U.S. Debt, Data Centers in the Midterms, & Coinbase CEO 8/20/26

**SPEAKER_1** (0:00)
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**SPEAKER_1** (0:57)
Bring in show music, please.

**Katie Kramer** (1:01)
Hi, I'm CNBC producer Katie Kramer, today on Squawk Pod.
A White House summit on crypto with the industry's regulatory future still a bit limbo. Coinbase CEO Brian Armstrong was there and for investors, he's optimistic.

**Brian Armstrong** (1:16)
October, November, December, these tend to be good months for Bitcoin. So I think there's a good chance we're on the cusp of the next bull market for spot trading in crypto.

**Katie Kramer** (1:25)
Then the data center election. Pollster Frank Luntz on the surprising political issue he says can be understood by the wisdom of Coolhand Luke.

**Frank Luntz** (1:34)
What we have here is a failure to communicate. People who want to build these data centers are not explaining how the populations will benefit.

**Katie Kramer** (1:44)
Plus, the rest of today's news, the Fed's family fight, Megxit no more, and Treasury Secretary Scott Bessent's surprising bond buyback.

**Andrew Ross Sorkin** (1:52)
Some people who think he's Alexander Hamilton and this is genius. Other people who thinks that this is ruinous.

**Katie Kramer** (2:00)
It's Thursday, August 20th. Squawk Pod begins right now.

**SPEAKER_7** (2:04)
Stand under by in three, two, one, cue Andrew.

**Andrew Ross Sorkin** (2:10)
You're watching Squawk Box right here on CNBC. I'm Andrew Ross Sorkin hanging out with Kelly Evans today. Becky and Joe are off.
A lot going on. So much going on. We got to get into all of it.

**Kelly Evans** (2:20)
President Trump announcing he's ramping up economic pressure on Iran. In a truth social post, the president called the move an economic D-Day, and in his words, quote, the most crushing economic operation ever taken against any country. He said, I am also announcing that any country that allows its financial institutions, businesses, airports or government entities to provide any type of lifeline to Iran will itself face tremendous economic consequences. Now, Iran's foreign minister rejected the president's threat, calling it a diversion from America's own mounting debt problem and rising interest costs. And the US military has reportedly set up a shipping lane along the coast of Oman and is helping guide oil tankers into and out of the Persian Gulf through the Strait of Hormuz. An Axios report says in recent weeks, 15 to 20 tankers have entered and exited the Strait each night, bringing about 10 to 20 million barrels of crude oil to the market daily, if you've been wondering, as many of us have, why the oil prices so well behaved during this time. According to the Axios report, the military has been helping the ships enter the Strait in one big line to pick up oil and exit in another big line.
Prior to the Iran War, remember, about 20% of the world's daily oil supply moved through the Strait of Hormuz, Andrew.

**Andrew Ross Sorkin** (3:37)
It's pretty crazy. Yeah. We are at a pretty crazy time.

**Kelly Evans** (3:40)
But that's significant. I mean, that much oil on the market is a big deal.

**Andrew Ross Sorkin** (3:46)
And then there's this. We got to talk about this because this is the story. US government debt climbing above $40 trillion, that's according to the Treasury Department. Meanwhile, years of escalating budget deficits, as you know, juiced by government stimulus during COVID, have caused ever more government red ink. Ten years ago, public debt was about half of what it is now. US finances are $1.8 trillion in the hole so far this year.
And then, of course, there is the Bessent move about what to do about our debt. And there's so many people who seem to have so many views. Some people who think he's Alexander Hamilton and this is genius. Other people who think this is ruinous.
And I actually am not sure I have come up with a view yet.