Ripple/XRP-US Treasury About To Drop Bombs On Crypto,Everything Runs On The XRPLedger & XLM
Lets get right into it. Somebody wrote that beautiful intro. This is digital perspectives, with brad kimes subscribe for new content notifications, now heres brad kinds come on in welcome back to the show everybody you can follow me on twitter, at backup, bradley above and everything that were talking about here today. Its 1.899 trillion dollar cryptocurrency market cap today, right now, bitcoin just sitting just below 43 000. Let me wave to my mailman have a great day buddy and then looking right here. Uh ethereum is two thousand nine hundred and sixty six dollars right now, just under three thousand cardano at two dollars: eight cents in xrp at 93 cents lets take a look at the range really quickly here before we get started into the news, its 94 cents on Fiat links, low end of the range is 0.9130, the upper end of the range 0.9673 okay. Here we go getting to the news. Canada says xrp is not a security whats the confusion here we know singapore is clear on it. Uk is clear on it. We know japans clear on it and then the question is well, if everybodys clear on it in those regions of the world, why arent they using it to its full scale intended use? Well, i firmly believe that is it that it is a global international cooperation in order to do so. I really do believe that, and we shall see soon enough, but right here i want to remind everybody of the libor rate and the so4 rate, so the libor rate is a benchmark interest rate that has been established for many many years now for uh, interbank usage And all of this stuff for interest rates, so far rate is supposed to be and im saying, im not saying questioning it anyway.
Im, just saying so for was created to eventually replace the libor rate as the benchmark rate, because its supposed to be a more accurate way of collecting the information and to to come up with what that rate should be. Here we see and shout out to uh rod hop for this information here live board deadline. Extension would be huge relief for markets and theyre. Looking. You know at some point here. They want to graduate from libor rate into so4 rate, because its supposed to be more accurate, which i fully understand, they want a more accurate reflection of what that benchmark. Interest rate should be, but before we go on to this other information, i do want to remind people sandy oconnor. One of the board members of ripple was a huge architect in coming up with the so4 rate that the problem with transitioning from the live board and so forth, is that theres many different contracts that are out here in many different styles of products and derivatives that Have different expiration time, some are daily, some are monthly, some are yearly, some are three five year contracts and nothing. Nothing. None of the language in those contracts addresses the idea that you could change from what was then only libor and no such thing as so forth. To time so, in order to get everything switched over to this new benchmark interest rate, its going to take quite a bit of effort to do so, and it looks like theyre looking for a reprieval here and extending that extension.
Now, what i want to start with right here is a clip that i have from back in may were going to go back as far as april and itll be charles gasparino and liz clayman again. That are going to remind us of something very, very important, but it starts right here. So let me hit play on this and give you this its only about a month about 40 seconds. Listen to this and the reality is its the us treasury, acknowledging uh for all of us that cryptocurrencies a medium of exchange for decades to come and im going to show you that right now and it is uh one second right here here we go new tax Reporting requirements and saying theyre going to be needed, because cryptocurrencies are going to be so important as a unit of exchange in the decades to come back over there. You have it listen. This is the u.s treasury saying that we got to have stricter compliance, because cryptocurrencies are going to be a unit of exchange for decades to come. Look thats where were starting today, because weve been told, and if i could move to, i believe its as recent as right here, and this was just a few days ago. So within a week ago we were being uh and thats. Not it right here is where i want to go right quickly, right here, so this was just in the last few days here and well get to that information.
Five days ago here we were reminded that the stable coins and spotlight as the u.s begins to lay groundwork for rules on cryptocurrency sponsors say stable coins are safe, but regulators are concerned about potential risk and financial stability. All of this is good questions. All of these are great assessments and and thought thought points and thinking points for where they need to go, but weve been told and weve been told and by. I believe it was katherine hewn, who is you know, former justice department and obviously involved in the uh decision, with ripple back in the day. I believe, if im not mistaken and looking at this, she has told us that, even as far back as if i could go here right here just three days ago, that now that shes working with andreessen horowitz smart, stable coin regulation will be an important piece of Modernizing the financial system, now i covered this im not going to go back down into this again, but theres, a reason that im showing you all of this. We all have been focused so heavily on gary gensler and what hes going to do – and we know what hes trying to do and one of the many things that scared me about it, is that he wants to control the entire crypto market from stable coins to Crypto that its not even a guess at this point, the one of the scary things about that – is that the cftc, who really has already been given the power from a federal judge, ruling to oversee virtual currencies as commodities.
The cftc has been really everything almost silent. Brian quintez made one comment or two comments when he was there, but guess what hes at andres and horowitz too now so so theres that to take away from this now, with that comment back in may reminding us that the us treasury understands the legitimacy of cryptocurrencies And stable coins unit of account for decades to come very, very big deal because right now we know that the us dollar is really the unit of account for the world as the global reserve status this year on september 16th, the treasury preps stable coin framework, as Officials fear stability, redemption risk and so on and so on right all the things you would expect to see from the treasury and the presidents working group again the reason im bringing these things to light is because in another couple weeks, theyre saying and catherine hahn had Even mentioned it in the thread that she had that im not going to go back into that as as soon as early october, which is the first couple next couple weeks, we could see them release a framework from the treasury and the presidents working group for stable Coins and even crypto, because if they dont consider them securities, then it would be the treasury who would speak to this because the treasury oversees money, even if its not legal tender status. I think thats an important point here now before we go on. I want to play this clip because this shows you how far back that liz clayman and charles gasparino eleanor terret and everyone else have been involved with understanding whats going on in regulating crypto, and they knew from a macro level that there was a lot of confusion.
This is when hester purse was on there. They were discussing about the lawsuit with ripple, and obviously she didnt speak because she cant you know. Obviously legally, she cannot say anything and liz. Claiman asked her, you know: will gary gensler be looking to take a a hatchet or a scalpel to this market and lets hear whats said here, because charles gasparino makes an incredible comment all the way back from april 23rd? Listen to this uh hester thanks for joining joining us im im only kidding about the crypto man, part. On my i mean i barely knew what a cryptocurrency was until a couple weeks ago, but but wait till you hear this exchange to be uh. If you frank, i know a lot of major hedge fund, guys that are in this deep theyre worried about regulation and they keep hearing that its not necessarily going to start with the sec, but its going to start with treasury and thats. Why were making this video today because were being told, as recently as yesterday and day before and five days ago, that in the next couple weeks, the treasury is about to release a framework on stable coins? Charles gasparino is originally focused on the case in the sec, and he immediately takes it to everyone. Hes talking to is referring him to the treasury, keep listening. As a matter of fact, when we asked jen saki the the president bidens press secretary about uh crypto regulation, he pointed us to the treasury department.
So clearly something is happening from treasury is. Is that your understanding that its treasury thats going to give you guys the rules of the road going forward? Well, i should say that i speak for myself yeah. He shouldnt say that i speak for myself and i totally get that and i get and wheel out the disclaimer from everybody from the sec right. These thoughts are my own theyre, not at the sec, yada yada and shout out to hester purse. I mean shes been amazing, its not taking a shot at her at all. We appreciate her efforts, but i want to continue to play for you what i covered afterwards, because i feel look and it may just be soft recommendations. We may not get like really definitive things from this and it may be very, very macro, because we dont want to forget that the treasury fsoc the regulatory agency, financial stability oversight council connected to the treasury, their prudential regulators, the sec, the cftc are market regulators whats. The difference and, generally speaking, prudential regulators look at the macro the overview and they have more power than the market. Regulators like the cftc and the sec. They dont need the governments approval to do things, but the sec and the cftc do right. So theres that and the market regulators are more on the ground level, where the prudential regulator at a macro. Listen to this, though, all of a sudden shes like look im, not speaking for the sec, oh thats straight fire, ladies and gentlemen, could it be that gary gensler is awaiting the treasury and how they want to move forward? Because the difference here that were talking about is the difference between a market regulator and a prudential regulator.
The prudential regulator looks at the macro, and the market regulator usually deals with the micro ground level right. So when we look here, this is why i have for over two years, been pointing out the us treasury and the ability of the dodd frank act and the regulatory agencies connected to the treasury. Being the financial stability oversight council known as fsoc, and let me read you this right now – the dodd frank act authorizes the council to designate a financial market utility as systemically important. If the council determines that the failure or of a disruption to the functioning of a financial market utility could create or increase the risk of significantly liquidity of significant liquidity or credit problems spreading among financial institutions or markets and thereby threaten the stability of the united states. Financial system im going to stop it right there and heres some examples really quickly: the cls bank, international chicago mercantile exchange, the depository trust company. These are the kinds of entities that have already received a systemically important designation. This is why i believe ripple net could possibly get some kind of systemically uh, important, designation or financial market utility at some point or the ledger, the xrp ledger or even the stellar network, because these protocols are going to move value. Not just information like were currently using on the internet right now, you know again recently is this: the us begins to lay ground rules for cryptocurrency. This is coming from the treasury and the presidents working group.
We got another sign of it just as recently as three days ago from katherine han from andreessen horowitz right. Looking right here is a reminder that stellar to work with ukraine on blockchain based central bank, digital currency, theyre already being trusted by a central bank to launch one of their digital currencies. What else do we know so is ripple, so is ripple. We know that ripple. Private uh has a private ledger to pilot the launch for central bank. Digital currencies for bank and bhutan is one of them, not speculation. This is happening so when i made the comment years ago that everything runs on the ledger, you have to ask yourself if the world is going to see these public private relationships with stable coins from all different facets from whether were talking about you know, uh the Usd coin or somebody wants to develop a stable coin that represents their company and what you buy on their company right or casino coin is really, you know, uh its not pegged, obviously, but you know things being launched off of the network like stable coins or even Projects like casino coin, how important do you think the ledger is understanding how efficiently secure scalable it is? What does that really mean to governments like the us government, or what does that really mean to a department like the u.s treasury, who understands the value of these decentralized exchange that allow us to move and settle payments instantly move value instantly, and the other question is: If its good enough for central banks, who is it not good enough for, does it get any more high level than central banks and government money and government daily payment flows? Are we to think that itll be used in that capacity, but it wont be used somehow between stellar or xln or xlm and xrp, and the xrp ledger, but it wont be used in any other.