1 00:00:02,480 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,880 --> 00:00:10,880 Speaker 2: You are coming off a big year. Coinbase joined the 3 00:00:10,920 --> 00:00:15,520 Speaker 2: S and P five hundred Congress asherdon first federal framework 4 00:00:15,760 --> 00:00:19,080 Speaker 2: for stable coins. I walked past your house in Davos 5 00:00:19,079 --> 00:00:21,439 Speaker 2: and it said the future of finance is here. 6 00:00:21,880 --> 00:00:23,520 Speaker 3: Thank you for repeating the slogan. 7 00:00:24,440 --> 00:00:26,239 Speaker 2: Is it really really here though? Or is there a 8 00:00:26,280 --> 00:00:26,920 Speaker 2: long ways to go? 9 00:00:27,360 --> 00:00:30,880 Speaker 1: It is here. Twenty twenty five was a massive year 10 00:00:30,920 --> 00:00:33,839 Speaker 1: for cryptos. We started to get regulatory clarity finally in 11 00:00:33,880 --> 00:00:36,519 Speaker 1: the US, so we got the Genius Act passed. In 12 00:00:36,560 --> 00:00:38,920 Speaker 1: the wake of that, we saw two hundred companies announced 13 00:00:38,920 --> 00:00:43,840 Speaker 1: stable coin integrations. Financial institutions are adopting this at an 14 00:00:43,880 --> 00:00:47,239 Speaker 1: insane rate. We now power crypto infrastructure for five of 15 00:00:47,280 --> 00:00:50,000 Speaker 1: the top twenty largest banks in the world. 16 00:00:50,680 --> 00:00:52,080 Speaker 3: It's not just a US phenomenon. 17 00:00:52,120 --> 00:00:55,760 Speaker 1: We're seeing incredible adoption of crypto in emerging markets where 18 00:00:55,800 --> 00:00:58,840 Speaker 1: people have high inflation and stable coins are on a tear. 19 00:00:59,200 --> 00:01:01,440 Speaker 1: Not to mention prediction markets, et cetera, et cetera. So 20 00:01:02,160 --> 00:01:04,560 Speaker 1: I do think that we're to break out moment for 21 00:01:04,600 --> 00:01:07,080 Speaker 1: crypto and yeah, it's a big opportunity. 22 00:01:07,319 --> 00:01:10,520 Speaker 2: So who is your second year en Davos, right, Yeah, 23 00:01:10,560 --> 00:01:12,720 Speaker 2: who are you meeting with? What are your priorities? 24 00:01:13,280 --> 00:01:14,520 Speaker 3: Yeah, for twenty. 25 00:01:14,200 --> 00:01:17,039 Speaker 1: Twenty six, Well, we're meeting with world leaders to talk 26 00:01:17,040 --> 00:01:19,680 Speaker 1: about economic freedom and how crypto can help update their 27 00:01:19,680 --> 00:01:23,080 Speaker 1: financial system. We're meeting with central bank governors talk about 28 00:01:23,120 --> 00:01:25,319 Speaker 1: what they should do with stable coins. But probably the 29 00:01:25,319 --> 00:01:27,800 Speaker 1: most interesting one group that I'm meeting with here are 30 00:01:27,920 --> 00:01:32,000 Speaker 1: other bank CEOs. Because we are having this moment in 31 00:01:32,080 --> 00:01:36,119 Speaker 1: DC about getting market structured legislation passed, and the bills 32 00:01:36,160 --> 00:01:38,360 Speaker 1: made good progress. It got a strong bipartisan vote in 33 00:01:38,440 --> 00:01:40,640 Speaker 1: the House. It's now being deliberated in the Senate. And 34 00:01:40,680 --> 00:01:42,080 Speaker 1: there was a little bit of a blow up last 35 00:01:42,080 --> 00:01:43,360 Speaker 1: week and a little bit. 36 00:01:43,280 --> 00:01:46,000 Speaker 2: Of a blow up. Oh right, let's go there. Yeah, 37 00:01:46,080 --> 00:01:48,640 Speaker 2: it wasn't It seemed a big like a big blowout. 38 00:01:48,640 --> 00:01:51,160 Speaker 2: But you pulled your support for the bill for. 39 00:01:51,200 --> 00:01:52,080 Speaker 3: That current draft. 40 00:01:52,200 --> 00:01:56,680 Speaker 1: Yes, yes, Why, well, there was too many giveaways to tradify. 41 00:01:56,960 --> 00:02:00,680 Speaker 3: If I can say that, our view is that there should. 42 00:02:00,440 --> 00:02:03,480 Speaker 1: Be a level playing field for this is allowed, this 43 00:02:03,600 --> 00:02:05,800 Speaker 1: is not allowed, And then all the US companies compete 44 00:02:06,240 --> 00:02:09,880 Speaker 1: and banks didn't like that. They were in my view, 45 00:02:10,120 --> 00:02:12,240 Speaker 1: like the commercial sides of these banks are very smart 46 00:02:12,280 --> 00:02:14,000 Speaker 1: and the CEOs get it, and they're talking to us 47 00:02:14,000 --> 00:02:18,760 Speaker 1: about integrating crypto. The bank lobbying groups and bank associations 48 00:02:19,000 --> 00:02:21,400 Speaker 1: are out there trying to ban their competition, and I 49 00:02:21,440 --> 00:02:22,760 Speaker 1: have zero tolerance for that. 50 00:02:23,040 --> 00:02:24,040 Speaker 3: I think it's un American. 51 00:02:24,680 --> 00:02:27,520 Speaker 1: It harms consumers, and the banks need competition, they need 52 00:02:27,560 --> 00:02:29,960 Speaker 1: to innovate. We also saw this from some of the 53 00:02:30,000 --> 00:02:33,920 Speaker 1: securities broker lobbying groups, because you know, tokenized equities are 54 00:02:33,919 --> 00:02:36,040 Speaker 1: a big thing happening in crypto. So there was three 55 00:02:36,160 --> 00:02:38,280 Speaker 1: or four kind of redline issues we saw in the 56 00:02:38,320 --> 00:02:40,280 Speaker 1: draft text. And as I was in DC that day 57 00:02:40,320 --> 00:02:43,560 Speaker 1: meeting with members of the Senate, I asked them, Okay, 58 00:02:43,600 --> 00:02:45,679 Speaker 1: is there a path to fix this after it comes 59 00:02:45,680 --> 00:02:48,280 Speaker 1: out of committee? And they basically told me behind closed doors, 60 00:02:48,720 --> 00:02:50,720 Speaker 1: if this comes out of committee where a bipartisan vote, 61 00:02:50,760 --> 00:02:52,800 Speaker 1: we can't really help you on the full Senate floor. 62 00:02:53,200 --> 00:02:55,240 Speaker 1: And so I felt like I had to stand up 63 00:02:55,280 --> 00:02:59,040 Speaker 1: and say something defending our customers' rights. And I was 64 00:02:59,080 --> 00:03:01,280 Speaker 1: careful not to appunt on what the Senate should do 65 00:03:01,360 --> 00:03:03,280 Speaker 1: in terms of a markup or not, and I was 66 00:03:03,280 --> 00:03:05,359 Speaker 1: careful not to say anything. We don't represent the whole 67 00:03:05,400 --> 00:03:07,720 Speaker 1: crypto industry, but from a coinbase point of view. I 68 00:03:07,800 --> 00:03:10,600 Speaker 1: was not comfortable with the draft text as written, and 69 00:03:10,680 --> 00:03:13,600 Speaker 1: I'm glad that everyone came back for another round of negotiation. 70 00:03:14,120 --> 00:03:16,840 Speaker 2: Well, other people have been saying stuff, so since we've 71 00:03:16,960 --> 00:03:20,320 Speaker 2: we're going here now. A journalist from Crypto in America said, 72 00:03:20,320 --> 00:03:23,240 Speaker 2: a White House source told her this is President Trump's bill, 73 00:03:23,480 --> 00:03:25,760 Speaker 2: not Brian Armstrong's spill at the end of the day, 74 00:03:25,760 --> 00:03:27,480 Speaker 2: and that the White House is going to pull out 75 00:03:27,480 --> 00:03:28,919 Speaker 2: if you don't come back to the table you push 76 00:03:29,000 --> 00:03:31,120 Speaker 2: back on this. What's really happening? 77 00:03:31,800 --> 00:03:33,600 Speaker 3: Oh yeah, I mean this is not our bill. 78 00:03:34,520 --> 00:03:36,600 Speaker 1: Actually, I give all the credit really to the Senate, 79 00:03:36,640 --> 00:03:39,280 Speaker 1: and certainly President Trump has said that this is a 80 00:03:39,280 --> 00:03:42,920 Speaker 1: core part of his crypto agenda. So my impression is 81 00:03:42,960 --> 00:03:45,320 Speaker 1: that the White House is fully leaned in here and 82 00:03:45,360 --> 00:03:47,360 Speaker 1: wants to get something done, as do we, as do 83 00:03:47,600 --> 00:03:50,680 Speaker 1: the bank CEOs that I met with today. So I'm 84 00:03:50,720 --> 00:03:53,600 Speaker 1: not seeing any real barriers here. There's some people who 85 00:03:53,640 --> 00:03:55,120 Speaker 1: are a little grumpy. I think they got caught off 86 00:03:55,160 --> 00:03:58,880 Speaker 1: guard that we didn't support the draft as is. But 87 00:03:59,440 --> 00:04:02,000 Speaker 1: it's kind of like that metaphor of you know, three 88 00:04:02,000 --> 00:04:04,280 Speaker 1: blind people looking at an elephant and everyone's trying to 89 00:04:04,280 --> 00:04:07,320 Speaker 1: figure out. You know, there's probably somebody in the ministration 90 00:04:07,360 --> 00:04:08,920 Speaker 1: who had that point of view, but that's not the 91 00:04:08,960 --> 00:04:11,320 Speaker 1: people we're speaking with. I don't think have taken that approach. 92 00:04:11,400 --> 00:04:13,120 Speaker 1: They actually very much want to get this done. 93 00:04:13,240 --> 00:04:16,479 Speaker 2: Now there's this ongoing fighter about whether platforms can reward 94 00:04:16,520 --> 00:04:20,359 Speaker 2: customers for holding sable coins, which coin is does The 95 00:04:20,440 --> 00:04:24,080 Speaker 2: banks have argued this is a deposit flight risk. Is 96 00:04:24,080 --> 00:04:26,360 Speaker 2: that the real sticking point? And what do you think 97 00:04:26,360 --> 00:04:28,359 Speaker 2: about the flight risk concern? 98 00:04:28,880 --> 00:04:31,480 Speaker 1: Yeah, so that's certainly one of the core parts of 99 00:04:31,520 --> 00:04:34,599 Speaker 1: the debate. I think that some of the bank CEOs 100 00:04:34,600 --> 00:04:36,800 Speaker 1: I've spoken with have kind of said, hey, we have 101 00:04:37,400 --> 00:04:41,240 Speaker 1: this really high regulatory burden with being a bank, and 102 00:04:41,600 --> 00:04:43,440 Speaker 1: what you're doing kind of looks like a bank, and 103 00:04:43,480 --> 00:04:45,080 Speaker 1: so we think it's super unfair you should have to 104 00:04:45,080 --> 00:04:48,159 Speaker 1: have a bank license too. And what I tell them is, well, 105 00:04:48,240 --> 00:04:50,880 Speaker 1: we're not doing something very important that you do. We 106 00:04:50,920 --> 00:04:54,080 Speaker 1: do not do fractional reserve lending, which means, for those 107 00:04:54,080 --> 00:04:55,880 Speaker 1: who don't know, you know, at a bank you deposit 108 00:04:55,960 --> 00:04:59,240 Speaker 1: your funds, they're not keeping your money there, they're actually 109 00:04:59,320 --> 00:05:01,800 Speaker 1: lending it out, earning interest on that, and then they 110 00:05:02,240 --> 00:05:04,440 Speaker 1: pay you a very small percentage of that, like the 111 00:05:04,480 --> 00:05:07,240 Speaker 1: average savings account makes like fourteen basis points or something, 112 00:05:07,680 --> 00:05:09,200 Speaker 1: and that's called net interest margin. 113 00:05:09,240 --> 00:05:10,679 Speaker 3: And that's the whole bank business model. 114 00:05:10,680 --> 00:05:12,839 Speaker 1: And so that's why they have such high regulatory burden, 115 00:05:13,040 --> 00:05:14,680 Speaker 1: because there can be a run on the bank, Like 116 00:05:14,680 --> 00:05:17,520 Speaker 1: your money is not all there in a crypto world, 117 00:05:18,520 --> 00:05:21,200 Speaker 1: there's a one hundred percent reserve, so all your money 118 00:05:21,240 --> 00:05:23,720 Speaker 1: is there. It eliminates this entire category of risk around 119 00:05:23,760 --> 00:05:26,400 Speaker 1: a bank run. No such thing as possible if there's 120 00:05:26,400 --> 00:05:28,760 Speaker 1: one hundred percent of the money there. And so we 121 00:05:28,839 --> 00:05:31,760 Speaker 1: don't need a bank license. We're regulated by the SEC, 122 00:05:31,880 --> 00:05:35,160 Speaker 1: the CFTC. We you know, we have a National Trust Charter, 123 00:05:35,360 --> 00:05:37,960 Speaker 1: like there's different entities and stable coin issuers can operate 124 00:05:38,040 --> 00:05:41,320 Speaker 1: under these models as well. And so we've kind of said, 125 00:05:42,200 --> 00:05:45,240 Speaker 1: you know, we don't need a bank license. That's what 126 00:05:45,320 --> 00:05:47,440 Speaker 1: currently already exists in the law. The Genius Act even 127 00:05:47,480 --> 00:05:50,560 Speaker 1: enshrined that further. And so there has to be some 128 00:05:50,600 --> 00:05:52,920 Speaker 1: other solution here. How do we flip the banks from 129 00:05:52,920 --> 00:05:55,200 Speaker 1: thinking of this as a threat to an opportunity where 130 00:05:55,240 --> 00:05:56,039 Speaker 1: we can all go win. 131 00:05:56,600 --> 00:06:01,280 Speaker 2: Let's talk about the opportunity. You know, we started off 132 00:06:01,279 --> 00:06:04,000 Speaker 2: talking about how crypto has had a lot of momentum lately. 133 00:06:04,440 --> 00:06:06,360 Speaker 2: A lot of that was when crypto was on a tear. 134 00:06:06,480 --> 00:06:08,880 Speaker 2: The markets have definitely pulled back over the last couple 135 00:06:08,920 --> 00:06:11,160 Speaker 2: of months. So here, I know this is always your 136 00:06:11,160 --> 00:06:13,800 Speaker 2: favorite question, but is winter coming? 137 00:06:15,720 --> 00:06:18,400 Speaker 1: Well, there's always short term fluctuations in crypto, but I 138 00:06:18,400 --> 00:06:20,400 Speaker 1: think you know, if you look over the last two years, 139 00:06:20,560 --> 00:06:23,880 Speaker 1: bitcoin's up like one hundred percent, pretty great outcome for 140 00:06:23,920 --> 00:06:26,520 Speaker 1: anybody who invested. You know, I've said publicly I think 141 00:06:26,560 --> 00:06:28,839 Speaker 1: that bitcoin could hit a million dollars by twenty thirty. 142 00:06:29,000 --> 00:06:31,520 Speaker 1: I still think that's true. So whatever happens in any 143 00:06:31,560 --> 00:06:33,600 Speaker 1: given week or month, you know, we try it to 144 00:06:33,640 --> 00:06:36,440 Speaker 1: track it too much. It's the longer term trend that 145 00:06:36,440 --> 00:06:37,160 Speaker 1: I think is interesting. 146 00:06:37,200 --> 00:06:38,880 Speaker 2: So bitcoin hit an all time high last year one 147 00:06:38,960 --> 00:06:41,480 Speaker 2: twenty five, one hundred twenty five thousand. What about twenty 148 00:06:41,520 --> 00:06:43,440 Speaker 2: twenty six. Let's do a shorter term for horizon. Where 149 00:06:43,480 --> 00:06:44,839 Speaker 2: is it going in twenty twenty six? 150 00:06:45,000 --> 00:06:46,599 Speaker 1: Well, you know, I don't like to make short term 151 00:06:46,600 --> 00:06:50,080 Speaker 1: predictions because who knows. It's the market, you know, short 152 00:06:50,120 --> 00:06:52,960 Speaker 1: term voting machine, long term wing machine, or whatever. So 153 00:06:53,760 --> 00:06:56,960 Speaker 1: I think I don't think people should be like day trading, 154 00:06:57,120 --> 00:06:59,720 Speaker 1: you know, unless you really want to do that. 155 00:07:00,080 --> 00:07:01,719 Speaker 3: I'm more of a buy and hold kind of guy. 156 00:07:01,560 --> 00:07:04,280 Speaker 1: For the long term, and I think that the cool 157 00:07:04,279 --> 00:07:07,000 Speaker 1: thing about bitcoin is that it doesn't unlike fiat currency. 158 00:07:07,040 --> 00:07:10,840 Speaker 1: There's no money printer, right, so the supply of it 159 00:07:10,880 --> 00:07:13,960 Speaker 1: is fixed. It's finite, and so as more people integrate 160 00:07:14,040 --> 00:07:17,239 Speaker 1: crypto and use crypto, there's more demand and finite supply. 161 00:07:17,320 --> 00:07:18,600 Speaker 1: That only means the price that it can go up. 162 00:07:18,600 --> 00:07:20,400 Speaker 1: That's why I said by twenty thirty, I think it 163 00:07:20,400 --> 00:07:21,320 Speaker 1: could hit a million dollars. 164 00:07:22,000 --> 00:07:24,160 Speaker 2: So you wrote a forward to a new paper this 165 00:07:24,240 --> 00:07:26,800 Speaker 2: week that talks about the tokenizations of things like stocks 166 00:07:26,800 --> 00:07:30,600 Speaker 2: and bonds, and it's sort of like, you know, you 167 00:07:30,720 --> 00:07:33,720 Speaker 2: believe that this gives people access to things capital markets 168 00:07:33,760 --> 00:07:35,920 Speaker 2: that they wouldn't have otherwise had. So, you know, for 169 00:07:35,960 --> 00:07:38,440 Speaker 2: the average person at home who might think that the 170 00:07:38,480 --> 00:07:41,120 Speaker 2: stock market is this exclusive club and they can't get in, 171 00:07:42,120 --> 00:07:43,120 Speaker 2: what's your vision here. 172 00:07:43,760 --> 00:07:46,640 Speaker 1: Yeah, So tokenization is kind of a buzzword right now, 173 00:07:46,800 --> 00:07:50,400 Speaker 1: and it is really important as a trend because the 174 00:07:50,440 --> 00:07:52,200 Speaker 1: same thing that happened with stable coins, where you know, 175 00:07:52,240 --> 00:07:55,120 Speaker 1: a dollar got tokenized and now suddenly people all over 176 00:07:55,160 --> 00:07:57,400 Speaker 1: the world can use it, and there's fast, cheap global payments. 177 00:07:58,120 --> 00:08:00,560 Speaker 1: The same thing is now happening in the equity market 178 00:08:01,040 --> 00:08:03,760 Speaker 1: and every kind of asset class really that people might 179 00:08:03,760 --> 00:08:07,679 Speaker 1: want to invest in. So there's about four billion adults 180 00:08:07,760 --> 00:08:10,600 Speaker 1: right now who are unbrokered. You know, some people have 181 00:08:10,600 --> 00:08:13,200 Speaker 1: heard about being unbanked. There's also about four billion people 182 00:08:13,200 --> 00:08:15,240 Speaker 1: who are unbroken, meaning that they don't have any way 183 00:08:15,280 --> 00:08:19,200 Speaker 1: to invest in high quality assets, whether that's American tech 184 00:08:19,200 --> 00:08:22,240 Speaker 1: companies or the latest black Rock or Apollo fund. 185 00:08:22,520 --> 00:08:23,360 Speaker 3: Or anything like that. 186 00:08:23,480 --> 00:08:26,600 Speaker 1: And so when you tokenize it, there's a bunch of 187 00:08:26,600 --> 00:08:30,840 Speaker 1: efficiency gains, but it's also about just democratizing access. And 188 00:08:30,920 --> 00:08:33,760 Speaker 1: you know, there's sort of like this balance between you know, 189 00:08:34,200 --> 00:08:36,480 Speaker 1: capital and labor, right and for people who only make 190 00:08:36,480 --> 00:08:40,120 Speaker 1: their income from labor, they're oftentimes left out of this 191 00:08:40,160 --> 00:08:42,480 Speaker 1: wealth creation engine, which is the ability to invest some 192 00:08:42,559 --> 00:08:44,960 Speaker 1: of their hard earned money in high quality assets. So 193 00:08:45,040 --> 00:08:47,440 Speaker 1: that's what we're trying to do with tokenization of every 194 00:08:47,440 --> 00:08:48,080 Speaker 1: asset class. 195 00:08:48,559 --> 00:08:51,280 Speaker 2: President trumpas said he wants to be the first crypto president. 196 00:08:51,920 --> 00:08:54,959 Speaker 2: You've been to a few events with him, He's contributed 197 00:08:55,000 --> 00:08:58,079 Speaker 2: to the ballroom the inauguration. How much time do you 198 00:08:58,080 --> 00:09:01,079 Speaker 2: spend with him. What is your relationship like when you're 199 00:09:01,080 --> 00:09:03,679 Speaker 2: advocating for how does he respond? 200 00:09:04,880 --> 00:09:07,040 Speaker 1: Yeah, well, I do think he's done a good job 201 00:09:07,080 --> 00:09:09,880 Speaker 1: of being very crypto forward and helping get some clear 202 00:09:09,960 --> 00:09:13,480 Speaker 1: rules and legislation pass I go to DC about once 203 00:09:13,520 --> 00:09:16,080 Speaker 1: a quarter, but that's not really usually to meet with 204 00:09:16,120 --> 00:09:18,360 Speaker 1: the President's it's to meet with members of the Senate, 205 00:09:18,440 --> 00:09:21,440 Speaker 1: our regulators, members of the House. When the bill was 206 00:09:21,480 --> 00:09:27,599 Speaker 1: going through there alago, No, not yet, but yeah, I 207 00:09:27,679 --> 00:09:32,240 Speaker 1: mean I've met him a few times and found him 208 00:09:32,280 --> 00:09:35,040 Speaker 1: to be constructive on this issue, and I think that 209 00:09:35,080 --> 00:09:38,480 Speaker 1: if this market structure bill doesn't get moving, you know, 210 00:09:38,520 --> 00:09:40,280 Speaker 1: he may have something to say about that. And I 211 00:09:40,280 --> 00:09:42,760 Speaker 1: think it's part of his agenda to get this second 212 00:09:42,800 --> 00:09:43,920 Speaker 1: piece of legislation through. 213 00:09:44,120 --> 00:09:46,400 Speaker 2: But what are you advocating for when you do have 214 00:09:46,480 --> 00:09:47,880 Speaker 2: time with him, and you do have time with the 215 00:09:47,880 --> 00:09:48,679 Speaker 2: White House. 216 00:09:49,640 --> 00:09:53,760 Speaker 1: Getting crypto legislation passed, that's pretty much all we talk about. 217 00:09:54,240 --> 00:09:57,679 Speaker 1: But legislation that you like, Well, it should be fair 218 00:09:57,760 --> 00:09:59,640 Speaker 1: for everybody so American companies can win. 219 00:09:59,640 --> 00:10:02,520 Speaker 3: That's what he cares about. I think, yeah, well, let's. 220 00:10:02,360 --> 00:10:04,560 Speaker 2: Talk of that about that, because clear rules of the 221 00:10:04,600 --> 00:10:07,640 Speaker 2: road is obviously very important, but a Trump and Malania coin, Like, 222 00:10:07,679 --> 00:10:08,720 Speaker 2: where do you draw the line. 223 00:10:09,320 --> 00:10:12,880 Speaker 1: Yeah, well, you're getting a little above my pay grade 224 00:10:12,920 --> 00:10:16,160 Speaker 1: on this. I think the Senate, you know, the Senate 225 00:10:16,240 --> 00:10:19,400 Speaker 1: is deliberating this back and forth. There there's arguments on 226 00:10:19,400 --> 00:10:23,439 Speaker 1: both sides. You know, there's like ethics rules. 227 00:10:23,280 --> 00:10:24,439 Speaker 3: That are already in law. 228 00:10:24,559 --> 00:10:28,680 Speaker 1: There's there's ways that presidents and elected officials raise money, 229 00:10:28,720 --> 00:10:33,400 Speaker 1: like some they sell t shirts or whatever. Our democracy 230 00:10:33,440 --> 00:10:35,160 Speaker 1: needs to figure this out. It's it's not our it's 231 00:10:35,200 --> 00:10:36,000 Speaker 1: not our main focus. 232 00:10:36,080 --> 00:10:39,360 Speaker 2: Okay, well, let's talk about that democracy. Stable coins are 233 00:10:39,400 --> 00:10:42,360 Speaker 2: very popular in Venezuela, for example, crucial part of the economy. 234 00:10:42,360 --> 00:10:45,559 Speaker 2: And there's this sort of lingering question will cryptos sort 235 00:10:45,600 --> 00:10:49,080 Speaker 2: of be isolated to emerging markets at least in a 236 00:10:49,080 --> 00:10:53,560 Speaker 2: more mainstream way. Will will they really break out in? 237 00:10:53,640 --> 00:10:56,640 Speaker 2: What countries are you seeing the most traction and what 238 00:10:56,720 --> 00:10:57,560 Speaker 2: kind of traction. 239 00:10:59,480 --> 00:11:02,440 Speaker 1: Well, you're right that there are emerging markets where people 240 00:11:02,559 --> 00:11:06,440 Speaker 1: have the least access to financial services and so they 241 00:11:06,480 --> 00:11:08,160 Speaker 1: have kind of the biggest pain point, and we are 242 00:11:08,200 --> 00:11:10,560 Speaker 1: seeing a lot of adoption I think by some metrics, 243 00:11:10,559 --> 00:11:13,040 Speaker 1: like places like India and Turkey and Nigeria are actually 244 00:11:13,080 --> 00:11:16,480 Speaker 1: like per capita, some of the biggest adopters of crypto. 245 00:11:17,000 --> 00:11:18,760 Speaker 1: But it doesn't mean it's not going to be used 246 00:11:18,800 --> 00:11:22,160 Speaker 1: in the United States. I mean, we started in the US. 247 00:11:22,160 --> 00:11:24,679 Speaker 1: It's still the vast majority of our revenue, you know, 248 00:11:24,720 --> 00:11:27,480 Speaker 1: we have there's something like fifty two million Americans who've 249 00:11:27,480 --> 00:11:30,000 Speaker 1: actually used crypto at this point, so it's a massive, 250 00:11:30,440 --> 00:11:34,280 Speaker 1: massive user base. I guess what we're seeing now is 251 00:11:34,280 --> 00:11:38,319 Speaker 1: that people are using Coinbase as more like their primary 252 00:11:38,320 --> 00:11:40,760 Speaker 1: financial account. There's kind of the younger generation who are 253 00:11:40,760 --> 00:11:44,000 Speaker 1: growing up and they want to be able to, you know, 254 00:11:44,080 --> 00:11:47,439 Speaker 1: deposit their paycheck trade crypto, but they also want to 255 00:11:47,440 --> 00:11:50,040 Speaker 1: trade stocks, they want to trade prediction markets, they want 256 00:11:50,080 --> 00:11:52,360 Speaker 1: to trade commodities, you know, they want to send money 257 00:11:52,360 --> 00:11:54,640 Speaker 1: instantly anywhere in the world and maybe get alone and 258 00:11:55,080 --> 00:11:58,439 Speaker 1: they can just get access to better financial services through 259 00:11:58,440 --> 00:11:59,880 Speaker 1: an app like Coinbase. 260 00:11:59,440 --> 00:12:01,840 Speaker 3: And so that's what we're trying to build. 261 00:12:02,120 --> 00:12:03,960 Speaker 1: Whether we call that the everything exchange, where it's like 262 00:12:04,040 --> 00:12:07,120 Speaker 1: literally every asset class tradable on one platform. So it's 263 00:12:07,160 --> 00:12:09,240 Speaker 1: just this is a way to update financial services, and 264 00:12:09,280 --> 00:12:11,600 Speaker 1: that's very much a US phenomenon as well. 265 00:12:12,480 --> 00:12:15,360 Speaker 2: You've said developers who don't use AI at Coinbase will 266 00:12:15,360 --> 00:12:19,080 Speaker 2: be fired how are they using AI or how are 267 00:12:19,160 --> 00:12:22,360 Speaker 2: they supposed to be using AI? And what's the AI strategy? 268 00:12:24,200 --> 00:12:25,480 Speaker 3: Is anyone not using AI? 269 00:12:26,120 --> 00:12:28,640 Speaker 1: I think everyone is at this point. I mean, at 270 00:12:28,720 --> 00:12:31,480 Speaker 1: least they're trying, right, and so that's all we ask. 271 00:12:31,600 --> 00:12:33,520 Speaker 1: I mean, we want us to stay on the forefront 272 00:12:33,559 --> 00:12:36,120 Speaker 1: of these tools. You know, we do have about fifty 273 00:12:36,160 --> 00:12:38,560 Speaker 1: percent of our code being written by AI now, but 274 00:12:38,600 --> 00:12:41,640 Speaker 1: of course with human review and strong security controls, and 275 00:12:41,679 --> 00:12:44,560 Speaker 1: then it's answering about sixty percent of our customer sport tickets. 276 00:12:44,600 --> 00:12:47,400 Speaker 1: I believe we're using it to automate some back office 277 00:12:47,440 --> 00:12:50,160 Speaker 1: functions like compliance. But I actually think the most maybe 278 00:12:50,160 --> 00:12:52,040 Speaker 1: the most interesting thing, because you know, AI and crypto, 279 00:12:52,080 --> 00:12:54,280 Speaker 1: I think are the two most important technology trends happening 280 00:12:54,280 --> 00:12:55,840 Speaker 1: in the world right now, and a lot of people 281 00:12:55,880 --> 00:12:59,840 Speaker 1: don't realize they're actually quite complimentary. Because AI agents, increasingly 282 00:12:59,880 --> 00:13:01,600 Speaker 1: new need to go get work done in the world, 283 00:13:01,679 --> 00:13:05,360 Speaker 1: which includes making payments and in the traditional financial system, 284 00:13:05,440 --> 00:13:06,880 Speaker 1: you know, to get a credit card or bank count 285 00:13:06,960 --> 00:13:09,960 Speaker 1: or something, all the rules and rigs are built around 286 00:13:10,040 --> 00:13:13,480 Speaker 1: identifying a human being who's linked to that underlying account 287 00:13:13,520 --> 00:13:16,319 Speaker 1: or card. And in this new world, AI agents need 288 00:13:16,360 --> 00:13:18,640 Speaker 1: their own wallets to go and make payments, and so 289 00:13:18,679 --> 00:13:21,040 Speaker 1: we believe that stable coins and crypto wallets are going 290 00:13:21,080 --> 00:13:24,280 Speaker 1: to be the default payment mechanism of AI agents. And 291 00:13:24,320 --> 00:13:26,400 Speaker 1: we've actually built some really cool tools that people have 292 00:13:26,440 --> 00:13:30,320 Speaker 1: now started to integrate. So eventually, I think AI agents 293 00:13:30,320 --> 00:13:32,960 Speaker 1: are going to make more transactions every day than humans. 294 00:13:33,880 --> 00:13:36,599 Speaker 2: Do you see them, you know, in crypto managing portfolios, 295 00:13:36,760 --> 00:13:37,680 Speaker 2: executing trades. 296 00:13:38,400 --> 00:13:41,760 Speaker 1: Yeah, we launched a prototype of an app or a feature, 297 00:13:42,440 --> 00:13:45,240 Speaker 1: beta feature I should say, called coin Based Advisor, and 298 00:13:45,280 --> 00:13:47,959 Speaker 1: it does help people do these kinds of services that 299 00:13:48,000 --> 00:13:50,760 Speaker 1: are typically available need to networth clients, right, you could say, 300 00:13:51,200 --> 00:13:54,239 Speaker 1: you know, heart tax loss harvesting and rebalance my portfolio 301 00:13:54,280 --> 00:13:57,360 Speaker 1: and notify, you know, notify me if the market goes 302 00:13:57,400 --> 00:13:59,480 Speaker 1: down and there's some good opportunities, and so we do 303 00:13:59,559 --> 00:14:02,040 Speaker 1: have an AI agent service that people can use for that. 304 00:14:02,120 --> 00:14:06,040 Speaker 2: Now you've entered the prediction markets and the you know, 305 00:14:06,080 --> 00:14:10,360 Speaker 2: associated legal battles. How does this play out and what's 306 00:14:10,400 --> 00:14:11,960 Speaker 2: the opportunity for coinbase. 307 00:14:12,880 --> 00:14:15,040 Speaker 1: Yeah, Well, so it's part of our Everything's change vision. 308 00:14:15,080 --> 00:14:17,320 Speaker 1: We think everything should be tradable, but prediction markets are 309 00:14:17,320 --> 00:14:19,320 Speaker 1: of this really important new emerging category. 310 00:14:19,760 --> 00:14:22,960 Speaker 3: So i'd say, prediction markets. There's a few parts to it. 311 00:14:23,000 --> 00:14:26,000 Speaker 1: So some of it, frankly is people, you know, betting 312 00:14:26,000 --> 00:14:28,280 Speaker 1: on these outcomes and sporting games and things like that. 313 00:14:28,280 --> 00:14:29,600 Speaker 3: That's okay, that's one thing. 314 00:14:30,200 --> 00:14:32,800 Speaker 1: The more intellectually interesting part of it to me is 315 00:14:32,840 --> 00:14:37,280 Speaker 1: that people are also betting on what's going to happen 316 00:14:37,280 --> 00:14:39,640 Speaker 1: in the next week or two, almost as an alternative 317 00:14:39,640 --> 00:14:41,840 Speaker 1: to traditional media. You know, sorry not to create a 318 00:14:41,840 --> 00:14:45,440 Speaker 1: competitive thing here, and they're trying to. So it could 319 00:14:45,440 --> 00:14:47,320 Speaker 1: be on a political election, it could be what are 320 00:14:47,360 --> 00:14:49,520 Speaker 1: interest rate's going to be next quarter? It could be 321 00:14:49,640 --> 00:14:51,600 Speaker 1: is the Suez Canal going to be reopened? Because I 322 00:14:51,600 --> 00:14:55,000 Speaker 1: need to understand if I can put my ships through 323 00:14:55,000 --> 00:14:58,680 Speaker 1: there as a multinational And so people are just trying 324 00:14:58,680 --> 00:15:00,360 Speaker 1: to figure out what is true, what is going to 325 00:15:00,360 --> 00:15:02,640 Speaker 1: happen in the future, And what we've found is that 326 00:15:02,840 --> 00:15:05,160 Speaker 1: there's much higher signal when people have to put skin 327 00:15:05,240 --> 00:15:08,240 Speaker 1: in the game with real money. So I think that 328 00:15:08,400 --> 00:15:11,160 Speaker 1: prediction markets are potentially an alternative to traditional media in 329 00:15:11,160 --> 00:15:14,120 Speaker 1: some way. The other crazy idea that could emerge here 330 00:15:14,200 --> 00:15:17,800 Speaker 1: is that I think policy legislators will use it to 331 00:15:17,920 --> 00:15:20,640 Speaker 1: understand what policy could be best. So, for instance, if 332 00:15:21,040 --> 00:15:23,080 Speaker 1: there's three proposals, and you want to say which one 333 00:15:23,120 --> 00:15:26,120 Speaker 1: is going to lower unemployment the most. You can actually 334 00:15:26,120 --> 00:15:28,560 Speaker 1: put those proposals out where if they aren't acted, and 335 00:15:28,600 --> 00:15:29,800 Speaker 1: this happens, you. 336 00:15:29,800 --> 00:15:30,920 Speaker 3: Could get a payout. 337 00:15:31,080 --> 00:15:33,720 Speaker 1: The market will basically give you very clear feedback about 338 00:15:33,720 --> 00:15:36,800 Speaker 1: which policy they most believe should be implemented, and maybe 339 00:15:36,880 --> 00:15:39,280 Speaker 1: that helps legislators decide what to do. 340 00:15:39,760 --> 00:15:42,920 Speaker 2: As you mentioned, just striving to be this everything exchange, 341 00:15:42,960 --> 00:15:48,200 Speaker 2: not just prediction markets, but you know, you know trading essentially, 342 00:15:48,720 --> 00:15:51,240 Speaker 2: Robinhood and others got their first. How much traction are 343 00:15:51,280 --> 00:15:53,080 Speaker 2: you seeing in some of these newer products. 344 00:15:53,720 --> 00:15:57,280 Speaker 1: Yeah, well, we just announced stock trading on coinbase prediction 345 00:15:57,400 --> 00:16:01,960 Speaker 1: markets back in December, and we've seen really rapid growth 346 00:16:02,000 --> 00:16:05,880 Speaker 1: of that since then. You know, we also have a number, 347 00:16:06,000 --> 00:16:08,160 Speaker 1: we actually now have millions of assets, believe it or not, 348 00:16:08,240 --> 00:16:10,800 Speaker 1: crypto assets you can trade on Coinbase, so it's far 349 00:16:10,840 --> 00:16:14,400 Speaker 1: ahead of the competition one you mentioned in others. And 350 00:16:14,440 --> 00:16:18,960 Speaker 1: we also allow people to trade CFTC regulated perpetual style 351 00:16:19,000 --> 00:16:21,920 Speaker 1: futures on Coinbase, which is which is unique. So I 352 00:16:21,920 --> 00:16:24,120 Speaker 1: would say we caught up on the things that we 353 00:16:24,120 --> 00:16:26,080 Speaker 1: were behind on, and we're actually pretty far ahead on 354 00:16:26,080 --> 00:16:26,800 Speaker 1: some of the other ones. 355 00:16:27,800 --> 00:16:30,920 Speaker 2: President Trump pardon the founder of Finance. Speaking of competition, 356 00:16:31,160 --> 00:16:33,840 Speaker 2: there's speculation they might try to re enter the United States. 357 00:16:34,920 --> 00:16:36,040 Speaker 2: How are you preparing for that? 358 00:16:37,640 --> 00:16:40,760 Speaker 1: Well, there's a number of crypto companies that grew up 359 00:16:40,880 --> 00:16:43,640 Speaker 1: internationally that have tried at various points to come into 360 00:16:43,680 --> 00:16:44,160 Speaker 1: the US. 361 00:16:45,840 --> 00:16:47,359 Speaker 3: So far they haven't been successful. 362 00:16:47,440 --> 00:16:49,640 Speaker 1: I mean, we have the strongest brand and the most 363 00:16:49,640 --> 00:16:51,960 Speaker 1: trusted brand in crypto, certainly in the US and a 364 00:16:52,040 --> 00:16:54,880 Speaker 1: number of other countries where we're the leader. The way 365 00:16:54,920 --> 00:16:57,400 Speaker 1: I think about this is that our strategy really we 366 00:16:57,440 --> 00:17:00,160 Speaker 1: call it like our asset accumulation strategy. So because we 367 00:17:00,160 --> 00:17:02,320 Speaker 1: have the most trusted brand, people feel comfortable storing their 368 00:17:02,320 --> 00:17:02,960 Speaker 1: assets with us. 369 00:17:02,960 --> 00:17:04,800 Speaker 3: We now have about half a trillion. 370 00:17:04,520 --> 00:17:08,199 Speaker 1: Dollars of assets, and assets tend to be pretty sticky, 371 00:17:08,440 --> 00:17:10,479 Speaker 1: you know, people don't move them very often. And if 372 00:17:10,520 --> 00:17:13,840 Speaker 1: you the more products you can connect into those those assets, 373 00:17:14,400 --> 00:17:15,320 Speaker 1: people are less. 374 00:17:15,119 --> 00:17:16,040 Speaker 3: Likely to churn, right. 375 00:17:16,119 --> 00:17:18,439 Speaker 1: So that's why we're offering more trading products and defive 376 00:17:18,440 --> 00:17:20,880 Speaker 1: borrow leend and coin based card and all these kinds 377 00:17:20,880 --> 00:17:24,400 Speaker 1: of things, and so we can monetize better. The more 378 00:17:24,480 --> 00:17:27,359 Speaker 1: products we have plug into those assets, we can invest 379 00:17:27,400 --> 00:17:29,679 Speaker 1: that back in Backing being the most trusted and this 380 00:17:29,760 --> 00:17:31,840 Speaker 1: asset accumulation fly will just accelerate. 381 00:17:31,920 --> 00:17:34,800 Speaker 3: So we're storing more crypto assets. 382 00:17:34,480 --> 00:17:36,240 Speaker 1: Than any other company in the world I'm aware of, 383 00:17:36,240 --> 00:17:38,040 Speaker 1: by a pretty wide margin, and I think that's going 384 00:17:38,119 --> 00:17:39,440 Speaker 1: to be defensible for a long time. 385 00:17:40,440 --> 00:17:44,320 Speaker 2: You know, there's you know, we talked earlier about winter, 386 00:17:44,760 --> 00:17:47,040 Speaker 2: and there is this concern that there's a downturn for 387 00:17:47,080 --> 00:17:50,520 Speaker 2: the crypto market coming. You know, are you doing anything 388 00:17:50,520 --> 00:17:53,600 Speaker 2: to prepare for that? You know, in an historically Coinbus 389 00:17:53,640 --> 00:17:56,119 Speaker 2: has been an acquirer in some of these situations. Do 390 00:17:56,119 --> 00:17:59,240 Speaker 2: you see the potential to make some big buys or like, 391 00:17:59,400 --> 00:18:03,120 Speaker 2: you know, potential opportunity to consolidate. 392 00:18:03,760 --> 00:18:06,159 Speaker 1: Yeah, Well, for just to be clear, I'm not necessarily 393 00:18:06,160 --> 00:18:07,440 Speaker 1: seeing a crypto downturn coming. 394 00:18:07,640 --> 00:18:08,960 Speaker 3: I'm the sure. I think there's just. 395 00:18:09,040 --> 00:18:12,320 Speaker 2: Concern because prices have dropped that this could signal that 396 00:18:12,520 --> 00:18:15,880 Speaker 2: maybe we're in for some more extended lower prices. 397 00:18:16,119 --> 00:18:18,800 Speaker 1: To me, that just sort of happens every every month. 398 00:18:18,800 --> 00:18:21,119 Speaker 1: It's either up or down. So I don't know, I 399 00:18:21,119 --> 00:18:24,240 Speaker 1: don't think about it too much. But we did acquire 400 00:18:24,280 --> 00:18:28,000 Speaker 1: I believe ten companies last year, and yeah, there's opportunities 401 00:18:28,040 --> 00:18:30,600 Speaker 1: in any market. When the market is up, we are 402 00:18:30,640 --> 00:18:34,160 Speaker 1: just trying to scale and onboard new users and double 403 00:18:34,240 --> 00:18:37,240 Speaker 1: down on the hype. And you know, when markets are down, 404 00:18:37,600 --> 00:18:39,960 Speaker 1: we do get a inquisitive we can we could buy 405 00:18:39,960 --> 00:18:42,400 Speaker 1: back our stock. There's all kinds of opportunities in any 406 00:18:42,400 --> 00:18:43,040 Speaker 1: market condition. 407 00:18:43,680 --> 00:18:46,720 Speaker 2: Now it's interesting because in a room and Davos, your 408 00:18:46,880 --> 00:18:49,760 Speaker 2: you know, coinbases seems to be the iconoclast, but you know, 409 00:18:49,840 --> 00:18:52,440 Speaker 2: you're in the in the crypto and the decentralized world. 410 00:18:52,920 --> 00:18:56,080 Speaker 2: You're closer to banks, closer to politicians than maybe others. 411 00:18:56,080 --> 00:18:58,879 Speaker 2: How do you manage this sort of various and competing 412 00:18:59,240 --> 00:19:01,400 Speaker 2: streams and spirits of crypto. 413 00:19:02,440 --> 00:19:03,600 Speaker 3: That's that's a great point. 414 00:19:03,640 --> 00:19:07,560 Speaker 1: I mean, yeah, I remember in one day sometimes I 415 00:19:07,600 --> 00:19:09,320 Speaker 1: go speak with, you know, members of the government and 416 00:19:09,320 --> 00:19:11,359 Speaker 1: bank CEOs, and then I also go to like crypto 417 00:19:11,359 --> 00:19:13,159 Speaker 1: meetups where there's a bunch of hackers and they're like, 418 00:19:13,160 --> 00:19:17,199 Speaker 1: why are you dressed like a banker? And you know, 419 00:19:17,320 --> 00:19:20,440 Speaker 1: so we try we've tried to be a bridge between 420 00:19:21,280 --> 00:19:25,240 Speaker 1: the crypto world and the exist traditional financial world because 421 00:19:25,800 --> 00:19:28,960 Speaker 1: most of the money still resides in the traditional financial 422 00:19:28,960 --> 00:19:32,399 Speaker 1: system and we need to be a bridge to get 423 00:19:32,600 --> 00:19:34,159 Speaker 1: more and more of it into the crypto world, so 424 00:19:34,200 --> 00:19:36,560 Speaker 1: everything can be more efficient and global and cheap. 425 00:19:37,840 --> 00:19:40,040 Speaker 3: So, you know, I try to speak. I feel like 426 00:19:40,080 --> 00:19:40,959 Speaker 3: I'm a translator. 427 00:19:41,240 --> 00:19:43,560 Speaker 1: I speak a little bit of bank and I speak hacker, 428 00:19:44,359 --> 00:19:46,840 Speaker 1: and you know, I try to translate between two. 429 00:19:47,040 --> 00:19:50,439 Speaker 2: How have your own leadership skills evolved? I mean, obviously 430 00:19:50,520 --> 00:19:52,639 Speaker 2: it's been a I interviewed you in the very very 431 00:19:52,680 --> 00:19:56,600 Speaker 2: early days and seeing you personally evolve, how have you evolved? 432 00:19:57,359 --> 00:20:01,119 Speaker 2: How have especially as the system has evolve, not evolved 433 00:20:01,440 --> 00:20:04,919 Speaker 2: and the market just fluctuates madly, Like, how have you 434 00:20:05,119 --> 00:20:07,600 Speaker 2: sort of maintained your You have a spring wardrobe, a 435 00:20:07,640 --> 00:20:10,320 Speaker 2: winter wardrobe. 436 00:20:10,400 --> 00:20:12,440 Speaker 1: I wear the uniform all, you know, just the same. 437 00:20:12,520 --> 00:20:14,200 Speaker 1: I wear the same thing to work every day. Unless 438 00:20:14,200 --> 00:20:15,640 Speaker 1: I'm at Davos or of the East Coast, I wear 439 00:20:15,640 --> 00:20:19,119 Speaker 1: a suit. But I mean it's like anybody evolves, right 440 00:20:19,160 --> 00:20:21,200 Speaker 1: I think, you know, I started, I really was. I 441 00:20:21,280 --> 00:20:23,720 Speaker 1: was a software engineer earlier in my career, kind of 442 00:20:23,720 --> 00:20:28,080 Speaker 1: shy and introverted, to be honest, and I had never 443 00:20:28,119 --> 00:20:31,080 Speaker 1: managed anybody before starting coinbase. And then you know, but 444 00:20:31,119 --> 00:20:33,200 Speaker 1: you start off and you've got three people and ten 445 00:20:33,240 --> 00:20:36,240 Speaker 1: people and twenty five people, and there were periods where 446 00:20:36,280 --> 00:20:38,600 Speaker 1: we went through hypergrowth where I felt like I was 447 00:20:39,040 --> 00:20:41,359 Speaker 1: in way over my head, you know. And I had 448 00:20:41,359 --> 00:20:44,199 Speaker 1: a great board around me, I hired some great executives, 449 00:20:44,600 --> 00:20:48,280 Speaker 1: I had some good executive coaches, you know, but building 450 00:20:48,280 --> 00:20:49,160 Speaker 1: a company stressful. 451 00:20:49,200 --> 00:20:50,719 Speaker 3: We now have about five thousand people. 452 00:20:51,320 --> 00:20:53,800 Speaker 1: I certainly I learned from a lot of the great 453 00:20:54,359 --> 00:20:56,280 Speaker 1: people that were around me in the board and the. 454 00:20:56,240 --> 00:20:57,280 Speaker 3: Executives that I hired. 455 00:20:57,760 --> 00:21:00,679 Speaker 1: I guess there were certain moments as well where I 456 00:21:00,680 --> 00:21:03,320 Speaker 1: felt like I had to send something was the right 457 00:21:03,359 --> 00:21:05,200 Speaker 1: thing to do, but I knew it would it would 458 00:21:05,240 --> 00:21:08,400 Speaker 1: be controversial, and that's actually where I think that grew 459 00:21:08,440 --> 00:21:11,240 Speaker 1: the most as a leader. So a couple examples of 460 00:21:11,280 --> 00:21:13,399 Speaker 1: that where we put out this mission first blog post 461 00:21:13,520 --> 00:21:18,879 Speaker 1: back in the height of kind of that activist area, 462 00:21:18,920 --> 00:21:20,560 Speaker 1: and we said that we're not going to do political 463 00:21:20,600 --> 00:21:22,720 Speaker 1: activism inside the workplace. We're going to focus on our mission, 464 00:21:22,720 --> 00:21:24,480 Speaker 1: which sounds kind of obvious now, but at the time 465 00:21:24,520 --> 00:21:29,639 Speaker 1: that was incredibly controversial. When the sec you know, unlawfully 466 00:21:29,640 --> 00:21:31,240 Speaker 1: in our view, came out and tried to kill the 467 00:21:31,240 --> 00:21:34,199 Speaker 1: crypto industry, we sued them. A lot of people told me, 468 00:21:34,280 --> 00:21:37,440 Speaker 1: oh my gosh, do not sue your federal regulator. That's 469 00:21:37,480 --> 00:21:40,040 Speaker 1: a terrible idea as a public company. But I knew 470 00:21:40,080 --> 00:21:42,359 Speaker 1: that the alternative was it would essentially have killed the 471 00:21:42,359 --> 00:21:44,800 Speaker 1: industry in America, and I couldn't allow that. 472 00:21:45,000 --> 00:21:47,919 Speaker 3: So we did sue them and we won. So that 473 00:21:48,000 --> 00:21:50,959 Speaker 3: was a contrarian view, you know. 474 00:21:51,000 --> 00:21:54,200 Speaker 1: I would say, Actually, this market Structure bill last week 475 00:21:54,280 --> 00:21:57,080 Speaker 1: was another example of that, where I read through the 476 00:21:57,160 --> 00:21:57,600 Speaker 1: draft text. 477 00:21:57,640 --> 00:22:00,119 Speaker 3: Our lawyers were looking at it, and I said, this 478 00:22:00,200 --> 00:22:00,600 Speaker 3: is wrong. 479 00:22:01,160 --> 00:22:05,399 Speaker 1: You know, this would harm consumers in America. To me, 480 00:22:05,440 --> 00:22:09,840 Speaker 1: it's un American and it's unethical for regulatory capture to happen. 481 00:22:09,880 --> 00:22:12,119 Speaker 1: I don't care how many bank lobbyists there are or whatever. 482 00:22:12,240 --> 00:22:15,399 Speaker 1: You know, you can't come in and write a bill 483 00:22:15,840 --> 00:22:19,200 Speaker 1: that enshrines the incumbent and creates an un level tries 484 00:22:19,240 --> 00:22:22,159 Speaker 1: to ban their competition. Like, I'm just not going to 485 00:22:22,200 --> 00:22:23,919 Speaker 1: stand for that. I have zero tolerance, and I'm going 486 00:22:24,000 --> 00:22:26,000 Speaker 1: to say it publicly. And it pissed some people off, 487 00:22:26,480 --> 00:22:28,119 Speaker 1: but I think it's going to help us get to 488 00:22:28,160 --> 00:22:31,040 Speaker 1: the right outcome on this bill, and I feel that's 489 00:22:31,119 --> 00:22:35,160 Speaker 1: the kind of leadership that I want to exemplify. 490 00:22:34,600 --> 00:22:35,400 Speaker 3: In the world. 491 00:22:35,640 --> 00:22:37,639 Speaker 2: All Right, So I've been asking this question about AI, 492 00:22:37,640 --> 00:22:39,800 Speaker 2: but I'm gonna ask it about crypto. Ten years from now. 493 00:22:39,840 --> 00:22:42,600 Speaker 2: What is the biggest mistake people in this room will 494 00:22:42,640 --> 00:22:44,320 Speaker 2: have made about crypto? 495 00:22:46,920 --> 00:22:50,040 Speaker 1: Well, I mean, if they don't have at least five 496 00:22:50,040 --> 00:22:51,960 Speaker 1: percent of their net worth and bitcoin, they're probably gonna 497 00:22:51,960 --> 00:22:55,359 Speaker 1: be pretty sad. So I think, you know, the last 498 00:22:55,359 --> 00:22:57,680 Speaker 1: ten years, bioin was the best performing asset class. A 499 00:22:57,720 --> 00:22:59,480 Speaker 1: lot of people missed out, but it's still early days. 500 00:23:01,720 --> 00:23:02,480 Speaker 3: I think, just in. 501 00:23:02,440 --> 00:23:05,840 Speaker 1: General, we're going to see crypto update all kinds of 502 00:23:05,840 --> 00:23:07,840 Speaker 1: financial services. And even if people who don't really care 503 00:23:07,840 --> 00:23:10,479 Speaker 1: anything about crypto, they don't even know what it is, 504 00:23:10,840 --> 00:23:14,360 Speaker 1: they're going to benefit from it because they're going to say, oh, well, 505 00:23:14,359 --> 00:23:17,080 Speaker 1: this is just I can earn more rewards on my money, 506 00:23:17,200 --> 00:23:19,280 Speaker 1: or I can get a loan for a cheaper rate, 507 00:23:19,480 --> 00:23:21,879 Speaker 1: or I can send money instantly to my family abroad 508 00:23:21,880 --> 00:23:24,720 Speaker 1: out another country without paying eleven percent fees. Or I 509 00:23:24,760 --> 00:23:28,480 Speaker 1: want to raise money to build a real estate project 510 00:23:28,560 --> 00:23:32,240 Speaker 1: or a film or whatever a media company and instead 511 00:23:32,240 --> 00:23:35,400 Speaker 1: of paying you know, ten to eleven percent to some 512 00:23:35,560 --> 00:23:37,600 Speaker 1: firm to raise money for you can do it instantly 513 00:23:37,600 --> 00:23:41,440 Speaker 1: on chain. So I think that, yeah, that's where we've 514 00:23:41,440 --> 00:23:44,199 Speaker 1: been sitting in ten years, with a greatly improved, updated 515 00:23:44,280 --> 00:23:46,440 Speaker 1: financial system, and hope we get to play a role 516 00:23:46,440 --> 00:23:47,119 Speaker 1: in creating that. 517 00:23:47,480 --> 00:23:52,080 Speaker 2: To the moon, To the moon, all right, Brian Armstrong, 518 00:23:52,200 --> 00:23:52,560 Speaker 2: thank you 519 00:23:52,680 --> 00:23:53,520 Speaker 3: Thank you great