00:00Oftentimes when you come on the program, something has happened. There might be a piece of legislation or someone has said something.
00:06There are many news stories tangentially linked to Bitcoin right now, but I don't see like one single catalyst that's holding up an entire crypto industry.
00:17Well, I do think there is one common thread right now among the crypto industry, and that's that this year we have seen tremendous progress on the public policy front.
00:27We've had a very strong leadership by the White House with the executive orders.
00:32We've had the stablecoin legislation, the Genius Act, sign into law this summer.
00:36And then we have the SEC's Project Crypto, which is issuing guidance for how securities laws apply to this space.
00:44And so I do think as we look across crypto generally, but specifically to Bitcoin and also to Solana, which I care deeply about, we have this common thread of it's OK if you're an asset allocator or if you're an exchange or a bank to be looking at this sector because it's going to be a part of our financial future going forward.
01:05But, Kristen, we have a government shutdown.
01:08We do. We do.
01:10Well, crypto markets never sleep, but the government.
01:12Some of the agencies do during a government shutdown.
01:15Some of the agencies do.
01:16Yes.
01:17Listen, I'm not going to lie to you.
01:18It is a short-term setback to have the federal agencies shut down right now, particularly with the SEC and the CFTC.
01:26We have over 90 percent of the staff furloughed at those agencies right now.
01:30And so that means routine things like approval of new S1s or S3s have a real impact, particularly when it comes to things like Solana exchange-traded products, which are on the cusp of going live.
01:43We just need to get the corporate finance staff at the SEC back.
01:46Or similarly, new IPOs in the crypto space like Bitco are impacted by the shutdown.
01:52But Congress is working.
01:54The Senate is in and the legislative discussions are continuing there.
01:57And so I think this is a short-term setback, and as soon as the government opens up, we'll be back on track.
02:03What's interesting is some of the froth or the constant headlines, a million of them as Ed references, but they were all about digital asset treasuries at one point.
02:13And that seems to have cooled a lot.
02:14I'm even looking at strategy, the artist formerly known as MicroStrategy, now off by about 7 percent in the last few days alone.
02:21Is the wind coming out of that particular trade sales?
02:24Well, I think there was a lot of interest over the summer, and I think there is continued interest, and there will be some consolidation.
02:31But if you step back, if you look at digital asset treasuries, what's going on here is that for a long time, there were no way for traditional investors to access exposure to crypto assets.
02:43And digital asset treasuries have kind of filled that void in the more favorable regulatory environment.
02:49And I think what we're seeing these digital asset treasuries do is, yes, they are accumulating the token, but they're also participating in the network.
02:57So in the case of Solana, they are staking it.
03:00These DATs are operating validators, and they're trying to be good stewards of the treasuries in ways that are a little bit more expansive than an ETF will be able to do once those are approved.
03:11So I do think DATs are going to continue to play a role.
03:15I think we'll likely probably see some consolidation among the DATs going forward.
03:19But I think if you think about it for a long time, these treasuries were held largely with foundations that were limited in what they could do with the treasuries of tokens they were sitting on.
03:30So I think the DATs are a new and innovative model, but it's also a way for investors to have a different option for getting exposure to these assets.
03:39And with something like Solana, we think this is going to be the future rails for finance.
03:45And so it's a great way to get exposure to the asset class.
03:49I'm looking at Solana up 100% in the last six months alone, Kristen.
03:52But this isn't just an American story.
03:54This isn't just about regulatory clarity in America.
03:57These are global assets.
03:58What other countries are doing it right right now?
04:01Yeah, well, I think Dubai is one hub that is particularly strong.
04:06I think Switzerland has also had a lot of interest.
04:08And there is incredible excitement coming out of different parts of Asia.
04:12And so, yes, I think the fact that this is a global technology is what makes it so compelling.
04:17It means that you can have anyone who has access to a phone on the same set of rails and provide the same access to investors or access to investment opportunities.
04:30And so I think it's a really exciting potential.
04:32And I think as the U.S. continues to move along and get these good policies in place, we're going to see more competition and maybe even a bit of freeing up of some of the more restrictive policies around the globe.
04:44But we are seeing competition, particularly out of the Middle East and Asia.
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