Cardano (ADA) & Fleshing Out Clarity | Cardano Rumor Rundown #829

Added: 2026-05-04

[00:00:19]Well guys, it turns out it is finally time for us to get to the really, really important part of crypto policy. It's not sort of the big handwavy here are all the large thematic things we're going to do. It's time for us to get down to the really small details.

[00:00:38]Those are the ones that are going to matter. It's time to flesh out clarity.

[00:00:55]If you're mainly hoping that more clarity as to crypto regulation will help you flesh out which direction your bags are going in or if you're finding value in these videos, please consider delegating to the Army of Spies DREP address and the Army of Spies stake pool ticker AOS.

[00:01:15]All right, welcome welcome everybody.

[00:01:17]Let's see who's here. Pucky Hawks here.

[00:01:19]It says, "Pin head approves of this flesh."

[00:01:24]Pinhead approves. Very nice. Very nice.

[00:01:28]Hilldog says, "Let's [ __ ] go. Let's [ __ ] go." Hilldog. Omar Wright says, "Greetings. Good evening." Good evening, Omar. Uh, Hillog says, "Hey, Army. What does ADA need to do to capture more market and grow TVL fiat mines and the AM so going good to going to tonight?

[00:01:42]Going night night, but we'll listen tomorrow. Thank you." So I think we need to do um we need to start doing real business on the blockchain. That's actually in my opinion what we need to do. We need to do actual real business on the blockchain.

[00:01:56]And the question is sort of like what real business works on the blockchain? Should we just focus on real business that is enhanced by the blockchain or should we do what it at least to me it was apparent that Satoshi wanted us to do and that's just use crypto as money, right? Like I think it's okay to bring real commerce on the blockchain just to use crypto as the money, right? I think that's totally fine. I think if we were all trading, you know, Cardano or Bitcoin or Knight back and forth instead of dollars, I think that's totally fine. And there are a lot of reasons why you'd want to use stable coins, but I think it would also be fine if we were all transacting in ADA or Knight, you know, or Bitcoin. I think that's fine, too. I think we could do that. Like I' I've done it before.

[00:02:46]I've said many times this channel, I accepted um several different cryptocurrencies in uh sort of little brickandmortar side business I had back in the day. Worked out just fine. um you know there's obviously there are advantages to stable coins if you're running a big business or something like that but um I think that's what we need to do we need to do more actual business on the blockchain and then we should also attack those use cases that are really enhanced by the blockchain so uh the use cases in my in my opinion the ones that are very very enhanced by decentralization so and there are a lot of those too so we need to address sort of all of these things um but that's what we need to Oh.

[00:03:28]Um, oh, Freio says, "Wow, AOS, do not look like what I thought with the visor off. Go find a buffet." A little skinny.

[00:03:37]A little skinny. This is true. Okay, one one second. One moment, guys. One moment.

[00:04:04]Okay, so sorry. I had to run off and eat something real quick. I realized Otis Free was correct. I had to run off and eat something real quick. Uh Otis Free Cho says, "Let's go, AOS fam. Let's go.

[00:04:16]Don't forget the thumbs up." up. Oh, I appreciate that. Monkey G is here. Oh, this is a little One Piece. This is a little One Piece action. I like it. I like it. Yo, thank you for joining, Monk G. Thank you for joining. Um, in fact, I I almost think I I almost Is this um is this uh this this reminds me a bit of J Crypto. I wonder if this is J Crypto right here. I don't think so. I don't think so, but maybe it is. Uh, De Centralm says, "Whoa, I made alive."

[00:04:47]Let's go. Let's go. Let's go. Uh, Fly Trout says, "Good morning, AOS." Good morning. Kimching says, "Is the thing even going to pass?" We're going to find out. The cool part is we're going to find out. Uh, Jordan Toggstad says, "Let's go." Let's go, Jordan. Staking with the OS and hitting it hard in the mines. Nice. Nice. Monkey G says, "I'm here." Okay. Nice.

[00:05:12]Uh Tony Gam says, "Let's [ __ ] go."

[00:05:16]Um carve me a smile says, "Also staking with the OS." Let's go. Let's go. Thank you. Thank you. I appreciate you guys staking very much. Very much appreciate that sincerely. Uh fly says, "Agricultural tracing best use case for knowing what we are eating." Yeah. I mean to me that's one of the ones the sort of the any kind of a provenance use case and um provenence or tracing you know I kind of think of them as being the same largely because you're kind of after the same thing like where's this from where's it been you know what temperature were my squid when they were traversing the Pacific in some boat you know these were there a lot of things I want to know about uh goods I'm eating you uh things I'm consuming, things I'm wearing. There are a lot of things I would love to know and I just don't know when I buy that squid at the store. I have no idea what temperature it's been.

[00:06:08]You know, has it really been in some reefer truck? You know, has it not? What happened? You know, you never know. So, I think there's a lot of things there's a lot of use cases like this we can really do with crypto uh with blockchains really. Miss Bliss is here.

[00:06:23]Hello. Let's go. Let's go. Let's go, Miss Bliss. Thank you for joining. Troll tool, hello. Thank you for joining.

[00:06:30]Monkey G says, "I've been here before."

[00:06:33]Okay. Oh, yeah. No, I I recognize the I recognize the username. Uh Carne Small says, "Thought you disappeared like the 10 scientists for the alien talk for a minute." Are you talking about me? Uh, no. I definitely have not disappeared. I have not disappeared. I've just been doing the lastund and I think this would be like the 121st episode. The last 121st episodes. last hund 121 episodes have been uh live. So, a lot of people I I had somebody hit me up this week and said, "Hey, wanted to see how you're doing. Haven't heard from you in a while." And I was like, "I've made 120 episodes since uh since September." And they were like, "What?" So, I think a lot of people aren't seeing the episodes. Because they're going under the live tab. They just go under the live tab. They don't go into the same tab where people normally find them for people who who would watch them after the fact. Uh, Monkey G says, "When is Ada going to the moon?" When is Ada going to the moon? Monkey G, I do not know. I wish I knew. I do not know. I have no idea. I have no idea.

[00:07:40]Youth promos 68.91 says, "We are here.

[00:07:42]Let's go. Let's go." Japroverse says, "I want to get more BTC, but I feel ADA is far better value right now." Yep. These are the kind of calls we all have to make. We all have to decide. So, let's get to it. Let's talk about Clariac. But first, let's talk to something um something else. Oh, so Monkey G says, "Wow, 120, bro. I've been a fan since you are one of the good ones. Too much misinformation on the other channels." I do my best to talk about real [ __ ] and important [ __ ] and not just cover the silly stuff that's going to get a lot of views. So, there have actually been there have been 829 videos total. Um, there have been like hundred I think this isund I think there have been 121 since I came back and just started doing lives in October. Um, lives are a lot more efficient and it's more fun too because it's more of a discussion and less of a production. So I I like it to be a discussion and not a production or a performance, you know. I prefer discussion. I think it's a healthier paradigm. But um yeah, I try to I try to cover things that are interesting and important or at least just interesting or funny. Sometimes they're not important. Um instead of just like the stuff that's going to get a lot of views because I I could easily cover like I I'll point this out cuz I I was I've been thinking about this this week. So, um, when I first came back in October and I started doing the lives, somebody said something which was definitely true, but I knew I could not abide by.

[00:09:14]Somebody said, "Hey, you should take Cardono out of the title of your videos." And so, most people know Cardono's been in the title of the videos for 829 videos, basically, right?

[00:09:25]I put it in there on purpose just to keep this channel on track, right? This channel is about Cardono. It's not we're not going to suffer drift where all of a sudden it's like, "Oh, we're a general crypto channel. We cover all kinds of [ __ ] now." Cardono is just something, you know, in the background. So, I knew that person was right, though. They said, "You're going to get a lot more views if you take the word Cardono out of the title of your video." And it's not just like shifting sentiment among the YouTube watching populace. The algorithm itself probably punishes me for having the word Cardono in the title because YouTube is responding to it's it's doing certain things and it knows it knows how many people want to watch crypto videos right now. All those kind of things. So I knew that person was right and at the same time I knew I there was absolutely no way I was going to take Cardono out of the title of the videos.

[00:10:24]And um as soon as a person said that, like two other people who've also been watching the videos for a long time, who know the content very well, immediately jumped in and they were like, "Dude, you don't even understand. You don't even understand what this channel is. If you think there's a chance he would take Cardono out of the title of the videos just to get more views, which is true, right? I could easily get a lot more views if I just made this. There are a million different things I could do to get get way more views on this channel.

[00:10:49]I could cover just like, you know, domestic US politics stuff and probably get, you know, easily 10x but maybe 100x more views if I just covered that stuff. if I didn't cover any crypto content at all. You know, I mean, there are million things that could create more views on the channel. But, um, you know, for the same reason that I try not to cover the stupid [ __ ] in crypto. Like, you could do a whole Cardono channel and just cover drama and just like talk [ __ ] about various, you know, founding entities or, you know, personalities involved with the founding entities. You could have just like the Cardono drama channel um probably someday that'll exist like somebody will do the Cardono drama channel um and it would get a lot of views but I want my contribution you know my very humble contribution to Cardono I want it to be something substantial and it needs to either be interesting or you know sometimes even funny or important you know or some kind of intellectual exploration. I wanted to have some cognitive value, right? So, that's why I I appreciate your comment very much because I do try very hard not to make this channel about Fibonaccos where I'm just pushing those dopamine buttons in everybody's brains. That would also create a huge huge increase in viewership. If I just started doing the Fibonacc, doing the chart technical analysis videos, people love to have those dopamine buttons pushed in their brains. I also don't do that because I think that's also nonsense, right? It's not substantial. It's not important.

[00:12:31]It's not um a significant contribution, right? Doing Fibonaccific contribution to Cardono.

[00:12:42]So that's why I don't do it because I'm trying to make a real contribution. Um, a humble one. A humble one, probably insignificant, very small, but I'm trying to make a humble contribution in a significant way. So anyway, sorry, way too long-winded an answer, but I appreciate your comment very much. Okay, let's jump into it, guys. Let's jump into it. Before we hit fleshing out clarity, here's something wildly interesting. When I saw this, this is one of the first things I saw. Yeah. One of the first things I saw this morning, so I didn't notice it last night. So, this post came out yesterday, but late, right?

[00:13:21]So, this is Nikita Beer. If you don't know who Nikita Beer is, if you never watch like the X AI, you know, all hands meetings that are broadcast occasionally on YouTube, you may not know who Nikita Beer is. Nikita Beer is the head of product at X. And you notice there's some other things in his profile there.

[00:13:42]Advisor at Solana venture partner Lightseed ex-founder gas app team exfounder the TBH app. So Nikita Bear has been around but significantly an advisor to Solana and head of product at X. So he kind of you know he knows a thing or two obviously knows a thing or two about crypto and he definitely knows what's going on at X. So when he posts something like this, crypto has had a rough year. Maybe we should launch something to fix. To me, this is like Elon saying, "Oh yeah, one more thing."

[00:14:17]at the end of the big meetings. Oh yeah, one more thing. Very This is very Elon to me. Very understated. Crypto, you've had a rough year. Maybe we should launch something to fix it. What do you guys think that thing is going to be?

[00:14:33]I'm saying it is definitely going to be something in the direction of the integration of crypto on this damn platform. Something we've been talking about for years, ever since I first noticed uh X.com's the very first money services business license application, right? It it kind of surfaced. I wasn't the one who found it, but I noticed it when somebody else found it and posted it. They kind of did it quietly, but of course, word spread because people are very interested in anything Elon's doing. And in this case, I had a feeling the second I saw that, I thought to myself, what is Elon doing here? Is he going to be incorporating, you know, JP Morgan Chase dollar rails? Is it going to be the X.com Tradfi dollar rails website? [ __ ] no. That was not where things were headed. It was going to be the X.com crypto integration thing. I knew immediately what it was going to be and I think everybody else did too. This makes me think we're getting real close, guys. Real close. Crypto's had a rough year. Maybe we should launch something to fix it. This is very interesting. So, Eric Vorhees down here, Crypto OG says, "Must violate or transcend national law to be cool." I don't care if it's cool in that way. I I would be very happy if it's totally compliant, which I think it will be. Elon's got way too much to lose. Look at that. Look at him down here. He's got way too much to lose. Um, we know we know he's been involved in crypto, famously with Doge, but also with Bitcoin. Here's an old post.

[00:16:05]Somebody dug up an old post here. True.

[00:16:07]That is why Bitcoin is based on energy.

[00:16:09]You can issue fake fiat currency and every government in history has done so, but it is impossible to fake energy. You know, we know about Elon and crypto.

[00:16:18]This could be huge, guys. This is the understated way Elon launches [ __ ] I love it. This got me excited. This got me excited. Kind of like this next post.

[00:16:31]So, this is a comment under that post.

[00:16:34]So, I hate to say it, but this is true, guys. So, this little cartoon says, "Insufferable personality competition."

[00:16:40]Then they show a vegan. He's got in his meat as murder shirt. No offense to you vegans out there. I'm not trying to make fun of you guys. But his coach behind him, his corner says, "You got this, champ. Nobody can stand us vegans. This is the insufferable personality competition." So that's like, you know, him saying, "You cannot be defeated. No one could be more insufferable than you." And then they show a crypto guy over here in his McDonald's uniform saying hodddle getting a water break from a looks like middle-aged cyclist with a mustache.

[00:17:11]We're We're definitely the most insufferable. I hate to say it, but we're probably the most insufferable.

[00:17:16]Um, this is a Nikita Beer post, so there's a lot of non-crypto people, so I'm not surprised to see this down here.

[00:17:22]This is probably somebody, you know, either making making fun of himself because he's a crypto person or somebody who just hate like legitimately hates us crypto people because we kind of are this guy. We know it. Nikita Beer knows it, but he's also kind of one of us advisor at Solana. And I love to see this post. This could be something huge.

[00:17:40]This could be huge. Um, okay. Decentral New Mexico says you go into the governance stuff that many don't. Very appreciative for that. Happy to. Happy to. And in fact, I would even cover more. But the problem with the governance stuff is there's like covering what's actually happening and there's a fine line between covering covering what's actually happening in governance and getting into all the drama because it's like you've got this layer of like 20% the actual governance and then the other 80% of what we call governance is actually just [ __ ] drama. Right? So when some when there's something important that I think actually needs to be addressed, um I try to cover the substance of it without covering too much of the drama. Um that would probably get like I said that would get more views, but I try to cover the actual substance of the governance stuff, you know, in like a responsible way as opposed to just covering the drama. Uh Mr. IW Webb CDMS says, "Good evening spies, spies like us. That was a great show." Who was that? Dan Akroyd and Chvy Chase. I remember that being a very fun show as a kid, but it hasn't aged well. I haven't watched it since I was a kid, but I remember everyone being highly amused by that [ __ ] when I was a kid. Omar Wright points out it's a space skeleton. It is. It's a our astronaut is a skeleton because he needs cryptoclarity to be fleshed out.

[00:19:00]Exactly. Um Alexander Melo says, "It sucks to be a crypto vegan. I often can't stand myself." The funny part is, obviously, I I've made it very clear over the years.

[00:19:12]I'm like a I'm I'm a six-year carnivore, so I'm I'm like the opposite. But the funniest part is there are a lot of crypto vegans. Um I there there are a ton of crypto vegans. So, um I'm I'm sorry. I didn't mean to uh I didn't mean for this cartoon to be doubly offensive.

[00:19:28]Sorry, Alexander.

[00:19:30]Sorry about that. What's funny is um I guess it's Alexander Dlo. What's funny is um I was at a party uh this weekend.

[00:19:37]shortly at a party and um I had to come home and do some vibe coding. So I I couldn't even uh I couldn't even fully enjoy the party really because I I had had to do some things. But um I was at a party and there was a vegan across from me who who I didn't know. It was um I knew the vegan's husband, right? The husband of the vegan was, you know, knew somebody that I knew. And uh it was so funny because um the person who was with me uh the the vegan of course started talking about being a vegan. That didn't take too long. And the person next to me knows that I'm like a six-year carnivore. And they were they were like quietly, almost silently chuckling to themselves. Chuckling to themselves because they knew they knew that somebody was going to tell the vegan that I was a six-year carnivore. and the vegan was going to be so disappointed, which in fact did ensue. But then I I told them about something related to veganism, something positive, something positive that I knew would be attractive to a vegan and uh it made the vegan happy again. So it all turned out well, but that that happened this weekend.

[00:20:46]Okay, Eric Williams. Eric Williams says, "Laugh." Denil says, "Hey, the link got deleted." Which link? Which link got deleted? Let me know. Uh, let's see.

[00:20:55]Kevin says, "Could you please check your email address used for night mode website?" Okay, we'll do. Yep, we'll do.

[00:21:01]Okay. Uh, let's move on. Yeah, let me know. Let me know what link you're talking about. Let me know what link you're talking about, Janelle.

[00:21:09]Okay, let's move on here. We're getting closer to the real news. We're getting closer to the real news, guys. So, Justin, Clarity's timeline becoming clearer. That's almost like a little mini pun in of itself. As final details take shape, rewards could be resolved within the next 2 weeks. DeFi is nearly as close. Final alignment may take a few more weeks. Taken together, this points to a potential path to completion by early summer. Regulatory clarity for crypto in the US is moving from uncertainty to near-term reality and markets are beginning to take notice.

[00:21:43]So, I think this is true. It feels like we're getting very close. I was really afraid like I would say a month ago I was really afraid we weren't going to make it before midterms and everything was going to get ruined. I was like very afraid.

[00:21:58]In fact I I I wouldn't have it wouldn't have been healthy for me to talk about what percentages what percentage chance I would have ascribed to us not getting it before midterms. Um now I'm I'm like very I'm much more optimistic now because of what we're seeing. So, not the least of which is this. So, this is the big thing. This is a lot of the fleshing out. This is a lot of the fleshing out that's going on. Um, let's see.

[00:22:29]Denil says, "Has always been the best source of financial news for traders and investors? Billions of dollars are allocated every day based on what people read on timeline." Oh, yeah. X.com.

[00:22:37]Yeah, I agree with that. I agree with that definitely. Um, okay. So, this came out today. This is from the SEC. This is from the SEC staff.

[00:22:48]So this says, "New, as part of project crypto, the division of trading and markets issued a staff statement providing its views on broker dealer registration requirements in connection with certain interfaces used to prepare transactions in crypto asset securities." So okay, let's see. Danil says, "Nikita showing stocks and crypto onx." Oh, that's a good point. Yeah. What happened to that? That's a very good point. That was around for a while and now it's gone.

[00:23:20]Huh. Good, good point. Okay. Good. Good eyes. Good eyes to know. Okay, guys. So, Chairman Atkins put out this little list and it was basically basically like, "Hey, we're not hey crypto projects, we're not going to call you broker dealers if you comply with the following things." And yesterday I pointed out how some of the things they had in that list were going to conflict with the things the DAPs and crypto have to do to also not be money services businesses. and also not be Silk Road. So, this answers the question. This fleshes out those details. What I said yesterday was we would need a bunch of bullet points under what Chair Atkins had listed in order for it to even make sense. So, this staff interpretation, this staff statement does exactly that.

[00:24:20]um 4 hours. He posted a video on how it will look.

[00:24:26]Okay, interesting. I didn't see that. I didn't I didn't see that. Okay, I'll look for somebody. Maybe somebody did a screen cap of that. I'll check that out.

[00:24:33]Thank you for letting me know. Um let's jump to this staff statement. So, the staff of the trading and markets division. So, this is important. This is all about trading and markets. So, Chair Atkins presented that and it was like, "Hey, we're just going to apply this to all DAPs." That's a way you could have interpreted what he put out yesterday.

[00:24:56]But when you see this interpret this uh staff statement coming from the trading and market staff, you understand this is really just about real Defi, not like any kind of broad interpretation of DeFi that doesn't involve trading in markets.

[00:25:11]What they're saying here is all about crypto daps that are actually doing trading and market stuff like hard DeFi, real DeFi, not we tend to just like lately and this has only happened sort of like the last couple years we sort of started calling every DAP in crypto DeFi even if it like only has very vague connections to finance. I guess is because you know crypto implies there are cryptocurrency assets involved and where there are assets people think there's there's finance automatically but what's interesting about this is they're going to go through the same stuff that Cher Atkins did only they're first going to tell you what this applies to and I think that's the really important part and it solves the little dilemma from yesterday little trillemma from yesterday about not being not being a broker dealer not being a money services business and also not being Silk Road. So here we go. So the stuff in this statement, this interpretation from the staff is only going to apply to covered user inter interfaces. So um they're going to give you some circumstances in which this is going to apply. So what is a covered user interface? So they're going to tell you they're going to tell you about some things, some circumstances. They say the covered user interface permits users to customize any default crypto asset security transaction parameters. So we're talking about crypto asset security transaction parameters, right?

[00:26:48]So you're going to see them talk about this a lot. They're going to talk about they're going to talk about asset transactions. They're talking about buying and selling and swapping and lending the actual assets involved here.

[00:27:01]This isn't just like you're in crypto so you automatically fit into this category. This is my humble interpretation of this. This isn't like you're doing something with crypto so you're automatically here. This is really about trading and markets like hard DeFi stuff.

[00:27:16]So they say the covered user interface might provide educational material to users to help users formulate and set their desired transaction parameters. So that could be a thing. Uh the covered user interface does not solicit investors to engage in any specific crypto asset securities transactions.

[00:27:36]So, this is going to be something that a lot of crypto platforms are going to run a foul of because we all know damn well they do this all the time. They solicit investors to engage in specific transactions all the time, right? All the time they're like, "Hey, look at our launchpad. We're launching this. Here's this great new asset." They're totally soliciting investors to engage in a specific transaction there. The covered user interface selects one or more default trading venues. So, here's how you know this doesn't apply to all crypto DAPs. This is just hard DeFi [ __ ] because the user interface has to select some default trading venues. This could be an orderbook deck. It could be a request for quote system. It could be an AMM. It could be a liquidity aggregator.

[00:28:34]So these are all classic these are like the classic types of crypto you know transaction platforms you could be engaged in largely in DeFi we're thinking about AMM dexes right AMM AMM liquidity pools liquidity aggregators and you know famously in Cardano our very first DEX was not an AMM AMM it was an order book right before we had Sunday which was our first AMM deck X. We actually had Mui Swap, which was an order book DEX, which is kind of the opposite of what you'd expect in crypto. So, to the extent that the covered user interface connects or interacts with one or more trading venues or distributed ledger trading systems that is created, offered and/or operated directly or indirectly, but by the covered user interface provider or its affiliates, such affiliation is clearly disclosed to users. So, a lot of the disclosure stuff in here, the current platforms are also going to run a foul of this because what don't they do? What's the big complaint against DeFi right now? They don't give you the disclosure, right? They don't tell you what the [ __ ] going on. They just do it, right? And there's a lot of self-trading.

[00:29:51]Um, so self-deing maybe better put. There's a lot of self-deing like, you know, hey, we're the front end, you know, we're the best place for you to swap, you know, blank cryptocurrency asset. Go ahead, come here. You know, and they don't tell you, oh, you know, we're a liquidity aggregator, but really our default is going to be the decks that we own or the liquidity pool of which we are the main market maker. You don't get any of those kind of disclosures. I mean, sometimes it's just kind of known.

[00:30:25]I'm not saying it's like necessarily even hidden. It's just that they don't give you the disclosure. Like if you're a random person who just comes into crypto and DeFi on day one, you don't know what the hell is going on. You don't know that, you know, this DAX, the owners of this DAX are the same people putting up most of the liquidity in the liquidity pool you end up trading in. These are all disclosures you don't actually have. So they say um okay such affiliation must be clearly disclosed to users and the covered user interface must connect or interact with any such trading venue or distributed ledger trading system on the same terms and conditions as any other interface that is affiliated with or not provided by the covered user interface provider.

[00:31:23]So to the extent that the covered user interface displays only one potential execution route to a user, the covered user interface provides the user the ability to see additional routes if applicable. This is another thing a lot of platforms are going to run a foul of that to the extent that more than one potential uh let's see the covered user interface does not provide commentary on any potential execution routes displayed to a user such as indicating that an execution pathway offers the offers the best price offers the best price or is the most reliable. So again, very easy for a platform to run a foul at this for purposes of preparing users trading instructions and displaying market data related to potential execution routes. The covered user interface only uses software that operates based on predisclosed and objective parameters that are independently verifiable.

[00:32:28]Okay. The Okay. Okay. For purpose of preparing users trading instructions and displaying market data, the covered user interface only uses software that operates based on predisclosed and objective parameters that are independently verifiable. We'll see how they do on that one. Aside from the functions described in the statement, the covered user interface does not exercise any control or or discretion over or engage in any decision-making regarding the market information provided or securities transactions.

[00:32:56]So the interface must limit its compensation associated with the covered user interface to a fixed charge to the user which may be charged per crypto asset securities transaction or as a flat fee. The covered user interface provider establishes policies, procedures and controls that are reasonably ded to evaluate, onboard and audit the trading venues. Uh evaluate, determine and periodically reassess any default crypto asset security transaction parameters. Okay, that's all kind of procedural.

[00:33:27]Um, okay. Prominently disclose to the user and promptly update as necessary all material facts related to the interface's role relating to its creation off offering or andor operation of a covered user interface, including a prominent disclaimer stating the covered user interface provider is not registered with or regulated by the SEC.

[00:33:49]Okay. The covered user interface providers fees associated with the use of the covered user interface. Uh material conflicts of interest associated with the crypto asset securities transaction. That one they're going to run a foul of big time. There are all kinds of conflicts of interest related to these dexes and all the other platforms and some of the assets being traded and those are definitely not being disclosed in a lot of cases. Um okay. And any also any conflict of interest related to use of users trading information by the covered user interface provider or its affiliates.

[00:34:30]What is that going to apply to? Do you guys know what that's going to apply to?

[00:34:34]So use of users trading information by the the interface or its affiliates. So would would a minor would a minor who does MEV like uh or any kind of um any kind of a node operator of any type who does MEV?

[00:34:56]Would they be an could they be an affiliate of the interface? Sure. Could they have could they get a user's trading information? Yes. How about and here's a big one. How about batchers?

[00:35:10]Are batchers gonna be affiliated with the interface? Yes.

[00:35:15]So, we're we're going to run into some issues here. Batchers, think about batchers. Are batchers affiliated with the interface? In a lot of cases, it seems like there's some affiliation there.

[00:35:27]Um any limitation associated with the use of the covered user interface such as limitations, permissions or restrictions, the parameters used in the interfaces software for purposes of preparing users trading instructions.

[00:35:40]The covered user interface providers current cyber security policies. That's going to be tough for the for the robbery forest. The interface policies to protect user trading information including from here we go guys. Here we go. Check this out. the interfaces policies to protect any trading information including from potential fraud or manipulation in for example involving MEV. They did it right here. I told I I said this recently. Someday we would call MEV fraud. Some judge would decide that MEV is fraud. It didn't even take that long.

[00:36:21]It didn't even take that long. The SEC staff right here says including fraud and then they say in a parenthetical they say for example involving MEV strategies. Here you go. The feds are already on this guys. So for these blockchains where MEV these blockchains that have been telling us MEV is a feature not a bug. The SEC is saying MEV may be fraud not a feature. So, this is a pretty big one for those blockchains where MEV is sort of built in and unavoidable. Of course, they're going to they're going to argue that the SEC staff is not saying that all MEV is fraud. They're going to argue that like there could be fraud involving MEV, but not all MEV is fraud. But this is a good first step. This is the first time I've seen a federal agency link fraud and MEV. But let me tell you guys, this is not going to be the last time you're going to see this. our batchers. We're gonna have trouble with batchers fitting, you know, going through this um going through this filter, but MEV, Mev is obviously in the crosshairs of the Fed all of the Feds already. So, good luck. Good luck, EVM World. Uh number eight, the covered user interfaces integration with trading venues or distributed ledger trading systems, including the names of such.

[00:37:47]So, they have to disclose this. Okay, no surprise there. Um, any default crypto asset security transaction parameters including how they determine associate risks and conflicts of interests and their policies to avoid any conflict of interest. Okay.

[00:38:03]So, what we know from this, my humble interpretation is batchers are the dexes that have batchers are going to have to think about this. And the blockchains where MEB is a big deal, are really going to have to think about this because we're seeing this is the first time we're seeing a federal agency in such a high-profile way at least linking fraud with MEV. Mev with fraud.

[00:38:27]I'm glad to see it.

[00:38:30]Okay, here's what it does not extend to.

[00:38:33]Except as outlined above, this statement does not extend to a covered user interface provider that engages in or holds itself out as providing any of the following services with respect to securities, including crypto asset securities. Negotiating terms for any transaction. So, can't do that. Can't negotiate terms for any transaction.

[00:38:56]can't solicit specific crypto transactions. So, you can't do the launchpad thing and try to direct try to solicit investors for, you know, your special security in your Launchpad that you get some big piece of if you're the platform. You can't give investment recommendations or provide advice. What are the Fibonacci guys doing all the time? They're giving you investment recommendations and providing advice and they're often also trying to they're often also trying to uh push certain platforms to you. So even they're they might run into some trouble here. They're not going to be they're not going to call a YouTube channel a covered user interface provider. But the fact that the SEC is talking about these two things together, you know, down the road that'll filter down to some of the Fibonacci upon them once we have a little clarity because some of the stuff that's going on there, you can't do, you know, with regular stocks. You can't just um there are certain rules and so far in crypto that hasn't been a thing.

[00:40:10]It's going to be a thing going forward.

[00:40:12]Um, I'm not saying what those rules are going to end up being. I'm just saying rules would be applied to those guys.

[00:40:18]Arranging for financing.

[00:40:21]So, you can't arrange for financing in a crypto asset transaction. So, you know, I mean, they're thinking a lot. they're thinking about other things, but um you know, some people will read this and think about all of our all of our lending platforms and the way they fit into other types of dexes, the way they're kind of composable with other types of DeFi platforms. So, processing trade documentation, conducting independent asset valuations. Okay, we that that's done a little bit with NFTTS. That's not what they're thinking of here, though. holding, having access to, handling, managing, or possessing user funds, securities, or stable coins.

[00:41:01]So, this is a huge problem, the custody thing. Atkins pointed this out in his post. They don't want you to they don't want you to take custody of funds. They want this to be self-custody. This is going to be a problem for certain platforms, right?

[00:41:19]And like we talked about yesterday, there's a difference between the smart contract and the interface, the front end, right?

[00:41:30]And this is all about covered user interface providers. So front-end providers, a little bit different, but executing or settling transactions, taking or routing orders.

[00:41:42]Routing orders. This is a bit of a problem, guys. the routing taking or routing orders thing. How they get around how they get around all of these things, I don't know. This is going to be pretty big transformation for a lot of DeFi platforms. A lot of DeFi platforms are going to read all of this.

[00:42:03]They're going to go through all this.

[00:42:04]Like the Cardano dexes that have batchers are going to read this and be freaked out. They're going to be making some phone calls. the um the dudes in the EVM world who are all about Mev, they're going to be pretty freaked out about this, right? The DeFi platforms that are basically just specializing in taking and routing orders and in holding, having access to, handling, managing, or possessing user funds, they're going to be freaking out about this. Just this alone may people shy away from TVL, right?

[00:42:41]They're going to need some pretty strong language from the SEC saying that, you know, they're going to stay away from, you know, I mean, you could argue that this this this memo here is the language letting them know that, you know, maybe smart contracts are okay, but, you know, I mean, TVL, just that metric and the way people think about it sort of cuts against this. If you say our DAP has a TVL of blank, it makes it sound like you're doing this this thing that's forbidden. So, I wouldn't even be surprised if this makes people shy away from TVL as the metric because it makes it sound like your DAP, like your front end, obviously this only applies to front ends, but it makes it sound like your front end is doing this. So, I'd be surprised if people uh shy want to if people want to use TVL a little bit less in the future because it makes it sound like you're doing this.

[00:43:43]Okay.

[00:43:45]Denil says, "Okay, one more time." Ne Oh, are you trying to are you trying to post a link? There's um the anti-PAM filters, which we have to have because of all the scammers. Um they don't allow links. So maybe if you're trying to post a link, maybe that would explain your posts. Um, but sorry, sorry about that.

[00:44:03]You know, obviously I would let if it was up to I if it wasn't just a general filter, obviously I would let you post links, but it's not. It's the anti-PAM stuff. Omar says, "Thumbs up." The far says, "As let's go. Thank you for joining the far. Appreciate you being here." So this is all going to be a problem. So let's talk. Obviously, when I when I mentioned batchers in Cardano, everybody was probably like, "Yikes, because we know um all of our automated market maker dexes use batchers." And this is, you know, one of the first things I thought of when I saw all this yesterday. One of the first things I thought of was batchers in Cardano. also thought about Mev, but Gravity Decks, which has sort of marketed itself as, you know, as the deck decks that's going to be the first decks in the Cardono world without batchers. Uh they had this to say. I wasn't surprised. I actually went over to see what uh Gravity was up to today because I I wasn't sure if they had seen this and sure enough, they already had a post on it. So, Gravity says, "Would have never thought the SEC would become Gravity's own marketing agency. No middleman allowed on Cardono or in the US. Grock has read through the docks and it turns out the discretionary decisions are a no no as off-chain order routing would be unlawful under project crypto."

[00:45:26]So, I'm not co-signing Grock's interpretation here, but here's what Grock had to say. Why batchers create concern? Cardono DAPs, especially dexes, and then they name a few Dexes and many smaller D5 protocols use off-chain batchers, often called scoopers or batcher bots, because a single UTXO can only be consumed once per transaction.

[00:45:45]Users don't submit a direct swap transaction. Instead, they lock funds and intent via a DATM into an escrow script address on chain. Independent or project run. So affiliated guys, affiliated from what we just read, independent or affiliated batcher bots.

[00:46:04]Scan for these requests, select which orders to include, match, sequence them, build one big batch transaction, execute via the Plutous validator script, and submit it. This is efficient, lower fees, handles contention. So this is all this handles the famous contention problem we talked about often on this channel back in the day. This is efficient but the batcher makes real time discretionary decisions. Which orders get filled first? order sequency which we don't talk about a lot does create MEV exposure right you can because they are they can order transactions there can be MEV even for us it's not as big a problem because MEV is basically built into the uh EVM world but it can happen potential censorship and execution timing even if funds stay non-custodial locked in script validated onchain the batcherbot is open source And theoretically, I don't know what the rest of what what Grock said here, but batchers.

[00:47:06]Yeah, batchers, the the AMM Dexes and Cardono running batchers are going to be asking some questions after this came out. They're going to be asking some questions. I'll just put it that way. They're going to be thinking about some things. So, what else is going on in the next 30 days? Eleanor Terret says, "New Fed chair contend contender Kevin W." You guys remember he's coming on board next month. The Owl will be no more. The Owl will be leaving the Fed chair spot. And Kevin Walsh is looking to be the guy. So, Fed chair condender Kevin W's financial disclosure shows early stage investments held through an employment linked vehicle that spans a wide range of tech, including some crypto infrastructure. So the names include compound which is defy lending, optimism and blast, ethereum l2s and salana along with trading infrastructure and crypto investment firms as well as investments in AI biotech and other platforms. The positions appear small, illquid and generated no reportable income pointing to indirect venture style exposure rather than direct liquid holdings. Still likely one of the more cryptoheavy disclosures we've seen from would be fed share. Is it fantastic that the probable new Fed chair is invested in crypto? I think it is. I would change up his investments, right? Because I am not a an Ethereum guy or a Salana guy, but glad to see Kevin W is in crypto and he's going to be here in just about a month.

[00:48:42]So, on to onto a little IR news, guys.

[00:48:45]Onto a little IR news. So, I'm not going to go through this whole post because I don't want to bore people to death, but um over 20 years ago, Huin Tao in China warned China about this problem that he called the Malaa dilemma. So, we've talked about the straight of Hormuz. So, China unfortunately has to deal with both the straight of Hormuz, which is currently a hot hot point, and the straight of Malaa, right? Okay, we've talked about the street of Malaa many times this channel. Singapore is like right here. This is Indonesia. This is Malaysia. The ships, they all come out of the straight of Hormuz. They come out of the the Arabian Sea. They go through the Indian Ocean. They get up in here.

[00:49:30]And they have to go through the straight of Malaa to get to all of the ports in China. Why do they have to go through here? Because if they don't, they have to go like clear down here, over here, over here, somewhere over here. This is definitely the big uh blue blue water sort of uh sort of shipping channel. So, China is sort of in the worst possible spot. They've got this giant population.

[00:49:55]They want to consume a lot of oil. They don't have oil. They don't have much oil. They have to get it all out of the Persian Gulf, which means going through those two straits that pretty much other people will always control. This is a big problem. This is a big problem for China and recently uh the US Department of War has been over in Indonesia and you can bet they're thinking about the Strait of Mala as they do things like what did they call it? Um they called it the they just signed they just signed okay a new major defense cooperation partnership with the US Department of War. You can imagine how nervous this makes China. Trump is over there controlling the straight of Hormuz and he's signing a he's signing a defense cooperation partnership, a major one with Indonesia, which is a giant section of one side of the street of Mala here. So, that's going on.

[00:51:06]Uh JD Vance, this little uh sound bite from JD Vance introduced something else that was kind of hinted at earlier. He pointed out that the Iranian delegation in Pakistan lacked authority to finalize a deal and needed approval from higher leadership. He says, "This is ultimately why we left Pakistan because what we figured out is that they were unable. I think the team that was there was unable to cut a deal and they had to go back to Tehran either from the Supreme Leader or somebody else and actually get approval to the turn. Again, the Supreme Leader currently is supposed to be Moshaba um Ayatollah Comm's son Moshaba uh Comedy and it's unclear whether he is conscious, in a coma, badly burned. uh the reports maybe he lost a leg um you know hilarious reports about his sexual orientation all kinds of things going on and nobody's heard from him. So a lot of people believe he may actually be in a coma and constantly the uh Iranian regime is you know reporting no he's fine he's just not giving any speeches that kind of thing. Um, Van said, "So again, where we have whether we have further conversations, whether we ultimately get a deal, I really think the ball is in the Iranian court because we put a lot on the table. We actually made very clear what our red lines were.

[00:52:28]We also made clear that we actually would be very happy. The president has said he'd be very happy if Iran was treated like a normal country. That would certainly be a good outcome. I think for the people of Iran though, they need a different regime to be in charge."

[00:52:42]So, here's another another post. Iran stays silent as US blockade begins. I was taken aback by this sort of anchor reporting for Fox News. Right. Uh I can tell I'm getting old because this dude looks so young and he's wearing a t-shirt back in the day. This I like it. I actually like it cuz I'm a very laid-back guy. I'm a very laid laid-back guy. So, I actually like it. But it's so weird. I'm like, I've gotten to that age where the reporters on Fox News look like they're 12 years old and they wear t-shirts and it's like very different for me. So, u I I like that we're entering this new era, but this dude looks young as hell. President Trump warned that any Iranian vessels approaching the US naval blockade would be immediately eliminated. So far, no confirmed clash of the sea, no Iranian attempt to challenge the blockade.

[00:53:30]Maritime traffic around Iranian ports has sharply dropped. The blockade launched after failed negotiations.

[00:53:36]Trump me Trump's message was clear.

[00:53:38]Approach the blockade and face force for now. Iran is not testing the blockade.

[00:53:42]That's great news. I think it's great news. Um because we don't want clashes.

[00:53:46]But then again, we already sunk all of their ships, all their large ships. They don't really have a ship that could challenge any of our ships. Um that's the that's that same post right there.

[00:53:56]We already covered that one.

[00:53:59]So, here is some of the marine I believe this is the marinetra.com uh sort of charting of what's going on.

[00:54:10]This poster, who is obviously from the uh Arabian side of the Gulf, says, "Seeing Dubai and UAE ports jammed with tankers and ships smoothly crossing the street of Hormuz, while Iran Iran, the Iranian regime's ports are totally dead, zero movement. Man, that just warms the soul and makes you grin like an idiot.

[00:54:33]Who's the stronger one now? Who's the stronger one now?" And it's true. You see a lot of ships both on this is the UAE side over here. Um, uh, this is Oman right here. This is UAE. That little strip right there is Oman. But a lot of activity on the UAE, the UAE, uh, side. And not so much, not so much over here on the Iranian side.

[00:55:11]So, J Marie is here. Yo, I'm late. Let's go.

[00:55:17]Let's go. Nico's here. Hello. Omar Wright says, "The owl may no longer be chair." I heard he was going to stay on the board, though. That's what I hear as well. That's what I hear as well. Um, Omar Wright says, "Mala won't become another choke point if we end the Hormuz blockade." Um, yeah. I mean, at some point in the future, I mean, on a long enough timeline, I'm sure it will, but who knows? No, I do not know. I don't watch any TV. The only uh network TV stuff I even see is on X. So, I I don't even honestly, if you sat me down in front of my TV right now, I don't even know if I could find network television, including Fox News. I don't even know if I would be like capable of finding a news broadcast on my TV because the TV is pretty much always just like chcasting stuff from my laptop, which is the same stuff I show you guys here. So, Subzero's here. Hey, hey, Subzero.

[00:56:12]Thanks for joining. Good to see you.

[00:56:15]So, um this this post is purporting to be a rundown of what's happening to the movement of oil globally. So this says, "Global oil dynamics are shifting fast.

[00:56:27]The US produced 13.58 million barrels per day in 2025, about 16% of global supply, and typically exports 4 million barrels per day. It's kind of amazing. I mean, one of the things that amazes me on almost a daily basis, the last several years, is that the US is now a net exporter of oil. It's crazy because it used to be so much more a pressing concern uh because we were not an ex net exporter of oil. The fact that we are is actually a huge security buffer. So now with the ran blocking the straight of hormos, US exports are surging 4.9. So they're saying they've gone from 4 million barrels per day to 4.9 million barrels per day. That's the amount of exports projected in May. 5.2 million barrels per day. an all-time record. 28 super tankers booked versus a normal uh roughly five. Asian markets once reliant on hormuz are pivoting to American crude. They got to pivot somewhere because yeah, I know the oil problems in Asia are particularly um sharp right now. In a twist of geopolitics, the disruption of one of the world's most critical choke points has turned into a historic windfall for US energy exports.

[00:57:38]Well, we'll see how long that lasts, you know, and what that actually means long term. But something kind of interesting.

[00:57:44]And here is Trump being very optimistic.

[00:57:47]He was not very optimistic or it felt like he shouldn't have been only, you know, about a week ago. But this week, totally different. Uh he says, "I had to divert because if I didn't do that right now, you would have Iran with a nuclear weapon." Divert is an odd verb to use right there. I don't know if I would call anything he did divert. I had to divert. You would have Iran with a nuclear weapon. If they had a nuclear weapon, you would be calling everybody over there, sir. And you don't want to do that. Yeah. I think it's a pretty good case. You do not want the current Iranian regime that butchers its citizens to have a nuke because they will butcher their own citizens that way. Like, God knows what they'd be willing to do with a nuclear weapon.

[00:58:28]So, the interviewer, who I think is Maria Bartomo, says, "Well, you keep saying, is this war? You keep saying that. Is this war over?" Trump says, "I think it's close to over." Yeah, I mean I view it as very close to over. You know what? If I pulled up stakes right now, it would take them 20 years to rebuild that country. I think that might be an overestimation. And we're not fish finished. We'll see what happens. I think they want to make a deal very badly. And one of the things all along um one of the things all along that people have been predicting was that this conflict would sort of end and then the Islamic regime in Thran, if it were going to collapse, it would actually collapse several months later, right? Because you could imagine if this conflict sort of ended, if it diminished without some kind of a really good peace treaty that had some economic benefit for the regime in Thran, you can imagine if we just kept the sanctions on and you know, like if if the conflict didn't really end, but we just kept up this blockade, right?

[00:59:37]if we just kept this blockade up, um the amount of oil money flowing into Iran is going to be highly diminished.

[00:59:47]And people would start charting out, you know, a timeline over the course of, you know, probably months. Um I don't know how many months, maybe four, maybe 18, maybe 24, I don't know how many, but people there would be people out there charting a timeline in terms of months.

[01:00:05]um after which the the regime would have to collapse, right? Because people wouldn't be able to function. The uh economy would be too crushed. I mean, the the economy has been crippled pretty much ever since 79 because everybody hates the regime in Thran, but um with a full blockade of all their ports, this is this would be this would be crushing to the economy. So Omar says, "I think I have forgotten how to operate a regular TV. Also, I pretty much just hook my stream my laptop to it and everything happens on my laptop or my phone. That's pretty much the only happens with the TV in my case these days. So yeah, if you ask me to like find the local news channel on the TV, I don't even know if my TV is capable of it. I I think I think maybe it is, but I wouldn't even know how to do it." So anyways, I think that is all the news for today. This is a big deal guys. What this means for batchers is a big deal.

[01:01:14]What this means for MEV and this connection between fraud and MEV that I've been proposing for years.

[01:01:21]This connection this is huge. All of these all of these uh limitations about custody and executing transactions, settling transactions, taking or routing orders, those are all huge as well. Um all these things that you have to do um you have to permit users to do this, you have to give users this disclosure like our current crypto platforms, they violate these things in so many ways, right? This is going to be a scramble.

[01:01:55]There's going to be like a cottage industry of attorneys like teaching their clients how to understand what they need to do. Um, and the the DeFi platform clients are not going to be happy about the changes. They're not going to be happy at all about. So, this is sort of like the list of all the things they have to do. This is the list of all the things they have to do. And this is the list of things they can't do. And a lot of these platforms, very few of the platforms are doing all the things the SEC is requiring them to do up here. And a lot of them are doing the things they're not allowed to do down here. So you'll you saw discussions today between crypto attorneys talking about which was worse, the dos, the list of dos or the lists of don'ts. So they're all pretty difficult for the DeFi platforms. This is just a reckoning though. This was always coming like this Mev [ __ ] these sandwich attacks that reckoning's been coming from a for a long time. That's been coming for a long time. And you know I mean if that was happening in Tradfi in some cases I wouldn't be shocked to see you know people going to jail for some of the stuff that's been done um with Mev.

[01:03:06]But you know it's it's going to be a big change. There's going to be a big change in crypto. I think this is all just part of the fleshing out of clarity. Right now, crypto is sort of like this spaceman skeleton, right? It's not quite human, you know? It's not quite a normal part of the economy. It's not quite fleshed out. It's just bones. It's just bones. It's not the fleshed out version of what it will be one day. And even worse, it's sort of an alien that's landed on Earth. An alien that landed on Earth in 2009. Brought down. brought down from space by Satoshi Nakamoto.

[01:03:43]This is kind of what crypto is today.

[01:03:45]But I'm hoping the Clarity Act will be the fleshing out the fleshing out of crypto become a whole person instead of just a skeleton in a in an astronaut's helmet. But I hope everybody is having a great week. I'm going to try to I made try to make this one quick so I could get back to the night mode coding.

[01:04:06]Claude and I were very busy all day today and I'm hoping we get to do some more things over the next few hours. But I hope everybody had a great start to their week. I hope you're looking forward to a great rest of your week and I will talk to you soon.