Last July, we were just talking about this.
You actually sold out of some something your holding, citing that regulatory
uncertainty, given the widening crackdown, would to some present an even
bigger existential threat at the moment. What kind of forms?
The bull case for adding to that position now for you?
Yeah. What we're seeing is that the judicial
and legislative branches of our government, you know, separation of
powers are starting to weigh in on this topic.
And the regulator, the S.E.C., is part of the more part of the executive branch
appointed by the president. And we're as we're seeing cases go
through court in the judicial system. The S.E.C., I mean, the the judicial
system is questioning the S.E.C. as decisions here.
And so we think this is a good thing. We actually think this is going to be in
the the court sent in in legislation for perhaps years.
And what has happened in the meantime, we have by now and so
under increasing regulatory scrutiny for more criminal activities and fraud being
one of them. And and therefore, we have the
competition to Coinbase, really. We think it's disappearing.
And so that's a good thing longer term for Coinbase.
And Kathy, you're still maintaining your confidence across crypto more broadly.
Are you still confident in that one million dollar target for bitcoins?
For Bitcoin? Yes.
Actually, the more uncertainty and volatility there is in the global
economies, the more our confidence increases in Bitcoin.
And one of the reasons is we've just been through an inflationary scare.
We think it was very much supply chain driven and and and Bitcoin was is a
hedge against inflation. We also believe now that the bigger risk
is deflation, not inflation. And why would Bitcoin do well in that
circumstance? It would do well because it's an
antidote to counterparty risk in the traditional financial system.
On the Bitcoin block chain, everything is transparent and maybe sue but suit
anonymous. But we can see all the transactions, all
of the activity, and therefore we have a much better
understanding of how little counterparty risk there is in the block chain world.
Kathy? So what you're saying is that you expect
those accusations on finance to actually prevail if you're expecting Coinbase to
actually benefit from this? And wouldn't that lead to actually more
regulatory crackdown on Coinbase if it's actually become a bigger player even in
this industry? It was interesting to see the S.E.C.
suit finance on one day and then the next day Coinbase and they were trying
to put them in the same bucket. They are not at all in the same bucket.
We have two former officials of finance U.S.
coming forward. And actually we now understand that they
have been working with regulators and the government generally to help the
government understand how finance U.S. was not separate and distinct from
Finance International and how much S.E.C.
controlled finance U.S. and how much of finance's data was in
China and how much commingling of funds there were.
Coinbase is not accused of any of this. And it is unfortunate that the S.E.C.
took action against Coinbase the day after by an answer and then seemed to
muddy. Chairman Gensler, as he was on one of
the major news channels, was trying to implicate Coinbase in the same way that
he was implicating finance. No, they're they're very different.
There are questions about what the security and about staking.
Those are the two questions that going bases is facing and finance is facing.
But most of the other questions around finance have nothing to do with this.