Something is Going On at The FED! Implications for CRYPTO?!

Bitcoin was created in response to the 2008 financial crisis and many crypto Holders are questioning how well the Crypto Market will respond to the next Financial crisis given that it will be The first one of the cryptocurrency era However the more important question is How governments will respond to the next Financial crisis and whether they will Use the volatility in the crypto Market As justification for a massive crypto Crackdown today I’m going to tell you About a central Banker at the Federal Reserve who appears to be preparing to Do exactly that and examining whether he Will succeed in riling up The Regulators Against cryptocurrency Foreign if you’ve been keeping up with The crypto headlines you might have seen A few recent ones about Michael Barr one Of the seven members of the Federal Reserve Board of Governors and the fed’s Vice chair for supervision These headlines were about Michael’s First speech since being confirmed to These two positions at the FED in July In his speech Michael said he wants to Crack down on crypto which probably Didn’t come as a surprise to anyone he Is a central Banker after all The thing is that Michael is not just Any Central Banker his position as Vice Chair for supervision at the FED gives Him the power to quote develop policy

Recommendations for the board regarding Supervision and regulation of depository Institution holding companies and other Financial firms supervised and oversee The supervision and regulation of such Firms This bit of typically clunky legalese Comes directly from the 850-page Dodd-Frank Act of 2010 a law which was Passed following the great financial Crisis of 2008. now the purpose of the Dodd-Frank Act was to prevent another Financial crisis from happening again And it included the creation of a vice Chair for supervision at the Fed Here’s where things get scary according To the Washington Post Michael Barr was A key architect of the Dodd-Frank Act in Other words Michael wrote the law that Created the position of Vice chair for Supervision at the FED which he now Holds Michael also apparently helped get the Law passed as it so happens Michael has A long history of working in what some Would refer to as the Deep State he Spent his entire career between Academia And the US government including at the Department of State and the department Of the treasury Michael’s heavy Involvement in the Dodd-Frank Act landed Him the label of quote wall Street’s Nemesis in 2010 which is a bit of an Understatement given that the

Regulations in the Dodd-Frank Act were So strict that they were opposed by just About everyone not just Wall Street Now some of the most controversial Regulations in the Dodd-Frank Act Related to the volcker rule named after Former fed chairman Paul volcker who’s Famous for raising interest rates to 20 Percent to fight inflation in the 1970s The high inflation we’re facing today is Why you’re hearing volker’s name a lot In the news Now according to Investopedia quote the Volcker rule restricts how Banks can Invest limits speculative trading and Eliminates proprietary trading banks are Not allowed to be involved with hedge Funds or private Equity firms which are Considered too risky you can see how This could be a problem and if you can’t Consider that too risky can be applied To just about any entity depending on The definition being used in this case The volcker rule could be applied to Cryptocurrencies making it impossible For institutions to invest in them using Banks Luckily the regulations in the Dodd-Frank Act were eased by an Amendment to the law in 2018 including Those related to the volcker rule Naturally Michael was vocally opposed to This amendment probably because he knew It would limit his powers when he

Inevitably secured his seat at the FED For context Michael is the second Vice Chair for supervision at the fed from What I can tell Randall qualis the Previous Vice chair for supervision was Pretty vanilla so to speak he didn’t Really exercise the powers his position Granted him and this seems to have led To some criticism For additional context Michael was not The first nominee President Biden had Selected for this position the first Candidate was Sarah Bloom Raskin who Didn’t make it past the confirmation Stage because of her radical views for Example Sarah allegedly wanted to ban Banks from providing services to fossil Fuel companies and wanted to use the Fed’s money printer to fight climate Change note that the fed’s only jobs are To keep inflation at around 2 percent And unemployment at around 4 by raising And lowering interest rates now if You’re unfamiliar with how the Federal Reserve works and how exactly it raises And lowers interest rates I suggest Watching our previous videos about those Topics using the links in the Description Now with all of that in mind we can take A closer look at what Michael has said In the past especially about Cryptocurrency A good case study is Michael’s first

Hearing in May after he was nominated by President Joe Biden in lieu of Sarah Bloom Raskin in April this year Michael’s first Hearing in May was his Nomination hearing and what he said was Interesting to say the least In his opening speech Michael talked About how he wanted to quote Bank the Unbanked bragged about his involvement In the Dodd-Frank Act and said he is Focused above all on fairness Later on in the hearing Senator Steve Daines asked Michael whether he believes Climate change to be one of the top Three threats to financial stability now This question is significant because Sarah and others essentially argued that Climate change should be a concern of The FED due to financial stability risks Not surprisingly Michael didn’t have an Answer and he danced around the question By drawing parallels between climate Change and the pandemic saying that the Pandemic didn’t seem to be a threat to Financial stability before it came more About that later Next Senator Jack Reed asked Michael Whether cryptocurrency was a threat to Financial stability and Michael Responded by singling out stable coins As an area of concern in this regard Note that the U.S government’s Stablecoin concerns stem from all the U.S government debt that’s backing them

Now Jack also asked Michael about Whether the issuance of a digital Dollar By the Federal Reserve would be Appropriate and Michael said that the Decision to create a digital dollar is Ultimately up to Congress I.E the Politicians this response has been Standard from fed officials probably Because the FED doesn’t want to be Blamed if the digital dollar fails Speaking of which you can find out about The fed’s digital dollar plans using the Link in the description I digress After Jack was done the mic was passed To the one and only Elizabeth Warren who Is quite possibly the most anti-crypto Politician on the face of the planet Given that terror’s collapse was all Over the news at the time she basically Spent her entire five-minute slot Blasting the crypto industry especially Stable coins The sentence that caught my ear was Quote this crypto crash smells a lot Like 2008 which is a not so subtle Message to Michael to go after the Crypto industry using the powers his new Role would give him under the Dodd-Frank Act which I’ll remind you was reportedly Written mostly by Michael himself Michael was visibly entertained by the Spectacle meanwhile the other nominees For the FED who were present were Shocked especially when Elizabeth cut

Them off during their responses to her Own quick questions which are not even Worth repeating Next up was Senator John Kennedy who I Will forever remember as the politician Who asked SDC chairman Gary Gensler if He thinks he’s everyone’s daddy truly a Moment for the history books Jokes Aside John spent his time grilling Michael about the 2008 financial crisis Asking if he’d bail out the banks during The next one and why nobody from Wall Street was sent to jail in the aftermath Of 08 of course Michael didn’t have any Clear answers here Near the end of the hearing Senator John Ossoff was similarly spicy when he asked Michael what effect the fed’s money Printing has on asset valuations and why Almost every Central Bank around the World has held interest rates at near or Below zero since the 2008 financial Crisis when Michael again refused to Give a clear answer John specified with Quote what has changed about the Structure of the U.S and World economy Such that to achieve its dual mandate The FED has deemed it necessary to keep Interest rates low and by government Debt what changed structurally Michael finally admitted that it has to Do with declining demographics in Developed countries and the lack of Demand and productivity associated with

Said demographic decline I take this as evidence towards my Theory that the reason why you will own Nothing and rent everything instead as The world economic Forum famously said Is as much about financial stability in The face of declining demographics as it Is about control over what people do More about that in the description Now another set of questions worth Mentioning from Michael’s nomination Hearing came from Senator Bill Haggerty Who asked Michael about the Consumer Financial Protection Bureau or cfpb Which was also created as part of the Dodd-Frank Act Bill asked Michael why he made the Decision to put the cfpb within the Fed’s purview rather than the federal Governments given that it makes it next To impossible for politicians to have Oversight of the agency Michael’s response was gutsy and that’s That Congress passed the Dodd-Frank Act So if they want something changed they Should issue another amendment Now I’m obviously paraphrasing here but That was literally what he said Now the last line of questioning worth Mentioning came from pro-crypto Senator Cynthia Lamas who asked Michael about The custody of cryptocurrencies on bank Balance sheets I’ll remind you that this Is something Michael would have direct

Oversight of as Vice chair for Supervision at the Fed Oddly enough Michael said he wasn’t Familiar with the proposals and Regulations Cynthia was concerned about And he promised her that he would touch Base to discuss them at some later time It’s too bad we won’t be seeing that Exchange On that note you should know that robust Crypto custody laws at the banking level Are required for institutional Investment into cryptocurrencies this Includes the issuance of a spot Bitcoin ETF which the SEC will probably only Approve once a big bank has set up its Crypto custody solution some of you Might recall that the office of the Comptroller of the currency or OCC Allowed federally chartered banks in the United States to hold crypto on their Balance sheets way back in the summer of 2020. this seems to have set the stage For the massive crypto Bull Run that Followed in 2021 Now as it so happens current acting Comptroller of the currency Michael Sue Is also anti-crypto and though his Position is not permanent his permanent Placement or the placement of another Anti-crypto public servant academic Could spell trouble for cryptocurrency We’ll cross that bridge when we come to It

Anyways now that we’ve got some Background on Michael Barr we can take a Closer look at what he said in his Recent speech from earlier this month And why it’s so much more than just Another Central Banker bashing crypto As I mentioned earlier Michael’s recent Speech was the first time he spoke since Joining the FED Board of Governors and Taking the secret Throne of Vice Chairman for Supervision in July The speech was hosted by The Brookings Institution an American Research group That deserves a video of its own All you need to know for the purposes of This video however is that Michael has Been a so-called non-resident scholar at The Brookings Institution for over two Decades prior to Michael’s speech the Moderator made a few comments wherein he Pointed out that Michael now holds the Position he created with the Dodd-Frank Act and that quote Michael has a Four-year term so it doesn’t matter what Happens in the 2024 election make of That what you will Now Michael’s speech began with an Acknowledgment that the position of Vice Chair for supervision was created by the Dodd-Frank Act which was passed in Response to the 2008 financial crisis Michael also said the banking system has Strengthened since then because of these Laws

Next Michael outlined his quote Near-term goals and he started by saying That supervision and regulation must Keep Pace with Innovation and even stay Ahead of it now maybe I’m hearing things But it sounds like this is a not so Subtle reference to cryptocurrency and Implies extremely harsh regulation Michael then detailed his near-term Goals and these are to make the Financial system safer and fairer he Specified that these two goals are Intertwined with a safe Financial system Being required for a fair one For reference safety is the Justification used by Regulators like The SEC to crack down on cryptocurrency Safety has also been used as Justification for lots of other things That are even more questionable but Let’s not go there just yet Michael went on to explain that Banks Need to have quote enough Capital to Absorb losses seemingly confirming that He’s in favor of the FED bailing them Out again if necessary just like it did In 2008. recall that this was a question He avoided answering during his Nomination hearing Michael’s rhetoric then got Progressively more aggressive as he said That Financial regulations should be Quote risk focused this is when Michael Launched an all-out attack against

Stablecoins saying that quote stable Coins especially payment stable coins Need to be addressed Michael then let His true colors show again when he Ranted about addressing the financial Stability risks posed by climate change Something you’ll also recall was a Question he avoided during his Nomination hearing it was honestly Almost like you were listening to a Completely different person Michael continued by saying that the FED Will give guidance to Banks about Climate change including climate risk Analyzes that will rely on the ever so Accurate modeling that has been Predicting the end of the world for Decades sorry but it needs to be said Now the sentence that really caught my Ear was Michael’s comment that he Adhered to the principle of quote same Activity same risk same regulation This made me sit up because it’s a Phrase I knew I’d heard or read Somewhere before Lo and behold this is a direct quote From the world economic forum’s massive Crypto report which we summarized late Last year and I’ll leave a link to that Video in the description if you’re Interested note that I’m pretty sure This quote has been used by other Regulators but it’s still quite Concerning

If that wasn’t Crazy Enough Michael Singled out banks with exposure to Cryptocurrency as an area of concern and Said he was committed to the launch of The FED now fast payment system in 2023 Which is analogous to a central bank Digital currency system as per the bank For international settlements once Michael’s speech was finished the Moderator came back on stage and asked Him quote so that’s the short-term Agenda what are you going to do in the Second six weeks implying that Michael’s Plans will be put into action soon Though it could just have been a joke no Timeline was given in the speech now After a few more comments the question Period began and the moderator started By pressing Michael about how high the FED is going to raise interest rates in Its quest to fight inflation Michael just referenced Jerome Powell’s Recent speech where he said it would Continue until the job is done Michael also seemed to hint that the FED Is watching employment statistics very Closely which makes sense given the Fed’s Dual mandate but it also suggests That some Central Bankers On The fed’s Board of Governors are more concerned About employment than inflation Including Michael The moderator went on to ask Michael About financial stability risks in the

So-called Shadow banking system which in This context means any company providing Financial services that isn’t a bank Michael said the shadow banking system Is the jurisdiction of the SEC and cftc Which are of course anti-crypto Now this is where things got interesting Because the moderator asked Michael About the financial stability oversight Council or fsoc which you guessed it was Also established as part of the Dodd-Frank Act that Michael ever so Carefully crafted Michael and the moderator went back and Forth about how the fsoc’s powers were Quote neutered under the previous Administration presumably a reference to The 2018 Amendment the moderator then Asked Michael about whether these Powers Could be brought back to which Michael Said yes Regarding cryptocurrency Michael said That it does not support Financial Inclusion but instead just results in Quote theft fraud volatility and loss of Wealth He also added that Financial inclusion Quote does not start with cryptocurrency Now the moderator took this as an Opportunity to ask about Central Bank Digital currencies or cbdcs and Michael Reiterated that it’s ultimately up to Congress to make a decision about a Digital dollar finally some consistency

The moderator then asked Michael to Expand on his comments about climate Change and Michael went on to explain How the FED will run a large experiment With Wall Street next year that will Test the financial system’s resilience To climate-related risks let’s remember That one shall we Now while Michael did admit that the FED Will start looking at climate change in The context of financial stability it Won’t direct Banks not to work with the Fossil fuel industry as Sarah Bloom Raskin allegedly wanted to do this is Where things got even more interesting Because the moderator opened up the Floor to questions and the first Question came from an Iranian Refugee Who pointed out that all this talk about Fairness and safety reminded him of the Excuses the Iranian regime gave to Justify its control it was telling to Watch Michael run circles around this Question because it revealed that this Is exactly what his ideology and the Regulation in the Dodd-Frank Act are all About it’s about centralized control a Top-down approach based on academic Research not actual reality Now the only other question from the Audience worth covering came from an Asian man who may have been Chinese Given that he asked about the digital Yuan

He basically asked why the digital yuan Is seen as a threat and not the digital Euro given that Europe is supposedly Embracing cbdc’s Michael said that the digital euro is Not a threat because the US dollar is The world’s Reserve currency this is a Fairly weak argument and it seems that Even Michael was aware of this as he Noted shortly afterwards that he would Support a digital dollar to ensure the U.S dollar maintains its current status By the way you should know that the Rollout of cbdc’s seems to be correlated To a Crackdown on cryptocurrency This is simply because central banks Don’t want any currency competition and They want to make sure they have total Control of the economy via cbdc’s don’t Take my word for it though check out our Video about the European Central bank’s Recent cbdc report what I said here just Scratches the surface of what the Central banks are planning link will be In the description Now this brings me to the big question And that’s whether Michael will succeed In his supposed crypto Crackdown I’ll Start by saying that I don’t think my Court can do much on his own to my Understanding much of what Michael wants For crypto requires the consent of Congress that said Michael is an Architect of the Dodd-Frank Act and this

Means he’s probably one of the only People who understands the full extent Of the powers he has He is certainly the only one who’s in The position to wield those powers and It looks like he plans on wielding them To the fullest this doesn’t even include All the powers of the other boards Bureaus and councils that are embedded In the 850-page Behemoth that is the Dodd-Frank Act which Michael is of Course intimately familiar with Based on Michael’s testimony and his Speech all the above have potentially Anti-crypto Powers as well Michael’s Effectiveness is perhaps the most Concerning part however he seems to be Extremely and I mean extremely well Connected in both politics and Academia And that means he’s likely to face Little friction if he makes an Anti-crypto proposal particularly from His own political Camp even so this Doesn’t change the fact that the passing Of a law fundamentally depends on two Things the lobbying money of the rich And the popular opinion of the poor as Many of you will know these two forces Are rarely aligned and it’s typically The former that gets precedent during Any misalignments if you watched our Video about the enemies of Cryptocurrency you’ll know that most Institutions want to integrate crypto

With the traditional Financial system to That end they are supportive of the Industry but if they achieve their goal Crypto will likely be just another arm Of the existing Financial system If you’re watching this video chances Are you’re a retail investor who’s Trying to use cryptocurrency to Achieve Financial Freedom this not only includes Making money but also the ability to Store protect and transfer your wealth Without the influence or interference of A centralized Authority or middleman Unfortunately most retail investors Undervalue that second part which is why It’s more than likely that many of them Will call for crypto to be regulated When they lose their paper wealth This is something I discussed at length In our recent video about the upcoming Retail crypto trading and investment ban What this means is that there’s a high Chance Michael will get to flex the Powers of his position and I expect this To happen after the next economic shock Which will likely come later this year Or early next year Michael and his Comrades will use crypto as a scapegoat And the Sheep will bar that crypto is Bad the Silver Lining is that there’s Only so much that Michael and Coke can Do because truly decentralized Cryptocurrencies cannot be regulated by Centralized entities there are also many

Pro-crypto politicians pushing for Reasonable crypto regulations most Importantly the average person is aware Of why the economy is so messed up and Why it’s crashing it’s not crypto it’s The central banks the same central banks Whose recklessness resulted in the Creation of Bitcoin almost 14 years ago When the central banks inevitably try to Print the problem away or try to roll Out a dystopian digital currency to take Total control BTC will be there to save The day that’s what Bitcoin was designed To do after all Central Bankers better Start stacking SATs That’s all for today’s video about a Very special Central Banker at the Federal Reserve if you found it Interesting and informative smash that Like button por favor if you want to Make sure you get more interesting and Informative content subscribe to the Channel and ping that notification Bell If you want something more light-hearted Head on over to coin Bureau clips for Live streams and emergency updates if You want in-depth crypto discussions Tune in to the coin Bureau podcasts new Episodes out every week If you want to follow me you can find me On Twitter tiktok and Instagram I also Push daily crypto updates on Telegram If you want to know what cryptos I hold As part of my portfolio and where I

Think the crypto Market is headed Subscribe to My Weekly Newsletter to Find out and if you want to support the Channel head on over to the coin Bureau Merch store for cool crypto merch that Will keep you warm this winter you can Find your way there using the link in The description as always thank you for Watching and I will see you next time Till then stay cool stay safe and stay Crypto [Music]