WEBVTT - Coinbase in the UAE and Meta May End News in Canada 0:00:01.560 --> 0:00:02.280 From Mahard. 0:00:02.440 --> 0:00:06.840 We're Innovations Money and Power Collie in Silicon Vallet NBN. 0:00:07.200 --> 0:00:11.240 This is Bloomberg Technology with Caroline Hyde and Ed Ludlow. 0:00:25.520 --> 0:00:28.000 I'm Caroline Hyde of bloomgg's world headquarters in New York, 0:00:28.440 --> 0:00:28.880 and I'm Ed. 0:00:28.880 --> 0:00:32.279 Lovelow in San Francisco. This is Bloomberg Technology coming up. 0:00:32.320 --> 0:00:34.159 We have got the latest on the held of the 0:00:34.159 --> 0:00:36.960 banking system and of course the state of fundraising, which 0:00:36.960 --> 0:00:40.840 are in by some kvcs from viet Ventures and Costanoa Ventures. 0:00:41.479 --> 0:00:45.320 Plus Coinbase weighing the United Arab Emirates for its international hub. 0:00:45.360 --> 0:00:48.560 We hear from Coinbased CEO Brian Armstrong on what's driving 0:00:48.600 --> 0:00:50.199 that decision, and we'll have. 0:00:50.200 --> 0:00:52.760 The latest on meta as of the social media giant 0:00:52.880 --> 0:00:56.600 may end Facebook and Instagram news content in Canada and 0:00:56.720 --> 0:00:59.640 as the company vows to fight back against the ftc. 0:00:59.800 --> 0:01:00.880 Of children's data. 0:01:01.400 --> 0:01:03.840 Now, as we dwell on that story around a publicly 0:01:03.880 --> 0:01:06.480 traded company, let's go more broadly across the indices right 0:01:06.480 --> 0:01:07.240 now because. 0:01:07.240 --> 0:01:08.720 Some caution in today's trading. 0:01:08.720 --> 0:01:10.480 Even though we've got to lift in European trading and 0:01:10.520 --> 0:01:12.720 Asian trading, today we just pull back a little bit. 0:01:12.760 --> 0:01:16.200 The nastack off six points. We're basically flat on the day, 0:01:16.200 --> 0:01:18.840 coming off of our lows. We're really though, seeing some 0:01:18.959 --> 0:01:21.759 pressure on the bond market. This is we not more 0:01:22.319 --> 0:01:24.680 focus on the FED, but we actually focus on supply, 0:01:25.000 --> 0:01:28.800 on corporate bonds being sold ultimately and a whole hef 0:01:28.880 --> 0:01:31.280 to them. We're expecting some thirty five billion dollars towards 0:01:31.400 --> 0:01:32.840 the rest of the week. So we're up by five 0:01:32.880 --> 0:01:35.160 basis points as we see a supply pressure coming. Two 0:01:35.240 --> 0:01:37.800 year yields currently creeping up to three point ninety six percent, 0:01:37.880 --> 0:01:39.040 and I'm looking at the vics. 0:01:38.840 --> 0:01:39.880 Just starling back a little bit. 0:01:39.920 --> 0:01:42.679 So even though we see this cautious trading volatility is low, 0:01:42.720 --> 0:01:45.360 we're still well below that twenty handle at seventeen. Moving on, 0:01:45.760 --> 0:01:47.400 that's not what's happening in the world of crypto because 0:01:47.440 --> 0:01:50.120 we have seen volatility there no surprise in many ways, 0:01:50.320 --> 0:01:51.520 not by three and a half percent. 0:01:51.560 --> 0:01:53.800 We're going to dig in ed to the stories. 0:01:53.440 --> 0:01:56.120 Around finance around some of the ability to be able 0:01:56.120 --> 0:01:59.400 to trade the og in the crypto space. Interestingly, some 0:01:59.480 --> 0:02:03.360 new means coming onto that particular well ecosystem basically, and 0:02:03.360 --> 0:02:04.080 it's clogging up. 0:02:05.280 --> 0:02:07.440 Yeah, two holts in the twenty four hour period or 0:02:07.480 --> 0:02:09.920 twelve hour period on Binance. The operational update is that 0:02:09.960 --> 0:02:13.919 Binance says those pending Bitcoin Tracs transactions were process bottom 0:02:13.960 --> 0:02:17.040 of this board, you see crypto related stocks in the 0:02:17.080 --> 0:02:18.519 equity space also. 0:02:18.360 --> 0:02:19.639 Moving to the downside. 0:02:19.840 --> 0:02:21.760 Very closely link to that story up here as the 0:02:21.919 --> 0:02:24.960 scaler twenty one percent gain biggest jumps at September, at 0:02:25.000 --> 0:02:27.200 one point on track for its biggest jump since the 0:02:27.240 --> 0:02:30.280 end of December twenty twenty. There's a lot of feel 0:02:30.320 --> 0:02:33.200 good in the cyber space after its prelim results came 0:02:33.240 --> 0:02:35.840 in far above expectations. If you see energy in the 0:02:35.840 --> 0:02:40.200 cybersecurity space, that is why regional banks again a story. 0:02:40.240 --> 0:02:42.680 We're seeing a rebound, particularly in pac West, following on 0:02:42.760 --> 0:02:45.680 from what we saw on Friday. You know, we were 0:02:45.720 --> 0:02:48.520 also asking ourselves again, Caroline, what is the rationale here? 0:02:48.520 --> 0:02:50.919 There's been a lot of fighting talk from PacWest about 0:02:50.919 --> 0:02:54.800 its operational health. I remind myself for this program Bloomberg 0:02:54.840 --> 0:02:57.440 Technology that when it was founded in nineteen ninety nine, 0:02:57.880 --> 0:03:00.920 it was with a remit to serve Venture act companies. 0:03:01.200 --> 0:03:03.600 Really important for our audience because many of them have 0:03:03.720 --> 0:03:06.720 some sort of banking service, even with these regional banks. 0:03:06.919 --> 0:03:08.480 Yeah, it is important to think about. 0:03:08.560 --> 0:03:11.679 Also the more broad risks taking that people do and 0:03:11.760 --> 0:03:14.280 don't want to do, is we're still slightly cautious around 0:03:14.440 --> 0:03:16.840 the ultimate safety of the banking system. Let's talk about 0:03:16.840 --> 0:03:18.280 pack Uess and so much more with our one and 0:03:18.360 --> 0:03:21.560 only Sali bus second Sally. It feels as though anxiety 0:03:21.639 --> 0:03:24.440 levels dialed back a little bit today, but through any 0:03:24.440 --> 0:03:25.680 fundamental reason. 0:03:25.480 --> 0:03:29.200 Here Westen these stocks have sold off pretty dramatically, and 0:03:29.360 --> 0:03:31.720 if you look through Friday evening, we had a lot 0:03:31.720 --> 0:03:35.320 of tenuous news, for example Fitch placing pack West on 0:03:35.400 --> 0:03:37.680 a negative ratings watch. But to the point that you're 0:03:37.720 --> 0:03:40.360 making fundamental reasons, it's not because of the deposit base 0:03:40.440 --> 0:03:43.840 they did that, and it's not because of the holdings 0:03:43.880 --> 0:03:46.640 the bond holdings that have hurt many of these banks. 0:03:46.840 --> 0:03:49.280 The reason they put them on a negative watch is 0:03:49.280 --> 0:03:53.040 because they're worried about the strategic direction moving forward. There 0:03:53.080 --> 0:03:56.520 are stories last week about potential strategic asset sales. What 0:03:56.640 --> 0:03:59.080 is a business model of pack Wes moving forward? I 0:03:59.080 --> 0:04:02.080 would also to Ed's point here that a few of 0:04:02.080 --> 0:04:05.560 these banks that are still under pressure, not beyond First Republic, 0:04:05.840 --> 0:04:08.440 pack West, Western, Alliance has been the worst performer on 0:04:08.480 --> 0:04:11.520 the KBW Bank Index. Here a lot of banks that 0:04:11.560 --> 0:04:14.280 are based out West, and what is it about these 0:04:14.400 --> 0:04:18.120 firms that really bring these deposit base and the risks 0:04:18.160 --> 0:04:21.200 tied to the lending altogether that have investors spooked at 0:04:21.200 --> 0:04:21.600 this moment? 0:04:22.279 --> 0:04:24.640 So notally, if there's anything that the market's cheering, it 0:04:24.720 --> 0:04:27.880 seems to be a dividend cut. Why is that such 0:04:27.880 --> 0:04:30.400 a significant factor with this stock. 0:04:30.720 --> 0:04:33.560 It's interesting because typically when you see a dividend cut, 0:04:33.560 --> 0:04:37.280 you don't see investors reacting positively. But in this instance, 0:04:37.520 --> 0:04:39.000 the reason that there might be a little bit of 0:04:39.040 --> 0:04:41.560 relief is because investors are looking to pack West to 0:04:41.640 --> 0:04:44.640 do everything it can to keep its capital based strong, 0:04:44.720 --> 0:04:47.440 and that means some tough decisions in the meantime. It 0:04:47.480 --> 0:04:49.839 doesn't need to be the case that these banks fall 0:04:49.880 --> 0:04:53.800 into deeper and deeper concern after we've seen such big 0:04:53.839 --> 0:04:57.920 issues already. But again, there are longer term worries here 0:04:58.080 --> 0:04:59.960 ed and you really see it reflected in the bond 0:05:00.160 --> 0:05:03.360 prices of Western Alliance and pack West which have their 0:05:03.400 --> 0:05:06.800 bonds trading the ones maturing in twenty thirty one trading 0:05:06.800 --> 0:05:09.440 at sixty or forty cents on the dollar. Still, when 0:05:09.480 --> 0:05:11.599 I talk to investors on the sidelines as well, there's 0:05:11.600 --> 0:05:14.640 a hesitancy to get in until some of these existential 0:05:14.720 --> 0:05:15.919 questions are cleared. 0:05:15.680 --> 0:05:19.640 Up in Invectionali Bassekat in New York, thank you. Let's 0:05:19.640 --> 0:05:22.320 stick with a story and bring in FIAT ventures Managing 0:05:22.360 --> 0:05:27.640 partners Marcos Fernandez, Marcos, what is uniquely relevant to the 0:05:27.720 --> 0:05:31.080 VC community that you're a part of and venture bank 0:05:31.200 --> 0:05:34.080 startups in this scenario with the regional banks? Why are 0:05:34.120 --> 0:05:35.400 you paying such close attention? 0:05:36.160 --> 0:05:39.560 Absolutely so, banks like First Republic, like Silicon Valley Bank 0:05:39.600 --> 0:05:42.520 and pac West. As was mentioned, they cater towards the 0:05:42.560 --> 0:05:45.400 venture community, both venture capital funds and the founders that 0:05:45.400 --> 0:05:47.920 we back the startup community as a whole, And it's 0:05:47.960 --> 0:05:50.400 not just the deposits that they hold, but it's venture 0:05:50.440 --> 0:05:53.240 debt solutions that help them expand out their runways. For 0:05:53.279 --> 0:05:55.960 those founders in particular, it's loans that help them be 0:05:56.000 --> 0:05:58.120 able to do things like purchase homes when a lot 0:05:58.160 --> 0:06:00.919 of their values tied up in private equity. So we 0:06:01.040 --> 0:06:03.680 pay a big attention to it, certainly, and work very 0:06:03.720 --> 0:06:06.640 closely with our founders to help them seek alternatives, especially 0:06:06.640 --> 0:06:08.640 as markets continue to be more violatle. 0:06:08.400 --> 0:06:10.800 This is the biggest two day jump in pack weest 0:06:11.160 --> 0:06:13.960 on record. But from your perspective, I guess you're not 0:06:14.040 --> 0:06:17.760 lying awake at night thinking about that. I mean, what 0:06:17.960 --> 0:06:21.280 is the ongoing consideration for vcs like you and your 0:06:21.279 --> 0:06:22.360 portfolio companies. 0:06:22.720 --> 0:06:25.799 Yeah, so, unlike Silicon Valley Bank, which sprung about really quickly, 0:06:25.880 --> 0:06:27.640 you know, the news broke on a Thursday, and even 0:06:27.640 --> 0:06:30.040 going into the weekend, we didn't have certainty. The FED 0:06:30.080 --> 0:06:32.120 did a great job this time by coming out first 0:06:32.120 --> 0:06:35.360 thing Monday morning making sure that there is both certainty around. 0:06:35.120 --> 0:06:37.520 The deposits as well as a suitor. So it really 0:06:37.520 --> 0:06:39.479 did help us sleep a little bit better at night. 0:06:39.800 --> 0:06:41.520 And also for a lot of the startups that we've 0:06:41.560 --> 0:06:44.520 been working with, we've been helping them seek alternatives over 0:06:44.520 --> 0:06:46.599 the last several weeks. 0:06:46.360 --> 0:06:47.839 As this continues to unfold. 0:06:48.120 --> 0:06:50.080 So the short answer is, no, we haven't lost too 0:06:50.160 --> 0:06:52.440 much sleep behind it. What I will say is there's. 0:06:52.360 --> 0:06:55.000 Phenomenal people at the PacWest Banks of the world, as 0:06:55.040 --> 0:06:57.760 First Republic and Silicon Valley Banks, and so I think 0:06:57.800 --> 0:06:59.440 mostly we want to make sure that we're good to 0:06:59.440 --> 0:07:01.559 our partners those institutions. 0:07:00.960 --> 0:07:03.320 As well, you know, Caroline, the reason I ask those 0:07:03.400 --> 0:07:05.680 questions is that if you're a startup founder or a VC, 0:07:05.880 --> 0:07:09.080 you're kind of uniquely not liquid, right. Think about all 0:07:09.120 --> 0:07:11.600 of your net worth that's tied up in the equity 0:07:11.680 --> 0:07:15.280 valuation of your private company. The other thing we've learned 0:07:15.360 --> 0:07:17.000 is that now you're if you're a founder, you've got 0:07:17.000 --> 0:07:19.280 to find options. You've got to diversify, you've got to 0:07:19.320 --> 0:07:20.760 modernize your banking. 0:07:20.720 --> 0:07:24.840 And maybe start tapping FinTechs, other solutions, ones that don't 0:07:24.840 --> 0:07:27.040 actually have a banking license but certainly have an offering. 0:07:27.080 --> 0:07:27.680 And this is. 0:07:27.680 --> 0:07:30.600 Where Marcus, your experience comes so into play. 0:07:30.680 --> 0:07:32.880 You've backed the likes of Brex personally over the years. 0:07:32.920 --> 0:07:36.680 You're someone who's worked at other FinTechs so far as 0:07:36.680 --> 0:07:38.760 well as well in the crypto ecosystem. 0:07:39.120 --> 0:07:41.400 Tell us about fintech whether this is a moment for. 0:07:41.400 --> 0:07:45.240 It to outperform or whether actually there's more worry around 0:07:45.400 --> 0:07:46.240 more newer entrants. 0:07:47.520 --> 0:07:50.520 Absolutely, Caroline, I hate to say that my glass is 0:07:50.560 --> 0:07:52.320 always half full, but in this case, one. 0:07:52.240 --> 0:07:54.240 Of the early winners is certainly FinTechs. 0:07:54.280 --> 0:07:57.760 So you mentioned Brex, others like Mercury Bank, they've seen 0:07:57.800 --> 0:08:01.000 a lot of influx of deposits for two big reasons. 0:08:01.360 --> 0:08:03.360 First as they built tech stacts. 0:08:03.040 --> 0:08:05.840 On top of legacy infrastructure, which helps them onboard and 0:08:05.880 --> 0:08:08.880 open up more accounts more easily. And then second is 0:08:08.920 --> 0:08:12.280 they work with multiple financial institutions and banking partners, So 0:08:12.400 --> 0:08:14.120 not only does that allow for them to see more 0:08:14.160 --> 0:08:17.320 diversity behind those deposits, it allows them to extend out 0:08:17.360 --> 0:08:21.160 the federal protections that fall within that for their consumers. Now, 0:08:21.200 --> 0:08:24.280 while a lot of companies and individuals have gone back 0:08:24.320 --> 0:08:27.080 towards these pillarbanks the Wells Fargo, b of A's JP 0:08:27.200 --> 0:08:30.960 Morgans during these uncertain times, it's also exposed a lot 0:08:31.000 --> 0:08:34.320 of the inefficiencies behind these institutions that rely on a 0:08:34.320 --> 0:08:36.800 lot of individuals, time and processes to be able to 0:08:36.840 --> 0:08:37.800 open up accounts. 0:08:38.120 --> 0:08:41.439 So again, this is just another issue, an instance. 0:08:41.000 --> 0:08:44.280 Of why fintech and a lot of digitization behind traditional 0:08:44.280 --> 0:08:46.000 financial services is so important. 0:08:46.640 --> 0:08:49.040 What do you want to see built this moment, when 0:08:49.080 --> 0:08:52.160 you are so uniquely focused on fintech, on the future 0:08:52.160 --> 0:08:55.520 of fintech, on backing new startups and founders and visionaries, 0:08:55.960 --> 0:08:58.199 what is the problem you want most salted at the moment? 0:08:59.440 --> 0:09:02.440 Absolutely so, I think the first wave of financial technology 0:09:02.440 --> 0:09:05.480 innovation people focused on direct to consumer businesses. We think 0:09:05.520 --> 0:09:07.719 of the sofar as the chimes the money lions of 0:09:07.760 --> 0:09:10.520 the world. But the next wave is certainly much more embedded, 0:09:10.760 --> 0:09:12.800 so in some cases you actually won't know that there's 0:09:12.800 --> 0:09:16.280 a fintech at play behind these traditional institutions that you're 0:09:16.280 --> 0:09:18.760 bringing your money to and your deposits to. And that's 0:09:18.800 --> 0:09:21.840 really important because over time, every company under the sun 0:09:22.080 --> 0:09:24.840 has some sort of financial aspect with their business, and 0:09:24.880 --> 0:09:26.640 so that next wave is really going to be led 0:09:26.640 --> 0:09:28.600 by those that are building the picks and shovels in 0:09:28.600 --> 0:09:32.360 infrastructure that allow both large traditional financial service firms to 0:09:32.920 --> 0:09:37.720 become more efficient, but also those in adjacent industries like healthcare, mobility, climate, 0:09:37.760 --> 0:09:38.560 future of work. 0:09:38.800 --> 0:09:40.280 And that's what gets us really excited. 0:09:40.640 --> 0:09:42.800 When I hear picks and shovels, I immediately start to 0:09:42.800 --> 0:09:45.280 think of those who are saying talking about the mining 0:09:45.480 --> 0:09:49.640 ed of crypto in particular, and just fold in. I 0:09:49.679 --> 0:09:51.360 suppose that on a day where we really keep an 0:09:51.400 --> 0:09:54.400 eye on what's happening in crypto, there's a read across 0:09:54.400 --> 0:09:57.160 with Cosmarkos having worked at Ripple for a while. 0:09:57.760 --> 0:09:59.720 Yeah, I think if you're going to draw some commonality 0:10:00.240 --> 0:10:01.719 what we're talking about. I guess it's the want for 0:10:01.800 --> 0:10:06.000 decentralized systems. That also the same cycle we went through 0:10:06.000 --> 0:10:07.840 in crypto, we saw play out in banking to a 0:10:07.840 --> 0:10:11.880 certain extent. I mean, Marcos threat those two together for 0:10:11.960 --> 0:10:15.000 us when you are looking at what's happened in the 0:10:15.040 --> 0:10:18.040 banking sector, the hype and boom cycle as well around 0:10:18.080 --> 0:10:20.400 what happened with crypto, do you sort of have the 0:10:20.440 --> 0:10:23.679 same systemic concerns that apply to both. 0:10:24.840 --> 0:10:28.000 In some cases you see a lot of correlation between 0:10:28.040 --> 0:10:28.240 the two. 0:10:28.320 --> 0:10:29.920 Right, it's individuals get really. 0:10:29.840 --> 0:10:33.160 Excited about the potentials of a technology, but it takes 0:10:33.200 --> 0:10:35.760 time for that to become something that we can adopt 0:10:35.760 --> 0:10:38.840 over a large scale. Fintech for example, a lot of 0:10:38.920 --> 0:10:41.599 neobanks came in and got people excited, but during this 0:10:42.000 --> 0:10:44.559 market volatility, we're seeing them go back to these traditional 0:10:44.640 --> 0:10:45.320 pillar banks. 0:10:45.679 --> 0:10:46.600 Same thing with crypto. 0:10:46.679 --> 0:10:49.840 Right, the idea of decentralized systems is still really exciting, 0:10:49.920 --> 0:10:52.600 has a ton of use cases and applications, but it 0:10:52.679 --> 0:10:55.760 takes time to build that underlying infrastructure at a scale 0:10:55.880 --> 0:10:59.360 where millions and hundreds of millions of global individuals can 0:10:59.400 --> 0:11:02.480 actually take it advantage of that. So certainly there's correlations 0:11:02.520 --> 0:11:05.000 behind the two. But what I'd say is it's not 0:11:05.080 --> 0:11:06.920 to use a sports metaform. But we're not just in 0:11:06.960 --> 0:11:08.520 the early innings, like I don't even know if we 0:11:08.600 --> 0:11:11.720 started the game yet for both fintech and for cryptocurrencies, 0:11:12.080 --> 0:11:14.400 because there's so much potential to be had here and 0:11:14.440 --> 0:11:16.839 we're finally seeing a market where people can go back 0:11:16.880 --> 0:11:19.839 to building the fundamentals behind it, so building out the 0:11:20.160 --> 0:11:22.840 businesses that will help us scale to those hundreds of 0:11:22.840 --> 0:11:25.960 millions of consumers, both in the US and on global markets. 0:11:26.679 --> 0:11:29.400 That leads us very smoothly onto our next conversation. 0:11:29.520 --> 0:11:30.120 We thank you for that. 0:11:30.280 --> 0:11:34.040 Fat Ventures managing partner Marcus Fernandez great to has some time. 0:11:33.960 --> 0:11:34.120 In the. 0:11:43.000 --> 0:11:43.920 Crypto exchange. 0:11:43.960 --> 0:11:47.560 Coinbase is weighing the United Arab Emirates for its international hub. 0:11:47.840 --> 0:11:51.160 CEO Brian Armstrong says the UAE is leading the way 0:11:51.280 --> 0:11:55.040 regionally in crypto. He spoke to Bloomberg at the Dubai 0:11:55.080 --> 0:11:56.120 Fintech Summit earlier. 0:11:56.160 --> 0:11:57.080 Have listened. 0:11:58.360 --> 0:12:00.480 Coinbase our mission is to increase second our freedom in 0:12:00.480 --> 0:12:01.800 the world, so that means we really need to do 0:12:01.800 --> 0:12:04.640 that in many many countries. Obviously, We started in the 0:12:04.720 --> 0:12:07.520 US and took a very compliance focused approach and became 0:12:07.559 --> 0:12:09.640 a listed company there and that's been a big piece 0:12:09.640 --> 0:12:12.480 of our revenue still, but we've increasingly expanded into other 0:12:12.559 --> 0:12:15.120 major markets around the world. Now what we're doing is 0:12:15.120 --> 0:12:17.600 we're looking for a home to set up an international 0:12:17.720 --> 0:12:20.280 hub that could serve the long tail of countries in 0:12:20.320 --> 0:12:22.800 the world, you know, the Middle East, Africa, maybe parts 0:12:22.840 --> 0:12:24.760 of Asia as well. And from that point of view, 0:12:24.800 --> 0:12:26.920 the UA is very attractive. I mean, the UA deserves 0:12:26.960 --> 0:12:29.199 a ton of credit. They're the first country in the 0:12:29.200 --> 0:12:31.880 world I'm aware of that created a dedicated new regulator 0:12:31.880 --> 0:12:33.840 to crypto and they've published a clear rule book and 0:12:33.840 --> 0:12:36.400 it's very business forward and protecting of consumers. 0:12:36.400 --> 0:12:38.520 So they head by a country mod here relative to 0:12:38.559 --> 0:12:39.880 the UK and relative to the. 0:12:39.880 --> 0:12:42.480 US, well, I would say they are ahead of where 0:12:42.480 --> 0:12:45.480 the US is. You know, the EU has actually published 0:12:45.520 --> 0:12:49.120 comprehensive crypto legislation already. The UK is on their way there. 0:12:49.200 --> 0:12:51.679 But I would say the UAE is their approach has 0:12:51.720 --> 0:12:53.280 been more forward thinking than the US so far. 0:12:53.480 --> 0:12:55.640 So we spoke to your CFO, you're the CEO the 0:12:55.640 --> 0:12:58.240 West Notes everybody, you know, we sort of digging around 0:12:58.320 --> 0:12:59.839 for news here and I sat down and what is 0:12:59.880 --> 0:13:02.320 the as well as noticed, is it an armageddon moment 0:13:02.400 --> 0:13:05.760 potentially for coinbase in the United States of America. 0:13:06.640 --> 0:13:07.160 I think this. 0:13:07.120 --> 0:13:09.320 Moment is really an opportunity for us to finally get 0:13:09.320 --> 0:13:12.720 some regulatory clarity in the United States, and we're happy 0:13:12.720 --> 0:13:14.000 to do that. By the way, it's I think it's 0:13:14.000 --> 0:13:16.200 a great role for us to play in the industry 0:13:16.240 --> 0:13:16.960 and for America. 0:13:17.000 --> 0:13:18.360 You going head to head with the SEC. 0:13:19.200 --> 0:13:20.040 Well, that's true. 0:13:20.080 --> 0:13:22.240 I mean, look, we don't relish the opportunity to be 0:13:22.320 --> 0:13:24.880 in litigation with one of our primary lob regulators. We've 0:13:25.320 --> 0:13:27.720 sought out regulation all over the world and tried to 0:13:27.720 --> 0:13:30.080 be proactive when there wasn't clarity. But if there's no 0:13:30.160 --> 0:13:32.760 clear rule book in the US, we created our own 0:13:33.000 --> 0:13:36.000 best practices to evaluate you know, over one thousand assets 0:13:36.000 --> 0:13:38.520 and we rejected eighty percent of them the two hundred 0:13:38.559 --> 0:13:40.839 and twenty percent that we list. We believe our commodities 0:13:41.120 --> 0:13:43.240 and there's been no clear rule book, and so if 0:13:43.240 --> 0:13:44.920 we receive it well, as notice, I feel like we 0:13:44.960 --> 0:13:47.000 have a duty to take a push back and go 0:13:47.040 --> 0:13:48.960 see a case law that will help bring this clarity 0:13:48.960 --> 0:13:49.400 to the US. 0:13:49.520 --> 0:13:51.160 I mean I fitted a rhyme with this question for 0:13:51.200 --> 0:13:55.160 about two hours. Sec CFTC. What is the question you 0:13:55.200 --> 0:13:59.760 asked the CEO, And here's the question. Are these regulators 0:14:00.160 --> 0:14:00.880 fit for purpose? 0:14:02.480 --> 0:14:05.120 Well, I think there's certainly a role, yes, because crypto 0:14:05.200 --> 0:14:09.280 is many things. Crypto is has commodities. Crypto has some 0:14:09.360 --> 0:14:11.280 bitter securities. We don't list them, but there are some 0:14:11.360 --> 0:14:13.199 out there. We think there should be a robust, healthy 0:14:13.200 --> 0:14:15.520 market for that. There's also stable coins, which are more 0:14:15.600 --> 0:14:18.680 like currencies. There's artwork, you know, with NFTs, and so 0:14:19.120 --> 0:14:21.280 crypto is going to have a number of different regulators. 0:14:21.280 --> 0:14:23.280 It probably is going to need new legislation to be 0:14:23.280 --> 0:14:25.560 passed in the US. And the good news isn't there's 0:14:25.600 --> 0:14:28.520 broad BIPARTI isn't supporting Congress for that exactly to happen. 0:14:28.600 --> 0:14:31.160 Could you see a day of a troop side I'm 0:14:31.200 --> 0:14:32.080 gone from the US. 0:14:32.920 --> 0:14:34.000 We're not going to leave the US. 0:14:34.680 --> 0:14:36.160 You know, we do have a choice of where to 0:14:36.160 --> 0:14:38.320 invest our dollars around the world in any given moment, 0:14:38.720 --> 0:14:40.160 but we're not going to leave the US. It's an 0:14:40.160 --> 0:14:42.120 important market. And the good thing about the US is 0:14:42.200 --> 0:14:44.720 there's rule of law, and so we do reach the 0:14:44.800 --> 0:14:45.720 right outcome eventually. 0:14:48.040 --> 0:14:51.560 Coinbase CEO Brian Armstrong with her own menace Cranny, Caroline one. 0:14:51.520 --> 0:14:52.120 And any manus. 0:14:52.160 --> 0:14:54.120 Meanwhile, let's stick with crypto a little bit more. You 0:14:54.320 --> 0:14:57.080 reference the earlier ed the finance situation. How it's we 0:14:57.200 --> 0:15:01.320 started the drawals of bitcoin itself a slighting congestion on 0:15:01.360 --> 0:15:04.080 the tokens book chain. After two holts in less than 0:15:04.080 --> 0:15:07.160 twelve hours, the suspensions had weighed in the cryptocurrency markets. 0:15:07.160 --> 0:15:09.600 More broadly, it seems like we can go to our 0:15:09.640 --> 0:15:12.200 own Katie Lines out there in Washington to just discuss 0:15:12.920 --> 0:15:15.560 what are these new mean coins that are getting on. 0:15:16.000 --> 0:15:20.200 What is the original of the cryptosphere. Before we sort 0:15:20.200 --> 0:15:23.960 of associate NFTs meme coins with ethereum, But. 0:15:23.960 --> 0:15:26.200 Why are we now associating it with Bitcoin. 0:15:27.360 --> 0:15:30.120 Well, you can trace it back to the new Ordinals 0:15:30.160 --> 0:15:33.400 protocol that was introduced earlier this year, Caroline, which as 0:15:33.520 --> 0:15:36.560 you are alluding to, allowed now non vegeible tokens meme 0:15:36.600 --> 0:15:40.760 coins to be minted on the Bitcoin network, which primarily 0:15:40.920 --> 0:15:44.040 they usually were just based on ethereum. The fact that 0:15:44.080 --> 0:15:46.680 they have now come to be part of this network, 0:15:46.680 --> 0:15:51.080 this ecosystem, has meant that it is more congested, congested, 0:15:51.080 --> 0:15:53.200 and as result, fees have gone higher as well, and 0:15:53.280 --> 0:15:56.360 Finance says that is really what the problem was here, 0:15:56.440 --> 0:15:59.880 that this wasn't as was speculated earlier about people pulling 0:16:00.000 --> 0:16:02.080 money from their exchange, that this really was just a 0:16:02.120 --> 0:16:03.040 congestion problem. 0:16:03.080 --> 0:16:03.520 And as a. 0:16:03.440 --> 0:16:05.640 Result, to address this, to make sure that it doesn't 0:16:05.640 --> 0:16:08.640 happen again, they have raised fees to make sure all 0:16:08.680 --> 0:16:12.800 of those pending transactions actually will be mined by bitcoin miners. 0:16:12.840 --> 0:16:15.000 But that's ultimately what it comes down to here' Stz, 0:16:15.560 --> 0:16:17.880 the CEO of Byance, saying that some of those fees 0:16:17.880 --> 0:16:20.560 are up eighteen times over just the last month that 0:16:20.560 --> 0:16:23.560 we've seen more and more activity taking place on this blockchain. 0:16:24.440 --> 0:16:26.160 I think that the data point to call my eye 0:16:26.160 --> 0:16:29.760 from the Bloomberg reporting is that five billion dollars worth 0:16:29.800 --> 0:16:32.160 of transactions happened in that twenty four hour period. From 0:16:32.160 --> 0:16:36.520 a volume perspective, makes you realize that bitcoin is kind 0:16:36.560 --> 0:16:38.600 of everything from a volume perspective, right, that it was 0:16:39.640 --> 0:16:42.400 the volume of transaction is trying to ram through that caused. 0:16:42.080 --> 0:16:42.520 All of this. 0:16:44.240 --> 0:16:45.360 Yeah, that's exactly right. 0:16:45.640 --> 0:16:48.320 Again, a congestion problem, but you are speaking to the 0:16:48.400 --> 0:16:50.480 kind of volume that binance is seen here. This is 0:16:50.520 --> 0:16:53.560 also why this exchange in particular is so critical in 0:16:53.640 --> 0:16:56.400 terms of driving sentiment for the broader ecosystem, because it 0:16:56.480 --> 0:16:59.280 is by far the largest in the world, especially after 0:16:59.280 --> 0:17:02.960 the collapse of FTX. So really people look to binance 0:17:03.000 --> 0:17:04.679 as kind of a bell weather for what is happening 0:17:04.720 --> 0:17:07.520 in the wider system. So the amount of activity there 0:17:07.720 --> 0:17:10.359 when they do see disruptions like this is reason why 0:17:10.520 --> 0:17:13.800 you start to see some market participants getting concerned. But yeah, 0:17:14.000 --> 0:17:15.840 it's a great point ed. When we are talking about 0:17:15.840 --> 0:17:19.200 the broader crypto ecosystem of coorse, bitcoin really is the 0:17:20.440 --> 0:17:25.000 not monolith, but really just the dominant cryptocurrency in this ecosystem. 0:17:25.200 --> 0:17:27.119 Maybe all of these mean coins that are now clogging 0:17:27.200 --> 0:17:29.199 things up are really just kind of a distraction at 0:17:29.200 --> 0:17:29.480 the end. 0:17:29.400 --> 0:17:29.800 Of the day. 0:17:30.400 --> 0:17:32.159 Yeah, I mean, before we dive into the world of 0:17:32.200 --> 0:17:36.560 Pepe and some of the other exuberant rising coins that 0:17:36.600 --> 0:17:39.879 are basically like what a couple of cents or dollars 0:17:39.880 --> 0:17:42.760 and suddenly rise ever higher. Talk to us a little 0:17:42.800 --> 0:17:45.720 bit more about the international focus we had had anxiety 0:17:45.760 --> 0:17:50.920 around finance, what more about just more broadly global interaction 0:17:51.000 --> 0:17:53.119 with crypto at the moment, we're still seeing desire to 0:17:53.119 --> 0:17:55.160 be training here in the US, whether it's over there 0:17:55.320 --> 0:17:57.679 in certain parts of Asia, what happens in China at 0:17:57.680 --> 0:17:59.639 the moment, because I mean, what is it still was 0:17:59.760 --> 0:18:04.080 thinking about how China is interacting with cryptom worldly well. 0:18:03.960 --> 0:18:06.359 Especially as China it seems likes looking to kind of 0:18:06.400 --> 0:18:09.440