Warren Kills the Clarity Act as Bitcoin Drops Under $75K!

Nico Moran (0:00)

So, Elizabeth Warren, the woman who looks at your checking account like the way a cat looks at a laser pointer, just torpedoed the single most important piece of crypto legislation in American history, allegedly. And within 20 minutes, Bitcoin fell off a cliff to prices not seen since like last week, 80 grand to under 75k, a dump for ants. And right now, if you turn on the television, the bald people on CNBC are standing over the body doing the sad face. Here's the central question, and I need you to sit with it. Did Elizabeth Warren and her minions in the Senate just kill Bitcoin? Or did they just prove on live TV, C-SPAN for the entire world exactly why Bitcoin exists in the first place? Welcome back and buckle up because by the end of today's show, you'll understand what actually died in the Senate yesterday, why the market puked, and why this is possibly the most bullish thing that could have happened. We got a lot to get to.

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SPEAKER_2 (1:15)

Why are we putting provisions in place to blow up protections on the stock market because a handful of crypto bros want it? This bill would give banks a green light to use Americans' banking deposits to engage in a brand new list of risky crypto activities. Lending against crypto is collateral, buying crypto directly, trading crypto derivatives, operating blockchain nodes, selling crypto software. The list goes on and on. Think about how the price of crypto shot up and down and up and down in just the last couple of years alone. And then imagine what happens when the biggest banks in America use the money in your savings account to load up on that kind of crypto. The bill also blocks states and tribal nations from enforcing their own laws on the books to protect their citizens from getting scammed. The president of the Indian Gaming Association calls this bill, quote, the greatest threat to tribal sovereignty in a generation.

This is not what the American people want. They want Congress to do something about the affordability crisis. They want an end to Trump's war in Iran. They want their elected leaders to step up and regulate AI. According to a survey by crypto news outlet CoinDesk, just 1% of respondents rank crypto as their top concern. Another poll found that if there's anything that voters want to do on crypto, it's to put in place meaningful anti-fraud and anti-corruption measures. That's the kind of thing this bill glaringly fails to do.

So you've got to ask yourselves, why are we here? We need crypto regulation, yes, we do. But we do not need a crypto bill written by the crypto industry to benefit only the most extreme voices in the crypto industry and at the expense of our national security, our economic stability, and to help the most corrupt president in the history of the United States make himself even richer.

I urge my Republican colleagues to come to the table, negotiate a real bipartisan crypto bill. But until then, I urge my colleagues to vote no.

Nico Moran (4:05)

Thanks, Liz. Yesterday afternoon, the Senate held a cloture vote on the Clarity Act. Cloture, fancy Washington word for can we please stop talking about it and actually vote on the thing. To advance, they needed 60 votes. They got 49, 49 to 50 Let me translate that because the number tells you everything. Zero. Democrats voted to advance it. Zero. And four Republicans crossed the aisle to help kill it. So the bill that was supposed to give crypto its legal rulebook in America died 11 votes short in broad daylight. Possibly with your congressman's fingerprints all over the metaphorical murder weapon. And here's the part that's so perfectly Washington, it should be framed in a museum. Senator Tom Tillis voted yes, then switched to no on purpose.

Why? So he'd be on the prevailing side, which under Senate rules, lets him file a motion to reconsider later. So he voted against the thing he supports so he can bring back the thing he supports. If it's confusing, well, this is the system, folks, the fiat system. This is the machine you're trusting with your money, a room full of people who couldn't agree on lunch playing four-dimensional procedural chess with legislation that decides whether an entire industry is legal. Now why did Warren and the Democrats knife it? Other than the possibility that their ethos is incompatible with sound money. That's for another time. The official story is consumer protection. The real story, control. A clear rule book means crypto grows outside of their sandbox. And a system that's been running on dilution since 1971 does not under any circumstance want a competitor with rules it can't rewrite. Okay, now back to the carnage, because the second that vote failed, the market did this.