2389: $100T Bitcoin Floodgates - Every Bank Can Buy

**Justin Verrengia** (0:00)
The most expensive mistake in Bitcoin history was waiting, and now the biggest buyers are about to pay for every single year they wasted. Bitcoin is about to invade every bank in America, not some of them, all of them. And according to Senator Cynthia Lummis, the law that will make it happen is now closer than ever, because if the Clarity Act passes, banks won't just be able to offer Bitcoin to their customers, they'll be able to buy it and hold it and put Bitcoin directly on their balance sheets. Think about what that actually means. There's thousands of banks across the United States, and most of them have spent Bitcoin's entire existence standing outside of the market. Not because Bitcoin is too small to raise or pass the trillion, not because their customers don't want it, of course they all want it, but because the rules still are not clear enough. Senator Lummis just went on CNBC and said the Clarity Act changes that. Her words, not mine. The bill will enable banks to freely buy and hold Bitcoin and other digital assets. And she believes this will lay the foundation for the financial services of the 21st century. But here's the part I can't stop thinking about. For the last 17 years, Bitcoin has grown without every bank in America being able to freely buy it, without thousands of banks competing to hold it, and without the entire banking system having clear rules for putting Bitcoin on their balance sheets. And somehow, Bitcoin still went from nothing to a trillion-dollar asset. So what happens when the banks finally arrive? What happens when the same institutions that spent years ignoring Bitcoin, attacking Bitcoin and warning their customers about Bitcoin are suddenly free to buy it themselves? Because they won't be buying a different Bitcoin. They'll be competing for the same exact coins you already own. The same 21 million Bitcoin that will ever exist. The same fixed supply strategy has been buying for years. And while the banks wait for the rules to change, Sailor just posted the strategy tracker again.
847,363 Bitcoin, more than 4% of the entire supply. And right now, strategy's Bitcoin position is sitting roughly 11 to 13 billion underwater. Its stock is down approximately 82% from its peak. And yes, Sailor did recently sell 32 Bitcoin. But if we zoom out, despite the losses, despite the collapse in the stock, and despite only one tiny sale of recent, strategy remains the largest Bitcoin buyer in history. And now, every bank in America is preparing to enter the same exact market. That doesn't create more Bitcoin, it creates more buyers, fighting over the same fixed supply. And according to Lummis, the result will be dramatic. She says Bitcoin will increase dramatically, and this will trigger one of the biggest capital flows in history. That's the real story. The banks aren't early, they're late. DTEFs already have their Bitcoin, public companies already have their Bitcoin, and millions of people around the world already own the Bitcoin the banks will soon want. So if the rules change, the banks don't get a special supply, they don't get a private allocation, they have to enter the same market as everyone else. And they have to buy from someone willing to sell. That's why the Clarity Act will change everything. Not because Bitcoin needs banks, Bitcoin survived just fine. Without them, it grew without them, and it became one of the most valuable assets on earth. Without them, the banks need Bitcoin. And if Senator Lummis is right, access isn't coming someday, it's coming next. Thousands of banks, one fixed supply, no special allocation, no private door, no extra Bitcoin. Just the same market, everyone else is already fighting over. They spent years watching from the outside. Now they're about to find out how expensive late will be.
Now forget what I think. Listen to Senator Cynthia Lummis explain exactly what happens when every bank gets access to Bitcoin.

**Cynthia Lummis** (3:56)
I have modeling that shows that Bitcoin is going to increase dramatically and then more slowly over time. All of the Bitcoin, meaning 99% of all the Bitcoin that will ever be mined will be mined in the next 10 years. So this asset has growth potential for the next 10 years. It's tremendous. I think the American people should admire the fact that President Trump was foresightful enough to engage in the digital economy. Everyone is going to be involved in this economy in one way or another.

**Justin Verrengia** (4:30)
There you go, we're getting so close. Experts are now predicting 60% chance, at least according to Bloomberg Intelligence, that that Clarity Act gets past this month, which is going to be a big deal. Also prediction markets, I've seen as high as 65% odds of getting past this summer. That's on Cauchy, I've seen that. Let me know if you think it will happen or do you think it'll somehow the US fumbles and we don't get it passed. Now the United States is about to publish the final text of the Bitcoin and Crypto Clarity Act. It will ensure America leads the next generation of financial services and allows them to expand globally. Hundreds of banks and institutions are waiting on the starting gun. Nothing will be the same. I'm optimistic that it does pass because we have a pro Bitcoin administration. If it was still the Biden administration or God forbid the Obama administration, then I'd say there's no hope it's not happening. But everything this administration has shown us is their embrace of not just Bitcoin, but crypto in general. So they're moving forward. The Trump family has profited over a billion dollars from their crypto ventures. And President Trump himself currently holds over $100 million worth of Bitcoin across two separate hardware wallets. That has been verified just a few days ago with the recent disclosure, which we covered here on the pod. So for it not to pass would make no logical sense whatsoever. That's why I am also leaning towards Clarity Act getting passed here this summer.