot of the hard work here um because it does take time but I didn’t come from Liz Warren I would say necessarily it probably came from Gensler uh you know obviously if you’re the White House and the house uh of Representatives is voting against a rule against one of your agencies the first thing you’re going to do is you’re going to ask the agency why are they angry at you or angry at this rule what is the reason the basis for why we need to defend you as an Administration and they will always defend their agency um and again like I said a couple of other C have happened uh both that other agencies they have gone to the president’s desk they got vetoed and that means they have to have a two-thirds majority in Congress to override that veto and uh as as great as it is we had 21 Democrats to support the House Republicans in this that’s still not two-third majority unfortunately um again we can gain more votes when that time comes but uh it’s still a very tough Hill to climb uh but it is showing there are a lot of cracks here um and like I said we’re gonna have several other bills coming up and this is a time that we have finally the entire house and the entire Senate on record voting on these bills and that has not happened yet um we haven’t seen these crypto bills really come to the house floor they kind of stayed in their committees uh and they a little smaller circles but now they’ve gone out to the big game here and so the question is you know it’s time to put up or shut up are you going to be for a regulatory framework for regulating crypto and protecting consumers or is the status quo good um uh enough for you and I think that’s what we’re seeing right now and the Democrats arguments especially from the gentler and the SEC side is that they’re losing this argument and it’s becoming a political risk absolutely and I I’ve been saying recently that even if Biden was to veto this this is a huge win to make it out of the house go to to the Senate all the Optics it changes and narrative that Elizabeth Warr and Gary gens are trying to paint and a lot of it is Optics right uh they go out and they put out these statements they send the letters so the fact that uh you have Democrats joining Republicans uh to repeal this is amazing now you said it’s going uh to vote in the Senate how is the Senate looking are we seeing um some Democrats or co-sponsors there um we are seeing some democrat support likely uh from like some of the key names you probably heard before like Senator jul brand from New York will likely have uh her supports on Sab 121 uh CRA because we did see her include similar provision in that stable coin Proposal with Senator lumus a few weeks ago so she’s on record already for rolling this back so I’m sure we’ll have her um I’m sure we’ll have a majority if not all the Republicans again again the this is kind of where the politics where a lot of folks sometimes say hey I don’t deal with banking issues but if the Republicans are for it and I’m a republican then I’m L joining my team and again that really binary breakdown that’s called know pretty much Politics as it is um and so when someone says I’m going to go against my own party on this issue a they to have good reasoning B educated enough to to explain why they’re going against their own party and then see uh understand there’s political risk of that um especially with an election year so uh we’ll see how it does in the Senate uh again I don’t expect we’ll see as much Democrat support no we near probably the two-third majority we need to get that CRA through but I will lastly say we were surprised by the vote count in the house I me we were expecting anywhere from like 8 to 15 Democrats um even the members of Congress who were telling us the day before that they were singing 14 15 Democrats 21’s a lot um and so that’s uh a lot more than they were expecting and that’s good and I think that’s a really good momentum builder for what’s going to be coming down the pipeline pretty soon for congress especially in the house now who was the leader of the Democrats that kind of rallied the troops here is there any names you want to call out so um you know I mentioned these committees again like these are commes they move up to the the general house floor so what usually happens is that you always defer to your committee lead and so for the Democrats that’s maxing waters for the house and shared Brown for the um Senate um and so this is where the age uh Factor comes into play Because when especially on the Democrats side they have rules and their committees versus the Republicans have a little different rules but for the Democrats is that once you’re chair you can stay there as long um as your tenure uh as you want to as long as you’re elected that’s pretty much your spot to keep so these are really coveted positions people work their entire career to get to this point and again when I say they work their entire career that usually means they’re older and that’s what we kind of see again this is Democrats and Republicans but chairs are older and we just know that crypto is not a Parson issue but it definitely breaks down along the lines of age uh and so when Democrats are deferring to the top leadership that leadership is older we’re going to see likely a negative View and again that does mirror on the Republican side for those who not may as well crypto averse on these uh issues in particular so uh for a lot of Democrats who say hey I don’t know crypto or I’m just not exposed to that much uh I’m going to follow my party I’m going to follow Maxim Waters here um I’m gonna follow J chair gensler’s uh view but that’s where we kind of seen the Grassroots but also just like how uh the SC been losing the courts we’ve been seeing a lot of trickling from Democrats saying I don’t think the SEC is doing that good of a job from what I’m hearing from folks and we again whether it be the industry or within their districts or what have you um and this is potentially a referendum both on the SEC and how they’re operating in crypto but also referendum on one single person which is Gensler himself so I think it’s you know these are a lot of Dynamics in play here but again the best part about it is this is the first time we’ll have it on record they’ll be voting on Market structure legislation in two weeks and this is going to be really good to have um just as a record saying all right it’s time to see who puts up um with actually moving forward with a crypto regulatory framework and who’s all talk uh which is going to be really EXC to see yeah absolutely to your point as soon as I saw that number of 21 Democrats I’m like okay this gives me hopes hope for that fit bill that we could have some momentum you could strike while the iron’s hot uh you know go off of the Sab one to1 repeal so tell us about the fit Bill vote that’s coming up and um are you anticipating you know some of these Democrats some of the 21 or all of them will support this um so uh before we have the Bill uh next week we do have another bill that’s on crypto it’s uh it’s called the deploying block uh deploying blockchain in America’s act uh it’s from Lisa blunt Rochester democrat from from uh Delaware we also have Larry bushan from republican from Indiana and again this is not really in the financial services area this is more just blockchain the tech side generally and the idea is that when it comes to blockchain technology the Department of Commerce is going to take more of a role here which is good this is shows that hey look this is not the you know anything that’s a blockchain like you know there’s that famous example Richie Torres says if I put the Pokemon on a blockchain is that Pokemon card a security and this kind of solves a little bit of that question where it goes you know what if it’s on blockchain matters generally that’s not even more financial services related that’s Commerce that’s not your jurisdiction sec please butt out uh and so I think this bipartison bill it should get if not the entire house vote uh or conference to support it from both sides the aisle and again it’s kind of shown that this is a good first step for momentum building too uh and I think that’s going to dovetail really well into your point fit 21 next week and when it comes to the vote for fit 21 uh let’s just do some math here when it comes to sab1 121 in the committee level again in the in the smaller versions I believe they had three um Democrats on that bill and all the Republicans for Sab 121 for Fitz it was six double that so and we’ve already seen several Democrats like Rog Hana for example who doesn’t sit on that committee um say I will support fit I will support it unless there’s a poison pill amendment in there which are plenty of threats from both the Republicans and Democrats there on poison pills but we’ve seen several Democrats publicly say already that they’re uh in support of fit and Market structure legislation that’s huge I do think we’ll get more than 21 I do think it’ll be a new set of folks but the last thing I’ll say I don’t think it’s G be all the folks from sap 121 uh and the 21 Democrats who voted because again the banks were also involved in that legislation uh and that fight so I can see you know some folks being more Pro Banks versus Pro crypto and then there’s others again who just don’t like Gary Gensler who probably voted for the bill uh and so unseen or unclear where exactly they’ll line up but we are expecting a decent amount of Democrats uh and the question is let’s say you have somewhere like 50 Democrats that can go a long way in the Senate saying Hey look it’s not just a little bit one or two uh members it’s a decent Shan who believe that the direction of the uh of this country when it comes to crypto regulation has not been good uh the stat quo does not work um we’ve missed FTX we have had so many enforc actions in every top crypto company where does this work so I think that’s where we’re going to see a lot of the arguments kind of along the lines of is the status quo good for United States for crypto or is it not uh and that’s we’re seeing a lot of Democrats say yeah for Consumer Protection especially that’s a major issue and we think that this is not doing uh what it should be doing so we need to move forward with Congress making the rules of the road here not the agencies absolutely now Ron fingers crossed I’m praying let’s say that thing makes it out the house right what would be the next steps I I know we got the summer coming up the election I’m assuming the Senate won’t get to to this it’ll probably be till next year they’ll probably have to merge with the lumus Gill brand bill right correct yeah there’s multiple other bills out there in the Senate and the house um you know I worked on a version back uh in 2017 with the token tax Army act um Emer had the Securities Clarity Act so we had various other bills that kind of in this hodg Podge became fit down the years down the road but there’s still these other proposals out there both in the House and Senate and I think we’ll see a few more coming out from uh you know sources I’m talking to but the main player is still fit if it still passes the house the the runway unfortunately does not look too good uh we see shared Brown the Senate banking lead he is the person says I want to vote in this bill I don’t want to vote on this bill and every single time in the past four to six years that that opportunity has been present to him he has always voted it down to not have a votee uh and again usually those conversations are on stable coins but at least right now from Market structure we haven’t seen that really happen yet uh but from every Source we’re hearing we don’t expect this to get much traction in the Senate uh so we’re either going to need a new chair or we’re goingon to need a new leadership um in order to move that forward uh because in Congress if someone’s a chair of their committee they can really uh make a break for any legislation so that’s why it’s really important those committee chairs do hold a lot of power now on something very interesting happened last week uh presidential candidate former Vice former president Donald Trump came on and said I support crypto and if you want to uh you know get crypto legislation and all that vote for me now put aside Donald Trump it could have been another person right that was that’s pretty significant and does it now put the pressure on the Democrats because he’s taken that position uh because the the campaign donations now may flow to him and other Republicans uh because I’m seeing a lot of talks Mark Cuban and different folks saying I’m going to donate um to these folks I’m not going to donate to the Democratic party does it now put pressure on the Democrats where they’re like okay in addition to genser in addition to all this this confusion we need we need campaign donations as well we need to get our act together yes uh it’s funny because when Trump tweeted about in 2019 that he didn’t like Bitcoin I was actually in the white house for a separate meeting with staff on crypto and this time actually it was literally the de’s meeting with the the Trump campaign folks just like they wanted more reach out about like what is crypto we need to learn more about it um who are the right people talk to and of course like that same day is when Trump makes those comment so uh the irony I think it’s kind of funny um by no means are they correlated like obviously that plan event was planned weeks ago it seemed like on the nft front um but yeah I will admit like it’s for at least for Trump I don’t think it’s more the campaign finances sure that plays a role here but the packs been donating to Republicans and Democrats I think it’s more the Grassroots here um you know Trump as we all know for better Wars loves Twitter loves social media x what it is now he’s obviously on his own platform of true social but uh crypto Twitter is an animal in itself Grassroots in digital form uh it’s it’s kind of like Reddit um and back in the Wall Street bets days and folks in DC are recognizing that I think the Wall Street bets movie really changed that perspective for a lot of folks saying hey look you know just because there’s you know 500 people who like this tweet that does show significance um and members of Congress they do say several times to us when they do a tweet about how they funded a hospital three likes on Twitter they talk about crypto regulation 800 likes on Twitter like wow people really care about this I’m not sure they’re all my constituents but people care um and I think that’s what Trump’s seeing right now people care about some an issue they’re upset with how the B Administration is handling that issue and I’m going to go get those votes away from Biden uh and the last thing I’ll highlight at least when it comes to the Trump buying Dynamic is that there’s a lot more younger folks that we’ve seen through the polling I mean blockchain associate had a polling dcg had a polling recently Paradigm as well several others um the younger folks as things we all know the younger folks and younger Generations do like crypto more it is more important to them inflation is the number one issue though and this seems like a really easy win for Biden but he’s not doing well and also Al usually Democrats poll really well when it comes to the younger generation uh and getting the younger votes and Trump is of of all Republicans Trump is the one actually pulling a decent amount and I saw a poll saying 30 uh percentage points he’s pulling from The Young Democrat uh demograph vote um we’ll see how that pans out but when has a republican really gotten the young vote it’s been pretty rare I have not seen in my lifetime so it’s been rare to see that shift um and seem like biding again is seating here and a lot of the Democrats we’re talking to on Capitol Hill are saying like yeah we recognize this and it largely comes down to one man at the SEC who Joe bayen will defer to that’s what he does he defers to his agency chairs and the experts uh and this has backfired tremendously and we are reading the uh the tea leaves here it is now an election issue as much as as to my surprise as is uh personally but also to Capitol Hill they’re shocked um and so politically it’s very little um risk for Trump to get involved in crypto and be for it um but for the Democrats it creates the opposite effect and now it creates a lot more PR pressure politically to be against it and so that why uh those who go against the body Administration against Gensler that’s a tough vote and that needs to be celebrated because these people are really jumping out on the limb here uh and that is really important to highlight that these folks are taking the tougher vote of all the situation here and we should celebrate that absolutely um yeah Ron it’s fascinating do you think there’s any chance or hope that once again I’m not trying to endorse Biden for for the listeners and the viewers but that he Biden will flip here given that you know these numbers are looking bad for the Democrats it was always part of the plan I would say at least when it comes to folks in DC on the advy SES look you know Gensler is running unchecked here um and the way that we can get him unchecked is that we got to get to his boss to bring much tell him clamp it down there’s no in the SEC is’s gonna tell the chair to clamp it down that he’s gonna listen to uh it his boss that is Joe Biden and I think that M conversation might be happening uh down the road if this continues and momentum builds where uh you know again the house is going to be teing up all these votes we’re going to have folks on the record and it’ll become a lot more apparent in the mainstream you know folks outside crypto Twitter are going to probably say why are we taking this stand you know what politically are we here to gain you might be saying you’re cra cracking down on frauds and scams um you know we have the industry saying different but the numbers don’t lie in the polling and we’re losing on this issue and massively and there is one person to blame and that is now affecting a lot of folks in other races in Congress but also the presidential debate or presid election potentially and that has huge implications so if that conversation happens hey guner Robinhood coinbase Kraken like what are you doing you’re going way too far out here um you gotta bring it back here will that you know will he heed his warnings unclear probably unlikely but that’s how it work I mean that’s how you know political pressure does work and it has to get to from the president and his team to tell Gensler to take it easy uh when it comes to enforcement actions I don’t see that being successful but those conversation will probably happen soon h now speaking of gendler um I think the last time we spoke we had discussed he would be coming in before the house at some point is that happening this month or next month um so from sources I was talking to given the sap 21 and these other votes happening um he has been on the hill K has not come to the hill too often but um a lot of folks don’t understand Sab 1221 is actually probably his most important issue uh for all crypto because again it I out the banks it really does put a huge cap when it comes to crypto’s growth in the United States the banks can custy crypto and so he was personally on the hill meeting with folks on the Republican side he he met with Republicans to his credit he met with a lot of Democrats allegedly um and we saw the vote pan out 21 Democrats still went against him and so um uh usually though what happens is that when his chair or agency head comes to the hill that’s usually a sign mean that they’ll probably be front of testifying a couple more months down the road um just for you know sake of hey you were just here we understand private setting versus public setting but you know we understand you’re a busy man so I think just based off him being on the hill recently and my experience being a hill staffer I’d probably say it’s gting more towards the July time frame now probably September again Congress is gone in August uh back in their districts um so I’d say probably September or July um which is fine because when it comes to the other agency heads we have those in front of Congress this week it’s a busy weeking crypto uh we have the FDIC OCC ncua and the FED um there’s a a big FDIC sexual harassment scandal going on I think it’s going to take up most of the time in the house and the Senate but on Wednesday and Thursday we could see some definitely some crypto questions because the OCC hasn’t been the best on crypto definitely not the FDIC remember the whole Silicon Valley Bank and a lot of folks having issues getting access to bank accounts and the FED issuing the statement about a month before discouraging Banks from uh dealing with crypto companies so there are plenty of issues here I just think unfortunately with politics the FDIC Scandal is ripe for uh Republicans it’s a tough issue for Democrats to defend on and um also the banks are heavily involved because there’s a big push on Capital standards uh internationally and at the FDIC so I just I think we have a little bit of that but for hearings that’s gonna be a major hearing this week I think I think we’ll see Gensler um probably a couple more months now now final item here um the ethereum spot ETF deadlines coming up this month the 23d um a lot of folks are not optimistic about this they’re not hearing much from the SEC but I’m curious you know let’s say the SEC denies and you know they continue to same all are we going to see a bunch of lawsuits coming the sec’s way and probably from the big issuers like Black Rock Fidelity Ark and so forth it’s not just Grays skill anymore I can’t speak it to in terms of legal strategy I’m sure we will see lawsuits I mean that’s how we got the Bitcoin ETF we have to have a lawsuit that took several years and several millions of dollars to get the Bitcoin ETF and we had to wait till the last week possible for the SEC to move forward even on that um and so I think we’ll see probably some similar strategy deployed if we reach that points um the 23rd is likely at least how it tees up right now that’s likely when the house is gonna be voting on fit the very bill that can help solve that question is ethereum a commodity or security so I think uh a I don’t think that’s uh you know happen Chance by any means I think that’s you know Congress does time votes like that so I think this is is to send a message to the SEC but also at the same time it’s um it likely will not have any approval whatsoever uh again from the from all conversation I’m hearing on the ETF front so uh I’m sure this will be just another reason to say hey we should have a a congress Take the Lead here but B it shows why the SEC uh and the view of Congress has been really inhibiting this industry and uh they’re losing and they’re losing ground fast Ron I’m probably gonna have to have you on BET next week and the week after all these things are coming up but always great information I mean there’s like conferences happening this week there’s a bunch of happy hours so yeah it’s it’s going to be a lot so I’ll be around and uh looking forward to catching up because I’m sure there’ll be a lot more drama in the next couple of days yeah for sure thank you so much Ron anytime thank thanks appreciate it [Music] oh
Interview with Ron Hammond, Director of Government Relations at the Blockchain Association. We discuss:
– Repeal of SAB 121 – Democrats and Republicans join forces
– Vote on the FIT Bill coming up plus CBDC ban bill
– Donald Trump crypto statements
– Gary Gensler hearing
– SEC Robinhood Wells Notice
– Ethereum ETF Deadline
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⏰ Time Stamps ⏰
00:00 Intro
02:09 SAB 121 Repeal
05:20 Letter from Biden
07:45 SAB 121 Senate vote
09:19 Democrats and Crypto
11:50 FIT Bill vote
16:29 Donald Trump crypto
22:30 Gary Gensler hearing
24:47 Ethereum ETF deadline
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I believe we will get others in the Republicans, and the Democrats join in and over ride BIDEN’S Vito. They said but weeks ago they didn’t want Biden to respond anymore before the election. Plus I think he will sign it into law because he does what they tell him. Biden is just the puppet and he has a master!
JFK we should consider his thoughts on crypto also. Biden and Trump i don’t believe. They are for big banks.
What we need is an iron clad digital bill of rights. And govt to get out of the way.
If this guy isn't comfortable with self custody, then he needs to get out of the way as well
Great one Tony 👍👍
He absolutely will veto.
Crypto will move money across the board with a bigger picture being XRP transfers funds across border. It will be the new reserve currency. This means it will be much harder to hide the affects of these regulations they pass that force the market to do something it’s not ready to do. No more blustering up a recession and no more putting bandaids on these issues. It will all be more transparent.
I have learned a lot concerning crypto progress this time and would like to join in. I wish I can get a good mentor
Bought AMS89H$ at 1$, I will keep it until 2025 when it reach 250$
I trust your choice on AMS89H$. So much potential 🚀
Should do a video on how to do volt
Didn’t Maxine Waters take a bunch of money from Sam Bankman-Fried?
Joe Biden makes no decision on his own … his handlers (aka the DS) tells him what to do. He's just a Manchurian puppet.
I sent a respectful email to the President & Vice-President of the United states explaining the use of Crypto by the BRICs & the rest of the World, the fact that Donald Trump is now endorsing crypto & the problems with Gary Gensler. Please feel free to send an email & you will get a very kind 'Thank You' email back from them for voice your opinion. We have to go to Gensler's boss since Congress has no control over him.