LIZ: AGAIN, IN THIS FINAL HOUR
OF TRADE, WE ARE SEEING A
CONSIDERABLE INCREASE IN THE
SELL-OFF GOING ON RIGHT NOW,
AND AS STOCKS DROP, LOOK AT WALL
STREET’S FEAR GAUGE.
IT IS SEARCHING 8.6% AT THE
MOMENT STILL BELOW 30 WHICH
WE’VE SEEN A COUPLE OF TIMES
THIS YEAR BUT EITHER WAY AT 26
THE VIX IS UP 50% THIS YEAR
SHOWING ANXIETY AND CERTAINLY A
LOT OF VOLATILITY AND FEAR
GRIPPING INVESTORS.
THE CRYPTO WORLD HAS BEEN
STRUGGLING ALONGSIDE STOCKS AS
WELL.
ETHERERUM TODAY THOUGH IS
GETTING CLOSER TO A SOFTWARE
UPGRADE AS THE CRYPTOCURRENCY
HAD ITS FIRST DRESS REHEARSAL
YESTERDAY.
THE CRYPTO WORLD IS WATCHING
WITH BAITED BREATH TO SEE HOW
THE LONG-AWAITED TRANSFORMATION
PLAYS OUT, BUT THE ENTIRE SPACE
OF THE MAIN CRYPTO NAMES HERE ON
YOUR SCREEN, EVERYBODY IS LOSING
AT THE MOMENT.
ALTHOUGH, WELL, XRP IS FLAT AT $
0.40 BUT YOU CAN SEE WE’VE GOT
BITCOIN DOWN ABOUT THREE-QUARTER
S OF A PERCENT TO
30, 062 OF COURSE THEY’RE ALL
WATCHING IN AUSTIN, TEXAS THE
FOUR-DAY CONSENSUS 2022
CONFERENCE WHICH KICKS OFF
AT THE AUSTIN, CONVENTION CENTER
IT’S A WHO’S WHO OF THE CRYPTO
WORLD THERE TO DISCUSS ALL THE
MAJOR ISSUES FROM NEW CRYPTO
LEGISLATION TO THE CRYPTO WINTER
, JOINING US NOW, OPPOSITE
, 100-DEGREE TEMPERATURE
S IN AUSTIN, TEXAS,
LIVE FROM THE CHAMBER, THE
CHAMBER OF DIGITAL FOUNDER
AND PRESIDENT PERIANNE BORING.
HUNDRED DEGREES?
>> YEAH, IT’S HOT.
HEY, LIZ GOOD TO BE HERE.
LIZ: GOOD TO SEE YOU TOO.
GIVE US THE BIG HEADLINES FROM
THE CONFERENCE.
>> YEAH, SO AS YOU KNOW,
SENATORS GILLIBRAND AND LUUMIS
INTRODUCED THE
RESPONSIBLE FINANCIAL
INNOVATION ACT THIS TUESDAY.
THIS WAS A BIPARTISAN EFFORT,
AND IT IS THE MOST SUBSTANTIAL
EFFORT THAT WE’VE SEEN TO-DATE
TO PROVIDE A COMPREHENSIVE
REGULATORY FRAMEWORK FOR DIGITAL
ASSETS.
THIS REALLY HAS THE POTENTIAL TO
INTEGRATE DIGITAL ASSETS INTO
OUR GLOBAL FINANCIAL SYSTEM.
WE HAVE A PROBLEM IN OUR
REGULATORY SYSTEM TODAY.
IT’S REALLY FRAGMENTED AND
THAT’S PART OF WHAT MAKES THE
U.S. MARKETS DIFFERENT THAN
A LOT OF OTHER JURISDICTIONS.
WE HAVE THE SEC, THE CFTC,
TREASURY, IRS, THE LIST GOES ON
AND ON AND OF REGULATORS THAT
HAVE JURISDICTION IN THIS SPACE
SO BUSINESSES THAT ARE TRYING TO
INVEST AND GET TO MARKET, THEY
HAVE SO MUCH TO NAVIGATE IN THIS
REGULATORY PATCHWORK, SO
THIS WOULD BRING A LOT OF
CONSISTENCY TO THAT PROCESS, SO
IN MY OPINION, YOU JUST WENT
THROUGH THE ECONOMIC NUMBERS.
WE REALLY ARE IN A DIRE ECONOMIC
SITUATION GLOBALLY.
WE NEED TO COME UP WITH NEW WAYS
TO GROW OUR ECONOMY.
WE HAVE THIS NICE ENTERTAINMENTS
SPACE OF BLOCKCHAIN TECHNOLOGY
AND THIS IS THE MOST IMPORTANT
TECHNOLOGY SINCE THE INTERNET
ITSELF.
IT’S JUST AS IMPORTANT AS THE
INTERNET ITSELF AND IF WE
ARE ABLE TO CREATE A REGULATORY
FRAMEWORK, FOR BUSINESSES TO
BUILD IN THIS SPACE WE COULD SEE
AN ECONOMIC BOOM IN THIS
COUNTRY.
WE HAVEN’T SEEN SINCE THE
COMMERCIALIZATION OF THE
INTERNET.
LIZ: YOU KNOW, I RAN INTO A
FRIEND OF MINE WHO USED TO BE IN
HIGH FINANCE AND NOW I SAID WHAT
ARE YOU DOING THESE DAYS AND HE
SAID I’M CREATING A CRYPTO
PLATFORM.
THIS GUYS NOT 25, AND YOU KNOW,
HE’S ALL IN, AND I SAID WELL
WHAT DO YOU MAKE OF SENATOR
S LUMMIS AND SENATOR
GILLIBRAND’S NEW LEGISLATION AND
HE SAID BRING IT ON.
I LOVE ALL REGULATION.
PLEASE JUST LET US KNOW WHAT THE
RULES OF THE ROAD ARE.
NOW, THEY ARE BOTH SUPPOSED TO
SPEAK THERE TOMORROW.
THEY SEEM TO HAVE DONE QUITE A
BIT OF HOMEWORK.
THEY TALKED TO INDUSTRY
PARTICIPANTS, NOT JUST OTHER
REGULATORS, AND LAWMAKERS WHO
ARE CRYPTO BAD, YOU KNOW, BUT
THERE ARE SOME QUESTIONS,
BECAUSE OF COURSE GARY GENSLER,
YESTERDAY, AT THE SEC, WHEN HE
WAS GIVING HIS SPEECH AT A
CONFERENCE SAID IN ESSENCE THAT
HE FEELS SOME CRYPTOS ARE
OPERATING OUTSIDE THE LAW.
THAT COULD GO FOR ANYTHING.
THAT COULD GO FOR CERTAIN CEOS
AND MANAGERS DOING NEFARIOUS
THINGS BUT WHERE DO YOU SEE THIS
ALL LANDING, BECAUSE
THEY, THE TWO SENATORS, FEEL
THAT THE CFTC, THE COMMODITY
FUTURES TRADING COMMISSION
SHOULD BE THE CHIEF REGULATED OR
OF CRYPTO.
>> YEAH, I MEAN, THAT IS THE
CONVERSATION THAT’S
CURRENTLY UNDERWAY.
I TESTIFIED IN THE SENATE ADD
COMMITTEE EARLIER THIS YEAR,
WHERE CHAIRMAN BENNOM, THE CHAIR
OF THE CFTC WAS MAKING THE CASE
TO ASK CONGRESS TO EXTEND THEIR
OVERSIGHT INTO THE SPOT MARKETS
OF DIGITAL ASSETS.
SO THERE’S REALLY TWO REGULATORY
PATHS THAT ARE HAPPENING TODAY.
YOU HAVE THIS BILL, WHICH IS THE
MOST SUBSTANTIAL EFFORT
WE’VE SEEN TO-DATE AND THEN
THERE’S THE EXECUTIVE ORDER.
PRESIDENT BIDEN SIGNED AN EO
INTO LAW JUST EARLIER
THIS YEAR, WHICH IS THE STARTING
GUN FOR ANOTHER REGULATORY
PROCESS FOR THE OVERSIGHT OF
DIGITAL ASSETS.
I THINK IT’S LIKELY THIS IS
GOING TO GO INTO THE NEXT
CONGRESS TO SEE , ARE THOSE TWO
EFFORTS, ARE THESE GOING TO COME
TOGETHER, WORK IN PARALLEL,
WILL IT BE SOMETHING ELSE?
IT’S NOT TOTALLY CLEAR.
WE’RE STILL A COUPLE YEARS AWAY
BEFORE WE SEE ANYTHING
COMPREHENSIVE MAKE ITS WAY INTO
LAW BUT AGAIN YOU HAVE THIS
PATCH WORK AND THE SEC IS
A MAJOR STAKEHOLDER IN THAT
CONVERSATION BUT ULTIMATELY IT’S
GOING TO TAKE CONGRESS TO ACT TO
PASS THE LAW AND THEIR DECISION
WHO THE LEAD REG REG REGULATOR
IS GOING TO BE.
LIZ: OF COURSE
THE WINKLEVOSS BROTHERS HAVE
SAID THEY ARE LAYING OFF A BUNCH
OF EMPLOYEES, YOU HAVE BEEN
THROUGH A COUPLE OF THESE.
WHEN DO YOU FORESEE BITCOIN AND
SOME OF THE OTHER NAMES FINDING
THEIR FOOTING ONCE AGAIN AND
MAKING THEIR WAY BACKUP?
>> YEAH, I MEAN, WE’VE HAD LOTS
OF UPS AND DOWNS IN THE CRYPTO
SPACE.
THIS IS A VERY YOUNG AND NACENT
INDUSTRY YOU’LL HAVE
UPS AND DOWNS BUT ALL THE
MARKETS ARE DOWN.
YOU WENT THROUGH, DIFFERENT
STOCKS YOU’RE GOING THROUGH
EARLIER.
THE STOCK MARKET IS DOWN, THE
BOND MARKETS ARE DOWN.
I THINK A LOT OF THIS CAN BE
ATTRIBUTED TO THE LARGER
ECONOMIC BACKDROP, AND A LOT OF
IT IS IN RESPONSE TO THE FED’S
AGGRESSIVE TIGHTENING.
WHEN WE LOOK AT CRYPTOCURRENCY,
WE REALLY ENCOURAGE PEOPLE TO
LOOK BEYOND JUST THE PRICE,
THAT’S ONE INDICATOR, BUT
THERE’S MANY OTHER THINGS YOU
CAN LOOK AT TO MEASURE THE
HEALTH OF THIS INDUSTRY AND
OF THE NETWORK.
SO LET’S JUST TAKE BITCOIN SINCE
YOU MENTIONED IT, WHICH HAS THE
LARGEST MARKET CAP OUT OF
ALL CRYPTOCURRENCY.
WE’LL TAKE THAT FOR AN EXAMPLE.
THE PRICE IS DOWN BUT THE
FUNDAMENTALS OF THIS NETWORK
, THEY ARE AS STRONG
AS EVER, THE BITCOIN HASH RATE,
NUMBER OF BITCOIN WALLETS, THE
TRANSACTIONAL VALUE OF THE
NETWORK ARE ALL AT ALL TIMES
HIGHS, IN ADDITION, ALL THE
VALUATION MODELS FOR BITCOIN
HAVE IT PRICED BETWEEN 69 AND
180K TODAY SO YOU’VE GOT A
STRONG NETWORK BUT THE PRICE IS
UNDERVALUED SO I THINK THE
DOWNTURN IS A LOT MORE ABOUT
WHAT’S GOING ON IN THE LARGER
ECONOMY AND EVENTUALLY IT’LL
REACH PARITY.
LIZ: I THINK THE WORD YOU USED
AT THE BEGINNING IS NACENT, JUST
AS THE INTERNET WAS AND OF
COURSE WE HAVE TO WATCH IT TO
SEE IF IT WILL BE AS SUSTAINABLE
AND LONG TERM AS THE INTERNET
CLEARLY IS.
PERIANNE GOOD TO SEE YOU THANK
YOU FOR BEING HERE.