Speaker 1: The financial system as we know it just changed overnight
Speaker 1: thanks to an obscure three number rule, and bitcoin is
Speaker 1: at the center of it all. Now, for years, banks
Speaker 1: have been locked out of bitcoin because of one controversial
Speaker 1: SEC rule has been challenged and vetoed by Biden. But
Speaker 1: in a stunning turn of events, the rule's been overturned.
Speaker 1: And note this isn't just a policy shift, it's the
Speaker 1: beginning of a complete fundamental change in how bitcoin fix
Speaker 1: into the global financial system. And no matter what you
Speaker 1: know about this, you're not bullish enough. So in this video,
Speaker 1: I'm going to break down exactly what the SEC just
Speaker 1: did and why. Now I'm gonna explain why this is
Speaker 1: a much bigger deal for bitcoin than most are thinking.
Speaker 1: We're going to look at how this will impact bitcoin's
Speaker 1: value and adoption, and of course what we should be
Speaker 1: watching and paying attention to as all this unfolds. Now
Speaker 1: real quick. I'm Mark Moss. I've been making bitcoin and
Speaker 1: macro educational content for over seven years with over one
Speaker 1: hundred million views. I'm a partner of leading bitcoin hedge
Speaker 1: fund called the Bigcoin Opportunity Fund. I'm the chief visionary
Speaker 1: officer at Matador. It's a new public bitcoin company, and
Speaker 1: I helped thousands of investors like you navigate these fast
Speaker 1: moving times. And this is the exact information that we're
Speaker 1: looking at to plan our next moves, and so should you.
Speaker 1: So let's go all right, So what is this obscure
Speaker 1: three number rule we're talking about. Well, this is SAB
Speaker 1: one two one. Huh. Well what does that mean? Well,
Speaker 1: SAB staff Accounting Bulletin. And basically this was issued by
Speaker 1: the SEC, the Securities Exchange Commission back in twenty twenty two,
Speaker 1: and it established the crypto accounting standards. Now, the important
Speaker 1: thing to know about this is it was not a law,
Speaker 1: It was not a regulation. It wasn't passed through the
Speaker 1: regular means in the United States of going through Congress.
Speaker 1: This was by the SEC themselves, and so this was
Speaker 1: actually just a bulletin. It was like a note. This
Speaker 1: is like sort of what we think. And basically what
Speaker 1: it did is it set this requirement, this bulletin of
Speaker 1: how banks should think about accounting standards for bitcoin and cryptocurrency.
Speaker 1: And basically what it did is it required the banks
Speaker 1: to hold bitcoin and cryptocurrencies on their books as a liability.
Speaker 1: And that means for a liability they need to have
Speaker 1: a matching asset as well, and that created a problem
Speaker 1: for them. Now, the important thing to understand is that again,
Speaker 1: this was not a law, it was not a regulation.
Speaker 1: It was a bulletin. Now why is that, Well, that
Speaker 1: is because you have to understand this piece. It's because
Speaker 1: the by the administration, including Elizabeth Warren, including Gary Ginsler
Speaker 1: as the head of the SEC, were very very anti crypto.
Speaker 1: As a matter of fact, Elizabeth Warren ran on a
Speaker 1: platform called an anti crypto army literally figuratively. Now, I
Speaker 1: didn't understand, and I actually asked CHGBT when this came out.
Speaker 1: Win has a United States America politician ever ran on
Speaker 1: a platform to take away freedoms, which would be weird
Speaker 1: in the Land of the Free, and she bet said never.
Speaker 1: But Elizabeth Warren did. She ran platform to take away
Speaker 1: your rights to hold assets as you see fit, which
Speaker 1: is pretty interesting. So you can see Elizabeth Warren, Gary
Speaker 1: Ginsler and Biden were very anti cryptocurrency, very anti freedom.
Speaker 1: And so what happened is instead of going through the
Speaker 1: regular means of going and changing the laws, they decided
Speaker 1: to go around and do something sly and a roundabout way.
Speaker 1: And so what they did is the SEC completely bypassed Congress.
Speaker 1: So instead of going through the regular law channels of
Speaker 1: making a law, what it did is they issued this bulletin,
Speaker 1: and as bulletin said, hey, this is the risk that
Speaker 1: we see. This is what we think you should do.
Speaker 1: And you know it's not a law, but if you
Speaker 1: don't do this, be prepared for us to come in
Speaker 1: and find you and shut you down in all types
Speaker 1: of things. And so it completely bypassed Congress in that way,
Speaker 1: and it fast tracked strong Arms its implementation. Some concerns
Speaker 1: of the SEC's actions were that it had lack of
Speaker 1: due process. So because they circumvented Congress, the SEA ignored
Speaker 1: the proper process. It had regulatory overreach. So it created
Speaker 1: new laws through a threat, a threat of enforcement. So
Speaker 1: this was how the Biden regime did things. They threatened people,
Speaker 1: if they don't do what they want, then they're going
Speaker 1: to be raked through the coals. Now, in that bulletin,
Speaker 1: they showed sort of the technological risk, the legal risk,
Speaker 1: the regulatory risks that were posed. And basically what they
Speaker 1: said here is this was required, required, required, required, So
Speaker 1: they're telling you, if you don't do this, be prepared,
Speaker 1: were coming after you. So guess what happened, Well, the
Speaker 1: banks didn't get involved. They wanted to, and the banks
Speaker 1: started missing out. The banks saw everybody making all this
Speaker 1: money in bigcoin and cryptocurrencies. Of course they wanted in,
Speaker 1: but they couldn't because they were fearful of what the
Speaker 1: SEC would do. And so then what do the banks do. Well,
Speaker 1: if we can't make money, then we're not going to
Speaker 1: let anybody participate. And so you saw things where the
Speaker 1: banks were potentially not letting you transfer money from the
Speaker 1: bank to an extra he's like coinbase for example, like
Speaker 1: my own bank, one of the banks I use won't
Speaker 1: let me transfer money so for example. But the problem
Speaker 1: is the banks were losing customers. They could see people
Speaker 1: pulling money out and send it to cryptocurrency exchanges, and
Speaker 1: banks were very sticky. They don't want to lose those
Speaker 1: customers because they'll lose out a lot of potential income.
Speaker 1: Now again, they wanted to switch over, but they were
Speaker 1: fearful of this hostile administration again, Gensler, Biden, and Warren.
Speaker 1: So what did they do? Well, they did what you're
Speaker 1: supposed to do in America, which is they started to
Speaker 1: have a legislative movement, and they submitted a bill to
Speaker 1: get SAB one two one recinded so the sec wouldn't
Speaker 1: have this hanging over their head. And they got it
Speaker 1: through last year through the Senate. The Senate approved it,
Speaker 1: they got it through the House, the House approved to
Speaker 1: repeal it. Then it got all the way to Biden's
Speaker 1: desk and he vetoed it. So the will of the
Speaker 1: American people, the Banks, the Senate, the House all said
Speaker 1: get rid of this bulletin. You shouldn't have that power.
Speaker 1: And the president, President Biden vetoed it, or whoever had
Speaker 1: his stamp at the time, we don't know. So basically
Speaker 1: what happened you can see here Biden veto's the resolution
Speaker 1: to overturn it. This was last year with Biden's angry face.
Speaker 1: Like I said, probably wasn't him. So what happened then, Well,
Speaker 1: the American people voted and they got Biden out and
Speaker 1: they put Trump in. Trump came in. He gave this
Speaker 1: speech at Bitcoin conference in Nashville last year. I got
Speaker 1: to speak on the main stage about two hours before
Speaker 1: Trump showed up. I tried to stay backstage to see
Speaker 1: him when he showed up, but they wouldn't let me.
Speaker 1: But I got to watch this stage, this presentation from
Speaker 1: the front of the stage, and he basically said, fire
Speaker 1: Gary Ginsler. On day one he said, we've seen all
Speaker 1: the persecution that's happened to the bitcoin and cryptocurrency space
Speaker 1: by the SEC, and we're going to get rid of it.
Speaker 1: We're going to fire him. So the American people spoke
Speaker 1: as it's supposed to be done, and Trump came in.
Speaker 1: Now this is where things get interesting, and not just interesting,
Speaker 1: but very powerful. So here comes the Bank. So what
Speaker 1: happened is Trump has so far kept his word. He's
Speaker 1: done a lot of things he said he was going
Speaker 1: to do, like, for example, close the borders. He freed
Speaker 1: Ross on day one, and he got rid of Gary
Speaker 1: Ginsler at the head of the SEC. So he stepped
Speaker 1: down and immediately SAB one two one was rescinded. The
Speaker 1: very thing that was holding the banks back, the financial
Speaker 1: system back, the very thing that they tried to get
Speaker 1: rid of that Biden wouldn't let go of. It's over
Speaker 1: so the bank. So that's been rescinded, and now the
Speaker 1: banks are coming with adoption. You can see breaking SEC
Speaker 1: officially rescinds SAB one twenty one, which prevented banks from
Speaker 1: custodying bitcoin. So if the banks can custody bitcoin, that
Speaker 1: means now they could hold it on behalf of their customers.
Speaker 1: They could sell it to their customers. They could sell
Speaker 1: it and hold it. They could do all types of
Speaker 1: financial products, lending products, hedging products, all types of financial products,
Speaker 1: which of course is what they want to do. Now.
Speaker 1: If the banks do this, this brings adoption. Why well,
Speaker 1: for a couple of reasons. Number one, it makes it
Speaker 1: accessible two millions, millions, hundreds of millions of people. People
Speaker 1: already have bank accounts. If I can just click a
Speaker 1: button and add bitcoin in my bank account, it makes
Speaker 1: it very easy, very accessible. Number two, it adds legitimacy
Speaker 1: and trust. I mean, I don't know about this magic
Speaker 1: internet money. I don't know about this exchange. I mean,
Speaker 1: I got to set up this account and I somehow
Speaker 1: have to send them money. Seems kind of sketchy. But
Speaker 1: if my money is already in my bank who I
Speaker 1: trust Wells Fargo, Chase, Bank of America, and I can
Speaker 1: click a button to add bitcoin, it adds legitimacy and trust.
Speaker 1: I trust the bank to hold my money. I can
Speaker 1: trust the bank to hold my bitcoin. It also then,
Speaker 1: as I said, allows the banks to introduce all types
Speaker 1: of new products they want to do this. Let me
Speaker 1: show you exactly what they're saying. We just saw the
Speaker 1: World Economic Forum was being held in Davos, and of
Speaker 1: course all the world leaders, including the banksters, were all
Speaker 1: there at Davos. David Solomon, the CEO of Goldman Sachs,
Speaker 1: one of the largest, most prestigious, most influential financial firms
Speaker 1: in the world, said, at the moment, from a regulatory perspective,
Speaker 1: we can't own bitcoined. This was a few weeks ago
Speaker 1: previous to this being rescinded. He said, But but if
Speaker 1: the world changes, which it just did, we can have
Speaker 1: a discussion about it. So he's saying, look, we'd love
Speaker 1: to get into it, but we can't. But if it changes,
Speaker 1: we're all about it. That's what he's saying. Okay, that's
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Speaker 1: com slash podcast. Well we have right here Morgan Stanley,
Speaker 1: CEO Ted Pick said, we'll be working with Treasury and
Speaker 1: I have the regulators to figure out how keyword, how
Speaker 1: how we can offer crypto services in a safe way. Well,
Speaker 1: they don't have to anymore because it's been rescinded and
Speaker 1: they're ready to come in hard and heavy. Now, speaking
Speaker 1: of hard and heavy, we have here a message from
Speaker 1: Bank of America CEO Brian moynihan. He said, if the
Speaker 1: rules come in and make it a real thing, you
Speaker 1: can actually do business with, which you just did, you'll
Speaker 1: find that the banking system will come in hard. Quote,
Speaker 1: come in hard. What does hard mean? Well, I have
Speaker 1: some numbers for you, he says, they're going to come
Speaker 1: in hard. So Goldman, Sachs, Morgan Stanley, Bank of America,
Speaker 1: some of the biggest banks in the world are coming
Speaker 1: in hard. But what does hard really mean. Well, here
Speaker 1: we have Blackrock, not arguably the biggest financial firm in
Speaker 1: the world. I think eleven and a half trillion dollars
Speaker 1: in assets Blackrock, it's not their money. It's not eleven
Speaker 1: and a half trillion dollars with their money. It's your money.
Speaker 1: It's your pension, your retirement fund. They manage it on
Speaker 1: your behalf. Blackrock is now telling everybody that they manage
Speaker 1: money for that They recommend bitcoin portfolio waiting of up
Speaker 1: to two percent. Up to two percent, the largest financial
Speaker 1: firm in the world, who manages more money for more
Speaker 1: people than anybody else, is saying that everyone should have
Speaker 1: about a two percent waiting to bitcoin. That's what hard
Speaker 1: looks like. Now, what would a two percent waiting mean? Well,
Speaker 1: the head of Blackrock, Larry Fink, just happened to tell us.
Speaker 1: He said that I was with a sovereign wealth fund
Speaker 1: during this week and Davos, and there was a conversation
Speaker 1: should we have a two percent allocation or should we
Speaker 1: have a five percent? Not should we have one or not?
Speaker 1: But it's how big should it be two percent or
Speaker 1: should it be five percent? And he said that if
Speaker 1: everybody adopted that conversation. When he says everybody, what he's
Speaker 1: talking about is if all the big funds, not every
Speaker 1: single person in the world, but all the big funds.
Speaker 1: If if everybody, if the funds would do that, if
Speaker 1: they'd have that conversation, we'd see bitcoin up to seven
Speaker 1: hundred thousand dollars per bitcoin. So that's seven hundred thousand
Speaker 1: potentially a future value, and you can buy it for
Speaker 1: one hundred thousand today. Seems like a pretty good deal.
Speaker 1: I think Larry Fink is bullish, but maybe he's still
Speaker 1: not bullish enough. All right, let's keep going now. The
Speaker 1: reason why he may not be bullish enough is because
Speaker 1: you have to understand this isn't just that SAB one
Speaker 1: two one was recented, which it was. What this is
Speaker 1: it's really a signal. It's a shift, it's a fundamental transformation,
Speaker 1: it's a regime shift. We got the entire whatever you
Speaker 1: want to call it Obama Biden administration. That regime is
Speaker 1: out and we have a new regime in that's completely different.
Speaker 1: How different, Well, Gensler, Gary Ginsler, Elizabeth Warren, the anti
Speaker 1: crypto army, they're out and instead taking Ginsler's place is
Speaker 1: Hester Pierce. Now, Hester Pierce has been with the SEC
Speaker 1: for a long time. She has been one of the
Speaker 1: only people at the SEC that's been friendly to crypto.
Speaker 1: She's been this voice of reason, if you will, trying
Speaker 1: to speak on behalf of the people. So much in
Speaker 1: fact that hester Pierce has been labeled crypto Mom. Now
Speaker 1: Ginsler is out, and guess who took his place, none
Speaker 1: other than crypto Mom Hester Pierce. As a matter of fact,
Speaker 1: we also have David Sachs, a well known crypto advocate
Speaker 1: who has now become Trump's cryptos are. So we have
Speaker 1: a huge crypto advocate as the cryptos are. We have
Speaker 1: Crypto Mom taking over the SEC, and we have Trump
Speaker 1: who came in and used an executive order to get
Speaker 1: rid of Operation choke Point. And Operation choke Point was
Speaker 1: this u SEC basically regulation, well not regulation, but they
Speaker 1: were attacking banks and other financial institutions sort of unconstitutionally
Speaker 1: and that is gone. You can see here this article
Speaker 1: from Bloomberg says, the SEC launches Crypto Task Force, led
Speaker 1: by crypto mom Hester Pierce. So they're going to develop
Speaker 1: a clear framework for crypto and they're going to do
Speaker 1: it the right way. They're going to coordinate with Congress
Speaker 1: as well as well as other agencies. So not like
Speaker 1: with the SECD before, which was this inrun around Congress,
Speaker 1: They're going to work directly with Congress. This is a
Speaker 1: big deal. This is a regime shift. On top of that,
Speaker 1: as I said, Trump did some executive orders executive order
Speaker 1: sidelines the FED and its sidelines the FDIC, like get
Speaker 1: out of the way. We're doing this right, we're doing this.
Speaker 1: This is the end of Operation Choke point two point zero.
Speaker 1: No longer will they do these unconsc titutional moves. If
Speaker 1: cryptocurrency and bit one is legal in the United States,
Speaker 1: as an American, you should have the right to do this.
Speaker 1: Now if you're not in the United States, what does
Speaker 1: this mean to you, Well, the US is a pretty
Speaker 1: big influential country and most likely this will trickle down
Speaker 1: to your country as well. But regardless, this is going
Speaker 1: to bring the boat up for everybody in the world.
Speaker 1: And again, this is not just about banks holding bitcoin
Speaker 1: as a custody. This is an entire regime shift. Do
Speaker 1: you understand what I'm talking about now? If you've been
Speaker 1: watching my videos for any time, then you know that
Speaker 1: this fits perfectly into the fifty year quantum wave framework
Speaker 1: that I've been talking about for a long time. We're
Speaker 1: in this fifty year cycle. There's four distinct phases now,
Speaker 1: as I've shown many times, Phase one right here is
Speaker 1: where retail comes in. This is where the big bang happens.
Speaker 1: All the retail comes in, the developers come in, the
Speaker 1: nerds that like the Playo technology come in. Phase two,
Speaker 1: which is where we're at right here, is the largest
Speaker 1: part of the cycle. It's what we call the surge.
Speaker 1: And this represents what I call the institutional phase or
Speaker 1: the frenzy phase. So for those of you who are
Speaker 1: watching this thinking it's too late, I should have bought
Speaker 1: bickcoin when it was ten cents or one thousand or
Speaker 1: ten thousand, know that right now is still early. We
Speaker 1: still have the biggest part of the move right here
Speaker 1: in front of us. And so what's interesting is this
Speaker 1: fifty year framework that's happened. Now this is the sixth
Speaker 1: time in three hundred years we happen to have the
Speaker 1: news of the regime change, the Trumpet administration. That fits
Speaker 1: in perfectly with this entire framework. Now you can see
Speaker 1: we can also overlay something that we use in technology
Speaker 1: to measure adoption called an S curve, and we can
Speaker 1: also see that the time it takes to go from
Speaker 1: zero to ten percent adoption is the same time it
Speaker 1: takes to go from ten percent to full adoption, which
Speaker 1: is generally eighty or ninety percent. And you can see
Speaker 1: this is a parabolic run that we have in front
Speaker 1: of us. And again this shift fits in perfectly with that.
Speaker 1: Now we can see this is a little bit of
Speaker 1: an older chart. These are slides from a video I
Speaker 1: gave over an Abu Dhabi about a month ago called
Speaker 1: Abu Dhabi is the capital of capital. Some of the
Speaker 1: richest people in the world were there and we saw
Speaker 1: then that institutions were coming for bitcoin. As a matter
Speaker 1: of fact, at that time, over sixty public trade institutions
Speaker 1: were already holding bitcoin in their balance sheet. Today it's
Speaker 1: almost one hundred. In like a month, it's almost doubled.
Speaker 1: That's how quickly this is coming. If you want to
Speaker 1: watch the full video from this, we'll link it down below.
Speaker 1: You can watch this whole video, see all these slides.
Speaker 1: It's pretty compelling if I do say myself. We'll link
Speaker 1: to that down below. And if you'd like to know
Speaker 1: how we invest through this, what types of assets when
Speaker 1: we be buying during this part of the cycle, I'm
Speaker 1: having a free live event. We'll all go through a
Speaker 1: number of charts and you can see exactly what history
Speaker 1: tells us about this. It's free. If you want to
Speaker 1: come hang out, we'll do live Q and A. I'll
Speaker 1: put a link to that down below as well. But
Speaker 1: this is a big deal. Now let's think about this
Speaker 1: from a few different ways and get ready for impact.
Speaker 1: So on a short basis, we want to be thinking
Speaker 1: about this being more about sentiment. So we're going from
Speaker 1: like this aggressive stance where we're basically trying to penalize
Speaker 1: it and shut it down to now legitimizing it. Right,
Speaker 1: we have an administration that's now very pro bitcoin, so
Speaker 1: this starts to change the mental sentiment. Now, don't be
Speaker 1: alarmed if we see the volatility in front of us.
Speaker 1: This doesn't mean that the price of bitcoin is going
Speaker 1: to double overnight, but we'll start to see this sentiment
Speaker 1: shift as more people coming in. Now, this just allowed
Speaker 1: the banks to clear the way. It takes time for
Speaker 1: them to build products and launch products, so be patient.
Speaker 1: But over the long term, we're talking about potentially hundreds
Speaker 1: of billions of dollars of capital coming in. Now, let's
Speaker 1: put this into perspective. We got bitcoin ETFs about a
Speaker 1: year ago. We've had less than one hundred billion dollars
Speaker 1: of capital come in to the ETFs, but yet the
Speaker 1: price of bitcoin, the market cap has gone up by
Speaker 1: more than a trillion dollars. So one hundred billion equals
Speaker 1: trillion dollars in market app what happens if a few
Speaker 1: hundred billion come in? You can do the math. That's
Speaker 1: more long term, which again fits perfectly into this thesis.
Speaker 1: But some people are afraid that there's risks. Some people
Speaker 1: are afraid that if the banks come in, this leads
Speaker 1: to manipulation. If they own all the bitcoin, what if
Speaker 1: they start to suppress the price like they've done with
Speaker 1: gold and things like that. Well, what I would say is,
Speaker 1: think about this from a different perspective. Think about this
Speaker 1: from a game theory, or maybe a psychological standpoint. If
Speaker 1: the banks are itching to get in because they want
Speaker 1: to make a bunch of money from you, if they
Speaker 1: want to have more ETFs, well, the only reason they're
Speaker 1: going to buy the ETFs or buy the bitcoin is
Speaker 1: if the price goes up. If they starting to manipulate
Speaker 1: it to push the price down, you wouldn't be buying it.
Speaker 1: What would be the point of that, And so I
Speaker 1: would just have you think about that. I think the
Speaker 1: risk of manipulation is very low. All right, now, what
Speaker 1: do we want to do? We want to be watching
Speaker 1: this as it develops. A couple things. One, we want
Speaker 1: to watch the big banks, the JP, Morgan's City Banks,
Speaker 1: the Bank of America has already told you what they're saying.
Speaker 1: They're coming, but we want to watch for this, right.
Speaker 1: We also want to watch the SEC because this isn't
Speaker 1: done yet. This is only the beginning. At this point,
Speaker 1: at the time I'm recording this, we're only not even
Speaker 1: a week into this new regime, this new administration. They're
Speaker 1: not done yet. They are going to completely open this up.
Speaker 1: The United States is going to become the capital of
Speaker 1: bitcoin and digital assets right here in America. But it's
Speaker 1: gonna also take Global Liquity. So, as I said, just
Speaker 1: because this is happening doesn't mean the price got double overnight.
Speaker 1: The main driver in the driver's seat is Global Liquity.
Speaker 1: If you want me to do a whole video on that,
Speaker 1: leave me a note in the comments down below. Global
Speaker 1: equity is the driver for all assets, specifically risk assets
Speaker 1: that are sensitive like bitcoins. We want to definitely watch that.
Speaker 1: But I do want to leave you with the thought,
Speaker 1: and that is that we are at the doorstep right now.
Speaker 1: This is a moment in time. Remember this the doorstep
Speaker 1: of the single biggest migration of capital. All the money
Speaker 1: is in the old legacy system and it's all migrating
Speaker 1: over to the new system, an adoption into the digital
Speaker 1: asset space. And no one has seen something this big
Speaker 1: ever happened before, and we are lucky enough to be
Speaker 1: alive watching it right now. All right, let me know
Speaker 1: what you think, Let me comment down below. Are you
Speaker 1: expecting this to be as big as I am? Let
Speaker 1: me know in the comics down below, all right. And
Speaker 1: other than that, so I got to your success, I'm
Speaker 1: out