Episode 24: Is This a Recession or Just Panic?

00:00

Hey everyone, welcome to another episode. This is JR, founder and CEO of Social Market. My partner, Leon, here couldn’t join me, so we’re doing it just you and me. Now, last week we didn’t really release a full episode because we were busy. He was traveling and I was working for the company. Go figure. So, a lot has happened, but I don’t think we’ll have enough time to cover it. So, if you guys would like for us to cover anything in the event that, you know, one week we don’t talk about anything and you guys want us to cover that,

00:28

Feel free reach out to us. We’re available here on YouTube. You can comment in any of our videos. You can reach out to us on our socials at theboost.fm. So in any case, we actually have a lot that’s happened this week.  And you may already see some of this coming because it was kind of like big that we just have to talk about it.  So,  um, market recession. Are we in one? More about it in here in a moment. And then following that, we’ll talk about global and macro.

00:56

developments on the economy and with crypto. Next, the DeFi bill or the clarity in the genius act may be facing some scrutiny and maybe some issues we might be starting to see with DeFi as a whole in the US. And a lot of this is passed down by house Democrats in the Senate. So we’ll see what happens. We’ll talk about it here more in a minute. And lastly, we’ll talk about the chain and stable coin wars. And when it’s a chain, mean like blockchains. So

01:25

Quite a lot of pack, I feel like it’s gonna be kinda more into politics so I do have a bit of forte there so let me know what you guys think. But in any case, let me know what you guys want us to cover. Leave a like to this video. If you guys like any of our content, give it a like as well or dislike if you dislike it. In any case, if you wanna watch more of this content, feel free to subscribe, it costs you nothing. It also helps us to push more of this type of content. All the shameless plugs are out of the way. Well.

01:53

Sorry, there is one more. So my company is Social Market. We’re going to share the market, state of the markets,  looking at everything from a market overview or indexes and such perspective.  We have the altcoin season index.  Everything is leaning more into Bitcoin because go figure. There’s a lot of fear because everything is red in the markets with the stocks.  And you look at the fear and greed index. If you’re watching this on YouTube, it’s looking  at it’s leaning more towards extreme fear  and

02:23

I mean, go figure, there’s a lot of uncertainty  and a lot of it is due to President Xi and then President Trump going at it with this new  tariff war that seems to be reemerging. And then USD inflation index is sitting right at 3%. So those are the bigger indexes. uh Gold actually reached a new all-time high this week. It’s now sitting though at, well, the new all-time high was at 4,000 and  maybe 4,010, I think was the last big price that I saw.

02:52

Now it’s sitting at 3,998. So it’s a little bit below it. If you look at Invesco QQQ, it sat on Friday at $589 or 3.47 % from last week alone. Dow Jones or DIA at 454 and it’s sitting at, you know, negative 1.86 in the price change. DSMP 500 is still doing relatively well. It’s looking at 6,552.

03:22

And it’s sitting at almost no difference  as of last Friday or at least when the market closed. So now Bitcoin, we always got to talk about Bitcoin. So we’re kind of still in beginning of October. We’re approaching the middle of October, actually. So  just last week, we saw Bitcoin do  really, really well. It was sitting at a new all time high of hundred and twenty six thousand and eighty dollars.  And ever since

03:50

Everything kind of happened on Friday where all the market, you know, volition and this new trading war that we’re getting into happen. It just took a massive dip and it’s made a bit of a recovery over the weekend. It’s now sitting at 113,000. So not terrible. It’s right around where, you know, the price was around October. All right. So let’s talk about the market. Are we in a recession? That’s my question for you all. Let me know what you guys think. But

04:20

According to  some developments, I think the best way to kind of encapsulate how everything happened is as you may already know, we’ve been in this back and forth trading war with China and with other countries like Canada, Mexico, and I don’t even know what other ones, but those got to be the biggest ones. The whole playbook with Trump is, and you go on Twitter, this is what you’re going to find. The whole playbook is you announce tariffs.

04:49

that are going to happen maybe like 30 days ahead of time or something. And then the market reacts. Oftentimes it’s in a bad way. People are fearful. They start, the market starts to do really bad. And then Trump pulls back on the tariffs and he says, actually we made a deal resolution. Everything is good. Don’t even worry. The market recovers. They’re like, all right, you know, maybe, maybe we’re not toast just yet. And then, you know, Trump says,

05:18

I’m saving the market. Everything is good. Don’t even worry. Hey, relax, guy. You know, it’s like that same quote from South Park. If you guys watched the latest season with Trump, he just says, relax, guy. So that’s pretty much the playbook. Very bad impersonation of me, but there’s been a development. So as of last Friday, China kind of out of the fucking nowhere said, hey, we’re expanding our restrictions on how

05:46

we handle our rare earth minerals.  And this negatively impacts everything. It says here in this headline by Reuters, targets defense and chips users. That’s kind of bullshit because rare earth minerals, excuse me,  rare earth minerals kind of are used everywhere. They’re in our phones, they’re in our tablets, in our laptops, in our cars, in our chips, anything that’s pretty much tech related. And in the age of 2025, everything is tech related. So this

06:16

really impacts everything. So I’m going to play the clip here  and you you guys let me know what you think in the comments.  From the outlook on the US dollar to a global surplus of oil,  these are the stories to watch in business and finance in the coming week.  The US dollar starting the final quarter of the year in fairly decent shape.  The greenback ended Q3 with a 1 % gain against major rivals,  though it’s still down 10 % so far this year.

06:44

Dollar bears may not hibernate for long, especially if a U.S. government shutdown is lengthy.  FX experts say the yen looks favorable, while the euro could still hit that $1.20 milestone it came so close to last month.  Next week’s U.S. data calendar is light, so further market disruption from the government shutdown should be minimal. The U.S. Treasury will hold a normal auction of notes and bonds.

07:08

An early taste of third quarter results comes with Delta Airlines and Levi Strauss, among others on Thursday. The earnings parade kicks off the following week with Wall Street’s biggest banks.  Battered global pharmaceutical stocks got a boost from the deal between Pfizer and the U.S. to lower prescription drug prices in the Medicaid program in exchange for tariff relief.  U.S. President Donald Trump had taken aim at the sector over high U.S. medicine prices.

07:35

sending drug maker shares to multi-decade lows. But investors now bet the more benign agreement will open the door for more deals. Oil is struggling under the weight of hefty global supplies, while demand could not seem to keep pace. The International Energy Agency says there could be an implied surplus of over 3 million barrels per day in 2026, compared with an expected excess of 600,000 barrels per day this year. At around $65 a barrel, crude is worth roughly half—

08:05

So you kind of get the gist there. So it kind of talked about the overall markets and not so much as to the, you know, rare earth minerals, which is kind an interesting video take. But here’s what I’ll talk about here real quick. So in the same article,  it starts by saying Beijing as of October 9th, China dramatically expanded its rare earth exports control on Thursday, adding five new elements and extra scrutiny for semiconductors users as Beijing

08:33

heightens control over the sectors ahead of talks between President Trump and Xi  Jinping. The world’s largest earth producer also added dozens of pieces of refining technology to its control list and announced rules that will require compliance from foreign rare earth producers who use Chinese materials. So that’s kind of like the gist of it. Again, know, this happened probably well here in America, you know, it’s nighttime when it’s

09:03

daytime in China. this happened while everyone was asleep almost.  the next development from that was Trump came out on Friday and this is where everything kind of blew up.  know, everything just went to shit. uh Trump came out, he came out on the post and he is adding a hundred percent additional tariffs on Chinese imports. Okay, so from USA Today, said Trump announces additional hundred percent tariffs on China imports, reigniting trade war with Beijing. So

09:31

This happened again  in response to the restrictions on the rare earth minerals from China. you can watch the video if you like, I’m not going to go over it. um TLDR, and this is from Washington, says,  President DJT said, the United States will add an additional 100 % tariff on all Chinese imports in retaliation to the new export controls Beijing is planning for valuable rare earth minerals. The move re-

09:58

reignites a trade war between the world’s two largest economies after the United States and China had for months maintained a truce that  has kept tariffs on each other flat. Trump said the new tariff would go into effect on November 1st, that his administration will also impose its own export controls on quote unquote, any and all critical software, which end quote, does not mean shit.

10:24

effective the same thing. It really doesn’t mean anything because  we’re talking about hardware. China is already very strict on what it does with its software and and true and you know as you may already know there was this whole controversy about TikTok being like Chinese  spyware you know being used on American citizens so it’s it’s all just propaganda. It really doesn’t mean anything to have critical software you know being restricted to China because guess what they use their own. Now

10:53

The only way this could really happen is if companies like Microsoft or Oracle or something were being used in Chinese software, which let’s be honest, a lot of those companies are kind of embedded everywhere. It’s going to be really hard to really manage that because this also impacts business for these companies. If you’re coming out here and saying, hey, we’re going to control what kind of software is accessible to what country, obviously companies are going to retaliate to as much as they can.

11:23

because they’re losing business, they’re losing money. So I really don’t think that’s going to happen. This is all just spot as you may already know, classic Trump playbook. So the last thing here is the 100 % tariff would add a 30 % duties the United States is currently imposing on goods from China, which means Chinese imports would have a total tariff rate of 130%. And that’s as of right now. Could this grow more? Who knows?

11:51

It really, it really just anything could happen. So how did this happen? It’s not like he, it’s not like Trump came out and gave a whole speech. Classic Trump move. He just made a post about it in his social platform, Truth Social. So the full text of the key post goes, I’m not going to read it all, but I’m just going to read like the Paragraphs.  Um, it’s, don’t want to make this a longer story than it has to be. So it has just been learned that China has taken an extraordinarily well.

12:19

Okay, if I’m going to read him, I should probably mimic him because for the shits and giggles. It has been learned that China has taken extraordinary aggressive position on trade and is sending extremely hostile letter to the world stating that they were going to effective November 1st, 2025 impose large scale  exports control on virtually every product they make and some may not even made by them.

12:47

This affects all countries, without exception, and was obviously a plan devised by them years ago. It is absolutely unheard of in international trade, and at a moral disgrace in dealing with other nations. Based on the fact that China has taken this unprecedented position, and speaking only for the USA, only other nations who were similarly threatened starting in November 1st, 2025 or sooner,

13:17

depending on any further actions or changes taken by China. The United States of America will impose a tariff of 100 % on China over and above any tariff that they are currently paying. Also, on November 1st, we will impose export controls on any and all critical software. It is impossible to believe that China would have taken such an action, but they have, and the rest is history. Thank you all for your attention for this matter.

13:44

then I guess that’s pretty much everything. wasn’t as long as I thought. So that was pretty much  the development of it where here we are now. And then next thing you know, you look at the markets, you go to Robinhood, you go to social market app, you go to Coinbase. It doesn’t fucking matter. You go anywhere. Everything’s on red. Everything is, you know, pretty much. Well, OK, I like the crypto markets are slowly recovering. But if you look at stock markets, indexes, the fear and greed index, you know, you can find that on social market.

14:14

It’s  all red. What happens next? I got you. This was made as of October 12th over the weekend, which is actually today this morning. Don’t worry about China. It would all be fine. Highly respected President Xi just had a bad moment. He doesn’t want depression for his country and neither do I. The USA wants to help China. Not heard it. President DJT. So he kind of realized that, maybe I fucked up by imposing 100 % tariff.

14:44

So here, let me just make this tweet here real quick or this post from Truth Social. So again, essentially trying to ceasefire, know, everyone is kind of freaking out. You know, the index is showing us extreme greets. So it’s all part of, you know, everything. I don’t know. ah We’ve seen this playbook happen before where Trump goes back and forth with his tariffs. So we could see very similar thing here. I wouldn’t be surprised if, you know, next week.

15:12

something happens where China, I don’t know, they’re, they’re obviously negotiating. So maybe it’s just a master plan or something, but they talk it out and maybe China starts to roll back. That’s when president Trump would make another similar post saying, yeah, we’re actually going to pause it or some bullshit like that. We’re actually going to extend the wait for the a hundred percent tariff. then maybe they’re still figuring it out. So I wonder if it’s possible if anyone can make an index where, you know,

15:42

Because there’s indexes for anything like the fear and greed, the altcoin season, USD inflation. There are indexes for anything. you know, Pizza Gate is, or I’m sorry, not Pizza Gate, but the Pentagon ordering pizzas. That’s one example of an index  where again, side note, but the pizza index is where if the Pentagon is ordering a lot of pizzas, it means that a lot of people are, or a lot of  Pentagon officials are actually working overtime, which could be the beginning of a war.

16:11

As we’ve seen in the past, or maybe, I don’t know, maybe they’re just hungry and want a lot of pizza, but you know, there’s an index for that. All that to say, could there be an index where we measure the amount of times Trump releases tariffs  or is announcing tariffs? Because that way you can actually at least tell, oh, hey, know, the market’s not going to do well if this index is at this level. It’s all just a measurement game. So that’s

16:40

Pretty much the state of the United States economy. We’ll see what happens. So that was kind of the end  of US politics, but let’s well, not the end of US politics. I do have another story, but let’s take a moment real quick and talk about geopolitics, which is kind an interesting uh take because in a way, the way some companies do, excuse me, the way some countries do crypto, it actually goes back to the US and it impacts it for the better or worse, which

17:08

If it impacts politics, it impacts your back. This is from Insights. uh UK lifts crypto ETN ban, gives retail investors the green light. So if you guys live on the rock, um the ETN is essentially exchange trade notes. m The UK government has lifted its earlier ban on crypto exchanges, exchange trade notes, or its ETS, because it believes the market has matured and people now have a heightened aware of crypto products.

17:38

I think this is kind of like a reversal exit earlier where any kind of politics that happened around the world do affect the US to some capacity, which includes crypto. So I think for better or worse, know, the United States has become this capital of the world for crypto, which I mean, it’s good in my opinion, but some may not agree with me. But you know, I think it’s going to bring a lot of good to the world. So that’s where I’m really speaking on this came out on October 9th  and you know,

18:06

It’s really interesting to see these developments because in the last administration with President Biden,  we actually saw  the UK or at least England be more crypto friendly than the US was back then. But now, not  long after that, it started to be more strict, kind of like matching the energy that the US was giving. But go figure. Now that we have a very pro-president, excuse me, a very pro-crypto-president,

18:34

That’s when we’re seeing other countries follow suit. Now, UK and US politics are almost the line, or I would consider UK, US, and Canada having this politics almost very close together. you guys keep tabs on politics, you may notice that similar trends happening. So in any case, as far as this report goes, in a report dated as of Wednesday, October 8th, Financial Conduct Authority, FCA, clarified the retail investors

19:03

can now purchase crypto ETNs via FCA approved exchanges in the UK. Crypto ETNs are a debt instrument that enable crypto investors to engage with a cryptocurrency without directly owning it. These products are traded like other securities with the actual cryptocurrency safely stored by regulated custodians. So they’re mostly pushing on central exchanges and self custody as someone who, you if you guys don’t know what self custody is, you know, it

19:32

basically means I have my own storage,  I do my self custody, no one else does it for me, but you do gotta be careful about how you control your security. If you don’t want to handle or even worry about your security, you usually let someone hold your money, kind of like a bank, but in this case it would be a central exchange. The only issue is if you look at something like FTX, where they went under, they had like this bank run of sort, they couldn’t give people back their money. So kind of what we saw,

20:01

a hundred years ago with the way banks originated, you know, it was later  with the new deal, they gave banks FDIC insurance. So now if you go into a bank anywhere in the world, or at least in the U S I mean, if you go into any bank in the U S you can be rest assured that you will have a bank run, you will have your money in a bank. So maybe these are some similar developments happening here in the UK where they’re  giving people the option to be able to store their money.

20:28

on crypto central exchanges that are regulated by UK  and get people into some protection and overall people might  follow suit with that. regarding the FCA’s recent decision, several crypto analysts have acknowledged the government’s new position outlook towards the crypto ecosystem and has gradually adopted cryptocurrency over the past few years. Following the shift in attitude, crypto investors are looking forward to a new favorable set of guidelines in the industry.

20:57

This takes place after a change of administration in July. So like I said, um there was a bit of a  hiccup with crypto adoption over the last few years, but it’s slowly been getting out of it. Now, this is more so prominent now that Trump has taken office and it’s again, as I said, influencing UK politics. So that’s pretty much UK politics, but let’s talk about Japanese politics. I guess first thing I’ll talk about is they’re actually going through some new leadership right now.

21:26

Uh, they’re going to have a female female prime minister for the first time.  that’s history for them because it’s always been ruled by men. Go figure. So, but she’s actually  more right-wing, which, you know, it usually means on the economy  and maybe some culture adoptions are more right-wing where it comes to be more conservative. If you look at right-wing economies, it usually means, you know, kind like the way the U S is where it’s more capitalist. So.

21:55

um In this case, or at least this post, this article is from Insights. says, Japan’s  Iron Lady, Sanae Takeishi may reshape crypto policy. Very right wing economies right here where we, you know, let people handle capitalism and handle their own money. So on October 4th, Sanae  Takeishi was elected as the new leader of Japan’s Liberal Democratic Party.

22:22

She is expected to be nominated as the country’s first female prime minister during the extraordinary diet session on October 15. Known for her pro-growth and physically  proactive approach, Takeishi’s economy policies prioritize ending deflation and promoting economic expansion.  While she has not made explicit statements on cryptocurrency, her fiscal stance and potential cooperation with the opposition parties could influence crypto taxation reforms.

22:51

which the Japanese digital asset industry has long anticipated. So that I think that’s a really good way to encapsulate it because, you know, she is  well, the party’s name is liberal democratic party, but she is actually more on the right side of politics with the economy. And I’ll get here in a moment as to how it affects culturally as well for the country. So

23:15

Japan’s Iron Lady Takeishi profile, she has long admired the late British Prime Minister Margaret Thatcher. Her admiration brings her closer to the realizing ambitions linked to the Iron Lady persona. Born in 1961, Takeishi graduated from Kobe University’s Faculty of Business Administration, trained at Matsushita Institution of Government Management, and gained practical experience as a U.S. Congressional Fellow.

23:39

After working as a television broadcaster, she was first elected to the House of Representatives in 1993 and is currently serving her 10th term. One more thing I’ll read and you can read the rest. not going to read it all, but I’ve read a pretty good amount of it right now. As a politician, she has held high key positions, including three terms as Minister of Internal Affairs and Communications and Economic Security Minister and Special Appointments at the Cabinet Office. She

24:07

played a central role during the ABE administration, demonstrating economic and security policy influence. After being elected LDP leader, she stated,  will have everyone work like carriage horses. I will abandon the concept of work for life balance, emphasizing her determination. Because at any point go on social media, you might see that Japanese work life culture is non-existent and the same might be for Korea as well. I think China, they’re more lenient with that.

24:35

know of any instances where their work life is as  strict as it is for Japan. What I think is not good for people is that, you know, there was this stigma where if you got to work early before your boss or, you know, if you weren’t working late, then, you know, now that stigma is going to grow  much, much more because based on her, her rhetoric and her possible propaganda, it could be that, you know, while the country is making massive

25:04

progression to crypto adoption and crypto policies. It could also have some really bad consequences on the other side, like people’s mental health, birth rate is also really bad in Japan right now. So, you know,  it’s really hard to say what could happen. All I know is, and as far as the scope of this podcast, we mostly talk about crypto. An interesting take that we want to do is give a little bit of our influence on politics because it affects everything. So

25:30

You guys let us know what you think, if you guys want to talk more about the politics, more the nuance part of it. Happy to do so, I actually know quite a bit of that. But without going too much into politics for now, I realize I’m getting into it. Japan, you know, this Iron Lady concept is kind of just the concept of being  really strict with politics, really being strict with the way you do  and pass oh policies that affect not just the people or

25:59

Japan as a whole, also its neighbors like Korea, China, Taiwan, you name it. you know, a lot can happen. A lot can happen. Again, I don’t want to get too much into politics, but I wouldn’t let the name deceive people. I would mostly look at the politics and policies of these individuals. For better or worse, she might just enable, you know, Japan, a country that already widely accepts crypto  pretty much earlier than anyone else. You know, it could

26:29

probably start to see a more stronger adoption and stronger take into the world and maybe it’s nuanced  economies be influenced by crypto. So all that could happen, that’s  pretty much what the global macro ties. So without getting too much into politics, well, actually, like, I’m going to talk about, you know, the defy and set net scrutiny, how Senate Democrats giving scrutiny to defy  and it could impact the country as a whole.

26:59

If you go on Twitter and you follow Brian Armstrong,  who’s arguably become one of the best speakers for the crypto economy, the crypto community here on the US, anything he says kind of waves as well. that’s where the influence is. He came out and said that, hey, know, this could actually impact negatively the very, very badly, I should say the state of progress that we’ve made for crypto. So this is from Politico. It’s actually one of the

27:27

more popular  news sites here in the US. Anyways, so from Politico, tensions over crypto bill boil over in the Senate. So crypto chaos has returned to the US Senate. Bipartisan talks over bill overhauling how cryptocurrencies are regulated have stalled, jeopardizing the legislation’s path forward this year. So this is all because of House Senate Democrats, which I’ll get to here in a moment.

27:53

For now, pro-crypto Senate Republicans have been rushing to pass a market structure bill before the end of the year, but they have struggled to attract the bipartisan support necessary to pass legislation. Negotiations hit a major snag on Thursday after Republicans pressed Democrats to agree to a committee vote in the coming weeks and

28:14

objected to the proposed changes that they circulated. The clash is the latest twist in saga over how to regulate digital assets which has long been accriminist. Republicans and Democrats are now publicly trading bars over this week’s dispute. A spokesperson for Senate banking chair Tim Scott, Jeff Knapp, said in a statement Thursday that Democrats’ proposal for how to regulate decentralized finance in the bill was not a legislative offer.

28:40

adding that the document was not written in legislative text, included multiple incoherent policy ideas, and was not a good faked effort to engage on market structure. A spokesperson for Senator Ruben Gallego, the top Democrat on the Senate Banking Subcommittee on Digital Assets,  said that Democrats have shown up ready to work, but our Republican counterparts are crashing out. They asked for paper and substance and we delivered, said the spokesperson, Jax Petit.

29:10

They turn around and leak our proposal and pretend to be surprised  that our parties have policy differences. So they go more and more into it here, but essentially the story is they’re just having arguments going back and forth as to what should be in the bill. I said that house Democrats are the ones who are causing this  new issues, but really who knows? I’m not even going to try to pretend I know what’s happening with how some of these individuals think because

29:39

Many times  as you married politicians, they’ll say one thing and then do another. based on what we’re seeing here, it looks like, you know, it’s, you guys are aware with the government shutdown, it’s already day 12 as a recording of this podcast or October 12th, it’s still shut down. A lot of what’s happening is, you know, Republicans want to do one thing, but then Democrats push back a little bit and then Democrats, and then Republicans, they’ll just say,

30:06

Oh no, know, everything is fucked because Democrats do not want to comply. Everything is going to hell. That’s kind of like the over proportion they take it. So this other article, and this is from DL news, it actually goes a little bit more into it. So Senate Democrats defy gambit elicits outrage in crypto circles. So I’m to read it real quick. Senate Democrats opening a gambit in negotiations over landmark crypto legislation have elicited a furious response from the crypto industry.

30:35

The proposal would classify virtually every protocol in decentralized finance as a digital asset intermediary required to verify customers’ identities and adhere to anti-money laundering regulations. So, they didn’t go over that in Politico, but it’s more about talking about the whole blue versus red team in Politico, but I think this is the actual substance that matters. The reason why it’s being delayed is because Democrats are actually enforcing a lot more regulation into…

31:04

into the defy bill that it’s trying to pass. This really impacts businesses, consumers, and just the state as a whole of the economy or in the crypto economy here in the US. Because when you have these strict regulations,  it actually prevents a lot of protocols, a lot of the central finance, a lot of companies even like social markets to really just, you know, comply to  more regulation where in some cases it’s good. for in this instance,  um, defo, well,

31:34

Actually, before I continue rambling, let me just continue reading it and I’ll explain here in a moment, just so you guys are aware of what’s happening before I continue. It would also require that websites offering access to DeFi protocols register as brokers and comply with a suite of new regulations, including customers protection standards, code audits, stress testing and disclosure regarding risks and protocol governance and more. So that’s the part where, you know, it’s really kind of just frustrating everyone.

32:03

more so developers and business owners like myself where,  and I’ll try to be as unbiased as I can, but the issue is when you’re, when you have a product like social market where, you know, not only do we allow people to keep track of the markets, but we also want to enable people to get coverage under crypto. You know, you in a self custody way, you know, you have access to your own money. have your own keys, your own control, your own password. We are just the software intermediary where we enable you to view the  market data.

32:32

and then use your money to swap it out with another money in a software way, in a way that we don’t operate like a bank. This more so affects other companies like Metamask, Phantom Wallet,  and even some central exchanges like Coinbase, Binance and such. Well, Binance is not here in the US, but a weeks ago, we actually did cover that they are planning their establishment here in the US. So check that video out if you can. But any development that is happening for companies, establishing their DeFi presence or allowing

33:00

building software that helps people in a self custody way, that’s not going to be very likely. It’s going to be a lot harder for these type of companies and these type of products to be released here in the US. So Democrats are actually pushing us back by two steps by adding these very strict requirements into DeFi. Coinbase, you know, they have this nonprofit that’s called We Stand With Crypto where they, you know, work as a lobbying for people who use Coinbase to contact their

33:28

representatives. I live in Texas, so know, Texas is far more adopting  of crypto than most states actually. But you know, if you live in a  state like blue, like I would say California would not be very  pro crypto, just because they made this concept, this technology have an identity politics where, know, oh, if you’re pro crypto, you’re  probably voting for Trump. You are probably in favor of, you know,

33:57

ICE or MAGA all that shit. Where it really doesn’t, it shouldn’t fucking matter. It should just let the people build, let people do what they want to do. Let people be self-custodial in a way that follows along, you know, with the five protocols and you know, the way the system works. But no, I mean, this is just identity politics at its best. So  this is the last article read. Democrats proposed restricted lists for DeFi kills protocols in a bill that could kill sector. So

34:26

I’m just gonna read the headline, you guys can read the article, but even crypto news, and this is from Yahoo Finance, they’re actually, you know, realizing that, hey, you know, this is actually going to pretty dramatically affect the crypto sector  pretty badly because they’re requiring most companies like our company  or, you know, Phantom Wallet, Metamask, um maybe the base app from Coinbase, they’re gonna make them have not only KYC on their  front ends  and

34:56

Well, again, this halts uh GOP’s crypto talks as blockchain association warns it pushes innovation to up short. Yeah, I mean, and we just talked about UK politics. We talked about Japanese politics. So a lot of these instances, know, instances like these where, you know, there’s pushbacks  in regulation for the US. And it really doesn’t really help people if there’s not going to be that many companies or software or products that are

35:26

self-custodial or DeFi based. It really doesn’t help people because they’re going to have to use a VPN. They’re going to have to connect to another country and then, you know, use their services there. And if the other country finds that they have a VPN, they’re going to possibly flag their account and people are going to lose their money as a whole. So this is just not good for anyone. And, know, I think this is the best way that I can encapsulate it. So that’s pretty much it for DeFi scrutiny with House Senate Democrats.

35:54

Last thing that want to talk about and this is more on less bad news, guess. over the last few months, we’ve been covering, you know, some some companies like XR ripple XRP releasing their own  RL USD stable coin.  then Argentina wants to release that stable coin. And then, you know, there’s several stable coins. Now, if you if you just go to Ethereum, you go to all the Ethereum based tokens. In fact, if you go to social market, you can kind of get an idea of how many stable coins there are for.

36:23

Ethereum, but there’s several. There’s actually an interesting development being made with Solana. As you all may already know, Solana is probably the number one protocol network, whatever you call it, number one blockchain for meme coins. People are for the longest, what, year, two years or so, people have been using it to trade meme coins with Palm.Fond, with Let’s Bonk, you name it. And for better or worse, it’s kind of entertaining. It’s kind of like sports betting, but for crypto techs. So

36:53

You know, that’s kind of the gist of it, although a lot of people lose their money. you know, it is what it is. So. I think Solana had enough of it only being associated as a meme coin platform or meme coin network. And the development is they’re wanting to push for more stable coin adoption on the network. This is from BN Crypto. So the the headline goes, genius act fuel stablecoin boom on Solana is Ethereum losing ground.

37:22

Solana stablecoin supply jumps 40 % after genie-sacked. So again, this is why it’s important to keep track on these politics because it actually could impact very big in  very negatively or in a very big way, the state of the economy. So the genie-sack that’s the stablecoin regulation bill that essentially gives more protection for the business. have to identify their, if you’re a stablecoin issuer, you actually need to follow along with

37:51

a certain  guideline  of steps to be compliant, but also it builds trust with  consumers. So in any way, that’s the Genius Act and it’s actually helping Solana here. So Solana is currently the third largest blockchain by stablecoin hosting, but Nelson pointed out that despite this, it has been the fastest growing blockchain for stablecoin supply over the past three months. Again,  not that long ago.  It was earlier this year when Genius Act passed. So it all pretty much makes sense.

38:21

On July 18, President Donald Trump signed the Genius Act. This bill clarifies regulation on issuance and distribution of stablecoins. It was signed when Solana’s stablecoin market cap was around $10 billion. In the three months since, it has surged by 40%. According to the data from the on-chain analysis platform RWA.xyz, Solana’s stablecoin market cap is now about $13.9 billion. Ethereum, with a market cap of $172.4 billion, remains the undisputed leader in stablecoin market.

38:51

So again, Solana is catching up. They realize, hey, you know, this is actually a big opportunity for us as a stable coin issuer. Right now, crypto is moving into this new wave where stable coins are the new big thing. Just to kind of paint the picture better, you know, first it was NFTs not that long ago, and then it was, or excuse me, it was meme coins, and then it was NFTs, and then it was ICOs or initial coin offers, and then…

39:18

I think before that NFTs were kind of like the big thing as well, or at least some products, some companies were releasing NFTs.  So it goes into these different waves and it goes into these new trends and right now stable coins is the latest and greatest. This is pretty much for this article. That was the development with Solana. So I’ll pretty much finish it with this. This is from Archam, one of the biggest softwares in crypto right now. Everyone uses it for crypto trading, crypto analysis. It says,

39:47

How stable coins reached a $300 billion market cap in 2025. The stable coin market cap has increased from 205 billion to 300 billion in 2025. Here’s how it happened. So you can read it. We’ll have the link in the description for you. You can read on your own. But for now, I’ll just read this. The total supply of stable coins have now exceeded $300 billion after Monument’s year of the industry. And it really has, I think, you know,

40:13

2021 was probably the second largest year ever for crypto, but this is even more so than crypto, more so than 2021 because legislation adoption is just at a new all time high. So the civil market cap has increased by nearly a hundred billion dollars this year with three months to go.  know, October, November, December, that’s pretty much what it means to put this into perspective. Supply increased by 70 billion dollars in 2024.

40:41

and actually decrees by $7 billion in 2023. The  sector has dominated in the news cycle in the last few months. Not just in the crypto sphere either, stablecoins have been  in headlines in new publications to borderless and with lower fees, stablecoins feel like the obvious next step when it comes to payments and transfers in addition to their technological benefits. Stablecoin issuers are now the seven largest purchasers of the US government debt.

41:08

This year especially stablecoins have really started to embed themselves into the global economy. Issuers like Tether and Circle are fast on their way to becoming dominant global companies with huge valuations. And you can read more on the stablecoin guide here with their link. one more thing here is major stablecoin players, a key characteristics of the stablecoin market, something that has been the future of it from the very beginning has not changed in 2025. And it’s still very much a duopoly of two main issuers.

41:38

Tether and Circle. So Tether, I don’t even know if it’s a real company. I think it’s more of a protocol. I could be wrong. I’ve never in the last seven years that I’ve been on crypto, and you’re always learning something new here, but with Tether, you really only heard of Tether being a issuer of crypto. Like it’s more of a protocol, maybe a small developer team. Circle is a big company on the other hand, and it’s majorly owned by Coinbase and

42:08

You know, they recently had an IPO this year, so Circle is doing great. But you can see here, Tether on our cam is their software where you can kind of get an idea of where Tether is available and where you can use Tether. You can pretty much buy a lot. Tether is the biggest  stable coin right now, after all.  And yeah, I mean, you can kind of read the list. There’s more stable coins here like Athena, you know, it’s a stable coin in any case. So.

42:37

That’s pretty much  what’s happening with this week. Stablecoins and Chain Wars. Chain Wars, know, you’re kind of seeing, um well, Ripple is its own chain and then Solana and Ethereum, they’re kind of just trying to be who is the best stablecoin issuer. But Ethereum is by a long shot still the number one. It’s by far been the longest  existing network besides  Bitcoin. And then, you know, it’s DeFi at its best. It’s all smart contract. So

43:05

It gives a lot more power to builders and a lot of great companies have come out of that like Coinbase, Circle, you name it. So Ethereum is not going anywhere. And I really think it’s going to be like that, especially more so now that  Vita like Budurin, the founder of Ethereum, he’s going to come out and he’s coming out in the past and said that there’s going to be major developments, major upgrades to the network with its biggest problems that are  transaction fees, gas fees and overall just make it not so expensive.

43:34

in a native way because right now if you use Liratoos like base polygon, know, those help with that problem but Ethereum now being the main problem solver of that, it’s going to be actually big. So we’ll see what happens. Let us know what you think of the episode. Give it a like if you like it, dislike if you dislike it. Thanks for watching up to this long. Subscribe to the channel if you really like it. Share this with your friends. It costs you nothing and it helps us keep pushing this type of content. But yeah, thanks all. Have a good one.