WEBVTT - Evolving Money: The Regulation Revolution (Sponsored Content)

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<v Speaker 1>Because you're a subscriber to this Bloomberg podcast, we thought

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<v Speaker 1>you'd be interested in a sponsored podcast called Evolving Money,

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<v Speaker 1>produced by Coinbase and Bloomberg Media Studios. It explores how

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<v Speaker 1>money has changed over the centuries and whether cryptocurrency is

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<v Speaker 1>just the next logical evolution of how we pay for

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<v Speaker 1>things and store long term value. Here is a recent episode.

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<v Speaker 2>It's been nearly fifteen years since a computer programmer named

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<v Speaker 2>Laslohnyez famously spent ten thousand bitcoin for two Papa John's pizzas,

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<v Speaker 2>the first ever purchase using bitcoin.

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<v Speaker 3>At the time, those.

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<v Speaker 2>Ten thousand coins were worth only forty one dollars. Since

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<v Speaker 2>that landmark moment, the digital currency has traveled an uncertain road,

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<v Speaker 2>which isn't unexpected. When new financial practices gained traction, regulation

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<v Speaker 2>is usually slow to catch up with the new reality.

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<v Speaker 2>As a result, throughout its short history, the crypto market

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<v Speaker 2>has been plagued by regulatory uncertainty.

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<v Speaker 3>But last year things started to shift.

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<v Speaker 2>One of the first big breakthroughs came when federal regulators

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<v Speaker 2>approved an ETF that tracks bitcoin. Then came election Day,

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<v Speaker 2>which was a game changer. A record number of pro

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<v Speaker 2>crypto candidates on both sides of the aisle one at

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<v Speaker 2>the state and federal levels, with the most pro crypto

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<v Speaker 2>Congress ever on its way to Washington. On December seventeenth,

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<v Speaker 2>Bitcoin closed above the one hundred thousand dollars mark for

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<v Speaker 2>the first time ever. At that moment, the amount of

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<v Speaker 2>bitcoin that Laslohanye has used to buy his two pizzas

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<v Speaker 2>back in twenty ten was worth one billion dollars. That's

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<v Speaker 2>a lot of pizza no matter how you slice it.

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<v Speaker 2>It seems clear that crypto is entering a new era,

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<v Speaker 2>But what will that new era actually look like? Welcome

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<v Speaker 2>back to Evolving Money from Coinbase and Bloomberg Media Studios.

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<v Speaker 2>I'm your host, Maggie Lake. On this podcast, we take

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<v Speaker 2>a different look at cryptocurrency. It's been as a radical

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<v Speaker 2>departure for the monetary system, but what if it isn't

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<v Speaker 2>radical at all, just the next logical evolution of how

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<v Speaker 2>we pay for things and store long term value. Along

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<v Speaker 2>the way, we'll explore how money has changed over the

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<v Speaker 2>centuries and look for lessons that might predict its next evolution.

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<v Speaker 2>As investors finally begin to see a path toward regulatory

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<v Speaker 2>clarity for crypto, what new opportunities are about to be

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<v Speaker 2>unlocked for investors and consumers. I'll pose those questions to

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<v Speaker 2>Carrick Calvert, head of US policy at Coinbase, and hear

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<v Speaker 2>how a clear regulatory framework could build even more momentum

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<v Speaker 2>behind crypto and usher in the next wave of money's evolution.

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<v Speaker 2>But first we'll speak with historian Daniel Carey about a

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<v Speaker 2>moment three centuries ago when a radical new way of

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<v Speaker 2>lending money was born and why it took another one

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<v Speaker 2>hundred years for the government to catch up to this innovation.

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<v Speaker 2>In seventeen twenty six, a new book was making waves

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<v Speaker 2>across Europe, Gulliver's Travels. You probably read it in high school,

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<v Speaker 2>but did you know that the author, Jonathan Swift, was

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<v Speaker 2>also deeply involved in Irish politics.

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<v Speaker 4>He's a controversialist, he's a satirist, a very patriotic supporter

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<v Speaker 4>of Ireland.

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<v Speaker 2>That's Daniel Carey, professor at the University of Galway in Ireland,

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<v Speaker 2>where his work focuses on money and the economy in

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<v Speaker 2>the Enlightenment. With the success of Gulliver's Travels, Swift became

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<v Speaker 2>newly rich. With his now substantial personal wealth, Swift decided, hey,

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<v Speaker 2>why not try to do some good well.

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<v Speaker 4>Swift clearly has a sympathy with those who are trying

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<v Speaker 4>to get by dealing with you know what.

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<v Speaker 5>We would call liquidity issues.

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<v Speaker 4>They've gone debts that they have to call in, they

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<v Speaker 4>have bills that they need being repaid. He decides to

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<v Speaker 4>make person loans.

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<v Speaker 2>He approached farmers, builders and entrepreneurs he knew, offering loans

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<v Speaker 2>of five to ten pounds roughly thirteen hundred to twenty

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<v Speaker 2>six hundred dollars in today's money, and Swift didn't ask

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<v Speaker 2>for a cent of interest on these loans.

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<v Speaker 3>Swift's idea was a smashing success.

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<v Speaker 2>Soon networks of peer to peer loans began popping up

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<v Speaker 2>across Ireland, an unofficial system providing crucial liquidity and startup

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<v Speaker 2>funds to people who had no access to financial institutions.

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<v Speaker 4>It is significant in terms of enfranchising people and giving

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<v Speaker 4>them a little bit of a sense of reward for

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<v Speaker 4>what Swift thinks of as their honestry and their commitment

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<v Speaker 4>and diligences tradespeople.

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<v Speaker 2>Even as this informal system spread and its benefits became clear,

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<v Speaker 2>the British Parliament didn't formalize or ban these peer to

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<v Speaker 2>peer networks, and that lack of structure limited the scale

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<v Speaker 2>of their growth. It wasn't until seventy eight years after

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<v Speaker 2>Swift's death that Parliament passed legislation to formalize what he created.

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<v Speaker 4>The legacy for Swift is probably in systems of microcredit,

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<v Speaker 4>which for most people are relatively recent in terms of

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<v Speaker 4>their thinking about what can be achieved through supporting industrious

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<v Speaker 4>but impoverished people.

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<v Speaker 2>Fast forward to the late nineteen nineties, when online technologies

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<v Speaker 2>began to inspire a resurgence in the kind of peer

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<v Speaker 2>to peer lending that Swift made popular centuries earlier. Instead

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<v Speaker 2>of a wealthy merchant going to a farm to lend

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<v Speaker 2>a worker a few pounds, now online platforms could match

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<v Speaker 2>individual lenders with borrowers. It took nearly a decade for

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<v Speaker 2>the Securities and Exchange Commission to regulate P to P

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<v Speaker 2>lending services. Once it did, the system flourished, and today

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<v Speaker 2>the P to P market is valued at over twenty

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<v Speaker 2>six billion dollars.

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<v Speaker 4>These are just evolving systems. It takes a long time

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<v Speaker 4>to evolve that and to develop systems of trust.

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<v Speaker 2>Taken to extremes, government regulation can be the enemy of innovation,

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<v Speaker 2>stifling change. But as the history of peer to peer

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<v Speaker 2>lending shows not once, but twice. Instituting the appropriate regulation

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<v Speaker 2>can also normalize new kinds of financial practices, Innovation can accelerate,

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<v Speaker 2>and even more opportunities open up for crypto. It appears

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<v Speaker 2>that breakthrough moment has arrived.

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<v Speaker 5>I got my start in crypto about a decade ago

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<v Speaker 5>and had started working for coinbase here in Washington, d C.

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<v Speaker 5>Was really one of the few lobbyists on the ground

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<v Speaker 5>that was working on digital asset issues, crypto issues, blockchain technology.

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<v Speaker 2>This is Kara Calvert, vice president for US Policy at Coinbase.

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<v Speaker 2>As an advocate for financial innovation on Capitol Hill, Kara

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<v Speaker 2>has seen how slow regulators and institutional investors can be

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<v Speaker 2>when it comes to embracing something new like crypto.

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<v Speaker 5>When I first started working on these issues, it was

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<v Speaker 5>much more viewed through the lens of technology, and really

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<v Speaker 5>it was so new and nascent that nobody really knew

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<v Speaker 5>what to think.

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<v Speaker 2>As the crypto industry has grown, the SEC has sent

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<v Speaker 2>mixed and often confusing signals. Rather than regulating crypto through

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<v Speaker 2>new roles that treat it as the financial innovation it is,

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<v Speaker 2>the SEC has insisted crypto fits its existing set of

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<v Speaker 2>roles that approach has led to some murky and seemingly

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<v Speaker 2>arbitrary classifications. The SEC, for example, considers most digital assets

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<v Speaker 2>as securities, but not bitcoin and ethereum. Back in twenty eighteen,

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<v Speaker 2>the SEC ruled that Bitcoin and ethereum, the two most

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<v Speaker 2>popular and widely held digital currencies out there, weren't digital

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<v Speaker 2>assets at all, but quote replacements for sovereign currencies. The

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<v Speaker 2>SEC's selective regulations have resulted in a regulation by enforcement approach,

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<v Speaker 2>leading to a slew of lawsuits against crypto companies, including Coinbase.

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<v Speaker 3>In twenty twenty three.

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<v Speaker 2>The SEC alleged that Coinbase had been acting as an

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<v Speaker 2>unregistered broker. That's consistent with its view that most crypto

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<v Speaker 2>products are no different from stocks, bonds, and other securities.

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<v Speaker 2>But Coinbase and other crypto companies targeted by the SEC

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<v Speaker 2>have argued in court that digital assets are different and

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<v Speaker 2>that it doesn't make sense for them to be treated

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<v Speaker 2>the same as existing financial instruments.

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<v Speaker 5>We have been working and really tried to work with

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<v Speaker 5>regulators from the beginning. When Brian Armstrong founded this company,

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<v Speaker 5>it was to be the mostested, in, safe and secure

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<v Speaker 5>way to transact in digital assets, and in order to

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<v Speaker 5>do that, you have to work with regulators, and so

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<v Speaker 5>I think the SEC over the course of the last

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<v Speaker 5>four years had very much a yes, you can come

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<v Speaker 5>talk to us, but well, listen, we may not give

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<v Speaker 5>you anything in return.

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<v Speaker 2>Kara says that the absence of clear rules has stifled

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<v Speaker 2>industry wide progress that.

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<v Speaker 5>Created a real depression I think on innovation here in

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<v Speaker 5>the United States and ultimately resulted in a lot of

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<v Speaker 5>startups and more importantly, the investors in those startups saying,

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<v Speaker 5>let's go overseas. There's a better way to do this

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<v Speaker 5>in one of these jurisdictions, not a deregulated jurisdiction, a

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<v Speaker 5>regulated jurisdiction.

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<v Speaker 2>There have been signs that the legal tide might be turning.

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<v Speaker 2>In twenty twenty three, the SEC sued Ripple, a firm

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<v Speaker 2>which provides digital asset infrastructure to financial services companies, for

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<v Speaker 2>violating securities laws, but the judge sided with Ripple, ruling

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<v Speaker 2>that it didn't break the law when the currency it created, XRP,

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<v Speaker 2>was sold on public exchanges. The industry's momentum continued when

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<v Speaker 2>the SEC approved an ETF that tracks the price of bitcoin.

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<v Speaker 2>That was a big win for crypto custodians like Coinbase,

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<v Speaker 2>which provides custody, trading, and financing for etf issuers as

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<v Speaker 2>well as investors around the world.

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<v Speaker 5>I do think it paved the way for retail investors

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<v Speaker 5>other investors around the world to have access to our

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<v Speaker 5>very deep in liquid markets in the United States, and

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<v Speaker 5>I think that was very much a turning point for

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<v Speaker 5>many people.

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<v Speaker 2>As for Coinbase's battle with the SEC, in March twenty

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<v Speaker 2>twenty four, a Manhattan federal judge found quote the challenge

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<v Speaker 2>transactions fall comfortably within the framework that courts have used

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<v Speaker 2>to identify securities for nearly eighty years, setting the stage

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<v Speaker 2>for a jury trial. But then in January she granted

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<v Speaker 2>Coinbase's request for a pre trial review of her March

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<v Speaker 2>order by the Second Circuit. Those sorts of interlocutory appeals

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<v Speaker 2>are rarely granted. A promising sign for the industry. In

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<v Speaker 2>the meantime, it can still feel like the US is

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<v Speaker 2>in the dark ages when it comes to crypto.

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<v Speaker 5>You have seen now Europe is ahead of the United

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<v Speaker 5>States in a innovative technology which doesn't happen that often.

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<v Speaker 5>And we're actually very excited about the work in the

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<v Speaker 5>EU and working with our counterparts and with regulators In

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<v Speaker 5>the EU, they developed a very clear framework and they're

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<v Speaker 5>going to be implementing that soon. You have the UK, Singapore, Australia,

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<v Speaker 5>there are so many different countries. Roughly eighty percent of

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<v Speaker 5>G twenty and other financial hubs already have rules that

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<v Speaker 5>they're putting in place to deal with this asset class.

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<v Speaker 2>So why has the US government in comparison been so

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<v Speaker 2>slow to create a federal framework.

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<v Speaker 5>The foundational regulatory framework that we're working with in the

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<v Speaker 5>United States is frankly more complicated. We have a bifurcated

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<v Speaker 5>system where we determine what is a security and then

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<v Speaker 5>what is a non security or a commodity. And in

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<v Speaker 5>the rest of the world they don't really have that

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<v Speaker 5>type of differentiation, and that I think has allowed them

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<v Speaker 5>to move more quickly. State regular market regulators two different

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<v Speaker 5>market regulators that are in a tug of war. They

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<v Speaker 5>just don't have that in most international jurisdictions. Crypto is

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<v Speaker 5>not asking for a deregulated environment. Instead, we're asking for

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<v Speaker 5>consistent rules that actually address both the benefits of crypto

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<v Speaker 5>and of blockchain technology and the risks.

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<v Speaker 2>Today there's more hope than ever that the industry will

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<v Speaker 2>finally get the regulatory clarity that will pave the way

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<v Speaker 2>for wide scale adoption with widespread benefits for consumers and

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<v Speaker 2>investors alike. While the SEC remained reluctant to regulate crypto

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<v Speaker 2>and legal proceedings ground on in the courts, the crypto

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<v Speaker 2>industry turned its attention to the third branch of government, Congress.

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<v Speaker 3>Ahead of the twenty twenty four election.

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<v Speaker 2>Knowing what was at stake, the industry mobilized to support

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<v Speaker 2>pro crypto candidates, contributing more than one hundred and thirty

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<v Speaker 2>million dollars to election coffers. Industry advocacy groups such as

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<v Speaker 2>Stand with Crypto mobilized as well, organizing more than two

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<v Speaker 2>million crypt do advocates through grassroots efforts, and come November,

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<v Speaker 2>twice as many crypto supporters were elected to the House

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<v Speaker 2>of Representatives as anti crypto candidates. The market's response was emphatic.

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<v Speaker 2>In December, bitcoin hit the one hundred thousand dollars milestone,

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<v Speaker 2>a remarkable moment considering that just two years ago the

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<v Speaker 2>price had dipped below seventeen thousand dollars.

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<v Speaker 5>It's been a complete one eighty. You've got the most

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<v Speaker 5>pro cryptocongress, you have a president, you have Republicans and

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<v Speaker 5>Democrats all saying, all right, now we know more about

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<v Speaker 5>this industry. It is maturing. We understand what the future

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<v Speaker 5>might hold and why it's important. So I would certainly

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<v Speaker 5>say the narrative has evolved. It's matured. You have more

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<v Speaker 5>people at the table, and I think that's the exciting part.

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<v Speaker 2>Now with a new pro crypto administration in the White House,

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<v Speaker 2>new leadership at the SEC gives the industry hope for change.

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<v Speaker 5>Now. I think the SEC really has an opportunity to

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<v Speaker 5>write the rules that these are not rules that are

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<v Speaker 5>deregulatory in nature. It needs to be because the asset

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<v Speaker 5>is not identical to what we traditionally see in an

0:13:04.240 --> 0:13:09.160
<v Speaker 5>equities market. It has different characteristics, it evolves. We are

0:13:09.600 --> 0:13:13.880
<v Speaker 5>really eager and we are very optimistic that the regulators

0:13:13.960 --> 0:13:17.199
<v Speaker 5>will work together to actually come up with a framework

0:13:17.320 --> 0:13:19.520
<v Speaker 5>that looks at both the role of the SEC with

0:13:19.559 --> 0:13:22.440
<v Speaker 5>the digital assets securities and the role of the CFTC

0:13:22.520 --> 0:13:23.880
<v Speaker 5>with digital asset commodities.

0:13:24.800 --> 0:13:28.680
<v Speaker 2>The CFTC is the US Commodity Futures Trading Commission, a

0:13:28.720 --> 0:13:32.520
<v Speaker 2>government agency that's always been overshadowed by the SEC, but

0:13:32.640 --> 0:13:36.200
<v Speaker 2>under the Trump administration, the CFTC is positioned to play

0:13:36.240 --> 0:13:41.640
<v Speaker 2>a bigger role in regulation, working alongside the SEC for starters,

0:13:41.720 --> 0:13:45.840
<v Speaker 2>Congress could empower the CFTC to regulate digital assets as

0:13:45.920 --> 0:13:48.040
<v Speaker 2>commodities rather than securities.

0:13:48.480 --> 0:13:51.560
<v Speaker 5>Congress has a really important role here to ensure the

0:13:51.600 --> 0:13:56.120
<v Speaker 5>CFTC has the federal authority to regulate these spot markets

0:13:56.160 --> 0:14:00.360
<v Speaker 5>for digital assets, but also that the SEC can use

0:14:00.440 --> 0:14:02.440
<v Speaker 5>to tailor and move in the right direction. And so

0:14:02.720 --> 0:14:05.400
<v Speaker 5>the work of Congress to really make sure that we

0:14:05.480 --> 0:14:08.240
<v Speaker 5>have something in law that can withstand the test of time.

0:14:08.679 --> 0:14:11.800
<v Speaker 5>It can it can move through administration to administration, regulator

0:14:11.800 --> 0:14:12.559
<v Speaker 5>to a regulator.

0:14:13.080 --> 0:14:16.360
<v Speaker 2>Among the topics the crypto industry hopes Congress and regulators

0:14:16.400 --> 0:14:19.680
<v Speaker 2>will address is the status of stable coins. The discussion

0:14:19.720 --> 0:14:23.200
<v Speaker 2>around stable coins is only intensified with the growing possibility

0:14:23.400 --> 0:14:25.920
<v Speaker 2>of legislation that would facilitate their trading.

0:14:26.640 --> 0:14:28.920
<v Speaker 5>There are a lot of really important characteristics of stable

0:14:28.920 --> 0:14:31.480
<v Speaker 5>coins that need to be captured in a federal framework.

0:14:31.560 --> 0:14:34.160
<v Speaker 5>How we create a framework at the federal level to

0:14:34.320 --> 0:14:37.480
<v Speaker 5>ensure that folks who are issuing digital assets as stable

0:14:37.480 --> 0:14:41.880
<v Speaker 5>coins are safely protecting their reserves, are putting those reserves

0:14:41.920 --> 0:14:44.320
<v Speaker 5>in a one for one bank account or in an

0:14:44.400 --> 0:14:47.320
<v Speaker 5>equivalent of a treasury or cash, that they're holding that

0:14:47.360 --> 0:14:50.440
<v Speaker 5>in a bankruptcy remote way, that they are accounting for that,

0:14:50.480 --> 0:14:52.600
<v Speaker 5>and they are demonstrating that in a transparent way.

0:14:53.320 --> 0:14:56.680
<v Speaker 2>Another simmering subject the industry hopes Congress takes on is

0:14:56.800 --> 0:15:01.160
<v Speaker 2>d banking, the practice of lenders dropping cryptocompany and founders

0:15:01.200 --> 0:15:01.960
<v Speaker 2>as clients.

0:15:02.240 --> 0:15:04.520
<v Speaker 5>If you can't get a bank account, it's pretty hard

0:15:04.520 --> 0:15:07.320
<v Speaker 5>to start a new business. Stand with Crypto has brought

0:15:07.360 --> 0:15:10.680
<v Speaker 5>more than one hundred founders to Washington to meet with lawmakers,

0:15:10.840 --> 0:15:14.200
<v Speaker 5>and a really interesting piece of the puzzle for them

0:15:14.400 --> 0:15:17.080
<v Speaker 5>is their banking services. And in almost every meeting they

0:15:17.080 --> 0:15:20.080
<v Speaker 5>went into, they expressed concern that they couldn't have access

0:15:20.080 --> 0:15:23.160
<v Speaker 5>to payroll or checking accounts. And we said, well, would

0:15:23.240 --> 0:15:25.840
<v Speaker 5>you be willing to go raise your hand in public?

0:15:26.200 --> 0:15:29.120
<v Speaker 5>And Autumn said, well, I actually don't feel comfortable raising

0:15:29.120 --> 0:15:31.320
<v Speaker 5>my hand in public because I'm still trying to get

0:15:31.320 --> 0:15:33.960
<v Speaker 5>that bank account. I'm still trying to find somebody who

0:15:34.000 --> 0:15:36.200
<v Speaker 5>will give me those services. And if I say right

0:15:36.240 --> 0:15:38.360
<v Speaker 5>now that I can't be trusted to get a bank account,

0:15:38.440 --> 0:15:40.480
<v Speaker 5>nobody else is going to give it to me. And

0:15:40.560 --> 0:15:43.320
<v Speaker 5>so what we saw was this inability for people to

0:15:43.520 --> 0:15:45.960
<v Speaker 5>really voice their concerns and raise the issues.

0:15:48.520 --> 0:15:51.120
<v Speaker 2>But less than a month into the new administration, that's

0:15:51.200 --> 0:15:54.480
<v Speaker 2>already changing. Just a few days into his term, President

0:15:54.480 --> 0:15:58.360
<v Speaker 2>Trump issued an executive order that fundamentally changed the federal

0:15:58.400 --> 0:16:01.400
<v Speaker 2>government's approach to crypto Fulfilling a promise he made on

0:16:01.440 --> 0:16:02.600
<v Speaker 2>the campaign trail.

0:16:02.680 --> 0:16:06.720
<v Speaker 5>The executive order really encapsulated those campaign promises, everything from

0:16:06.880 --> 0:16:09.680
<v Speaker 5>ensuring that you can continue to self custody your assets,

0:16:09.760 --> 0:16:13.240
<v Speaker 5>to ensuring that there's no central bank digital currency, to

0:16:13.280 --> 0:16:15.400
<v Speaker 5>creating a working group to ensure that we stop the

0:16:15.440 --> 0:16:18.600
<v Speaker 5>turf war between the different agencies and instead have them

0:16:18.640 --> 0:16:19.280
<v Speaker 5>work together.

0:16:19.640 --> 0:16:23.240
<v Speaker 2>The new administration also quickly moved to counteract SAB one

0:16:23.320 --> 0:16:26.520
<v Speaker 2>twenty one, an SEC bulletin that prevented a lot of

0:16:26.560 --> 0:16:29.200
<v Speaker 2>financial institutions from entering the crypto space.

0:16:29.840 --> 0:16:34.600
<v Speaker 5>SAB one twenty one represents the staff accounting Bulletin number

0:16:34.600 --> 0:16:37.240
<v Speaker 5>one twenty one. Think about what that represents. It is

0:16:37.280 --> 0:16:40.640
<v Speaker 5>a staff letter, It is not a rule. It did

0:16:40.720 --> 0:16:44.800
<v Speaker 5>not go through the proper rulemaking process with notice and comment.

0:16:45.240 --> 0:16:49.560
<v Speaker 5>It was bureaucrats inside the SEC who decided to write

0:16:49.600 --> 0:16:53.440
<v Speaker 5>an accounting bulletin that then imposed a new framework on

0:16:53.520 --> 0:16:54.840
<v Speaker 5>the entire industry.

0:16:55.160 --> 0:16:57.440
<v Speaker 2>SAB one twenty one was a barrier that cut off

0:16:57.480 --> 0:17:00.760
<v Speaker 2>access to banking services for crypto companies and kept banks

0:17:00.800 --> 0:17:04.280
<v Speaker 2>out of the crypto business. Coinbase has always prided ourselves

0:17:04.280 --> 0:17:06.520
<v Speaker 2>on being one of those access points, but when we

0:17:06.560 --> 0:17:09.159
<v Speaker 2>think about the recision of ZAB one twenty one, it

0:17:09.240 --> 0:17:13.359
<v Speaker 2>really allows other banks other financial institutions to engage as well.

0:17:13.680 --> 0:17:16.240
<v Speaker 2>Within days of being appointed, the acting director of the

0:17:16.320 --> 0:17:20.360
<v Speaker 2>SEC countermanded SAB one twenty one. Just like that, one

0:17:20.359 --> 0:17:23.760
<v Speaker 2>of the major obstacles preventing banks from taking on crypto

0:17:23.760 --> 0:17:27.280
<v Speaker 2>clients vanished. Charis is it's a crucial step in allowing

0:17:27.320 --> 0:17:30.600
<v Speaker 2>banks the security they need to serve clients who hold

0:17:30.720 --> 0:17:33.679
<v Speaker 2>or deal in crypto. Nobody is telling the banks that

0:17:33.720 --> 0:17:36.840
<v Speaker 2>they need to not engage in risk analysis and make

0:17:36.880 --> 0:17:40.120
<v Speaker 2>sure that the companies that they are banking makes sense

0:17:40.119 --> 0:17:43.119
<v Speaker 2>for their own risk profiles. But ultimately we are saying

0:17:43.240 --> 0:17:46.920
<v Speaker 2>that you shouldn't punish an entire industry or an entire

0:17:46.960 --> 0:17:50.600
<v Speaker 2>class of people because of what they do. We will

0:17:50.640 --> 0:17:53.000
<v Speaker 2>continue to advocate for the industry. We will continue to

0:17:53.000 --> 0:17:53.760
<v Speaker 2>try to lead from.

0:17:53.680 --> 0:17:57.080
<v Speaker 5>The front and honestly try to make sure that everybody

0:17:57.080 --> 0:17:58.280
<v Speaker 5>can have banking services.

0:17:58.720 --> 0:18:01.800
<v Speaker 2>The industry is optimistic this newfound clarity will break down

0:18:01.840 --> 0:18:05.200
<v Speaker 2>barriers and allow Americans to understand the promise of crypto.

0:18:07.160 --> 0:18:10.080
<v Speaker 5>So right now there are about fifty two million Americans

0:18:10.160 --> 0:18:13.320
<v Speaker 5>who own crypto, So I think that there are investors

0:18:13.480 --> 0:18:17.320
<v Speaker 5>and consumers. Really the consumption, I think is what people

0:18:17.359 --> 0:18:20.679
<v Speaker 5>are excited about. The ability to say, all right, that

0:18:20.800 --> 0:18:22.520
<v Speaker 5>I want to get into this because I think it's

0:18:22.520 --> 0:18:26.280
<v Speaker 5>a new industry, it's a new way to transact. Wanting

0:18:26.320 --> 0:18:28.760
<v Speaker 5>to know more about this technology, wanting to make sure

0:18:28.800 --> 0:18:31.240
<v Speaker 5>it thrives in the US, wanting to make sure that

0:18:31.320 --> 0:18:34.359
<v Speaker 5>we can grow jobs here because we're seeing thousands of

0:18:34.440 --> 0:18:37.640
<v Speaker 5>small startups come to the market now with really interesting

0:18:37.720 --> 0:18:40.919
<v Speaker 5>ideas of how to use this technology. And that I

0:18:40.920 --> 0:18:43.399
<v Speaker 5>think that was the secret sauce over the course of

0:18:43.400 --> 0:18:46.560
<v Speaker 5>the last year and working with policymakers is showing that

0:18:46.640 --> 0:18:50.040
<v Speaker 5>this was more than a handful of individuals who were

0:18:50.520 --> 0:18:54.119
<v Speaker 5>getting rich off bitcoin and really a much broader based industry.

0:18:54.600 --> 0:18:57.679
<v Speaker 2>Crypto has proven that it's pretty much impossible to predict

0:18:57.720 --> 0:19:00.879
<v Speaker 2>the future, but the industry is optimal mystic that a

0:19:00.920 --> 0:19:02.920
<v Speaker 2>new era is beginning when we.

0:19:03.000 --> 0:19:06.240
<v Speaker 5>Start to educate policymakers. They realize eventually this will be

0:19:06.280 --> 0:19:09.200
<v Speaker 5>a ubiquitous like the Internet. But in order to get there,

0:19:09.560 --> 0:19:12.280
<v Speaker 5>we have to create the framework, and that generally starts

0:19:12.280 --> 0:19:16.000
<v Speaker 5>in the regulatory environment. That disruption isn't scary, It needs

0:19:16.000 --> 0:19:18.399
<v Speaker 5>to be embraced, and we can in fact find a

0:19:18.400 --> 0:19:23.400
<v Speaker 5>way forward that enables new economic opportunities. We're very optimistic.

0:19:26.880 --> 0:19:28.720
<v Speaker 2>Just as the growth of peer to peer lending in

0:19:28.800 --> 0:19:32.800
<v Speaker 2>Ireland far outstripped the pace of royal regulation, crypto has

0:19:32.880 --> 0:19:36.080
<v Speaker 2>burst onto the scene so fast we're only now seeing

0:19:36.119 --> 0:19:39.560
<v Speaker 2>American regulators catch up. But now there's a clear path

0:19:39.600 --> 0:19:44.480
<v Speaker 2>for regulatory clarity, unlocking a new future for companies, investors,

0:19:44.480 --> 0:19:48.640
<v Speaker 2>and consumers, and accelerating the next wave of money's evolution.

0:19:49.720 --> 0:19:52.560
<v Speaker 2>Thank you to Cara Calvert and Daniel Carey. This is

0:19:52.600 --> 0:19:56.680
<v Speaker 2>Evolving Money, a podcast from Coinbase and Bloomberg Media Studios.

0:19:57.119 --> 0:19:59.320
<v Speaker 2>If you like what you hear, subscribe and leave us

0:19:59.359 --> 0:20:01.040
<v Speaker 2>a review. I'm Maggie Lake.

0:20:01.240 --> 0:20:02.040
<v Speaker 3>Thanks for listening.