Nate Geraci
@NateGeraci
464 Following 74.6K Followers
Clarity Act failing may have been best thing that ever happened to crypto…
Seems like industry & regulators have shifted into overdrive over past week.
Basically a two year window to upgrade financial system & first week progress hasn’t disappointed.
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Here’s how WSJ is framing Clarity Act failure…
Paints Coinbase CEO Brian Armstrong as being overly aggressive in negotiating, which impeded progress on the bill.
Also the usual talking points re: Trump ethics.
My take? Crypto didn’t blow its big moment. The banking industry & politicians in its pockets got their way. Let’s not overthink it.
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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.
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ETFs have now surpassed last year's record flows of $1.5T with 3.5mo to spare. 20yrs ago when I began covering the industry (marked by arrow) a good year was $100b, now they do more than that every month, an $8.5b/day pace. A feat of both a benefit-rich technology and inflation.
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SEC & CFTC waiting for Clarity Act to fail…
With ETF inflows nearing $1.5 trillion and fixed income ETF inflows already setting a new record, @Vetta_Fi’s @ToddRosenbluth joins @ETFPrime host @NateGeraci with plenty to unpack this week. 📈
Hear where the money is going, which strategies are gathering assets, and what Todd is tracking through year-end.
Plus, @westwood_group CEO Brian Casey discusses $PWRX, the first ETF to launch on the @TXStockExchange.
🎧 Tune in:
#ETFPrime# #ETF# #ETFs#
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Quickly & aggressively…
Think there are a number of politicians who are going to wish they passed Clarity Act by the time regulators are done pushing crypto forward.
Comments from SEC & CFTC Chairs less than 24hrs later…
Quickly & aggressively.
All talk at this point…
Remember, previous administration tried to kill crypto.
There’s a legit case to be made that had Harris been elected in 2024, the crypto industry might be on life support (or worse) right now.
There was no “working in a bipartisan fashion” on crypto during Biden admin.
It was purely anti-crypto & regulation by enforcement.
Which obviously had nothing to do w/ Trump’s “ethics” (the current cover story).
So it’s all talk.
Actions speak louder than words.
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🚨NEW: A group of seven Senate Democrats, including @gillibrandny, @MarkWarner, @SenRubenGallego and @Sen_Alsobrooks, say they are “committed to working in a bipartisan fashion” to pass the Clarity Act.
The statement comes amid early efforts to restart bipartisan talks and gauge the appetite on both sides for returning to the table and getting the Clarity Act passed before the end of the year, according to three sources familiar with the discussions.
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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%.
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Comments from SEC & CFTC Chairs less than 24hrs later…
Quickly & aggressively.
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.
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The endless allure of $TLT (the fav ETF of ppl who like to overthink things) in effect as traders pour $7b in ahead of Fed. This thing largely burns cash but once in a while it goes into jackpot mode. Here's clip of @NateGeraci on ETF IQ on why it's just not worth the risk
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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.
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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.
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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.
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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.
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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
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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.
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Launching today…
Canary Staked TRX ETF (TRXS)
First spot TRX ETF
TRX is 8th largest crypto asset by market cap
@justinsuntron: "The launch of the Canary Staked TRX ETF demonstrates the growing recognition of the TRON network as critical infrastructure for the global digital economy & provides institutional investors with a new way to access a network that is already powering real-world financial activity at scale."
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Might be the single most important financial chart in politics right now…
