Democratic and Republican stances on crypto, SEC changes and China stimulus

Transcript

GM good morning welcome to the milk Road show The Daily crypto show that's as reliable as that one friend who's always got your back I'm your host Jay Hamilton and today we're joined by our good friend Tyler D we're talking about what is the likely outcome of either a Republican or a Democrat president for the next term we're going to talk about how Cala changed her stance this week on crypto break that down for you guys and then we're just going to give you guys a little bit of a history lesson look now the Ty our political experts nor are we pushing you to vote in either direction but we want to make sure that you're informed on what the St party stances are on crypto because so much has happened in the past few months so much

is changing and then of course also Gary Gensler was in front of Congress this week we're going to talk a little bit about that we're talk about Mark cubin and then we're going to finish with liquidity because there's a lot of liquidity injecting into the space right now it's why we feel the banana zone is coming we're going to talk about what's happening in China and what could happen as a result of either PR next president and what that would mean for liquidity which obviously has an impact on markets as we always do at the start of our episodes we got to give a quick shout out to our friends over at Gemini discover Gemini The us-based Exchange built for new and advanced Traders as a special welcome gift they are offering new customers $15 in Bitcoin just for trading at Gemini security is the top

priority as a licensed full Reserve exchange and custodian your assets are well protected plus they offer cuttingedge security features like pass keys to keep your account safe this exchange is setting the standard for compliance and Innovation so you can trade with confidence head over to gemini.com milroad and start trading today to earn your $15 in Bitcoin sign up now and get ready to join the trading fund Tyler welcome back to the show Jay thanks for having me back it's been a heck of a week and it was a big one for for crypto politics I'm excited to get into it with you let's start with uh what what happened with Cala this week you know we've been wondering what the Democrats stance is on crypto for a while they've

had so much movement with Cala stepping up and Biden stepping down do we feel like we finally have Clarity on what their stance on crypto might be I don't know if we have the clarity we want just yet but we are starting to see some signs that the the tides may be changing so I think uh notoriously for those in the crypto space crypto sector the kamla and the Democrats have been silent on her position on crypto and blockchain but that is now starting to change uh the big news this week that at a speech in Pittsburgh on Wednesday in talking about the economy now for the first time uh she is including blockchain and

digital assets uh as something that she wants the the US to lead in and that is a notable change and in the first time uh we've heard heard her mention those things then it goes even deeper into one uh of the the heads of the in the house Maxine wers some of her comments uh which which represent a stark change from the Democrat Party Line a year ago which was crypto is for money launderers and scammers to now we need to start over and build crypto regulation from scratch that's smart and reasonable so it's been a big week um and I mean for stars like why does this matter it's I

me this election is a coin flip yeah you pull up the the the poly Market odds right now it's 5149 it's a true coin flip it's arguably the closest election uh in the US that we've had in in quite some time and the next Le question those in the crypto space so what does it mean what does it mean for for crypto and so let's let's give a little bit of before we jum into what it means moving forward and and let's be clear that it is always difficult to know the what a politician is actually going to do when they take office but let's do a little bit of a history lesson what has each party said so far over the past few

months about their stance on crypto because I think that'll form at least a direction of where we think they could go yeah it's been a really interesting three to four months for for crypto politics I think it it really like the the political issue really came to the Forefront uh for me in July when when metallic came out and published a Blog which actually came in response to the Republican National committee meeting and a16z uh you know famous uh Crypt VC investors who came out and endorsed Trump for the the 2024 election at this time several Crypt VC's had started coming out and endorsing him this prompted bolic uh to write blog and that the story The takeaway from the blog

that people should think deeper than single issue voting and look at underlying policies uh when making a more informed decision I think just you know going perhaps just one level deeper um he he argues that crypto and its ethos are a tool for broader ideas like decentralization privacy and Global equality and that you need to look at candidates other policies and how they might impact those things and he really hones in on the blog on the Core Concepts of privacy and internationalism uh in which of these candidates would you know perhaps be uh you know better to to to promote those those ideals here in the election so

that I think that got folks wheels turning now also in July uh the Republicans published their 2024 platform so putting all of their stances on all the key issues down on paper it had a very specific crypto section I think this really stood out uh to folks in the you know the crypto audience it says Within chapter three that the title of the section build the greatest economy in history the crypto par paragraph I'll read it because it's short Republicans will end Democrats unlawful and unamerican crypto Crackdown and oppose the creation of the Central Bank digital currency we will defend the right to mine Bitcoin and ensure every

American has the right to self- cust of the digital assets and transact free from government surveillance and control so in quick summary they want to in the unlawful crypto Crackdown they oppose a cbdc they want to defend Bitcoin mining rights and ensure their right to self- custody and free transacting so a very solid platform I mean I think that it be hard to argue with any of the stances laid out in in that position um so at that point in time I think the Republicans had had kind of taken the lead as the pro crypto party I think that was only enforced uh when when Trump made his appearance at Bitcoin Nashville and and I came on this pod and we did a recap of that so if

folks miss that one I will say you know go back I think that was a very interesting one but in quick summary he went to bitcoin Nashville he promised to fire Gary ginsor on day one that led to massive Applause I think perhaps the biggest Applause of he said stable coins will increase US dollar dominance and he praised them he promised to end operation choke point in the war on crypto he mentioned creating a crypto committee to help regulate it he committed to releasing Ross Orrick a hot button topic for the core crypto audience and then offered up a new strategic stockpile for for Bitcoin where the US would stop selling and start hodling and then just an hour later that's when Republican senator Cynthia Lumis dropped her official strategic Reserve proposal um which went

into the United States actually buying and accumulating Bitcoin really started to speculate on what that would look like so at this point in time it's July August 2024 Republicans clearly out in front as the pro crypto party fast forward to September the Democrats released their platform oh no no mention of crypto no of blockchain anywhere uh I watched the Democratic National Committee Comm speech she gave a nice speech once again no no mention of crypto or blockchain anywhere um and then just a few weeks ago we had the Trump family go even further they

announced the launch of world Liberty F their crypto project Trump went on the interview with Faro he's more into crypto than ever um fast forward to this week in the news that we're talking about uh K has finally started coming around she mentions blockchain and digital assets uh at this speech in Pittsburgh said she wants the US to maintain dominance in blockchain Tech they also this came after they they released an updated policy so I think the Democratic platform that that was released may have been the the Biden Administration I think kamla and team were actively working on her own and they released a new way forward here just this week and that new way forward

it's a very long document but it does include some comments I'll quote here their strategy includes both investing in emerging Tech in modernizing traditional Industries will also encourage Innovative Technologies like Ai and digital assets while protecting our consumers so you know it's something it's it's the breadcrumbs right we're starting to see the mentions okay it's in the platform and then I think arguably the most important were Maxine Waters comments from yesterday and Jay you know you may not know who she is think the reason this matters is she is the the financial services chair for the house so someone who is deep in set policy for for Finance in in the United States um and she's saying that crypto is the future

that she wants to start from scratch on building crypto legislation and this was big because Maxine Waters and others again were just touting the party line as of a year ago that crypto was bad and only used for money laundering uh Senator Warren and others leading operation choke point which tried to cut off crypto companies from Banks and we're still seeing you know know the impacts of that um but now we're starting to see at least words that the tides may be shifting here for the Democrats so essentially all heading in the right direction it feels like for

the Democrats and and not a surprise as you said Biden stepped down it felt like we were really still feeling the influence of him even though he stepped down earlier this summer like it felt like that was continuing and now there's this change that's coming and then on the Trump side I think we all know that he is Mega Pro crypto and leaning in uh with his nft collection previously and now his defi exchange it's it's wild to see how quickly he is is in the space now that's not all that happened this week actually let me let me ask a question here and stop before we jump into the SEC because some SEC news this

week um what do you think is the difference between if we were to compare the Democrats and the Republicans stance on crypto what do you think the difference is well I think right now the biggest difference is that the Republican stance is defined and written down on on paper and that the Democrat stance is one that it's kind like trust me we like crypto now but you'll just you'll just have to believe us uh like it again I'll I'll just repeat like the core tenants in the Republican platform they're very easy to follow and understand they want to in the unlawful Crackdown they oppose the cbdc they want to defend Bitcoin mining rights and ensure self- custody all all that we have that's the Republican stance and in the the

Democratic party stance just BR uh broad Strokes like encouraging innovation in Tech like Ai and digital assets and some have even made the the point that digital asset doesn't even necessarily mean crypto so I think that is Up For Debate so I think at this point in time the Republicans are definitely still the more Pro crypto party I think that much it's clear a lot depends on how much folks want to believe the the new rhetoric uh coming from the the Democrat leaders here well it's it's also interesting to see the language that Cala is specifically choosing to say blockchain and digital assets and not crypto it almost makes me wonder if they've done some polling to show that

their voter base doesn't like the word crypto and is anti-crypto which very well could be the case who knows I I hope crypto becomes a bipartisan issue I hope we all I think we all believe that will happen eventually it kind of is inevitable but uh we'll see how it all plays out for this election okay let's shift gears to the SEC uh and everybody's favorite puppet Gary Gensler uh what happened uh this week uh with Gary being uh in front of Congress yeah our old friend Gary he uh he had a bad day in front in front of Congress um so effectively for several hours he was in front of of the house for a congressional hearing on the

oversight uh of the SEC so I think right off the bat that SEC commissioner Hester Pierce was sitting right next to him she she was undermining him uh nearly the entire time going as far as saying that they should have clarified their stances on some of these key questions like our crypto token Securities or not sever years ago we have a particularly damning quote from Tom memmer who said we could not have had a more historically destructive or Lawless chairman of the SEC and that's about as bad as it gets and then I think perhaps the most viral clip was one um from from Richie Torres who was asking guinsler if Yankees

tickets are securities G says no and then Tores kind of leads him down a line of questioning to to the stoner cats nfts uh which uh had a settlement that they were Securities and Gary really couldn't defend it very well as to why those would be Yankees tickets are not uh which I think is just more worri something they couldn't just clearly Define why they had even made this ruling I think a lot of folks are just starting to question uh the Merit behind you know the SEC and all these uh settlements that they're going after an enforcement by regulation and we had judges speak out this week as well and it just seems like

folks are kind of coming around to Common Sense like companies can't operate if there aren't clear Frameworks that that lay out the rules of the road and those are lacking and we just need them and it feels like we're finally in 20204 going to get there I think that is a massive positive regardless of who wins the election do you think we are likely to see a change in the SEC chairman and as a result The Stance of the SEC along with that I do I think regardless of who wins we will see that that progress I think we're starting to see it right now under the Biden Administration now I think is it possible that that Trump would appoint a more crypto-friendly head maybe um so it's like perhaps it's

the difference of better versus best I I don't know but I think right regardless it's going to be a positive right well who who's everybody's vote for the next SEC chairman I know who who mine is uh my buddy Mark cubin what did Mark Cuban say this week hang on let's listen to this clip everybody could I ask you mark whether you would entertain being a treasury secretary Commerce Secretary in in in a Harris head of the SEC head of the that's the job I would take maybe HH maybe HHS Tyler what do you think about what Mark cubin said here is he really gonna be the next SEC chairman I my my first reaction is why

would he want it like why would you want to be the the the chair the head of the SEC uh you're a b billionaire businessman um but I mean I like Mark he seems to be a common sense guy clearly he's had a lot of success in business it's interesting he's become kind of one of the de facto spokesmen for the Democratic party he's come out and endorsed kamla who is Infamous infamously not given many public interviews so he's like kind of doing his part to to do the interview circuit for her it tees so we we'll see that was a very interesting curveball from this week okay so question that we always like to wrap with is what's the trade here how do you trade this and before we touch on that with regards to the

election um I would love to touch on what's going on in China this week around liquidity first because I think that is even more important really than the election is right now because the election is still a month and a half away so can you just walk us through what is happening over in China around liquidity and the money printer turning on yeah this week uh China announced rate cuts of their own along with this massive stimulus package I think the biggest they've seen since covid um I want to say a trillion one upwards of a hundred billion dollars in US terms being pumped into their economy uh we're already starting to see some impacts of

this in traditional stocks we're seeing it in crypto a famous hedge fund manager investor David teer came out and said to buy everything Chinese effectively just follow the money right and like if you look back at at the charts from the last four to eight 16 years it feels like it's when these liquidity is pumped into markets like you can see the correlation almost comes down to like is it really this easy that when you know we're in easing and uh money printing Cycles is that just the time to to move into risk assets and then you know perhaps taper

down when when things go the other way I think this has been a core part of Ral Paul's thesis you know for quite some time uh it looks like it's now starting to play out he may have called the banana his own a few months early but but it feels like we're heading there I think one of the other impacts of the this this news out China is I do think the US will want to compete and you they're they're not going to let China out print so we'll see our own version here in the US and you know the question coming back to the parties like perhaps you know which candidate would be more likely to do that it's a tricky question to answer I think Trump and Republicans are generally more Pro business less regulation has historically been good

for markets uh but but the Democratic party has certainly shown that they are willing to turn that money printer on as well um and I think we'll see it under both candidates so I I think kind of regardless of who wins I I do believe we will see crypto do very very well I think it's going to do very very well soon I think coming November post election I think just the uncertainty of who's going to win has been keeping Market down a bit and as soon as that outcome is known it's going to remove a huge unknown and risk from I think will start to move up then and as to what I mean I'm wearing the Hat yeah Bitcoin I think Bitcoin the number one crypto asset will

will perform well that that's my that's my hot take I don't know if it's a hot take but I mean you know I mean I would say it's uh there when we get into banana Zone there's always the question of will Bitcoin dominance decrease and will more money flow to the more risky assets the altcoins and whatnot uh and I think there's a we're not going to have that debate right now but there is a legitimate debate to be had as to whether that happens this time or not um have to listen and we'll do an episode on that in the future actually let us know in the comments if you guys want us to do an episode on bitcoin dominance we could do a full episode on that I think my my main takeaways here are um number one we're finally getting some clarity

from the Dems but keep an eye out because it's it's just the start we want more we'd like to see more from the Dems uh we know pretty clear we're getting SEC change regardless of who wins so that's a big step and honestly I just want this election to be over with like regardless of who wins I just I think you're totally right it is that Catalyst that everybody just wants to know the answer and I think regardless liquidity is what raises markets so regardless of who wins I still think banana zone is on and I think that the liquidity as we ended with here of CH and then the rest of the the world the US I mean the money printer's been on around the world for a

while it's the U and the US is doing it a little bit kind of like behind the scenes not really the most public printing that's happening but like I feel regardless who wins I think we're in a good position and we're still bananas on on it's not like I think there's some people who are like oh if Cala wins like it's over for crypto no I don't think so at all I really I think risk assets are are game on regardless yeah I'm with you well said time time to go risk on time to go risk on time to wear your Bitcoin propaganda shirt uh or your hat Tyler D thank you so much for joining us today everybody listening in make sure you hit the like button make sure you subscribe it supports the show so much we so so appreciate all of you guys and all your

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invest more than you can afford to lose thanks so much for listening in my friends have a wicked awesome day