Trillions Flooding Into Bitcoin on September 15?! | Bitcoin Simply

Dante Cook (0:00)

On Tuesday, September 15th, one of the biggest liquidity events in the history of Bitcoin could be getting a decision, and trillions of dollars in capital could flood into Bitcoin overnight.

Carl Hegby (0:10)

Banks would shift trillions into this market overnight. Thousands of people, maybe even you, if you hold a little bit of it, would become millionaires overnight.

Dante Cook (0:19)

Not so fast, Carl Hegby. Millionaires overnight is a little strong, but he is right. This is huge, and it does impact all of us. So we should be paying attention to the details. Senate Democrats are convening tonight to discuss the Clarity Act. They're going to review over 115 concessions that have been made by Senate Republicans. Will the concessions that Republicans may be good enough, or will the Democrats play the political card and make everyone go back to the drawing board? Will they request more ethics provisions from the president? Don't worry. We're going to dive into all things Clarity Act and the vote on September 15th in today's episode of Bitcoin Simply. This is Dante Cook. Let's go.

Senate Republicans released a Clarity Act Update text of over 600 pages in which they provided over 115 provisions to Senate Democrats, giving them almost everything that they wanted. DeFi projects must register with the CFTC, the leader of all of the Commodities Exchange Commission. They're limiting DeFi transactions for spot and cash transactions to limit the fraud that's happening in the industry. They even gave a response to Native Americans on concerns about the prediction markets. They're cracking down on platforms like Binance and even demanded that fraudsters face a felony charge level on all accounts. But Senator Lummis is calling people to the table. She's been working on this bill for nearly 10 years and she's saying, if they don't vote on this now, they're throwing out all their work. They're voting against the bill that they built. And I can see why she's been saying this. The major reason cited by Democrats why they would walk away from all of this work is the ethics provisions that they're looking to place on the president, saying that the president shouldn't be able to benefit from tokens and monetizing crypto projects that he's involved in himself. Here's what Digital Chamber CEO Cody Carboni has to say about this.

Cody Carboni (2:05)

You're not getting 60 votes no matter what without an ethics resolution.

The White House is going to have to come out and say something on the ethics proposal from Senators Tillis and Gallego. There hasn't been a lot of commentary over the last five or six weeks since that proposal initially went to the White House. I am hopeful that over the next few days, as there's continued negotiations, that we have a vote scheduled, that Senate Majority Leader Thune is committed to keeping this vote at 215 next Tuesday, that we start to see some smoke from the White House, that we start to see some back and forth paper moving from Senate Democrats, specifically Senator Gallego, who's leading the conversations and the White House.

Dante Cook (2:45)

So it's being painted out there as if the president hasn't given any ethics provisions at all. But that's not what Coinbase CEO Brian Armstrong says. He says that the president is given plenty of ethics provisions, and that this shouldn't be the reason as to why the Clarity Act shouldn't be passed. Listen to what he has to say.

Brian Armstrong (3:01)

The details are still being worked out and negotiated. And of course, that's a little above our pay grade. You know, we're mostly focused on the crypto aspects and what our customers are doing. But I know that the White House, the president has already put out an offer on the table that has a very strong ethics provision. My understanding is that it's unprecedented for any piece of legislation coming out of Congress to include ethics provisions like this on a sitting president due to the separation of powers under the Constitution. Nonetheless, the president has volunteered an option. The Democrats, I think, have requested something a little bit beyond that, which would include divestiture.

My understanding is those conversations are actively happening as that, to me, is maybe one of the last pieces to fall into place for the September 15th vote, and they appear to be very close to a solution.

Dante Cook (3:44)

So what's true and what isn't? What's political theater and what's actual fact? Has the president actually given enough ethics provisions? It's impossible to know.

But one thing that we do know is this has plenty of bipartisan support and that we do actually need a vote now. This is going to be the difference between many jobs being created and many that aren't. Trillions of dollars of capital are going to flood into the system. One of the biggest things that it's actually going to do is it's going to provide the trust and clarity on projects that have defrauded people out of millions and hundreds of millions of dollars in money. DeFi projects will have to register with the CFTC. They're going to have to be legitimate, built on legitimate rails, and there's going to be provisions in place like who has tokens pre-mined? Who are the investors in the project? Who stands to benefit if the project goes up and suddenly gets dumped overnight? Things like this laptop project from Hunter Biden won't be a thing anymore, where the price of the project has gone down 99% in a matter of days. But don't worry, he's worked on it for six months.