Strong case to be made this was biggest week in crypto history… *Despite* Clarity Act failing. The two most important regulators in SEC & CFTC have clearly & resoundingly messaged their support for crypto innovation. That would have been absolutely unheard of 2 or 3 years ago. As a matter of fact, you previously might have been prosecuted for pursuing crypto innovation in good faith. There’s now a legitimate window opening for the industry to build in public & show its value. Now’s the time.

While politicians “protect” you from crypto… Let’s check in on the national average bank savings account yield. This is from a weekly survey of 500+ banks & credit unions. You’re reading that right… it’s 0.64%.

Clarity Act was preview as to how our politicians will vote on any artificial intelligence regulation btw… Not sure how we ended up here. There’s always a balance b/w regulation & innovation… and that balance is a good thing. But something is broken right now. US has historically championed innovation. Now we seem content to cede innovation to other countries.

Everyone should be asking why a meaningful portion of our country’s politicians supported regulation by enforcement for four years & have now blocked putting a crypto regulatory framework in place… “Ethics” is just the cover story. They were anti-crypto under Biden. So why are certain US politicians fighting crypto so hard? Why don’t they want the US leading the world in crypto innovation? You already know the answer.

Now that Clarity is off the table, expect the SEC & CFTC to move quickly & aggressively in issuing addn’l guidance on crypto… Will be regulation by innovation for at least the next two & a half years.

At digital asset event in KC… @bgarlinghouse says that while he obviously supports Clarity Act, its outcome won’t stop crypto longer-term. “When you have a technology that’s better, faster, stronger… that usually wins.” Says existing financial infrastructure simply hasn’t kept up. Also said it’s ridiculous how many other G20 countries already have some sort of crypto regulatory framework. Doesn’t understand why US would want to cede this technology to other countries.

Fun chat w/ @EricBalchunas & @scarletfu... We discussed: -Investors continuing to chase duration via iShares 20+ Year Treasury Bond ETF (TLT) -Lack of interest in year’s top-performing ETF, the Breakwave Tanker Shipping ETF (BWET) -Uptick in ETF industry M&A, incl why a crypto ETF issuer could make for a good target

The only reason Clarity Act hasn’t passed yet is b/c crypto disrupts traditional banking model… It’s really that simple. We can talk ethics, BRCA, etc. But it all boils down to crypto reducing need for banks as intermediaries & disrupting net interest income model. And the politicians who are incentivized to support that model.