CRAZIEST Crypto Hearing EVER! Here’s What Went Down!!

Last week crypto personalities and Politicians sat down to discuss the Future of crypto regulation in the United states in what seemed to be a Rather hastily arranged meeting The lineup included cardano founder Charles hoskinson whose comments have Since gone viral As you’ll soon see however what charles Had to say was just the tip of this Hugely significant crypto iceberg Today i’m going to give you a bit of Background about last week’s crypto Hearing give you a short summary of what Was said and tell you exactly what it All means for the crypto market [Music] Before i talk about this crypto hearing There’s a disclaimer that needs Transmitting i am not a financial Advisor so financial advice is not Something i’ll be spitting education and Entertainment are the only things i’m Bringing so please contact a financial Advisor if your portfolio is slipping Also note that i hold ada as part of my Portfolio but there will be no shilling Now if this is your first time at the Coin bureau my name is guy and this Channel is about crypto my mission is to Bring you high quality crypto content That will keep you in the know Coins tokens news and reviews that are Useful to both crypto noobs and crypto

Pros If you want our videos to be a part of Your flow subscribe to the channel and Ping that notification bell down below Right that’s all you need to know about This crypto bro let’s see what was said At this crypto hearing and what it could Mean for altcoins like cardano As i mentioned in the introduction the Crypto hearing i’ll be summarizing today Seems to have been put together at the Last minute by the casually titled United states house agriculture Subcommittee on commodity exchanges Energy and credit I’ll shorten this from here on in for The sake of everyone’s sanity Now i say last minute because the house Agriculture committee only announced the Subcommittee hearing on the 15th of june About a week before the actual hearing Took place Not only that but the list of witnesses Wasn’t released until the actual day of The hearing according to coindesk Reporter nicholas day Now if you follow cardano founder Charles hoskinson on twitter however you Would have known in advance that he was One of the witnesses and if you follow Charles on youtube you’ll know that he’s Been meeting frequently with u.s Politicians and regulators in washington Dc over the last few months

In a video from may charles actually Provided some very important information About the state of crypto regulation in The united states and it helped add a Lot of context to the crypto hearing I’ll be summarizing today I’ll leave a link to charles’s video in The description but the tl dr is that There are two crypto bills that are Currently being considered by u.s Politicians The first is the digital commodity Exchange act that was introduced to the House agriculture committee at the end Of april by representative glenn Thompson The second is the responsible financial Innovation act introduced to four Different committees at the beginning of June by census cynthia lummus and Kirsten gillibrand which i actually Summarized in a recent video that will Be in the description All you need to know about these two Bills for the purposes of this video is That they both do two very important Things they clarify the definitions of Crypto related terms and they Effectively give the commodity futures Trading commission or cftc Jurisdiction over most major Cryptocurrencies now this is significant Because the securities and exchange Commission or sec has been itching to

Clamp down on cryptocurrency especially Altcoins Now because both bills provide a clear Definition of what fully decentralized Means many major altcoins would Therefore be safe from sec chairman gary Gensler assuming they’re actually Decentralized of course As charles mentioned in his Aforementioned video the digital Commodity and exchange act seems to have A better chance of becoming law simply Because it only has to go through a Single committee before being tabled for A vote whereas the responsible financial Innovation act has to go through four In case you haven’t noticed the Committee that the digital commodity and Exchange act was introduced to is the Same committee that held the crypto Hearing i’ll be summarizing today and it Was even referred to the very same Subcommittee that actually held the Crypto hearing So the crypto hearing itself is titled Quote the future of digital asset Regulation and it took place on thursday The 23rd of june It featured cftc director vincent Mcgonigle great name georgetown University law professor christopher Brummer chanalysis co-founder jonathan Levin and of course cardano founder and Bison enthusiast charles hoskinson

So with that context in mind let’s see Exactly what was said shall we The hearing began with an opening Statement by subcommittee chairman sean Patrick maloney and i’ll quickly point Out that sean was actually appointed as Chair of the subcommittee on the 17th of June less than a week before the hearing Nothing to see here i’m sure Now shawn’s opening statement was pro Crypto to say the least although he did Mention he has concerns about the Volatility in the crypto market he also Mentioned that 20 Of americans currently hold crypto that Crypto innovation should occur in the United states and that the sec is not All powerful i think you might be Starting to see where this is going Anyways next up was congresswoman Michelle fishbach and her opening Statement contained even more Eye-popping pro-crypto statistics namely That more than half of american adults Have held or still hold crypto which is The same percentage of american adults Who own stocks just let that sink in Michelle also highlighted the fact that There are over 20 000 cryptocurrencies And not all of them fit neatly into Existing regulatory frameworks As far as michelle is concerned this is Creating risks for market participants And uncertainty for crypto projects

Which is no bueno Michelle then invoked the digital Commodity exchange act i mentioned Earlier and acknowledged that it would Give the cftc the power it needed to Create reasonable crypto regulations This set the stage for congressman glenn Thompson who you recall is actually the Author of the digital commodity exchange Act Now glenn started his opening statement By applauding subcommittee chairman sean Patrick maloney for being pro crypto i Swear i’m not making this up Glenn then applauded the subcommittee Itself for being one of the first to Hold a hearing about cryptocurrency way Back in 2018 and even went as far as Applauding cryptocurrency as an asset Class by pointing out that the interest In crypto remains high despite the Crypto bear market Best of all glenn concluded his opening Statement with an epic sentence and That’s quote We don’t know how digital assets will be Used but that should not excite us nor Scare us Now the witnesses then continued with Their own opening statements starting With cftc director vincent mcgonagall Vincent briefly went over what the cftc Does and talked about how it already has Authority over crypto derivatives

Meaning futures products on the cme and Those bitcoin futures etfs Georgetown university law professor Christopher brummer spent his opening Statement talking about the complexity Of cryptocurrency in the context of Regulation and said that quote calling Everything a security won’t help which Is a not so subtle reference to the Sec’s approach to crypto regulation Christopher then continued by saying That regulators must quote have a Builder’s mentality and explained that The cftc has a better vantage point of The crypto industry than the sec As such christopher contends that the Cftc should have jurisdiction over Regular crypto trading not just Derivatives Next up was chanalysis co-founder Jonathan levin and nothing he said Really stuck out to me it didn’t help That his opening statement was one of The only times he spoke this is because Jonathan was tuning in remotely from South korea and the politicians soon Forgot he was even present Now the last opening statement came from The one and only charles hoskinson and i Should specify that charles was there on Behalf of input output global or iog one Of the two software companies that built Cardano the other being emergo Charles’s opening statement can be found

On iog’s blog and it contained Everything you might expect a bit of Background about iog the real-world use Cases of cryptocurrency a call to Congress to work with crypto companies And a request for principles-based Regulation which is a reference to the Cftc Charles even gave a shout out to Chainalysis and underscored its ability To track almost every single crypto Transaction more about that in the Description i digress Now charles concluded with an apt Analogy and that’s that cryptocurrencies Are like stem cells they can be and Often are many different things over the Course of their existence It is therefore more appropriate to Apply regulations to centralized Entities rather than apply labels to Decentralized coins and tokens naturally Charles was making subtle and direct References to cardano throughout his Opening statement and if you’re Unfamiliar with the project you can Learn all about it using the link below Anyhow with opening statements out of The way the next order of business was Rapid fire questions with each Politician present getting five minutes To grill their guests Now as per the pecking order of the Subcommittee the first politician to

Prod the witnesses was chairman sean who Asked christopher whether the cftc Should be able to regulate regular Crypto trading christopher smiled and Said yes so sean turned to vincent and Said something to the effect of quote Vincent christopher says the cftc can Regulate regular crypto trading is this True to which vincent obviously Responded yes Next up was congresswoman michelle who Asked vincent why the cftc is referred To as a principles-based regulator Vincent responded by explaining that the Cftc abides by 23 clear-cut principles Which makes it easy for relevant Entities to comply with its regulations Note that this is in stark contrast to The sec which tends to make decisions Based on ever-changing criteria Especially when it comes to Cryptocurrency and you’ll know this if You’ve watched any of our videos about Sec chairman gary gensler’s own Testimonies before u.s politicians Michelle then turned her attention to Charles and asked him about how kryptos Should be categorized to which charles Chuckled because he only had 37 seconds To respond This is when sean said something i’ve Never heard at these hearings before and That’s that charles could take his time After cracking a joke charles went on to

Reiterate what he had mentioned in his Opening statement and that’s that there Should be less focus on crypto Categorization and a bigger focus on the Specific elements regulators want to Guard against and how this can be done With centralized entities I also couldn’t help but notice that Charles seemed to have a few fans Sitting behind him though i suspect These were members of the delegation Charles had referred to in that may Video Regardless it was quite funny to see two Young ladies laughing at his jokes and Nodding in approval of everything he Said i just wish i could have some of That from time to time Anyhow digital commodity exchange act Author glenn then took the mic and asked Christopher whether it’s clear when a Crypto is a security like a stock in a Company or a commodity like gold or Silver christopher said it’s not clear At all so much so that all his students Consistently fail that question on their Exams Glenn took this as an opportunity to Propose that the sec have oversight of Initial coin offerings and other crypto Crowdfunding mechanisms whereas the cftc Would have oversight over most other Cryptocurrencies again assuming that They fall into the category of a

Commodity Christopher responded by cautioning that There needs to be a robust definition of Decentralization first so that the Commodity label can be applied correctly To all the thousands of coins and tokens That make up the crypto market Congressman bobby rush was the next Politician to pose some questions but i Could barely understand any of them the Guy was just so old It seems that christopher understood Something though because he replied with Comments about crypto being complex and Requiring better disclosures etc Congressman troy balderson another great Name took his five minutes to ask Vincent why it is that the cftc is well Suited to regulate regular crypto Trading and vincent explained that’s Partially because crypto trading Involves similar levels of speculation As derivatives trading which is an Interesting argument Troy asked the other witnesses if they Had anything to add and charles filled The silence with an equally interesting Comment which implied that the entities Behind cryptocurrencies that are Classified as commodities due to Decentralization will not be subject to The same disclosure requirements as Those classified as securities This got me thinking about whether there

Are any crypto companies that are trying To convince regulators and politicians That the cryptocurrencies they’re Working on are decentralized so that They never have to reveal just how much Of that coin or token they hold or just How involved they really are After all charles did mention in that May video that he saw other crypto Projects speaking with regulators and Politicians on capitol hill i’ll let you Speculate in your own time about which Ones could fall into this bucket and you Can use our video about decentralization To help that will be in the description Anywho the next politician to pull some Punches was congresswoman angie craig And she continued the pro crypto Atmosphere by asking vincent whether the Cftc would require additional resources To regulate regular crypto trading Vincent said yes because government can Only grow never shrink Now in all seriousness it’s really quite Crazy how much the politicians present Were catering to the cftc and this was Made clear when congresswoman kat kamik Asked vincent whether the cftc’s Discussions with the sec had been Productive given that they’re fighting Over the same territory so to speak Vincent downplayed the conflict between The two regulators by insisting that Discussions have been productive and all

The while cat was saying something to The effect of are you absolutely sure Now if i was vincent i would have thrown The sec under the bus at that moment but You know that’s just me Now it was around this time that sean Realized that none of the politicians Had asked jonathan any questions and Reminded them that he had gotten up in The middle of the night to answer them Congresswoman anne custer swooped in to Put jonathan in the spotlight by asking About the risks of cryptocurrency Exchanges Jonathan explained that the only Cryptocurrency exchanges with any real Risks are those operating overseas and Even then almost all of them have fallen Into line with the regulations that lie Downstream from the financial action Task force’s so-called recommendations More about those in the description Jonathan continued by explaining that The only real concern to have about Offshore crypto exchanges right now is Issues with the pricing of certain coins And tokens Now to my mind this was a very Conservative way of admitting that some Of these exchanges are engaging in price Manipulation not naming any names And then asked vincent whether there’s Anything about crypto that concerns him And he immediately answered leverage

Trading and fraud and i happen to agree With him on both points Were it not for all the leverage in the Crypto markets the dips wouldn’t be so Catastrophic and there’s never a Shortage of scams Congressman doug lamalfa saw this as the Perfect opportunity to kill the pro Crypto mood by asking how it would even Be possible to regulate the crypto Industry given that there are over 20 000 coins and tokens and just a few Hundred employees at the cftc Charles chimed in with a cutting comment And that’s that the irs can’t possibly Audit everyone either that’s why it Relies on a self-certification system Instead and so too should crypto Regulations Doug was taken aback by the suggestion That the crypto industry could work with The government to regulate itself based On a set of principles and charles cut Down doug’s criticism by pointing out That it’s the banks that provide kyc and Aml services for the government’s own Regulations Realizing his defeat doug grumbled about How he doesn’t like that people are Investing in crypto and said that Creating reasonable crypto regulations Will only result in more investment Which he again doesn’t like It’s a good thing that he’s apparently

The only anti-crypto politician on this Subcommittee Congressman randy feinstra another great Name resurrected the pro-crypto mood by Asking vincent whether the cftc would Need more congressional authority to Regulate crypto to which vincent Responded yes Randy also asked vincent whether cryptos Can become more decentralized over time And what the definition of Decentralization should be Let’s just say that these questions were Way above vincent’s pay grade Congressman michael cloud turned the pro Crypto mood up to 11 by calling big Banks the authoritarian arm of the Government Charles interjected to add that the Banks don’t do kyc or aml at all well And slammed big tech for trying to Define regulations Michael pulled on the thread by asking Charles about something he’d said in Passing earlier and that’s that it would Be possible to do crypto-regulations Algorithmically Michael asked the obvious question of Whether algorithmic regulations could be Abused if they came from the government At the same time michael criticized esg And how the elites are trying to create Individual esg scores and asked charles Whether crypto regulations run the risk

Of creating the kind of social credit Scores you see in china michael even Raised his concerns about central bank Digital currencies More about esg and cbdc’s in the Description Michael ended his lengthy question by Asking how the united states can compete With countries like china without Turning into a totalitarian state a Question that’s not asked enough if you Ask me Charles seemed to realize that he had Bitten off a bit more than expected and Stressed that he too is concerned about Things like cbdc’s and social credit Scores Charles emphasized that there should be No central algorithm that everything Should be voluntary and there should be Multiple standards And with that the hearing came to a Close and sean made his final remarks Which can be summed up as follows the Crypto market has grown exponentially Since 2009. this growth will continue For the foreseeable future along with The volatility of crypto prices The united states needs crypto Regulations that will ensure this Evolution continues while minimizing Volatility This is the first of many crypto Hearings

So this brings me to the big question And that’s what all of this means for The crypto market Well in short it’s extremely bullish Maybe it’s just me but this political Subcommittee is insanely pro-crypto and I don’t think that’s a coincidence If you’ve watched our videos about Crypto lobby groups you’ll know the Crypto industry has been spending Millions of dollars to try and shape Crypto regulation One of the biggest spenders in this Regard has been ftx founder and ceo sam Bankman-freed who has donated millions Of dollars to politicians and has Subsequently found himself speaking at Similar crypto hearings the most Relevant one being a hearing with the Heads of the cftc in may as some of you Will know the ftx exchange focuses on Derivatives trading hence why sam has Been so focused on the cftc I reckon other players in the crypto Industry realized it made more sense to Go down the path fdx as trod and focus Their lobbying efforts on the same Politicians and regulators Now i must admit this is mostly Speculation but it would explain why This subcommittee is so abnormally Pro-crypto i mean seriously both sides Of the aisle were basically asking what The cftc needed to regulate regular

Crypto trading as if the digital Commodity exchange act had already Become law If my theory is correct then it begs the Question of what it could mean if a few Big crypto companies and crypto projects Are shaping regulations for the rest of The crypto industry While this would certainly be welcome at First over time it could become a tool To prevent competition This is exactly why the sec is so Anti-crypto it has close ties to wall Street and is frequently lobbied by some Of the biggest banks and asset managers And you’ll know this if you watched our Video about the sec’s views on Cryptocurrency As far as i can tell the crypto industry Is in the process of taking over the Cftc so that it can be used to take away The sec’s crypto powers which could Again become a double-edged sword in the Long run As the saying goes though don’t hate the Player hate the game it’s the game that Needs to go With a bit of luck all these politicians And regulators will be replaced by Decentralized autonomous organizations And other novel governance mechanisms That have yet to be developed That is my hope for the crypto industry But the reality is we’re going to need

Some regular regulations to get there And that’s all for today’s video about The recent hearing about crypto Regulations in the united states if you Found it informative let me know by Smashing that like button if you want to Make sure you don’t miss the next video Subscribe to the channel and ping that Notification bell in the meantime you Can check out our coin bureau clips Channel for live streams and behind the Scenes and tune in to the coin bureau Podcast to see just how deep crypto Rabbit holes can be You can also follow me on twitter tick Tock and instagram for memes and hot Takes and join my telegram channel for Daily crypto updates if you’re wondering What other cryptos i hold besides Cardano my weekly newsletter is where You should go it’s packed with exclusive Crypto info in addition to my crypto Portfolio If you want to support what we do head On over to the coin bureau merch store And get a hoodie sweater or tea that Suits you Links to all these resources and more Are down in the description and with That thank you so much for watching and I’ll see you next time this is guy Bidding you goodbye [Music]