Crypto Died Today? Fully Explained in Less than 11 minutes Transcript, AI Summary & Key Points

00:00 This bill would put us all at risk of a cryptofueled economic crash. >> Right now, the Clarity Act is dead. >> Just in, crypto still illegal in the United States of America. The Crypto Clarity Act fails in the Senate vote today. And when I say illegal, I just mean not fully legal because every other G20 country except the US has already passed pro- crypto legislation.

00:34 If the bill passes, what you have is the US finally doing what every other G20 country has done, which is to establish legislatively a regulatory framework about how crypto markets operate. >> So, Senate, how was your recess? >> Recess is over. Look, in truth, the Senate and industry leaders were working over the Senate recess. Let me remind you how we got here.

00:58 It was late Sunday night, 2 days before the recess was over, where Senate Republicans released their last, best, and final draft of the Clarity Act text in hopes that Senate could come together and push this bill through. There was a lot of back and forth being done in the final hours. As about 12 hours before the official vote, the Democrats countered the Republican Clarity Act draft bill text updating the ethics language as if to say, well, what about this?

01:34 Can we come together on this day of came? This is today. It all came down to this vote. and US Senate Majority Leader John Thun reminded both the Democrats and Republicans, now is not the time for political games. This is important to America to push this through. Mr. President, digital assets are firmly rooted in the United States. One in five American adults has invested in or used cryptocurrency.

02:06 The overwhelming majority of crypto owners want clear rules of the road and protections like those provided in the Genius Act and the Clarity Act. Mr. President, this is a shared priority for Republicans, Democrats, and President Trump. We've been working at it now for over a year. The only reason for this progress to end now would be if Democrats choose politics over good policy.

02:36 And now is not the time for political games. We should take the opportunity, Mr. President, before us to ensure this innovation happens right here in America and that the United States remains the leader in financial technology well into the future. >> They brought out all their heavy hitters. We brought out all our heavy hitters. Here is Treasury Secretary Scott Bessant really pushing hard today to get this thing passed.

03:03 That's why I'm pushing the passage of the Clarity Act because it gives Treasury more authorities to seek out this evasion. >> He tried so hard, but in the end it didn't really matter. I guess couldn't even get majority as the yays were 49, the nays were 50. Now, technically, they needed 60 votes today because this was the initial closure vote. When the Senate does their final final vote, they're only going to need 51 for majority, but today they needed 60.

03:34 If you were watching like I was, you kind of saw who was behind the big final push to kill CryptoClarity. I could not believe she said this. When she said this, this seemed like minutes before the vote, insisting that if this bill passes, all of us Americans are at risk of a cryptofueled economic crash. I could not believe she said this. >> Would make it easier for terrorist organizations, for drug cartels, and for rogue states to buy and sell weapons and pay off government officials, all using crypto.

04:14 easier for terrorists to finance their operations and harder for law enforcement to catch them. Easier for scammers to cheat Americans and harder for law enforcement to catch them. Easier for Iran and North Korea to evade sanctions and harder for law enforcement to catch them. This bill would put us all at risk of a cryptofueled economic crash. >> Again, we needed 60 today.

04:47 The final final vote by Senate only requires 51, but we couldn't even get 50/50. Even with Senate Republicans wheeling out, who is this again? One of the Republican senators hasn't been seen in a long time. A lot of people think he is unfortunately close to death. I don't know if he ever made it to the official vote. I actually don't think he did. But the reason that he's making appearances again is to try and get more votes.

05:15 If you know who this is, let me know in the comments. >> Are you feeling good, Mitch? >> Looks good. >> Give us a thumbs up. >> So, Congress doesn't care about crypto holders. I'll say it. I will always be straightforward with you and tell it like it is. Make sure you subscribe to Altcoin Daily for daily videos keeping you informed on everything and smash the like button if you're getting value today.

05:47 So again, why didn't the Clarity Act passed today? What was like the reason if we had to distill it? Well, there were a few Republicans who didn't vote yay because they're more in the pocket of the banks and had issues with the stable coin language, but largely Republicans voted yes. The reason we couldn't get enough Democrats, and you can blame this on Trump, you can blame this on the Democrats.

06:13 In fact, I want to know in the comments, is this Trump's fault or is this the Democrat's fault? But to keep things real, as you probably already know, the biggest reasons, the top three was the language of ethics, ethics, ethics. And this is according to Renato Morati, who is the former federal prosecutor, CFTC regulation and enforcement. He understands digital assets.

06:38 He was speaking looking forward before the official vote, but this is what he said. >> There are three reasons why right now it could be resurrected, but right now the clarity act is dead. And those three reasons are ethics, ethics, ethics. Make sure you follow us on X. I posted this before the official vote and it is still true now that Clarity has failed.

07:01 I said if CryptoClarity Act fails to pass the Senate today, it is not technically over. The Senate could schedule another vote as early as Thursday, September 17th, but the clock is ticking. Senate is only in session through October 2nd if we're to get this done before the midterms and if we're to align this to make sure the House and the Senate could come together at the very end.

07:29 That means because I don't think they're working weekends, there are just 12 session days left and for every failed vote that burns roughly 2 days. So because it failed today, they cannot schedule it for tomorrow because there's so much procedure, the earliest could be Thursday. So although the market is pricing this as a failure right now, there is still technically a path forward for crypto in America before midterms.

07:58 But to be real, the margin for that error is disappearing very quickly. So like what we have a 5% chance or less that Clarity Act passes before midterms. If it is to pass, and that's a big if, the chief policy officer at Coinbase explains what this 10 or 11day process would be like. So we can get this done in 10 or 11 days. He was asked about this before the vote.

08:26 So understand that's the way he's answering. So it did end up failing. But this could still be true for if they can schedule the vote sometime in the next 10 days or however many. So he's going over the procedure that we still hope to see by Senate this month. >> This vote is more of a procedural closure vote. So just walk us through what exactly could happen from here.

08:49 >> Well, it's the Senate, right? And so the procedures are everything. any one senator can hold up uh legislation. So to get to a vote on any bill, you need to go through a variety of procedural motions. The first one's a vote to invoke closure on the motion to proceed. And so basically what that means is they need 60 senators to come together, Democrats and Republicans, and say let's take up this bill and consider it.

09:11 And so we feel very good that we'll get just about every Republican and if not every Republican and then Democrats we're hoping will make up the balance. But we'll have to see. >> Now what happens if this vote does move forward? What could be next? What should investors know? >> Well, procedurally one vote, two votes, three votes until you get to the final passage.

09:32 There'll be a series of votes. This drama will kind of play itself out over maybe 10 days, 11 days. >> Um as so if we get past the first vote, we feel pretty good about that. that we're on a pretty much of a glide path to get to the end state. If the bill passes, what you have is the US finally doing what every other G20 country has done, which is to establish legislatively a regulatory framework about how crypto markets operate.

09:54 Um, and um, you know, that's a huge deal because the future of finance is being built on the blockchain. This law gives developers, innovators, traditional financial companies, all of us the regulatory certainty we need to know how to build the next generation of finance and what rules apply. >> Treasury Secretary Scott Bessant reminding Congress and America at large that we still have big plans to advance crypto with or without clarity digital asset initiatives, strategic Bitcoin reserve.

10:28 This is a new technology. This is new ground. He says >> part of that is our digital assets initiative. Uh the strategic bitcoin reserve uh is something uh this is new technology. This is new ground. We are proceeding the with all deliberate speed and we are making sure that as we are doing this in this complicated process that we use best practices and things will be durable for the future.

10:55 I look forward to working with you and your team on that and I look forward to the clarity act being passed. >> So later this week we will have crypto tax regulation coming up in the house and tomorrow we have text on the strategic Bitcoin reserve scheduled for vote this Wednesday. So there is things in the pipeline. Clarity act has what 1% chance to pass I guess maybe.

11:18 But let's just say it's off the table. Now that the Clarity Act is off the table, expect the SEC and CFTC to move quickly and aggressively in issuing additional guidance on crypto. We will have regulation by innovation and not enforcement for at least the next two and a half years. Do not be fooled. Tokenization is blowing up in America as we speak.

11:45 Around the world, crypto is growing. The real world asset markets, its tokenization, it's moving things on chain, has grown 17.4x over the past three years to 46.4 billion. That's with crypto going down. And what's cool is it is not concentrated around a single issuer. Look at this. No issuer accounts for more than 10% of the market. To be honest, the market is pricing in a big rate hike tomorrow.

12:15 25 basis point rate hike. I mean, that's what's priced in now. So, I I don't expect crypto to go down real heavy unless the stock market goes down real heavy, but it might be priced in the rate hike. But do expect volatility in the short term. And in the grander scheme of things, again, I show you that crypto is the future. Ethereum's ecosystem, in this case, showing application revenue, DAP revenue, is up again.

12:43 application revenue hits 42.3 million. Layer 2s share 50% and more than half now comes from layer 2. So it's interesting the way this ecosystem is growing. Of course, the latest surge looks largely being driven on the Robin Hood chain. I know a lot of people trading meme coins on Robin Hood. Look, there's going to be much more to this story developing.

13:09 We're going to keep you updated. Make sure you tune in for our video tomorrow and for the rest of the week. And if you want information by the second, follow us on X. We're just about to hit 2.6 million on X. See you tomorrow, my friends.