crypto

hey everyone meet kevin here wow the

biden administration is now considering

an executive order on a crypto

currencies i'm gonna break down what

this means in this video let's 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 you'll feel a

whole lot better especially since you

can apple pay or android pay for it okay

let's get into this so here's 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 that's

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

don't 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 don't know what the

heck that is but

come on we're gonna 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 i'm not super

worried about this at all but let's keep

going in some of the details and most

importantly what they're 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 it's 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 it's a fear

of the unknown it's something that

intuitively is hard to value or to

understand valuation by and generally

when it's in the media it's 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 it's 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 they're pro defy they're 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 shouldn't be against now maybe i'm

too much of an optimist so i'll 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 we'll

see what kind of mood i'm in but you see

it's not like i'm 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 it's really to just

create a broad-based strategy for

digital tokens now they didn't mention

it in this particular bloomberg release

here but we already know that there's a

lot of fear uncertainty and doubt around

regulating stable coins that's 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 don't 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 there's a risk that

tether could break the buck and tether

is a huge part of our cryptocurrency

ecosystem it's 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 it's

fdic insured and it makes it seem like

the gemini token is an fdic insured

savings account but it really isn't

because when you turn on interest you're

actually lending out your money to

someone else you'll never be able to

redeem that dollar at the bank if

there's a panic because you've agreed to

lend it out that's why you're getting a

return but it's not obvious that you've

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 isn't 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 there's going to be a big

movement on this crypt stable coins

weren't specifically mentioned here but

the only thing we've 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 what's 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 doesn't move forward

with it the administration will still

make public its overall strategy for

cryptocurrencies so we're still going to

be getting some kind of announcement

from biden right now we're kind of just

getting a preview that something's

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 i'm honestly not so

worried about either of those getting

regulated out of out of existence as

much as we hate payment for order flow

i'm not super concerned that uh it's

going to wet going away and and it'll

bankrupt robinhood or whatever it is a

possibility though and i know a lot of

people here don't like robinhood that's

fine okay i'm not showing for robin hood

i'm just saying i don't think it's going

away that's 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

there's no sipc insurance for example if

your money gets hacked it's like who

pays right who's responsible how do you

know where your wallet's safe where it's

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 don't 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 that's 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 gonna actually take any

meaningful effect until 2022 in my guess

i mean come on how much working time do

we have left here we're almost at we're

like six weeks away from thanksgiving

then everybody's gonna get off for the

holidays nothing's 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

they're investments they're like stocks

right that's the way i look at them at

least is kind of like a stock but that's

just my opinion

the administration's 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

we're gonna have a v-shaped recovery

remember that guy

why can't i remember his name um i just

had his name at the tip of my tongue too

larry larry mr v-shaped recovery larry

what's his last name you remember his

last i can't remember his last name

larry something uh anyway he's the

director of the national economic

council under donald trump and he would

always every week come on i think we're

gonna have a v-shaped recovery

everything's getting better it's great

uh larry larry maybe it's because i just

ran a campaign against larry elder i

kind of like replaced this person's last

name but anyway larry they never forget

the guy anyway like if people like that

are running the national economic

council i don't think larry's like the

most expert at uh cryptocurrencies and i

know there's 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

you're saying the most experienced

person can't uh

can't 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 i'll 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 it's

gonna be positive because it's 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 if you found this helpful

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we'll see in the next one thanks bye