WEBVTT - Senator Kirsten Gillibrand (D - NY) Talks Crypto Market Structure Legislation

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>And joining us now on Bloomberg TV and Radio is

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<v Speaker 2>Democratic Senator Kirsten Gillibrand of New York, who is joining

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<v Speaker 2>us live from the Solana Accelerate Event, Silana's flagship US

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<v Speaker 2>event in Miami, where, of course, the Coin Desk Consensus

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<v Speaker 2>Conference is also being held this week's Senator, thank you

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<v Speaker 2>so much for joining us. You are, of course at

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<v Speaker 2>this week's conferences in Florida, having been long standing one

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<v Speaker 2>of the congressional leaders in the crypto regulatory space, obviously

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<v Speaker 2>with a successful push around stable coins with the passage

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<v Speaker 2>of the Genius Act in the Senate last year. Now

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<v Speaker 2>we have questions as to whether or not that success

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<v Speaker 2>can be replicated with the Clarity Act. Now that a

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<v Speaker 2>compromise has been reached on the language around stable cooin

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<v Speaker 2>yield and rewards, I wonder if you think this thing

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<v Speaker 2>is on track to passage, knowing that it does seem

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<v Speaker 2>bank industry groups still might have some issue with that language.

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<v Speaker 3>I do.

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<v Speaker 1>I think it's on track, and I'm optimistic. We're still

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<v Speaker 1>uh putting to bed a few items. We're trying to

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<v Speaker 1>make sure there's ways to crack down on illicit finance

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<v Speaker 1>and terrorism financing, and we're still working on an ethics

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<v Speaker 1>provision to make sure no members of Congress, the President,

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<v Speaker 1>vice President, any senior administration official can't be an issuer

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<v Speaker 1>of a cryptocurrency or mean coin, or promote it uh

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<v Speaker 1>or advocate for it in any way. So that one

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<v Speaker 1>provision is key to getting the democratic support that we

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<v Speaker 1>have been building, and I'm optimistic that we will reach

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<v Speaker 1>an agreement on that in advance of the markup for

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<v Speaker 1>the Banking Committee, which should happen in the next two weeks.

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<v Speaker 2>So what could the timeline be realistically for ultimate passage

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<v Speaker 2>do you think, assuming it can advance out of committee.

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<v Speaker 1>So my hope is that we have a successful Banking

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<v Speaker 1>Committee markup and these last few provisions are included in

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<v Speaker 1>the agreement, and once that is completed, we will work

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<v Speaker 1>with the Agriculture Committee and try to merge the Banking

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<v Speaker 1>and Agriculture draft.

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<v Speaker 3>The Agriculture Committee markup, however, was.

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<v Speaker 1>Partisan, and so there were a lot of agreed upon

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<v Speaker 1>bipartisan ideas before that in an earlier draft that we're going

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<v Speaker 1>to try to reintegrate back into the final version.

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<v Speaker 3>So those negotiations are going to be very important.

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<v Speaker 1>They may take several weeks to do, but my hope

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<v Speaker 1>is we can do those negotiations as soon as banking's finish,

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<v Speaker 1>spend two or three weeks maybe before if needed, on

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<v Speaker 1>those negotiations, merge the bill, and hopefully get that bill

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<v Speaker 1>to the floor.

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<v Speaker 2>Well, and I want to go back to the ethics

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<v Speaker 2>concerns you were mentioning. Senator is at consensus in Miami

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<v Speaker 2>this week. The president's sons, Eric Trump Don Junior, they

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<v Speaker 2>are both featured speakers, And I wonder to what extent

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<v Speaker 2>is still the involvement directly of the president's family in

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<v Speaker 2>this space that is acting as kind of an impediment

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<v Speaker 2>to bipartisan progress.

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<v Speaker 1>Well, you know, those are those serve business interests of

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<v Speaker 1>Trump family members. Our legislation will just prohibit prohibit the

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<v Speaker 1>Principles from being an issuer or a promoter of these

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<v Speaker 1>cryptocurrencies or mean coins or stable coins. We just don't

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<v Speaker 1>want people who are in positions of authority to be

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<v Speaker 1>able to make money on the side off the backs

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<v Speaker 1>of the American people based on non public information.

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<v Speaker 3>So it's very important that.

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<v Speaker 1>These basic ethic rules ethics rules apply to people in

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<v Speaker 1>positions of power, and I think this is something that

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<v Speaker 1>we can get the White House to agree to. I

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<v Speaker 1>think they should not ultimately be an impediment on this,

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<v Speaker 1>and I'm hoping that we can get those negotiations done

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<v Speaker 1>in the next couple of weeks, and I'd really like

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<v Speaker 1>them to be done in advance of the Banking Committee markup.

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<v Speaker 2>Well, we'll be continuing to watch that closely. Another narrative

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<v Speaker 2>we're tracking closely here at Bloomberg is artificial intelligence and

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<v Speaker 2>how it's impacting the labor market. Coinbase, which is a

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<v Speaker 2>sponsor of the Consensus conference, obviously announced today that it's

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<v Speaker 2>going to be reducing its workforce by fourteen percent, and

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<v Speaker 2>Brian Armstrong, the CEO, says, in large part that is

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<v Speaker 2>due to artificial intelligence. And I wonder from a policy

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<v Speaker 2>making perspective, if you think a response is going to

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<v Speaker 2>be required from a policy standpoint to kind of ensure

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<v Speaker 2>the labor market against what could be a material softening

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<v Speaker 2>because of AI. As we see other tech companies because

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<v Speaker 2>they're going to spend so much capex developing that technology,

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<v Speaker 2>also looking to reduce their headcount, be it Meta or

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<v Speaker 2>other companies.

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<v Speaker 1>Yes, So when we complete our work on market structure

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<v Speaker 1>for cryptocurrency and blockchain. I am going to start working

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<v Speaker 1>on a framework for AI, and the largest question that

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<v Speaker 1>is going to inform that framework is how do you

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<v Speaker 1>guarantee the future of work? How do you make sure

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<v Speaker 1>you have a vision for this country where people who

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<v Speaker 1>need to be trained, need to be have access new markets,

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<v Speaker 1>can do jobs that they are excited about. Make sure

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<v Speaker 1>that if there is job loss related to AI, that

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<v Speaker 1>we reform our education system, build upon our education system

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<v Speaker 1>so that people, young people and even mid career people

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<v Speaker 1>can get employed in areas they want to be employed

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<v Speaker 1>and have the training to do so. And that's going

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<v Speaker 1>to have to be a conversation that is part of

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<v Speaker 1>when you regulate AI. Then hopefully they can be a

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<v Speaker 1>cornerstone investor into this vision of education and an economy

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<v Speaker 1>where people can have that guarantee of a job that

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<v Speaker 1>allows them to not only have just the human dignity

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<v Speaker 1>of making an impact on.

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<v Speaker 3>Society, but also to build to provide for their families.

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<v Speaker 1>And I think that's part of the American dream and

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<v Speaker 1>that will be part of any regulation we do in

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<v Speaker 1>the AI space. How we look at the future of

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<v Speaker 1>work and how you make that work with a framework

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<v Speaker 1>for AI regulation.

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<v Speaker 2>And Senator, if we could switch gears a bit, As

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<v Speaker 2>you obviously also sit on the Armed Services Committee, I'd

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<v Speaker 2>like to ask you about Iran as there is now

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<v Speaker 2>this Project Freedom trying to ensure once again and free

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<v Speaker 2>transit through the straight of hor moves that the Defense

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<v Speaker 2>Secretary Pete Hegseth said today is separate and distinct from

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<v Speaker 2>the combat operations. The Secretary of State Mark or Rubio said,

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<v Speaker 2>this is fundamentally a rescue mission for more than twenty

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<v Speaker 2>thousand sailors and workers on commercial vessels who are stranded.

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<v Speaker 2>Right now, do you see this as separate from activity

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<v Speaker 2>that would require congressional authorization.

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<v Speaker 3>No, it's not separate at all.

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<v Speaker 1>And right now the American people are asking a very

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<v Speaker 1>direct question. This is an illegal, unauthorized war, and the

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<v Speaker 1>American people want to know why President Trump is spending

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<v Speaker 1>a billion dollars a day on a war they don't want,

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<v Speaker 1>instead of getting their grocery costs down, getting their housing

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<v Speaker 1>costs down, and getting their fuel costs down, and the

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<v Speaker 1>straight of horror moves issue is one of the main

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<v Speaker 1>drivers of high costs of gasoline to fill our tanks,

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<v Speaker 1>to take our kids to school, diesel to fill truckers

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<v Speaker 1>tanks so they can bring goods across the main America,

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<v Speaker 1>and fuel costs for heating and for air conditioning across

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<v Speaker 1>the country. These costs are fundamental to the American economy

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<v Speaker 1>and fundamental to American families.

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<v Speaker 3>And so they're just asking, at.

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<v Speaker 1>What cost is this war, this illegal, unauthorized war go

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<v Speaker 1>and to continue to be waged without the.

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<v Speaker 3>Support of the American people.

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<v Speaker 1>They would rather President Trump spend that billions of dollars

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<v Speaker 1>a day guaranteeing health care for their families and their neighbors,

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<v Speaker 1>or getting the cost of groceries or housing down.

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<v Speaker 2>Are you hearing behind closed doors, Senator, from your Republican

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<v Speaker 2>colleagues that something may change in the near future in

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<v Speaker 2>terms of their willingness to support something like a war

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<v Speaker 2>powers voter and authorization of use in military force. Are

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<v Speaker 2>we approaching a turning point?

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<v Speaker 1>I certainly hope so, because when I'm in New York State,

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<v Speaker 1>New Yorkers are furious at the President right now. They

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<v Speaker 1>are so frustrated that he's not come to the American

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<v Speaker 1>people that he is spending twenty five billion dollars so far,

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<v Speaker 1>is set to ask for another two hundred billion dollars,

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<v Speaker 1>all why their gas prices are going up. And so

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<v Speaker 1>I know Republicans are hearing the same things from their

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<v Speaker 1>constituents and their states. So because of that, I believe

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<v Speaker 1>they will come to the table and try to hold

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<v Speaker 1>this administration at some point accountable for a very unpopular

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<v Speaker 1>war that isn't authorized and the American people don't support.

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<v Speaker 1>Three and five Americans are against this war today, and

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<v Speaker 1>that's because they're paying for it at the pump, and

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<v Speaker 1>they've been shown no reason why we had to engage

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<v Speaker 1>in this war, and that there was no risk to

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<v Speaker 1>the American people that President Trump had to protect them from.

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<v Speaker 2>Well, and it's those higher prices at the pump that

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<v Speaker 2>now seem to be fueling a building narrative that Democrats

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<v Speaker 2>may have a better chance of flipping the Senate blue

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<v Speaker 2>once again in the midterms. That, of course, is what

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<v Speaker 2>you're charged with chairing the Democratic Senatorial Campaign Committee. I

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<v Speaker 2>just wonder as you look across this widening map, take Iowa,

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<v Speaker 2>where the Vice president is today, and where there's talk

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<v Speaker 2>that Democrats may actually stand a chance something we have

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<v Speaker 2>seen in eighteen years, or Texas or Alaska or Maine.

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<v Speaker 2>It takes money to you have to pay to play

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<v Speaker 2>in all those different places. So I'm wondering how you're

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<v Speaker 2>approaching it strategically and financially this wider map.

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<v Speaker 3>Yeah, So right now we have a map of eleven states.

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<v Speaker 1>And the reason why we have so many states that

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<v Speaker 1>could go from red to blue is because of the

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<v Speaker 1>climate that President Trump has created with his toxic policies.

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<v Speaker 1>He promised that he wasn't gonna get involved in Worris.

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<v Speaker 1>He promised to get grocery and housing costs down, and

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<v Speaker 1>he's done everything, but we now are engaged in at

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<v Speaker 1>least two wars, one with Venezuela and one with Iran,

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<v Speaker 1>both illegal, both unauthorized. He's done nothing to bring cost

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<v Speaker 1>of groceries and housing down. The cost of the pump

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<v Speaker 1>continues to rise because of the war in Iran. And

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<v Speaker 1>so President Trump is very unpopular right now. And the

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<v Speaker 1>Republicans that are aiding and abetting him, not standing up

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<v Speaker 1>to him, not demanding groceries and housing costs come down,

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<v Speaker 1>They're going to be held accountable at the ballot box.

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<v Speaker 1>And so we have talented candidates running and red of

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<v Speaker 1>purple states all across the country. Right now, And so

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<v Speaker 1>we have a few states we are defending, and then

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<v Speaker 1>we have eight states that are now in play because

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<v Speaker 1>of President Trump's toxic policies.

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<v Speaker 2>And speaking of the President's policies, finally, Senator he obviously

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<v Speaker 2>is a big push toward building this new ballroom at

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<v Speaker 2>the White House. And according to the reconciliation text so

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<v Speaker 2>that we saw release last night from Senator Grassley, there's

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<v Speaker 2>a billion dollars allotted in there for secret service specifically

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<v Speaker 2>as it relates to the ballroom. Does that make this

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<v Speaker 2>ultimately a done deal? Is there anything Democrats can do

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<v Speaker 2>to stop that construction? Knowing reconciliation is by nature of

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<v Speaker 2>partisan process.

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<v Speaker 1>So what Democrats are doing is talking to their constituents

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<v Speaker 1>about what matters to them. And I can tell you

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<v Speaker 1>in New York State, they do not want President Trump

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<v Speaker 1>spending their tax dollars on a ballroom that we don't need.

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<v Speaker 1>They want President Trump to be focused on the small businesses,

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<v Speaker 1>the family arms, getting these chaotic tariffs down, making sure

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<v Speaker 1>that we get the cost of gasoline and fueled down,

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<v Speaker 1>making sure he's actually focused on their grocery bills, and

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<v Speaker 1>their heating bills, and their medical bills. The fact that

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<v Speaker 1>he's spending twenty five billion dollars on a war instead

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<v Speaker 1>of restoring medicaid to millions of people is frankly an outrage.

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<v Speaker 1>And so I do think we're going to flip the

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<v Speaker 1>Senate and the House in November, and people are going

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<v Speaker 1>to express their concerns with President Trump by voting differently

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<v Speaker 1>and voting for Democrats in a lot of red and

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<v Speaker 1>purple places.