THE SEC'S HUGE CRYPTO CUSTODY UPDATE! BIG BANKS TO LAUNCH GLOBAL STABLECOIN!

**Tony Edward** (0:05)
Hey, folks, welcome into the Thinking Crypto Podcast, your home for cryptocurrency news and interviews. I'm your host, Tony Edward. On your way in, please hit that subscribe button, as well as a thumbs up button, and leave a comment below. If you're listening on a podcast platform, such as Spotify or Apple, please be sure to follow and leave a five-star rating. Okay, folks, the first news item is the SEC continues to provide crypto guidance and rulemaking. Most recently, they released the Regulation Crypto Guidance, which covers token issuance, and that's a major one. Well, now, they're looking to tackle crypto custody. Here's the headline. SEC resurrecting US crypto custody rule, the previous administration failed to land. In 2023, the regulator tried to narrowly restrict the place's investment advisors could park clients' crypto assets, but the new approach is still shrouded in secrecy. So, the last time they tried to do this, it didn't go well, but the agency is giving the regulation of crypto safeguarding another shot, hoping to answer the industry's urgent questions about how to comply with the existing custody regulations for crypto assets. The SEC took the very preliminary step of sending the concept this week to the White House Office of Budget and Management, where it'll sit for a while under review before the agency can move forward to actually propose it. The SEC said its future effort would improve and modernize the regulations around custody of investment advisor, client assets and fund assets, including to address crypto assets, according to its current description on the agency's public regulatory agenda. Apart from clarifying the situation for a rapidly growing market, the pending proposal would remove the burdens from certain outdated provisions that are no longer needed to provide investor protection, given the evolution in the markets and security trading and holding practices. So this is great. Obviously, we need the full details, but we know that under the current SEC administration, headed up by Paul Atkins, they're not trying to hurt crypto. They're trying to make sure it's safeguarded, it's set up for adoption and innovation while also protecting consumers. So this is really great, and they've sent it to the White House Budget and Management Office. Let's see if that comes back sooner. I think it will. You got the likes of Patrick Witt and other great folks at the White House working on crypto. But again, it's great to see the agencies doing this, and the CFTC is also doing their own thing. And recently, we had the White House Crypto Summit, well, I should say recently, it was last week, where all of these folks came together with the crypto industry. President Trump and the key stakeholders in the government basically said, if the Clarity Act doesn't get done, the agencies are going to provide the rulemaking and guidance to help push crypto adoption forward. So this is really great. We're seeing a lot of action, a lot of work here, and the SEC is doing their job. Just remember, years ago, Gary Gensler, failed SEC Chair Gary Gensler, would say the rules are clear, right? He would lie to people's faces, even in congressional hearings and more. Just pathetic. But it's a brand new day. It's a breath of fresh air. We've turned a new leaf, as they would say, and things are moving in the right direction. Now, if you want more details on that White House crypto summit, as well as the SEC's recent regulation crypto guidance and the Clarity Act passing potentially in September, then you got to check out my interview with Cody Carbone of the Digital Chamber. That was published this morning. So guys, if you haven't seen it, I highly recommend you see it. Cody was at the White House summit, so he has a lot of great insights, so make sure you check that out. Now, moving ahead, we have more banks, and this includes the big banks, who are looking to launch their own stablecoin. So here's the news being reported by the Wall Street Journal. Bank of America, Wells Fargo, Santander, and over a dozen major banks move forward with plans to launch a crypto stablecoin. Now, I know some of you are going to say, Tony, didn't you report this news yesterday?
No, it's actually different. So the news from yesterday was the state banks, the community banks. It was 39 of them. They created what's called the Bank Chain Alliance, and they're going to launch their own blockchain and stablecoins and tokenized deposits. So that's in the United States on a state level. But what these major banks like Wells Fargo, Bank of America are doing, they're building a global stablecoin. So we'll have to get more details, but this has some of the features of a CBDC, it seems like. So let me give you some more details. And again, this was reported by the Wall Street Journal. More than a dozen institutions, including Bank of America, Wells Fargo and Santander are moving forward on a global stablecoin venture, starting with the dollar and then the euro per the Wall Street Journal. JP Morgan recently evaluated launching one, though talks were preliminary with no active product. Banks have lobbied against crypto firms issuing stablecoins that act like deposits, favoring tokenized deposits that keep money inside the banking system and much more. So they've been lobbying to slow down everybody else so that they can catch up. I hope you see it. It's clear as day. They are the incumbents. They've been pulling the strings even before lobbying. They called up Elizabeth Warren, they weaponized Gary Gensler, and that was why you had the big unlawful attack against crypto. It wasn't that grandma Elizabeth Warren woke up one day and like, oh, let's go attack crypto. No, she's getting those big fat checks from the banks, right? And I've said many times she revealed her or showed her cards when her and Jamie Dimon at that hearing, you know, they teamed up against crypto and it was clear what's happening. So the puppet strings were being pulled by the bankers, right? So they are now scrambling to try to build to compete. So if you are ever questioning, is this technology legit? Is this technology here to stay?