00:00Nathan, they released the text of this market structure bill overnight. What's in it?
00:05So this text is actually fairly consistent with what we've been seeing over the last couple of months.
00:10This defines what is under the jurisdiction of the SEC, what is under the jurisdiction of the CFTC,
00:14and it provides regulatory clarity for companies like Coinbase so they can go forth and get the enforcement albatross off
00:20their neck.
00:21Now, there is still this discussion about stablecoins.
00:23What the deal essentially says is that rather than paying rewards through third-party platforms like Coinbase on the balances,
00:30going forward, you'll have to do it on transactions or market makings or for use of product and service.
00:35So, you know, obviously those reward programs are going to be a little bit less of an emphasis going forward,
00:39but I would just say is that the clarity that companies like Coinbase get is certainly going to help them
00:44in the long run
00:45and certainly allow them to take up market share over to the detriment of the small mom-and-pop players
00:50that are going to emerge over the next few years.
00:52Nathan, what are the banks going to like?
00:54What are they not going to like in this text?
00:57So, obviously, they don't like what's going on with the stablecoin yield.
01:00I mean, obviously, the American Bankers Association is leading the charge on this.
01:04They even sent out an email on Mother's Day telling their folks to call up on Capitol Hill and fight
01:08this
01:09because under the idea here is that if I'm going to take 5% of my bank account and say,
01:14look, I want to put in the stablecoins, that's a deposit flight risk.
01:17Now, the banks are going to push hard on this, but Senator Tillis and Senator Ulsterbrooks,
01:20the two senators that came up with this deal, they insituated over the weekend that this is the done deal.
01:25This is not going to change.
01:26And so what I'm looking for in the Senate Banking Committee markup on Thursday
01:30is language that suggests that momentum is going to keep going.
01:33So even if you get some partisanship that comes out in the committee,
01:36as long as they keep going, I think this passes 60% chance by the end of the year.
01:40What, you know, what a Mother's Day call.
01:42Sorry, Mom, got to go.
01:44Got to go lobby on behalf of the banks.
01:46Hey, Nathan, before we let you go, I'm curious about where it leaves the crypto firms.
01:51We're going to be speaking to Kara Calvert over at Coinbase in just a minute.
01:54What do you think, not just Coinbase's reaction, but crypto firms, what's their reaction?
01:58It's largely positive.
02:00There's some provisions in here tied to development, privacy, that I think the crypto sector is going to like.
02:05But at the end of the day, it gets away this enforcement concern that was under the Biden administration
02:10because everything that the SEC and CFTC are doing right now to provide clarity to the sector
02:14can be done away with the stroke of a pen if the Democrats win in 2028.
02:18This bill solidifies it, puts it in law.
02:20It would make it much more difficult to get this idea of regulatory ambiguity that we saw over the last
02:26five to six years.
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