Wow the biden administration is now considering an executive order on a crypto currencies. Im gon na break down what this means in this video lets honestly just get right into it. Uh but first, if this makes you nervous just go to life, sign up for life insurance in as little as five minutes and youll feel a whole lot better, especially since you can apple pay or android pay for it. Okay lets get into this so heres. The thing by the administration is considering an executive order as part of what they say: a government wide approach to the white hot asset class. The proposed directive would charge federal agencies to study and offer recommendations on the relevant areas of crypto. So so far, that basically means nothing well. First of all, a an executive order in general can often literally mean nothing thats, because an executive order is just really a recommendation of the president to encourage agencies to do something a certain way. The problem is the agencies, a lot of them. The agencies that we have dont know a thing about crypto in fact, get this bloomberg sites scroll all the way to the bottom. Here the most knowledgeable person that they were able to list here who uh has a lot or deep experience in crypto, is quote recused from working on crypto, because his personal holdings include one to five million dollars in bitcoin and as much as 250 000. In file coin yeah, i dont know what the heck that is, but come on were gon na expect, all of a sudden, an executive order from biden to get uh uh to actually get regulation going from uh or about crypto from our agencies.
I doubt it im not super worried about this at all, but lets keep going in some of the details and, most importantly, what theyre really trying to accomplish here. What the government is trying to accomplish is finding a way, as they say here, to streamline and coordinate how the agencies are going to deal with crypto. In my opinion, this is actually a good thing, because on one sense you want to coordinate the irs in how its going to tax crypto on another sense, you want to coordinate agencies and their ability to take crypto as payment look, i would love for our state Governments, our dmv or all these places we hate paying money to to finally accept bitcoin or ethereum or ada or dogecoin whatever, as a form of payment like these are things that could come. Regulation does not necessarily have to be all bad and, as many have said before, especially sec secretary gary gensler, he believes regulating crypto is actually somewhat bullish, because if you think about cars, when they were first created, we had no regulation for cars. Almost nobody used cars because they were dangerous. Now i know a lot of people, especially people who watch this channel are interested in cryptocurrency, so we have a little bit of a skewed audience. But when we look at america broadly, most people are still somewhat or relatively fearful of cryptocurrencies, its a fear of the unknown, its something that intuitively is hard to value or to understand valuation by and generally when its in the media, its associated with scams.
So this is where sec, chairperson, gary gensler, says: hey, look! If we regulate just like we regulated cars by mandating seat belts and stop signs and traffic signs and rules of the road, then you can actually create broader adoption of crypto. This is why i personally believe that 2022 might be the year of crypto, where we finally get regulation its not as scary or fearful as people think it will be, because i personally think that our congress mostly tries to do what the most people want and a Lot of people are pro new monetary innovations. Theyre pro defy theyre pro uh, really things that can create faster and less expensive forms of transacting uh in business uh. So not everybody who knows about crypto knows that we can accomplish those things, but with a bit of education and clear cut regulation, i think cryptocurrencies are things that folks shouldnt be against now. Maybe im too much of an optimist so ill. Give myself that as a potential risk factor, but then again my goal is to keep cryptocurrencies to no more than eight percent of my portfolio. Maybe 10 well see what kind of mood im in, but you see its not like im all in, but i want to be clear and transparent with with my holdings now at the moment there has been no decision as to whether or not this executive order will Actually be issued, there is a draft directive that is part of the white house and its really to just create a broad based strategy for digital tokens.
Now they didnt mention it in this particular bloomberg release here, but we already know that theres a lot of fear, uncertainty and doubt around regulating stable coins thats because bloomberg they just did a whole expose on trying to find out where tethers holdings are and uh. I mean they wrote, probably an article that would take 15 to 20 minutes to read, which is pretty long, article talking about how they interviewed people and how they hunted people associated with tether, and they could not find where tether holds its underlying dollars. Because tabling is tether in case you dont know, is technically a stable coin, which is supposed to have one dollar of assets for every stable coin that exists. But if those assets are like funky junk bonds that are earning high dividends somewhere and they have a risk of bankruptcy, then theres a risk that tether could break the buck and tether is a huge part of our cryptocurrency ecosystem. Its kind of like back in january of this year when i did a video on the stable coins that gemini has. I looked, and i saw wait a minute here. They are saying you can earn interest of five to eight percent on your gemini dollar and then they put notes like oh its fdic insured, and it makes it seem, like the gemini token, is an fdic insured savings account, but it really isnt, because when you turn On interest, youre actually lending out your money to someone else, youll never be able to redeem that dollar at the bank.
If theres a panic, because youve agreed to lend it out thats, why youre getting a return but its not obvious that youve lent it out because it still shows up as in your account right? And so, even though the underlying deposit of gemini dollars, like the real us dollars that back it, are fdic insured, your money, isnt, and so these are sort of the, in my opinion, confusing things that honestly deserve regulation, because i think people are somewhat being misled in What happens when they take the risk of taking a yield on stable coins, and so i think theres going to be a big movement on this crypt stable coins, werent specifically mentioned here, but the only thing weve really heard: the federal reserve and janet yellen, the treasury Secretary talk about when it comes to cryptocurrencies like one of the first things out of their mouths, is regulating stable coins. So you know this is whats going on uh no and remember janet yellen is basically an extension of joe biden at this point. She is a the political arm of money for joe biden now. It does say here that no decision has been made on whether or not to release the order. Even if president biden doesnt move forward with it, the administration will still make public its overall strategy for cryptocurrencies, so were still going to be getting some kind of announcement from biden right now were kind of just getting a preview that somethings coming robinhood put out a Statement that regulation on cryptocurrencies could hurt and payment for order flow could hurt their business, so they really quickly 8k.
This im honestly not so worried about either of those getting regulated out of out of existence as much as we hate payment for order flow im. Not super concerned that uh its going to wet going away and and itll bankrupt, robinhood or whatever it is a possibility, though, and i know a lot of people here – dont like robinhood thats, fine, okay, im not showing for robin hood im just saying i dont think Its going away, thats my opinion, all right. Moving on financial regulators, appointed by biden, are taking an increasingly hawkish tone about the purges burgeoning crypto market as they seek to step up oversight expressed concerns about the lack of investor protections. This is true: theres, no sipc insurance, for example, if your money gets hacked its like who pays right, whos responsible? How do you know where your wallets safe, where its not national security agencies across the admin, are also grappling with high profile cases of digital currencies? Playing a role in ransomware attacks like the colonial pipeline earlier this year and remember what happened? We just had the uh uh. What was it? The board ape uh creator, bailed after selling his uh crypto uh, uh uh. You know crypto nfts and uh not delivering on his promise to follow up with the fringe benefits of the nfts bailed, with a few million bucks. I think it was just under three million dollars, but anyway uh a lot of uh scrutiny uh.
It also says here this push is being led by lobbying by powerful players in the industry, arguing that increased regulation risks killing jobs in the in the crypto space. So i imagine like coinbase and block fi, and some of the big ones are, are trying to step into like hey dont, go crazy with regulation here which, by the way, if you want a credit card that pays, you in cryptocurrency rewards go to medkevin.com bf thats. My kevin.com bf, like block five kevin.com bf check that out now uh. This draft has been circulating with clarify responsibilities of various agencies, tasked them with examining relevant topics and reporting back their findings. None of this is gon na actually take any meaningful effect until 2022. In my guess, i mean come on how much working time do we have left here were almost at were like six weeks away from thanksgiving, then everybodys gon na get off for the holidays nothings happening in 2021. My guess, uh washington policy makers have struggled for years to come up with a comprehensive approach to digital assets. Uh they talk about are digital currencies. Actually, investments are they commodities? Are they currencies right? It makes sense that this should be regulated. My opinion somewhat unpopular in the currency space, but you know me i just just tell you like what my thought is. I personally think a lot of cryptocurrencies are just crypto assets. Theyre investments theyre like stocks right thats. The way i look at them at least is kind of like a stock, but thats just my opinion.
The administrations effort is being coordinated by the white house led by the national economic council. Okay, look you remember who the last chairperson of the national economic council was. Let me give you a hint: were gon na have a v shaped recovery. Remember that guy. Why cant? I remember his name um. I just had his name at the tip of my tongue, too. Larry larry, mr v shaped recovery, larry whats his last name. You remember his last. I cant remember his last name larry, something uh anyway, hes the director of the national economic council under donald trump, and he would always every week come on. I think were gon na have a v shaped recovery, everythings, getting better its great uh larry larry, maybe its because i just ran a campaign against larry elder. I kind of like replaced this persons last name, but anyway larry. They never forget the guy anyway, like if people like that are running the national economic council. I dont think larrys like the most expert at uh, cryptocurrencies and i know theres a different director of the national economic council. Now but again, the most expert person, who is a deputy assistant to the national economic council, is this tim wu person but again is not allowed to work on crypto because he invests in crypto like ah come on so youre saying the most experienced person, cant uh Cant actually help contribute uh anyway, even as the broad crypto strategy remains under development.
The biden admin is facing. Uh work on digital assets, uh, which started slow, has been ramping up. Justice department on wednesday launched a new national currency, cryptocurrency enforcement team to investigate and prosecute the misuse of cryptocurrency. So, okay, new teams coming new regulations coming new ideas coming big deal, not worried about any of it personally bring it on ill. Put all my cash into ethereum right now on a bet that this this biden stuff, is nothing more than fear uncertainty and i actually think its gon na be positive because its going to open up the door to crypto etfs, more uh standardized products for crypto more Securities for investors so that way. Finally, my father in law, who walks around with a blockfly shirt, can finally actually invest in cryptocurrency as well, rather than just don the merch, but anyway, thank you so much for watching.