Tokenized Assets U.S. Hearing🔥BlackRock vs Hillary🔥

Summary

In this Tech Path episode, Paul delves into the tokenized assets hearing, highlighting the potential of blockchain to revolutionize financial markets. The discussion features experts like Carlos Domingo and Hillary Allen, who advocate for clarity in digital asset definitions and the benefits of public blockchains. Concerns are raised about compliance costs, the crypto industry's role, and the impact of tokenized securities. The conversation also touches on CBDCs and the challenges of blockchain in facilitating efficient transactions, emphasizing the need for regulatory alignment and technological understanding.

Takeaways

• 😀 Paul, the host, introduces the topic of tokenized assets and their role in efficient markets, highlighting the importance of the ongoing hearing and potential bills like the Tokenization of Securities and Derivatives and the Tokenization Report Act of 2024.
• 🚀 The sponsor, Coinbase, is promoted as an easy entry point for newcomers to crypto, with an offer of up to $200 in crypto for new sign-ups, emphasizing the platform's user-friendliness for buying various types of cryptocurrencies.
• 💡 Carlos Domingo, the co-founder and CEO of Securitize, and Hillary Allen, a law professor, stress the need for clarity in defining digital assets and tokenized securities to distinguish them from other digital assets and advocate for the use of public permissionless blockchains for tokenized securities.
• 🛠️ The discussion touches on the potential for tokenization to reduce costs and increase efficiency in financial transactions, such as dividend payouts and redemptions, by automating processes and potentially cutting cross-border transfer costs by 80%.
• 🤔 Concerns are raised about the possible misuse of tokenization by financial institutions to avoid compliance costs and the challenges of using public blockchains for large transaction volumes and high fees during peak times.
• 🏦 The conversation addresses the impact of tokenization on the banking sector, with the mention of SAB 121 potentially hindering the development of tokenized securities and assets, and the call for Gary Gensler to withdraw the proposal for better bipartisan collaboration.
• 📈 The potential for tokenized assets to revolutionize various industries beyond finance, such as real estate and ticketing, is discussed, with examples like propy and the recording of titles, leases, and mortgages on blockchain for transparency.
• 🎓 The importance of education for lawmakers on the nuances of blockchain technology and its applications is highlighted, as misunderstandings and misconceptions about the technology's capabilities and limitations are evident in the hearing.
• 💼 The debate over the use of public permissionless blockchains for tokenized securities, especially regarding compliance with anti-money laundering (AML) and know your customer (KYC) regulations, is a significant point of contention in the hearing.
• 🌐 The role of stablecoins and the potential for a central bank digital currency (CBDC) as a settlement asset in the tokenized ecosystem is discussed, with differing opinions on their suitability and the need for further study.
• 📉 The hearing reveals a gap in understanding and a need for clearer regulatory frameworks, as some representatives show skepticism about the transformative potential of tokenization and its practical applications in finance and beyond.

Q & A

What is the main topic of the hearing discussed in the script?

The main topic of the hearing is the tokenization of real-world assets and how it will facilitate efficient markets, including the development of tokenized securities and derivatives, and the Tokenization Report Act of 2024.

Who are the key speakers in the hearing mentioned in the script?

The key speakers in the hearing are Carlos Domingo, founder of Securitize, and Hillary Allen, a professor of law at the American University in Washington College of Law.

What is the role of Coinbase as mentioned in the script?

Coinbase is the sponsor of the show and is presented as an exchange platform for people who are new to crypto and looking to start their crypto journey.

What are the three critical aspects for a tokenized securities framework as suggested by the speakers?

The three critical aspects are: clarity in the definition of digital assets, permission for SPBDs to hold payment stablecoins to facilitate onchain transactions, and allowing tokenized securities to flourish on public permissionless blockchains.

What is the concern expressed by the speaker regarding the uptake of multicurrency CBDCs?

The concern is that the only uptake of multicurrency CBDCs has been by the crypto industry, which is primarily used by gamblers and criminals, and this could potentially cut costs by 80%.

What does Carlos Domingo suggest about the efficiency of managing underlying securities of a fund through tokenization?

Carlos Domingo suggests that tokenization provides a more efficient way of managing the underlying securities of a fund by automating processes like redemptions and dividend payouts, which can lower the cost of maintaining a fund.

What is the potential impact of tokenization on the velocity of margin calculation and movement?

Tokenization, along with smart contracts, could potentially increase the velocity of margin calculation and movement, making these processes faster and more efficient.

What is the current issue with the regulatory stance on tokenized securities as discussed in the hearing?

The current issue is that the regulatory regime may not have the necessary flexibility to fully realize the capabilities of blockchain technologies, and there is a call for the withdrawal of Sab 121 to allow for more innovation in this space.

What is the narrative around stablecoins and their current use cases?

The narrative is that stablecoins are not currently used for making everyday payments like for a cup of coffee, but are instead used for activities like gambling and staking, and are also associated with illegal activities.

How does the script address the issue of anti-money laundering (AML) and know your customer (KYC) on public distributed blockchains?

The script suggests that there are technical solutions and other blockchains that can prevent assets from being sent to a wallet unless the asset has been preapproved, thus allowing for AML and KYC controls on public distributed blockchains.

What is the potential impact of the Tokenization Report Act of 2024 on the financial industry?

The Tokenization Report Act of 2024 could potentially lead to a bonanza for the financial services industry by providing regulatory alignment and enabling the development and use of tokenized securities and assets.

Outlines

00:00

🚀 Introduction to Tokenized Assets Hearing

The video script begins with an introduction to a hearing on tokenized assets, featuring Paul, the host of Tech Path. He expresses excitement about the upcoming discussion and mentions the sponsorship by Coinbase, which is promoted as an easy platform for new crypto users. The hearing's focus is on the tokenization of real-world assets and its potential to make markets more efficient. Key figures like Carlos Domingo, founder of Securiti, and Hillary Allen, a law professor, are highlighted as participants. The discussion will revolve around potential bills such as the development of tokenized securities and derivatives, and the Tokenization Report Act of 2024. Concerns about financial institutions tokenizing basic securities to avoid compliance costs are raised, along with the benefits of a multicurrency CBDC in reducing cross-border transaction costs.

05:02

💼 Efficiency and Regulation of Tokenized Securities

This paragraph delves into the efficiency gains that tokenization can bring to managing securities, such as streamlining dividend payouts and redemptions. Carlos Domingo emphasizes the need for clarity in defining digital assets and tokenized securities, advocating for the allowance of Special Purpose Banking Depositories (SPBDs) to hold payment stablecoins. He also stresses the importance of tokenized securities flourishing on public permissionless blockchains to realize blockchain technology's full potential. Hillary Allen raises concerns about the limitations of public blockchains in processing large volumes of transactions and the potential risks associated with tokenized deposits. She questions the reliability of blockchain organizations and the security of assets hosted on blockchains that may not be maintained properly.

10:02

🏦 Impact of Tokenization on Financial Institutions and Beyond

The discussion continues with insights into how tokenization can affect financial institutions and the broader market. The potential for tokenization to reduce the role of middlemen and improve the flow of money from companies to investors is highlighted. The GameStop incident is mentioned as an example where tokenization could have simplified margin call calculations. There's also a debate on the implications of the Financial Innovation Transaction 21 (FIT 21) provision, which could attract issuers seeking to avoid SEC oversight. The conversation touches on the potential of tokenized assets beyond just money, including applications in real estate and ticketing, and the need for regulatory alignment to fully realize the benefits of blockchain technology.

15:04

🤔 Congressional Perspectives on Tokenization and CBDCs

In this section, the script presents various congressional perspectives on tokenization and Central Bank Digital Currencies (CBDCs). Some representatives express skepticism about the innovative claims of tokenization, comparing it to past financial innovations and suggesting that it may not be exempt from securities laws. There's a call for the withdrawal of Sab 121, which is seen as hindering tokenization technology. The potential for CBDCs to serve as a settlement asset is debated, with some arguing that stablecoins are not yet ready for widespread payment use and that a central bank money should be the settlement asset. The script ends with a call for continued education and understanding of blockchain technology among lawmakers.

Keywords

💡Tokenized Assets

Tokenized assets refer to real-world assets that are represented as digital tokens on a blockchain. These assets can be anything from real estate to artwork and are tradable on digital platforms. In the video, the discussion revolves around the potential of tokenized assets to facilitate efficient markets, as they can lower costs and increase the speed of transactions, which is a central theme of the discussion.

💡Cryptocurrency Exchange

A cryptocurrency exchange is a platform where users can trade cryptocurrencies like Bitcoin and Ethereum. In the script, Coinbase is mentioned as an exchange that simplifies the process for newcomers to start their crypto journey. It exemplifies the entry point for individuals looking to invest in tokenized securities and other digital assets.

💡Tokenization of Securities

Tokenization of securities involves converting traditional securities like stocks and bonds into digital tokens on a blockchain. This process is highlighted in the video as a means to potentially reduce compliance costs and increase transaction efficiency. The script discusses the development of tokenized securities and the regulatory considerations surrounding them.

💡CBDC (Central Bank Digital Currency)

CBDC stands for Central Bank Digital Currency, which is a digital form of a country's currency issued and controlled by the central bank. In the video, the potential for a multicurrency CBDC to cut cross-border transaction costs by 80% is mentioned, emphasizing the role of CBDCs in the future of finance and their relation to tokenized assets.

💡Blockchain Technology

Blockchain technology is a decentralized and distributed ledger system that allows data to be stored across a network of computers. It is the underlying technology for cryptocurrencies and is discussed in the video as a critical component for the tokenization of assets, offering transparency, security, and efficiency.

💡Stablecoins

Stablecoins are cryptocurrencies designed to minimize price volatility by being pegged to a reserve of assets, often a fiat currency like the US dollar. The script discusses the potential for stablecoins to facilitate efficient on-chain transactions between securities, indicating their role in the broader ecosystem of tokenized assets.

💡Regulatory Alignment

Regulatory alignment refers to the harmonization of rules and regulations across different jurisdictions or sectors to foster consistency and cooperation. In the video, the need for regulatory alignment is emphasized to support the growth of tokenized assets and to ensure that financial institutions can operate efficiently within the new digital landscape.

💡Smart Contracts

Smart contracts are self-executing contracts with the terms of the agreement directly written into code on a blockchain. The video mentions smart contracts in the context of automating processes like margin calculation and movement, illustrating their potential to streamline transactions in the tokenized securities market.

💡AML (Anti-Money Laundering)

AML refers to the policies and procedures in place to prevent, detect, and report money laundering activities. The script discusses the need for AML controls in the context of public blockchains, highlighting the importance of ensuring that transactions on these platforms comply with financial regulations.

💡KYC (Know Your Customer)

KYC is the process of a business verifying the identity of its clients to combat fraud, money laundering, and other criminal activities. In the video, the implementation of KYC on public blockchains is debated, showing the ongoing discussion about balancing transparency and privacy in the digital asset space.

💡GameStop

The GameStop reference in the script relates to the 2021 stock trading frenzy where retail investors coordinated on social media to drive up the price of GameStop's stock, causing significant disruptions in the market. The video discusses how tokenization and smart contracts could have potentially made the margin call process more transparent and efficient during such events.

Highlights

Tokenization of real-world assets is being discussed in a hearing to facilitate efficient markets.

Coinbase is highlighted as a sponsor and as an exchange for starting crypto journeys.

Potential bills related to tokenized securities and derivatives, and the Tokenization Report Act of 2024 are mentioned.

Concerns are raised about financial institutions tokenizing basic securities to avoid compliance costs.

A multicurrency CBDC could potentially cut cross-border transfer costs by 80%.

The crypto industry is currently the primary user of blockchain technology, according to the hearing.

Experts like Carlos Domingo and Hillary Allen discuss the need for clarity in digital asset definitions.

Recommendations for a tokenized securities framework are presented, including public permissionless blockchains.

Critiques of public permissionless blockchains include their inability to handle large transaction volumes and high fees during peak times.

Tokenization can improve fund management by automating processes like redemptions and dividend payouts.

The GameStop incident is discussed in the context of tokenization and its potential to streamline margin calls.

Mr. Sherman provides a historical perspective on the evolution of financial technology.

FIT 21 is criticized for potentially allowing issuers to avoid SEC oversight through blockchain exemptions.

SAB 121 is discussed as a regulatory hurdle that could hinder the full potential of blockchain technologies.

The potential for tokenized assets beyond just money, such as real estate and property titles, is explored.

A heated debate occurs between Mr. Caston and Mr. Domingo on the capabilities and limitations of blockchain as a ledger.

The need for education on blockchain technology for lawmakers is emphasized to foster better understanding and regulation.

Transcripts

let's get into the tokenized assets

hearing today we'll break down a whole

bunch of clips for you you definitely

want to stay tuned because we've got

some zingers for you so it's going to be

a good one my name is Paul be welcome

back in Tech path before we get started

I want to thank our sponsor and that is

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out over on coinbase all right let's get

into a few points here this of course is

a hearing that happened today and it was

really breaking down how tokenized

tokenization of real world assets will

facilitate efficient markets now Carlos

Domingo founder of securiti who's been

on our show was here along with Hillary

Allen which we've shown before we're

going to break down all of this and get

into it because there's a couple of of

uh potential bills that are at uh stake

here one of of course is the development

of tokenized Securities and derivatives

and then also the tokenization report

Act of 2024 all of these are being being

represented and they're basically going

through this in the hearing let's go to

this first clip kind of get you guys

caught up listen in I'm concerned that

financial institutions will be

incentivized to Simply

tokenize Basic Securities that are

commonly exchanged indeed some

shareholders might insist that company

management use that approach to avoid

compliance costs it cost $120 billion to

move $23 trillion across Ross borders

and that a multicurrency

cbdc could cut cost by 80% down to about

$20 billion it seems the only uptake has

been by the crypto industry for its

organization whose products are

primarily used by gamblers and

criminals all right so you know the

typical Lynch intro right there uh or I

should say the typical intro that we've

seen from them before and and it kind of

goes on and on they go a little bit

further into this this also sets up the

introduction of Carlos and also Hillary

Allen take a look at this one Carlos

Domingo Carlos is the co-founder and CEO

of securitize and Hillary Allen Miss

Allen is a professor of law the American

University in Washington College of Law

we need Clarity in the definition of

digital assets Securities or tokenized

Securities to distinguish them from

other forms of digital assets second we

also believe that spbd should be

permitted to hold payment stable coins

to facilitate it at efficient onchain

transactions between Securities and cars

today this is not possible third

tokenized Securities must be allowed to

flourish on public permission list

blockchains in addition to private

permission chains to realize the

benefits of blockchain technology these

suggestions are critical aspects for of

what tokenized securities framework

should include this is currently the

model chosen by the European commission

for Europe and US entities should be

able to realize similar efficiencies and

capabilities now I know that there's a

strong narrative about this being

transformative technology I fell into

this trap when I first started started

writing about Bitcoin nearly a decade

ago so these kinds of blockchains can't

process large volumes of transactions

and the delays and fees can be

significant to peak times so why use the

public permissionless blockchain in the

first place furthermore tokenized

deposits May speed up payments

processing for the already banked but

tokenized deposits will not Bank the

unbanked they require constant

monitoring and maintenance to address

bugs and cyber security issues but it is

often unclear who they are what powers

they have who is funding them or how

they are chosen could they be bad actors

can they always be counted on to get the

blockchain up and running again in a

timely matter after an outage what if

they just give up on the blockchain

could the assets hosted on that

blockchain be

lost all right so a lot of things

happening there I think you know the one

major thing is the issue that she's kind

of referencing a decade ago in terms of

our research versus some of the things

that have been happening here within the

blockchain technology really in the last

18 to 24 months which has pretty much re

revolutionized I think the direction of

it and like most technology it advances

much quicker as things start to develop

that's the case that we're starting to

see hence tokenized assets are becoming

such a talking point but also very

important uh situation right now of

course from a regulatory standpoint but

also from a financial standpoint so

she's kind of talking about things that

really she doesn't know about just yet

but hopefully that will change during

all of this all right so let me go to

this next clip which is uh Carlos

talking a little bit more about the

middlemen and where the yields are going

how all this is basically being done and

it can be circumvented take a look so

tokenization obviously provide a a much

more efficient way of managing the

underlying Securities of a fund it

provides automation for things like

redemptions dividend payouts Etc that

can lower the cost of actually

maintaining a fund typically Dividends

are delayed into reaching the hands of

the investors after the company has

basically transferred those to to the

the transfer agent and transfer agent

tend to hold the dividends for as long

as they can to try to uh you know

monetize on the on the asset not being

transferred to investors and I think

this technology can you know improve how

money flows from companies to investors

so investors can redeploy their assets

and and get better

returns so he's right yeah I mean this

is the situation where we will start

seeing returns coming in and once that

we see a stable coin Bill start to roll

out in a Congress and really lining up

with what MAA has done within the EU

which remember is happening at the end

of this month we'll have these kind of

products starting to go into the market

all of these kind of things will become

very apparent I think to many of the

lawmakers and of course many Financial

instrument companies as well now Allan

goes a little bit further into this and

part of what she goes into is now the

GameStop topic so listen to what she had

to say here when is something efficient

enough such that making it more

efficient will introduce too many fragil

ities and be counterproductive in the

long run mrak car um dtcc is the most

important behind the scenes company and

you were very involved not you

personally but dtcc very involved in the

uh GameStop media where Robin Hood a

woke up in the middle of the night

trying to make margin could tokenization

have made that analysis of determining

what the Margin Call was for them more

straightforward more easy seemed like

there's a lot of mystery in that and a

lot of back and forth would would having

it on a ledger have made that easier yes

um one of the attributes that we so that

would like in reduce fragility in that

instance potentially one of one of the

attributes we believe that tokenization

along with smart contracts would allow

the Automation and increase efficiency

of margin calculation and margin

movement so you will see an increase in

velocity uh there so we do believe

that's one of the efficiencies to be

able to deliver faster uh and more

efficiently

this is one of the things that I think

uh Larry thinkink of course has woken up

to blockchain and understands now and so

much so that he's wanting to accelerate

the whole process of tokenized

Securities and tokenized Assets in uh

the real world in a big way and I think

this aligns with it much to the what she

was trying to do Hillary was trying to

do around the whole issue with uh

GameStop now it doesn't stop here and we

got a couple of E clips there's one at

the end that you got to stick around for

though it is unbelievable that this is

being said on and in uh Congress this

next clip goes into of course Mr Sherman

we always have to bring him in so we can

get a little bit of comic relief listen

in with that I call on the gentleman

from California Mr chairman for five

minutes I've been on the committee for a

long time this hearing hearkens back to

my first hearing when we focused on the

move from Abacus to 10 key adding

machine a lot of what we're being told

is innovative is doing things that we've

already done very efficiently for a long

time uh Professor Allen in your written

testimony you mentioned that this

provision in fit 21 would be very

attractive to issuers who seek to avoid

SEC oversight what would that mean for

retail investors if the fit 21 were to

become law that new title 2 would

basically allow you to slap a blockchain

on any kind of um investment contract

and therefore it becomes magically

Exempted from from the Securities laws

and so tokenized securities are recorded

on blockchain they are no different than

traditional Securities tokenized stock

or tokenized bond is still a bond or

stock when it's um whether it's in

traditional Ledger or a blockchain

ledger I think it's important to

remember tokenization does not change

the nature of the

asset all right well you can kind of see

the the situation there when they're

really not even understanding the whole

process of how tokenized Securities work

uh this next clip goes into a little bit

about Sab 121 and how it basically kills

one of the biggest categories uh for

banks which is going to be tokenized

Securities and tokenize assets uh take a

look what they had to say there do you

agree that under the current regulatory

regime created by chair guinsler we do

not have the necessary flexibility to

fully realize the capability of

blockchain Technologies uh yes so as Sab

121 is current written the definition of

crypto assets is very Broad so it

encompasses potentially tokenized

Securities even if it's a traditional

security recorded on a blockchain ledger

it's unfortunate that Gary Gensler is

holding back tokenization technology

with sabb 121 I'd like to use this

moment briefly to call on Gary Gensler

to withdraw Sab 121 believe he's putting

President Biden in a very difficult

position on this issue we have a

tremendous executive order and um

continuous statements from the

administration uh wanting to to work

with Congress on this issue in a bip

partners and Manner and if Gary gansler

were to withdraw Sab 121 we could work

in a bipartisan way on the custodial

banking piece and these definitions that

I think is so important so that is my

hope here all right so you can kind of

see not a good position for banks uh

could be possibly for other people out

there we'll just say people that aren't

Banks you know that we already seen kind

of these kind of scenarios that play out

and one of the things that you have to

remember whether that's it's the bill

that goes through or a stable coin bill

goes through all of this lines up into a

potential Bonanza I think for the

financial services industry which is

really where this Bulls down to is when

we will get regulatory alignment all

right so I've got one more clip here

this is Lynch talking about

cbdcs take a look you you need crypto to

trade crypto sort of like a self-licking

ice cream talk about some of the dangers

here thank you very much for for that

question I mean I think there's there's

civil gradations of risk in unexpected

circumstances things can blow up no

computer programmer can think of all

future states of the world so let's just

sort of think about this you've got a

bunch of different tokenization systems

wouldn't you need a a central bank sort

of a one

one

Central not necessarily Reser well sort

of like a reserve currency where

everybody could exchange their their

tokenized uh assets

one that everybody recognizes and

respects some people say that stable

coin should be a settlement asset I

think that is a a terrible reason I

really think that the the settlement

asset has to be some kind of central

bank money ultimately all right long

story short stable coins aren't

currently used for making payments for a

cup of coffee that's that's a sort of a

narrative that is incorrect right now

they're helpful for gambling you can

stake them or use well that's one of the

laws you try to evade yeah and we're

told that Innovation is wonderful but

then this Congress passes a bill against

even studying

cdbc uh it's certainly not a hearing

about Central Bank digital currency uh

and and what a terrible idea that is I

by all means Mr Lynch continue to study

it uh know and come to the conclusion

that it is a terrible idea particularly

the one currently conceived and so I

hope we can move on and have a focus on

this hearing topic and and not the straw

man that some of our colleagues want to

continue to

pillage all right so you can kind of see

this is a problem right now within

Congress I at one point I thought we

were going to see a little bit more

awareness of what was happening within

the markets especially around uh all

things tokenized and there was a point I

think that we started to see that maybe

it's just the the certain

Representatives that don't necessarily

understand it that were highlighting

here but I want to go to this next clip

that goes into tokenized assets for

things Beyond on money take a look in

Ohio mortgages or you know title to

property is one of the things that's

under study as chairman of housing

Insurance we're paying a lot of

attention to that if you look at the

representation of a title to a home or a

car deed to a land or property you know

what kinds of things as you look across

the market do we need to address and

where do we need to address them to

provide functional markets for seeing

applied to ticketing um tokenized

concert or Sports tickets real estate is

another use case that we're seeing where

you can record tokenized title leases

mortgages all on blockchain to have the

level of

transparency all right and this is

already happening actually out there

right now what they're talking about is

getting into real estate is it is one of

the big categories that's coming soon to

be tracked on you know when you look at

real world assets but propy is a good

example we've had the propy CEO on

before talking about this very thing

these are opportunities I think that all

start to lead in the right direction I

want to go to this last clip this is the

one you got to you wait for because this

is a bit of a trigger warning this is uh

Mr Caston versus Mr Domingo take a look

calling blockchain a ledger is like

calling a cup of flour a cake to call

that a ledger is disrespectful to

ledgers right it's it's it's just a list

of names and numbers securitized

tokenized and distributed shares of a

private money market fund issued by

Black Rock on the ethereum blockchain a

public blockchain um my understanding is

that any wallet on ethereum can accept

tokens from any other user on the

network right that's not correct for the

tokens we issue they're only

transferable to Wi listed wallets so you

put controls to protect against what

we're talking about here we do correct

this is totally possible on a public

distributed blockchain and saying that

you know providing AML controls or kyc

Etc on a public distributed blockchain

is not possible it's like saying it's

not possible to run Financial transac we

help me out then because almost

immediately after that money market fund

was deployed internet trolls found the

wallet addresses they sent mean coins

they sent nfts tainted funds from

tornado cash there were more than 100

cryptocurrencies that were mixed up in

legitimate funds that black rock haded

to access that how is that possibly

compliant so first they the those meme

coins and uh and sanctioned tokens were

not sent to a black Ro wallet at all it

was sent to some other wallet that was

you know labeled with black rock so

there was a misperception in the Press

of what happened second the fact that

somebody can send you a m point to your

wallet it doesn't mean that the token

that represents the unit of the money

market fund which is a security can be

freely sent to some other uh wallet or

are you suggesting there's a technical

solution to this or that we will have to

actually have indivual Technical

Solutions there's other blockchains that

prevent uh assets to be sent to a wallet

unless the asset has been preapproved

and that's something that could be built

on top of a public permissionless

network without no problem well I'm I'm

fundamentally dubious do any of you

believe that a blockchain system that

allows mixers and Anonymous wallets can

provide a robust Ledger of of of all the

transactions and and block anti-money

laundering I do believe so the same way

the internet is also used for you know

legal things and illegal things and it's

a public distribut infrastructure I

think the industry would be a lot more

credible if they were fighting harder

before the enforcement actions to

protect against money gentlemen time has

expired all right so you can kind of see

the problem there of really

understanding how this works um much

like any other open network system

whether it's internet even to a certain

extent the traditional banking system

also works in that fashion this actually

starts to really give the kind of

security elements that blockchain is

designed for all of this is an issue

because one of the things that we have

to do to overcome most of this is going

to be education and this is educating

our lawmakers so it's going to take some

time but I feel like there is at least

some steps in the right direction yes

you know fit 21 will be a big step in

the right direction so will stable coins

once we start to see some of those

activities and the use cases start to

become reality that's I think when uh

we're going to see lawmakers starting to

open up and understand really what's

happening here from a Technology

Innovation standpoint not un normal that

we don't see these kind of things when

they're dealing with new technologies

has happened you know in the era of the

internet most likely in

telecommunications and mobile many of

those kind of things uh were faced with

what we're dealing with now so anyway

we'll get and continue to cover this for

you guys uh there's going to be a couple

more here hearings and we'll obviously

see a lot of action toward the end of

the month as we start to see Ma and

stable coins become reality along with a

ton of products most likely rolling out

rolling out in the EU that could some

put some pressure on us so uh make sure

and stick around for that and if you're

not following me on X do so it's it just

Paul Baron we'll catch you next time

right here on techb

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