*Crypto BOMBSHELL* Panics WALL STREET

Oh my gosh, what a surprise. Citadel

Securities is pissed. Well, of course

they're pissed cuz they're going to lose

a crapload of money. Big moment for

stable coins. Security Exchange

Commission talking about potentially

allowing stable coins to trade stocks.

We got to talk about the implications

about that because it's really good for

one particular type of investment that

we'll talk about in this segment. So, if

you want to know what that is, just

watch the segment. First, let's listen

to Eric Trump yap about the future of

crypto and see if he has anything useful

to add other than this is the dial up of

we're at the dialup stage of crypto

which is actually you know bullish to

the extent that you believe Eric Trump

>> press conference prime minister of

Israel

>> it's my buy the dip buddy Charles Pay

>> meanwhile folks a lot of focus now

particularly on Wall Street but the

world on the crypto space it continues

to expand and is attracting a whole lot

of new players from Wall Street's

biggest firms who were once of course

doubters to Eric and Donald Trump Jr.

whose companies

>> well the big doubters have realized they

can make a whole lot of money.

>> Cryptocurrency is going to replace

traditional finance trad

it's it's happening

>> which is also ironic because like circle

is now looking at how to have like fraud

protections of tradi that you don't have

in crypto. So like being able to have

reversible transactions. You should look

at it. You can look it up. Circle is

looking into reversible transactions to

give traditional finance fraud

protections to crypto because oh wow

like there's actually some value to

that. Now that sort of messes with the

whole immutability of the blockchain

argument but whatever. We'll get to

stable coins in just a moment on stocks

which I'm really excited about and that

is the real future of crypto and I've

been talking about it for a very very

long time and we'll talk about who the

beneficiaries of that are going to be.

Uh, spoiler alert, they're companies

that you already know about.

>> Definitely in terms of stable coins,

100%. I mean, in terms of Bitcoin,

Bitcoin is digital gold just as better,

right? I mean, there's limited supply.

You know, Charles, if if gold ever goes

to 10 10,000 bucks an ounce, you know,

you and I will bust down the the walls

of the building you're in right now.

We'll find gold in that concrete, right?

You can always find more supply if the

price goes up. And with Bitcoin, there

will never be, you know, 21 million and

one Bitcoin. There will be 21 million.

We are on the one yard line of

cryptocurrency. and and we've got

another whole field to run.

>> All right, got it. So, Eric Trump is

really bullish crypto. It used to be we

were at the dialup stage of crypto. Now,

we're at the oneyard line of crypto.

Whatever. But what did the SEC just

announce? The SEC just announced that

they're looking into ways to enable

exemptions ASAP that would allow stocks

like Tesla or Nvidia to trade on the

stable coin market. Now, this is

different hopefully at least from what

Robin Hood is doing in Europe. Remember

how Robin Hood in Europe was talking

about, oh, hey, we're going to do stable

coins in Europe and we're going to have

a special purpose entity that will just

mirror the performance through options

trading, but we won't actually hold the

underlying

stocks. I don't really like that. I feel

like if we're going to do stable coins

enabling crypto purchases, they should

be somewhat like the information is

reporting here. The SEC is working on a

plan to allow stocks to trade like

cryptocurrencies on the blockchain.

Basically, if the plans move forward,

investors could buy tokens on crypto

exchanges that represent shares of Tesla

Nvidia. Now, my hope is that this the

SEC actually registers those stable

coins as actual shares. So, it's like

the same one of those tokens should be

the same as you holding a digital share

certificate at Robin Hood or you holding

an actual physical paper certificate of

the stock. When a new stable coin is

issued, Nvidia shows one more diluted

share on their balance sheets. That's

how it should be. And hopefully the SEC

does this. But I'll tell you, there are

some people really pissed about it. No,

it's not Eric Trump. He's really happy.

Citadel. Citadel is freaking out about

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description. And I'll tell you why. They

say that requests for exemptions for

stable coins are selfserving and that we

shouldn't allow tokenized because we

already have existing systems in place

and we don't need selfserving

preferences for tokenized securities.

And so they have this long list here

about how there should be a preference

towards using efficient ETF markets. We

shouldn't create investor and regulatory

confusion. We should allow the investor

surveillance that exists at exchanges

now. And let me tell you folks, as

somebody who's really experienced with

the financial regulatory authorities

such as FINRA, not only as somebody

who's passed tests for the series 27,

which is what you need to have a market

maker up and running. The series 24,

that's a compliance principle. Well,

that's actually a general securities

principle. Series 14, which I've also

passed, which is a compliance principle.

I've done all these tests. Series 7,

series 63, series 65, you name it. I've

gone through the tests with FINRA. I've

gone to the FINRA advertising

conferences to listen to them talk about

how important it is that broker dealers

make sure their employees aren't using

the rocket emoji cuz it could send the

wrong signal to people. I I kid you not.

They have advertising conferences where

rocket emojis come up. Okay, but guess

what else I know? I know how the ETF

structure works and I know how market

makers make money. I know that market

makers make a lot of money providing

liquidity and there are really rigid

requirements to being a market maker.

Now, you might get confused. You might

say, "Oh, well Kevin, the New York Stock

Exchange, the NY says that market maker

capital requirements are only $100,000

as a m minimum net capital requirement

and that you need $2,500 for each

security to be registered as a market

maker. But this would only tell you half

of the story because that sounds

relatively basic. But the reality is in

order to be a registered market maker on

NASDAQ or NY, you need to have the

capital to constantly provide open bids

for the securities you're market making

in. Which means you typically need

billions of dollars of market or of

capital available to constantly be able

to provide buy and sell uh offers on

each side of the market. And if you get,

you know, one person buys you out and

you're not available for the next person

to fill the next person's order, you

lose your preference as a market maker.

Now, why do these businesses want

preference as a market maker? Money. The

New York Stock Exchange and NASDAQ and

brokers like Robin Hood give kickbacks

to companies like Citadel for providing

fast liquidity. So, in other words,

because Citadel has a lot of money and

because they are registered with the

exchanges and because they're registered

with FINRA and because they have all of

the licenses,

they get to stand in line as a market

maker. And because they get to stand in

line as a market maker, because it's so

arduous to become a market maker, they

get the kickbacks and they get to pick

up the spread on stock trades. And it's

not just stock trades, it's option

trades. That's where the big money is.

But also in ETFs, which I think is

really ironic. I have a lot of

experience with ETFs. I understand how

the game works. Why do you think, folks,

why do you think that they're talking

about the ETF market being highly

efficient? Folks, I kid you not. I

understand this system.

And this is why I always think you

should subscribe to this channel because

you're going to get perspective you just

don't get anywhere else. I'm going to

try to explain this really simply. An

ETF is a basket. Okay, imagine this cup.

It's a basket. Well, right now it's a

cup of coffee, but it's a basket of

stuff. Here, hold on a sec. I'm going to

help you. This analogy is worth it.

Stick around.

Mhm.

I had to make room. All right. It's a

basket. That's all an ETF is. Okay. This

basket has a value. Let's say I put a

$100 stock in it called this Sharpie

pen. And then I put a $50 stock in it

called this Sharpie pen. And I'll just

do those two for now. Okay. The value of

the basket is what?

$150 because it's got a $100 stock and a

$50 stock in it. Cool. How often does

the market tell you the value of this

cup for an ETF? Once a day. Once a day.

That's it. An ETF adjusts to what's

called net asset value just once a day.

But wait a minute, Kevin. What happens

if during the day this $150 basket,

let's assume the components are still

worth $150. The stocks aren't moving.

Say it's like Nvidia and Apple, let's

just say, okay, let's say they're not

moving. The stocks like it's just the

stable price, okay? But somebody comes

in and buys the ETF like hardcore and

the value of the ETF goes up to 154.

Well, Citadel is going to go that cup is

trading for $154,

but the components are only worth $150.

So, if they market make in this ETF,

they sell. They sell it, they break it,

and they capture the $4 profit. The same

happens in reverse. The bucket selling

for 145. They're like, "Well, the

components are worth 150." sell the ETF,

break the bucket, take the components

out, and you have $150 that you bought

for 145. They can do that all day long

because the value of an ETF only resets

to NAV or net asset value once a day,

which means the market makers can make a

shitload of money handoverfist trading

ETF products that only trade when the

market is open. So, not on weekends, not

on nights. This is why you see major

fluctuation in ETF prices in aftermarket

hours or just low liquidity stocks. What

do stable coins potentially do? Stable

coins potentially give anyone the right

to become a market maker. No serious 24,

14, 27, none of that bull crap.

Technically, you don't have to do

anything cuz you're not registered with

FINRA. You're not a broker dealer and

you don't have to register with the

exchanges. You might, no guarantees. We

don't know exactly how this is all going

to play out yet, but in a perfect world,

in the stable coin market, you don't end

up having registered market makers.

Anybody can be a market maker. Now, in

some cases, you're still going to want

market makers. Like, if you have a

really low liquidity stock, you

technically want market makers to help

let somebody buy or sell. Because what

happens if somebody's like, "I want to

sell a stock." And then you just hear

silence. Well, your Red Fin app pin

wheels and you don't go anywhere and

you're pissed. This is like nobody's

buying my stuff. That's what market

makers do. So, they do fulfill a service

like they let you trade. This is why

they'll probably just start doing stable

coins with big stocks like Nvidia or

Tesla because there's plenty of free

market liquidity for those that you

don't need the market makers. So, the

market makers get cut out. So, guess

what? Oh my gosh, what a surprise.

Citadel Securities is pissed. Well, of

course they're pissed because they're

going to lose a crapload of money. By

the way, if you want these kind of

insights regularly on the market, make

sure you join the Meek Kevin membership.

This is what I do on a daily basis. It's

over at mekevin.com. Use the coupon code

daddy'sback. Okay. Now, now you

understand that the market makers are

pissed and they're losers in this. Who

are the winners in stable coins?

Companies like Robin Hood. broker

dealers like Tasty Trade, Interactive

Brokers, Fidelity, Charles Schwab. It

doesn't really matter which company you

use. Uh well, I mean, it kind of does

because like for example, SoFi or um M1

Finance, they use Apex, so I don't think

that like a Apex is their broker dealer,

so their primary dealer. So, I don't

really think they will benefit off of

it. But the primary dealers like a Robin

Hood, like an Apex, they will probably

save the most amount of money with

stable coins because you're going to

kill

uh

fail to deliver, fail to receives and

the barriers that market makers put up

like the rebates and the rebate

registration requirements or the

registration requirements to be eligible

for the remakes rebates. A lot of that

gets killed. You know, market makers

today can legally naked short sell. it's

deemed to be part of a normal

functioning of the market making process

and so they're legally allowed to naked

short sale whereas typically you're not.

So it's very interesting a lot of

exemptions for market makers that are

probably driven by the market makers and

they don't want anybody to know how this

game works because they make a lot of

money market.

They say that the only trader that does

not lose money is a market maker because

they could pretty much know that they're

making profit on every single trade.

Kind of crazy. So anyway, that's what's

going on with the SEC and stable coins.

That's why the market makers are pissed.

And the big beneficiaries are going to

be the broker dealers like frankly Robin

Hood who are going to save a whole lot

of money no longer giving kickbacks to

market makers in the long term as these

stable coins take over, which I hope

they do. because this is what crypto is

designed for. So yeah, spoiler, it's not

Bitcoin that goes up because stable

coins do well. Stable coins blockchain

technology is phenomenal. I love it.

Very transparent, fast, instantaneous,

immutable,

transparent,

and lets you trade 24/7 without all the

bull crap. So, it's pretty exciting.

Exciting times, exciting technology

knows about this.

>> We'll we'll try a little advertising and

see how it goes. Congratulations, man.

You have done so much. People love you.

People look up to you.

>> Kevin Praath there, financial analyst

and YouTuber. Meet Kevin. Always great

to get your take.